UCR Permit: The Cons of Being an Independent Owner-operator In Trucking Business

 Running a trucking company as an independent owner-operator comes with a lot of benefits. From choosing the type of company you want to work with, load to haul, to the amount, you charge per mile. You also get to earn more profit since the business is yours. The benefits are endless, but it also comes with a lot of work which can sometimes be overwhelming and tiring. These are why many truck drivers do not venture into the business despite the benefits it entails. Being an independent owner-operator is more than just driving the truck. It means you handle all the affairs of your trucking business. You are the CEO, Dispatcher, Safety and Compliance Officer, Maintenance Manager, and many more. You also need to obtain your UCR Permits, IRP Plate, IFTA, and other licenses. These give you a lot of work that could have you working for longer hours, especially when developing systems to make your business run smoothly. Keep reading as Global Multi Services explains the cons of being an independent owner-operator in the trucking business.

Finding Consistent Load

New independent owner-operators often struggle to find consistent load at a better rate. These happen because they are just developing their business, and brokers are still hesitant to work with them. Also, they have not built customer’s trust, and most brokers prefer to work with companies with good track records. Furthermore, there is a lot of competition in the trucking industry. As an operator, you will be competing with big companies who will take pennies to stay on top and other owner-operators who charge less. Growing your business comes with the responsibilities of persistently looking for new loads and negotiate your rates.

 

Building Customer’s Base 

 

Having few customers might seems reasonable at the beginning as an owner-operator. But it cannot sustain your business in the long term. As an owner-operator, you need to build your customer base, and can sometimes be difficult because many brokers have built trust with other trucking companies. Building a good customer base takes time and conscious effort to provide the best services for your customers. Ensure your clients are constantly supplying you loads, and you are meeting all their needs. Also, stay in compliance by processing your Unified Carrier Registration to obtain your UCR Permit.

 

Keeping Up with UCR Permit

 

Becoming an owner-operator means you must handle all your permits, invoices, and compliance documents yourself. These include UCR Registration, IRP Plates, UCR Permits, and many more. Big trucking companies often dedicate an entire department that takes care of their paperwork but, you must do it all on your own. Managing your business while also driving can sometimes be hectic. But using trucking management software can help you scan, track, and keep records of all your essential documents and paperwork. It also relieves you of the stress of staying up late and scarifying your downtime to sort out stacks of paperwork.