• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • HOME
  • RECOMMENDED BOOKS
  • FREE TOOLS
  • CONTACT US
  • ABOUT

The Fortunate Investor

Investing, Business & Personal Finance For Wealth Builders

  • Save Money
  • Invest Your Money
  • Get Out of Debt
  • Making Money Online
  • Family & Money
  • Taxes
  • Business
  • Retirement
    • Retirement Calculator
Home » The Long Haul: Understanding The Financial Components Of A Trucking Company

The Long Haul: Understanding The Financial Components Of A Trucking Company

November 22, 2019 By The Saving Gal | This article may contain affiliate links. For more information visit our Disclosure

Tweet
Share
Pin
Share
Share

The Long Haul Understanding The Financial Components Of A Trucking CompanyRunning any trucking business logistics company means that a lot of your budget will go on the transportation, and while this is a major investment to ensure that the business thrives, there are numerous other components to running an effective transportation business with a shrewd financial eye. But, what are these, and how can you ensure that you run a business of this manner effectively?

The Freight Expenses

While you can acquire truck finance to help you purchase trucks, the three main elements of freight expenses consist of line haul costs, fuel costs, and accessory costs. Line haul consists of the transportation of the items and delivering them to the customer; the fuel cost is actually the second-largest expense after the line haul; the accessory costs can be applied to a service that’s not included in either the line haul or fuel surcharge. As these charges can provide a major expense to any haulage company, it’s important that they are managed and negotiated regularly. A lot of these services change, and a lot of haulage suppliers can get charged for not managing the components or undergoing poor practices like not providing appropriate appointment times.

Managing Cash Flow

Cash flow is about negotiating the payment terms. There are going to be carriers that will offer incentives to ensure that payment is on time. It’s important that a shipper assesses whether the financial positives of paying on time will benefit the business or impact the cash flow negatively. As some carriers will accept longer payment intervals, managing the cash flow becomes easier. But this means you’ve still got to keep a shrewd eye on the process.

Being Careful Of Overspending

Being Careful Of Overspending

It’s so easy to do, especially with a vast operation like managing freights. There are so many individual components that it’s crucial you keep your eye on the big picture. There are many high claims expenses or cubing charges that can belie substandard loading processes or poor packaging. If there are too many carriers being used, this will result in higher costs over time and insufficient leverage. We have to remember the overspending is all about managing our expenses on a regular basis but also having processes and KPIs in place so the objectives are maintained. Part of it can be to do with having a proper filing system, which can prove troublesome, especially for those businesses that haven’t updated to a more digital approach. Conversely, using digital practices can be troublesome while drivers are on route due to a lack of internet. It’s crucial to assess the components as you go, and evaluate whether they are beneficial right now or not.

Haulage is a significant portion of the supply chain costs for many distributors. Ensuring you have the right processes in place in conjunction with the equipment is vital, but it’s also about having an eye on overspending and managing cash flow adequately. A supply chain comprises of numerous sections, meaning that any entrepreneur looking to set up a logistics haulage company needs a keen eye for detail.

  • About
  • Latest Posts
The Saving Gal
The Saving Gal
The Saving Gal
Latest posts by The Saving Gal (see all)
  • Five Reasons Gold Bars Are A Wise Investment - March 22, 2022
  • How to Take a Holistic Approach to Employee Productivity - February 21, 2022
  • Business Theft: It Can Happen To You! 7 Ways To Protect Your Business - February 14, 2022

Primary Sidebar

Popular Articles

How To Choose The Right Manufacturing Company

How To Choose The Right Manufacturing Company

Having a modern, open and wide-ranging overview of the manufacturing industry is extremely important … Read More about How To Choose The Right Manufacturing Company

Is Productivity An Issue In Your Business Lets Sort That Out

Is Productivity An Issue In Your Business? Let’s Sort That Out

Productivity is one of the things that you should always be looking at when it comes to your … Read More about Is Productivity An Issue In Your Business? Let’s Sort That Out

Key Reasons Real Estate Is A Great Investment

Key Reasons Real Estate Is A Great Investment

Diversification of your portfolio is something that all investors will come across in their … Read More about Key Reasons Real Estate Is A Great Investment

What Happens To Credit Card Debts After A Divorce

What Happens To Credit Card Debts After A Divorce?

Credit cards are a practical tool when it comes to managing your finances and spreading the cost of … Read More about What Happens To Credit Card Debts After A Divorce?

Reducing The Cost Of Trucking In 3 Simple Steps

Reducing The Cost Of Trucking In 3 Simple Steps

The amount of cash that you have to splash on your trucking career can make the journey less … Read More about Reducing The Cost Of Trucking In 3 Simple Steps

Footer

TOPICS

SAVE MONEY
INVEST MONEY
REDUCE DEBT
MAKE MONEY
FAMILY & MONEY
TAXES
START A BUSINESS
RETIREMENT

THE FORTUNATE INVESTOR

ABOUT US
ADVERTISE
CONTACT US

The Fortunate Investor focuses on personal finance topics to build wealth. Topics include saving money, investing, managing debt, family and money, taxes, making money, college planning, starting a business, coupons and retirement.

SOCIAL MEDIA

FACEBOOK
TWITTER
PINTEREST
INSTAGRAM
YOUTUBE

Copyright © 2022 Fortunate Investor. All Rights Reserved. | Disclaimer & Disclosure | Privacy Policy | Terms of Service