Trucking: start trucking bussiness, flat beds, snow birds


Question
HI .MY FRIEND WANTS TO START TRUCKING  . HE HAS 2000 COLOMBIA AND HE MADE  TO BY CAR CARRIER TO MOVE 8 CARS COAST TO COAST  THIS GOOD IDEA VS TO DRY LOAD OR REFER TRAILERS (HE THINS ITS MOORE MONEY ) AND ALSO ISN'T THIS SEASONAL TO MOVE CARS. ALEX

Answer
Hello Alex.... and thanks for the question.  I can only answer part of your question with any certainty.  Auto transport is a year round business, but somewhat seasonal varying with the geographic region.  For example in the east you have the "snow birds" traveling from north to south in the Fall and back north again in the Spring.  However, that isn't the only source so you still have a need for transporters all throughout the year.

Auto transporting can be profitable, the same as the other markets you mentioned.  It is not possible to say it is more or less profitable than pulling dry boxes, flat beds, or reefers.  Each area of transportation has positives and negatives.  The profitability of any business is more determined by business management ability, company performance, and the market place than by the precise business area you select.  A well prepared Business Plan can be critical to success and I strongly urge you to develop one.  There are many sources of guidance on the internet that can help you do it.

There are a couple of important things that you don't mention, so that leaves me a little lost to provide advice.  For example, do you plan to run as a totally independent owner-operator or lease to a parent company?  The expenses and requirements are a lot different for each.  To transport across state lines legally, you must operate under motor carrier authority, either yours or a company to which you're leased.  Obtaining your own authority is not particularly complicated and it can be done on line.  If you opt to go as an independent, you'll also have to satisfy the financial responsibility requirements (commercial liability and cargo insurance) and have a registered process server.  There are several other requirements for the driver plus fuel tax filing and reporting.  I suggest you explore and research the requirements before making your final decision.  One very significant factor is the cost of insurance.  I encourage everyone starting out in the motor carrier business to research the insurance costs.  Have quotes and be sure you can even qualify before making a significant capital investment in equipment.

I hope this is helpful and if you have any additional questions please feel free to ask them.

Thanks again....
...Don