Finding loads for your new trucking company in the first 1-3 months can be challenging at first. If you are yet to set up a new company then you might be interested in checking out our recent blog post on How to Get Your Trucking Authority and Start a Trucking Company.  Brokers are careful to work with new trucking authorities due to rampant double broker fraud in the industry. Many of them only want to work with you until you can prove that your company is reliable and operates safely.

If you’re worried about booking your first loads with your new authority, then we have good news for you! We’ve been starting up new authorities and seeing them flourish for a decade. Every trucking business has started new and with the right partners behind you, you can flourish! In this article, we’ll go over important things to know in the trucking industry and some methods for finding and booking loads as a new trucking company.

Key Terms

If you’re new to the trucking industry, you may not understand all the terminology related to securing loads as a new trucking authority. To help make sure we’re all on the same page, here is a quick overview of some of the key terms to know.

• Carrier – You, the trucking company!
• Shipper – The business or entity that requires their goods to be transported. Your customer.
• Freight Broker – The company that manages the shipper’s loads and connects the shipper and the trucking company to move the load. They are also your customer.
• Load Board – Websites where freight brokers or shippers can post loads and carriers book loads.
• Dispatcher – A third party, usually an individual, that helps the trucking company find loads online or through their connections. A dispatcher can be an employee, but smaller trucking companies usually use a third-party service provider for a fee.
• Rate Confirmation – An agreement issued by the freight broker, outlining the details of the load such as agreed rate, origin, destination, pickup and drop-off times, and reference numbers.
• Bill of Lading – A kind of receipt between a freight carrier and shipper that details the type, quantity, and destination of the goods being carried. It also serves as a shipment receipt when the carrier delivers the goods at the predetermined destination. It must be signed by the shipper, receiver, and driver for it to be valid and good for payment. This document is VERY important!
• Detention – The time a driver spends waiting at a loading dock beyond the scheduled pick-up or drop-off time. Trucking companies will usually include two hours for free but ask to be compensated if it goes over that time.

Freight Contracts and Spot Rates

There are two types of freight markets in the trucking industry: The contract market and the spot market. It’s important to know the difference so that you can adjust your goals and plans when thinking about how your trucking company would get loads in the short and long term.

Freight Contracts

A contract rate is an agreed-upon price between a shipper or broker and the carrier for a specific amount of time or number of loads. This rate is usually set in a contract, and it doesn’t change regardless of fluctuations in the market. It provides stability for both the customer and the carrier, as they know what to expect in terms of costs and earnings. It’s harder for smaller trucking companies to find contract work since they can’t guarantee capacity but when your fleet starts growing, you would want to find contracts to keep your trucks busy.

For example, a customer may have the same ten loads of ice cream moved every week from Houston, Texas to Miami, Florida for six months. The customer would find a trucking company for this and contract it with them at the negotiated rate.

Pros of the Freight Contract Market:

• Stability in rates and incoming work.
• Negotiation is done at once and doesn’t happen again until the contract is over.
• Rates tend to be higher than the spot market.

Spot Market

The spot market is where shippers and carriers can arrange for last-minute or immediate transportation of goods. Spot market loads are usually found on load boards and offered by freight brokers. The prices in the spot market can change quickly based on supply and demand. Most smaller trucking companies and owner-operators operate in the spot market.

For example, if there are a lot of shipments but not many trucks available, the price to hire a truck can go up. On the other hand, if there are lots of trucks but not many shipments, the price can go down. It’s called the “spot” market because transactions happen on the spot, without a long-term contract.

Pros of the Spot Market

• Negotiation happens per load- which can yield better rates in good times.
• Booking loads is easier for smaller and new trucking companies.
• Better flexibility and no set schedule for work.

Options For Booking Loads As a New Trucking Authority

Load Boards

Load boards are an online platform where shippers and freight brokers can post their loads that need to be shipped, and truckers can find loads to transport. It’s a place where people who have goods to ship and people who have trucks to move those goods can find each other.

Here are some load boards you could use:

• Omnitracs Sylectus
• Trucker Path
• Direct Freight
• Shiply

Freight Brokers

Many brokers have policies that require their carriers to have a minimum time in business.

However, some brokers have no minimum. Here are a few of those brokers:

• CH Robinson
• Total Quality Logistics (TQL)
• Online Freight Services
• Trinity Logistics

Here is a list of the top freight brokers in the country.

Direct Shippers

Direct shippers are businesses or individuals that have goods or products they need to transport from one place to another. They might be manufacturers, retailers, farmers, or any other type of business that needs to ship goods. When they work directly with trucking companies or independent truck drivers to transport their goods, without using a middleman like a freight broker, they are referred to as direct shippers.

This direct relationship can often lead to more predictable scheduling and potentially better rates for both parties. However, some shippers would like your trucking company to have a minimum number of trucks so that you can guarantee capacity for them.

You can try researching for companies that would have the type of loads you are looking to haul. For example- if you’re a flatbed company, you would look for manufacturers and equipment companies like United Rentals. If you’re a reefer or dry van company, you would try looking for retailers, grocers, or farms.

Here’s a list of shippers provided on the United States Department of Agriculture(USDA) website.

Dispatchers

An independent freight dispatcher is like a personal assistant for truck drivers or trucking companies. They work independently and their main job is to help truckers find loads to transport, negotiate rates with shippers or freight brokers, and plan the best routes for delivery.

They usually charge truckers a set fee per load to do this service. They handle the logistics and paperwork, allowing the truckers to focus on driving and delivering the goods. They are great for small trucking companies, truckers with limited tech skills, and trucking companies just starting.

Your existing network

Taking advantage of your existing network of friends, family, and work colleagues can be an effective strategy when you’re starting your own trucking company and looking for loads to transport. You may know people that work in industries that require shipping services or they might know others who do.

Start by letting them know about your new trucking company and the services you offer. Ask if they have any shipping needs or if they know of anyone who does. Personal connections can often lead to business opportunities, and people who already know and trust you may be more likely to choose your services over those of an unknown company.

Plus, they can spread the word about your business to their own networks, potentially bringing in even more customers. Remember, every connection is a potential lead to a new client.

Steps To Book Your First Load

Find a Load

Use load boards, direct shippers, or freight brokers to find a load that matches your company’s requirements.

Negotiate the Rate and Confirm Load Details

Once you’ve found a potential load, you’ll need to negotiate the rate with the shipper or broker. This will depend on factors like the distance, the type of goods, and current market conditions. It’s also very important to check credit to make sure the customer will pay you on time.

After agreeing on the rate, confirm all the details of the job. This includes pickup and delivery locations and times, the type and weight of the cargo, and any special requirements. Below are some important questions to ask before booking the load.