how to become an owner operator

Becoming an owner operator is considered a bit of a holy grail in the trucking industry. Everyone has considered it, and some eventually become successful owner operators. Essentially it’s like running your own business, and comes with more independence and flexibility. Be careful though, as being an owner operator involves a great deal more responsibility and management tasks. Generally you’ll want to consider being an owner operator only after years of experience on the road as a company driver. Once you’re there though, here’s what you need to do to become an owner operator.

Evaluate and Decide

So you’ve spent nearly a decade as a company driver on all sorts of hauls and trucks across the country, and you feel you’re ready to become your own boss. Now is the time, right? Not so fast!

There are many things you need to take into consideration before being sure that you’re ready to be an owner operator. The first set of factors is professional and financial. Are you financially ready to run your own business? Do you have enough in savings if things don’t pan out for 6-8 months? Where and how will you find a place for closing deals with transportation companies?

If you’re successful, you could be making over $100,000, but many more owner operators will be struggling before they start making a profit.

Perhaps more important than the financial considerations are the personal factors. Are you and your family ready to make such a large commitment? How will this decision impact your family and home life? How will your health be impacted by being on the road for so long? Will your family be able to help you with the business-side? Take all these questions into account before making a decision.

Authorization

The first step is to acquire the proper authorization. You’ll need to acquire the US DOT (Department of Transportation) and MC (motor carrier) numbers. There is a one-time $300 filing fee to request an MC number with the Federal Motor Carrier Safety Administration (FMCSA). You can learn more and acquire the MC number here.

As an independent truck operator, you’ll also need to be covered by the mandatory health and truck insurances.

Aside from being enforced by the federal law, truck insurance will protect you as an owner operator in the event of unpredictable situations.

There are different types of coverage depending on the goods you plan to haul. Learn more about insurance coverage and requirements here.

In general, the trucking industry is heavily regulated. As a company driver you probably didn’t have to worry about this too much besides making sure you follow the regulations the company made you aware of. As an owner operator, you’ll need to be aware of all the regulations ahead of time, and make sure you are in compliance. For example, you’ll need to find out everything you can about the electronic logging device (ELD) mandate and find the right ELD solution for you.

Get a Truck

The next step is to find your own truck. This can be the most exciting and the most frustrating parts of becoming an owner operator. You’ll need to decide what type of operation you want to run to determine what type of equipment to obtain. Having experience with certain kinds of trucks and hauls will give you the edge in making this decision.

You could choose to aim for very general and generic hauls or pick a niche that suits you best. Or you could aim to strike a balance between the two.

For getting the truck itself, you generally have two options. Either buy your truck and trailer entirely or acquire them through financing with the bank. As you can see, this depends heavily on the state of your finances. Most people choose to go through the bank to acquire a truck.

Since this is one of the most cost-intensive steps, remember these two tips: find the best truck deal for yourself and find the bank with the lowest interest rates.

Keep in mind that the bigger your down payment on the truck, the lower your monthly payments will be. Banks will consider a number of factors for the loan including your credit score and history, whether you’ve had a permanent address, and if you’ve had a stable job. This is where your years of experience and preparation will count.

Become Business-Savvy

Being your own boss in the trucking industry isn’t easy. All of a sudden you’ll have to master all sorts of concepts you didn’t think of too much while a company driver. Regulations, compliance, cost per mile, gross revenue, maintenance costs, tax filing, and accounting are only a few of the various aspects of a job. Hopefully you’ve been exposed to all of these for years as a company driver and feel ready to master them.

Most importantly, you need to start being more cost conscious. Your profit is going to depend on two factors: how much revenue you bring in and how much you can cut costs. In fact, you should familiarize yourself with the “golden equation”, which simplifies your finances.

The golden equation is:

  • Revenue per mile – Cost per mile = Gross revenue
  • Gross revenue – Taxes = Net Profit

Once you’ve processed this, you’ll find new ways to cut costs like finding the quickest and shortest routes, avoiding maintenance issues, and reducing vehicle idling. You’ll also need to develop a system for finding loads. Using load boards is a popular method to find freight. These are online sites where owner operators can find loads posted by shippers and brokers. Many of these will have mobile apps for your convenience. Take to your owner operator buddies as contacts to get recommendations of who to work with and who to avoid.

Becoming an owner operator is one of the biggest decisions you’ll make as a truck driver. Ideally you’ve prepared for it for years, and you feel comfortable and ready for the impact it will have on your life. While you stand to profit more, and enjoy more independence, it comes with many challenges. While this covers the basics of how to become an owner operator, you should also research and talk to many other drivers before making the decision to become an owner operator.

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The Drive My Way job of the day comes from Fuchs Lubricants Co. Fuchs provides high quality lubricants and services to a wide range of industries such as automotive, appliance, aerospace manufacturers, pharmaceuticals, transportation, mining, and energy. In addition, the organization constantly develops new technology to meet the ever-changing demands of the modern industry. Also, they provide world-class technical support to our strong customer base.

fuchs lubricants

Fuchs has openings right now for CDL A Grease Truck Drivers based out of their Huntington, WV location. The local truck drivers report to the Plant Manager and is responsible for delivering finished goods (grease and metalworking fluids) to our customers in a timely manner.

Also, this local union position offers great pay at +$21.45/hr and full benefits. In addition, drivers are home daily schedule!

Fuchs asks that applicants already have their CDL A license and are at least 21 years old with 2 years of experience. In addition, applicants need to have a Hazmat and Tanker endorsement.

Interested in applying?

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5 Money Saving Tips for Truck Drivers

As a truck driver, your job is stressful. You spend long hours driving every day. You work hard and certainly look to maximize your earnings once they hit your bank account.

Here are 5 helpful tips for saving money as a truck driver.

1. Keep a Budget

The best way to keep track of your money, is to actually keep track of it somewhere. Use a fancy online program, a free smartphone app or just a good old-fashioned notebook. No matter which way you choose to do it, just make sure every dollar in and out is planned and tracked. Get started now if you haven’t already, and you can always adjust as you go.

  • Create a separate account just for driving to help streamline budgeting. Bonus, use a credit card that pays a reward on all purchases.
  • Pay all bills and taxes promptly to avoid penalties and late fees. Go paperless and use auto-pay options whenever possible.
  • Keep all receipts in a designated place to avoid losing them. Make it a habit to put receipts away as soon as you get them.

2. Be Efficient

This can go a long way to saving money as a truck driver. Planning the most efficient routes can save gas and money on tolls. Using your cruise-control consistently and effectively will save on gas consumption.

Cruise-control can also keep you from exceeding the speed limit and racking up unwanted tickets and speeding penalties. Keeping up with all maintenance on your truck can also be a great way to save money as a truck driver. Doing what you can to prevent breakdowns will help your bottom line.

3. Plan Well & Be Prepared

As much as possible, avoid buying things at truck stops or convenience stores. Food can be a BIG daily expense. If you can pack and bring food with you, you will eat healthier and save money daily. Plan your laundry out well, and you can save time and money by avoiding lines and costs of using coin operated machines.

Have a well-stocked first aid kit and personal care kit vs. having to buy these things on the road at convenience stores. Though emergencies do arise, everything you can buy at home instead of on the road will save money.

4. Participate in Loyalty Programs

If you do love a certain brand of coffee or slice of pizza on the go, join their loyalty program. It’s usually quite easy to sign-up for a loyalty card at restaurants, truck stops, gas stations and even hotels. Your purchases could turn into a future free cup of coffee, sub sandwich, a shower or even a night’s stay in a hotel as points accumulate. Additionally, ask any local restaurants, hotels or even insurance companies if they offer CDL discounts. Even a 5% savings a few times per year will help keep money in your bank account.

5. Use Free WiFi

Whenever possible, use free Wi-Fi when you’re stopped for a break, or for the night. Data plans on your phone can be expensive. Spending a lot of time away from home can help you blow through your monthly data allowance. Using free Wi-Fi at truck stops, restaurants, coffee stops to take care of things on your smartphone can shave off time against your monthly data and help avoid overage charges over time. Just look for a sign and ask for the password.

Some of these tips might seem obvious, but it can’t hurt to check and see if you’re really maximizing the savings that are available to you. Take a look at your last few trips and review your biggest expenses or where you were over budget. Tightening up on your trip preparation routines, personal efficiencies, and budgeting skills can turn into big savings at the end of the year.

If you’ve got some great tips for other truck drivers, please share them on our Facebook page here.

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OTR truck driver

Working as an over the road (OTR) truck driver is radically different from other trucking jobs. These hauls are the longest, taking you coast-to-coast and likely away from home for lengthy periods of time. You would basically be living out of your truck, but if your company has invested in fleet amenities, it’s not a bad deal. You’ll spend many hours driving and few hours resting. But what about everything else?

Here’s a look at the typical day in the life of an OTR truck driver to get a better sense of how they go about their daily routine.

Sleep

Most OTR truck drivers wake up early. Depending on your delivery schedule, you may have to adjust your sleep habits so that you sleep earlier at night at wake up before dawn. If you’re not an early bird, you’re either going to struggle a bit with the schedule, or you can try your luck asking for jobs where you don’t have to start early. Sometimes OTR drivers time their departures based on expected traffic patterns at certain hours. Most OTR semi-trucks have a twin-size bed that will pull down from the wall. In extreme weather, many truckers will choose to stay at truck stops, rest areas, or motels, to avoid losing sleep.

You’ll likely spend over 10 hours of the day driving, so you don’t want to skimp on rest. If you’re sleeping in the semi-truck and in a parking area, try to find a parking space away from other trucks and loud noises.

Using foam earplugs is also a smart choice so you can block out sounds which will be disturbing.

Make sure you set three different wake-up alarms- you don’t want to be late and miss your delivery window! Remember you’ll need some pre-drive time to run a safety inspection on your truck before leaving. Another tip veteran OTR drivers give newbies is that they should avoid caffeine during the second half of the shift, to ensure a restful night of sleep.

Showers

Maintaining good hygiene while driving over the road can be tricky. Most OTR truck drivers end up taking showers at truck stops. You can purchase a shower use while at a truck stop- they’ll give you a receipt with your number and security code. Bring your shower caddy with soap and shampoo and whatever else you need.

It’s just important is to bring and wear shower shoes- you don’t want to be stuck with toe fungus.

Sometimes OTR truckers will get a free shower with a fuel purchase, so these can add up. If you’re short on shower credits, its not uncommon to politely ask other drivers if they can spare a shower credit. Then you can pay it forward in the future.

If you’re showering at the truck stop, your best times to take a shower are early morning or late night. If you wait till the showers are the least busy, you not only save time with a shorter wait, but are likely to encounter a much cleaner and sanitized shower. If you’re not a fan of truck stop showers, you can consider purchasing a portable shower kit. This is a common practice with campers, since it allows you to take a shower wherever you are. This is a good solution for those driving in rural locations or if you’re facing a tight deadline.

Meals

We’ve written before about meals and cooking on our blog. That’s because meals are an essential part of lifestyle which OTR truck drivers cannot afford to neglect! Unfortunately, too many truck drivers find few options for meals while driving, and then stop by at diners or fast food joints to grab a quick bite. Veteran drivers will tell you that this is fine every now and again, but you shouldn’t rely on restaurants as the only option.

If you’re always eating out, eventually it will add up in terms of dollars, not to mention calories.

Your waistline will thank you if you invest in healthier (and cheaper) eating habits. Unfamiliar restaurants are unreliable too, and you may end up spending $20 on a really mediocre burger.

Many OTR drivers have embraced cooking! If your truck has a few amenities, then you can make some simple but hearty meals while on the road. If nothing else, invest in a crockpot. This handy device can help make hundreds of different means in a very quick and convenient fashion. You can share recipes with your family and other drivers as well. Smart snacking has also helped truck drivers who are looking to stay in shape. If you’re interested in finding good eateries, use apps like Yelp to search for quality restaurants which won’t break the bank.

Parking

Parking can be notoriously difficult for OTR truck drivers. Ideally, you’d be stopping at a truck stop and parking there. However, there are limited spaces and the later you arrive the fewer chances of finding a parking spot. Truck drivers also try parking at the location of the shipper or receiver. If there is a dock door, you can sometimes park right next to that. It will help to call ahead of time and get their permission to park there. While it is not ideal, sometimes truckers park near hardware stores or grocery stores. If doing so, make sure to check with the business owners. Often they won’t mind and will let you park there, or can direct you to the nearest truck parking

If you’re trying to park at a truck stop, plan ahead of time. Consult a truck stop directory and try to arrive early. Wherever you park, make sure it is a less congested area with no traffic.

When in doubt, ask business owners, local authorities, or the shipper/receiver about nearest truck parking

Don’t forget that safety is a big issue when it comes to parking, so check everything with dispatch. Check out some cool apps like Trucker Path which help you find truck parking spots across the country.

Relationships

Have no doubt about it, OTR truck drivers maintain a tough schedule. You’ll be on the road for more than a week before going home and getting a break. This takes a toll on home time, especially on family and relationships. The trade-off is that you may have more days at home with family before the next job takes you out again.

Keeping in touch with family while over the road can be tough, but not impossible.

There are many things you can do to stay connected with loved ones while away. Come up with some innovative ways to connect beyond just phone calls.

Many couples share recipes and plan to have the same meal together at the same time. Chatting on Skype or FaceTime allows you to have a virtual date despite the miles between you. Share a Spotify playlist or other music platform and you’ll know your partner will be listening to some of the same tunes during the day. Many truckers take photos of interesting sights they see across the country to share with their partners. You don’t need the latest technology to connect. Play a game of 20 questions or other ways to pass time with your partner. You’ll be surprised about how many new things you can learn about each other regardless of how long you’ve been together!

Over the road trucking isn’t for everyone since it takes you away from home for a long time. Still, many truckers enjoy the experience because they get the chance to travel, see the country, and meet interesting people. Keep these daily habits and helpful tips in mind whether you’re a veteran OTR truck driver or a novice deciding whether OTR is for you.

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The Ultimate Guide for Truck Drivers to Maintain 3 Healthy Habits Over the Road

Download the complete guide for tips to easily maintain healthy habits over the road.

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kgz transport

Today’s job of the day comes from KGZ Transport

KGZ Transport is a transportation company based in Lockport, IL, operating for over 5 years. They provide both OTR and local trucking services that assist customers across the nation with their freight needs. In addition, they service 48 continental states and specialize in full truckload Dry Van, Reefer, TL and LTL transportation. Also, KGZ Transport remains one of the most reliable truckload carriers in Chicago area and aims for continued expansion.

kgz transportKGZ’s core values are to remain honest and accountable, which is essential in the transportation industry. In addition, their employees are trustworthy and dependable, committed to transporting freight safely and efficiently.

Overall, our values at KGZ TRANSPORT drive our performance, and have been proven by industry statistics and our satisfied customer base.

Currently, KGZ Transport is hiring CDL A OTR Dry Van Drivers nationwide. They offer competitive pay at $0.65 cents a mile and drivers average 3,000 miles per week, which averages to $1,950 per week. Drivers receive pay weekly via direct deposit. In addition, truckers drive newer and new equipment: automatic Volvos.

Additional benefits for this position include:

  • 24/7 roadside assistance
  • EFS- fuel cards
  • Pre-pass
  • Electronic logbook
  • Tablet
  • Parking and mechanic shop
  • Clean inspection bonuses
  • We cover travel coast when you come to IL for orientation
  • 1099 and W2 options available
  • Home time every two weeks
  • We hire from all over USA

In addition, KGZ requires applicants to have their CDL A license, a clean driving record, 1 year of experience, and be 23 years of age.

Interested in applying?

Learn more about the job requirements, benefits, pay and more.

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button transportation

Today’s job of the day comes from Button Transportation

Button Transportation is a family-owned and operated business in California and has been thriving for over 40 years.

Every day the team at Button climbs into their trucks, they take-on the responsibility of transporting their customer’s goods safely and professionally. In addition, they take this responsibility seriously.

They drive trucks with people and product that needs to get there on-time and intact. Overall, they built Button Transportation with a lot of great drivers, solid dispatchers, talented mechanics, and the best equipment they can run.

Currently, Button is hiring:

Interested in applying?

Learn more about the job requirements, benefits, pay and more.

Seasonal Local Drivers OTR Drivers Regional Drivers

Truck driver salaries are a hot topic, and one of the most important considerations to a driver when taking a job. Industry statistics show that average truck driver salaries are on the rise. Mostly due to the driver shortage. But what if you want to make more money without compromising your driving preferences? Once you’ve established yourself as a qualified driver, let’s look at ways to make more money in trucking.

“The salary scale typically begins around $28,000 and can go as high as $68,000 for new drivers”, according to www.truckdriverssalary.com. For experienced drivers, that range can move from there up to $80,000+ per year, some pushing up into six-figures.

You’ve done everything to ensure you’re being as efficient as possible. You’re not leaving any money on the table in your current role. So where can you look to find incremental dollars? As a driver there are usually 3 main areas to explore when you want to make more money in trucking.

Adding Additional Endorsements

Once you’re an established CDL driver, you can seek to add additional endorsements that will give you access to larger range of truck driving jobs. Double/Triple Trailer endorsements allows a driver to haul twice or three-times more freight, while driving the same amount of time as with a single trailer.

A HAZMAT, or hazardous materials endorsement, will open doors to new opportunities with companies that might specialize in the transportation of flammable or otherwise dangerous materials.

Tanker endorsements allow you to haul large gaseous or liquid loads and are mandatory if you want to work hauling gas and oil. A full list of these endorsements and requirements can be found here.

Maximizing Available Bonuses

Bonuses are a great way to make more money in trucking. Most carriers likely have their own bonus structure, and you should have a copy of the payout information available to you. Outside of a sign on bonus, your carrier might offer various additional bonus options based on performance, safety or longevity.

Planning well and using proper driving techniques could qualify you for a Fuel Efficiency Bonus.

Having a track record that shows you’re a safe driver who follows the rules, you could be in line for a Safety Bonus. Being consistently prompt with your deliveries, you might qualify for an On-Time Delivery Bonus. Be sure you’re aware of all of your available bonuses, and work to achieve them regularly.

Keep Your Skills Sharp and Your Reputation Safe

  • Every mile under your belt might have a lesson that went along with it. Keep a focus on what you’ve learned and experienced as a truck driver. Do this and you’ll likely have a long and safe career. And the additional pay that comes along with it.
  • Technology is always changing so make sure you’re doing your part to keep up with the necessary tools and systems that can benefit you in the future. Something that’s optional now, might become mandatory to use in the future. Lean it now, and you’ll have an advantage later.
  • Your reputation in the industry might be just as important as your driving record. Be sure to always keep things professional and respectful whenever you’re working. You never know when you’ll run into a former dispatcher or another driving down the road.

All of these things can be considered when you look to make more money in trucking. Though there’s been a trend with truck driver salaries continuing to rise you can also use these ways to add to your bank account. The amount of effort you put into it now, will be rewarded with a bigger paycheck in the future.

If you’re looking for a great trucking job that pays well and meet your needs, sign up here for a profile and see what matches we’ve got for you.

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nussbaum transportation

Today’s job of the day comes from Nussbaum Transportation

Nussbaum Transportation Services was founded in 1945, with a single truck by Alden Nussbaum. Over the last 70 years, we’ve been building solid relationships with people and we owe our success to the quality of our drivers.

Our hiring philosophy, and the reason so many drivers stay with us, is that we give you the most accurate picture of what driving for Nussbaum looks like from day one, ensuring there are no surprises and that we never fall short of your expectations.

Currently, Nussbaum Transportation is hiring CDL A OTR Dry Van Drivers in the following locations:

Take advantage of the recent improvements we’ve made for our drivers:

  • $.02/mile increase
  • Pay detention after 1 hour
  • Reimburse for all paid parking
  • Pay practical miles door-to-door
  • Employee Stock Ownership Plan (ESOP)

OTR Company Drivers get miles and respect, without the lip service.  We’re different and we like that. Our drivers do too.

Interested in applying?

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Today’s job of the day comes from Fuel Panda

FleetPanda dispenses fuel to commercial vehicles in the Bay Area. They are a thriving, well-funded startup looking for skilled drivers with people skills, ambition, and the flexibility to work at a fast-paced startup. Currently, they’re hiring Local CDL A or B Delivery Drivers in San Francisco and in San Jose.

fuel panda

The fuel drivers drive a company truck to customer locations and refuel their fleets of vehicles using an automated pump similar to a gas station. In addition, they work closely with the founder and executive team and learn the operations of a growing startup.

Overall, Fuel Panda is growing very quickly with many opportunities for advancement into hub manager, fleet maintenance, driver supervisor and even lead efforts as we launch in new cities. Also, they offer assistance in earning your CDL or hazmat certification.

PERKS:

  • Competitive hourly rates ($25-$35)
  • On the Job training
  • Flexibility to define your own working hours
  • Possibility to lead part of the operations team/advance
  • One time bonus of $500 after completing 90 days with us

 

REQUIREMENTS:

  • Valid commercial driving license in CA.- a plus.
  • Able to pass regular drug tests.
  • Clean driving record: no more than 2 points and 1 at-fault accident.
  • Be able to lift 30 pounds comfortably.
  • Be able to work at night and split-shifts.
  • Car services and mechanic experience

 

 

Interested in applying?

Learn more about the job requirements, benefits, pay and more.

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team truck driving pros and cons

Is there a clear benefit to driving as part of a team? With regulations on the number of hours an individual driver can run, it sounds like it should be a simple answer. Two drivers in one truck can turn more miles in less time than one driver, and therefore can get more work done. But is it really that easy when it comes to driving as part of a team?

Here’s a breakdown of some team truck driving pros and cons.

Truck Parking App Could Be Game-ChangerPro: Two is Better Than One

The old adage that 2 is better than 1, applies here. Team truck drivers can sleep in shifts and keep the truck moving down the road longer, covering more miles daily.

Additionally, there’s now 2 sets of eyes and ears on the road, and an extra set of hands for anything that needs to be done. Breaks can be more efficient. One driver can run inside the truck stop for food and the other driver can fuel up the rig outside. Multitasking makes for more productivity, and less idle time not logging miles.

Pro: You’re Never Lonely

Truck drivers consistently report that one of the biggest hardships of being a truck driver is all the time that spent alone. Team truck driving provides built-in company across the miles. There’s always someone to talk to, map out logistics, discuss current events, and otherwise pass the time over the road.

Con: You’re No Longer the Boss

One of the things many truck drivers love about their jobs, is the autonomy that comes along with it. Outside of the orders from the dispatchers, truck drivers are in charge of how they spend their time driving. Solo drivers can decide their schedules, when to take breaks, what to have for dinner and where to stop for the night.

Team truck drivers must be great at compromising, on everything! If not aligned on preferences from cab temperature to music channels, and food and rest break frequency, things aren’t going to go smoothly. Being compatible in general is the only way to make team truck driving work well.

back acheCon: You’re Never Alone

For some people, it’s a huge change from driving solo. Team truck driving for cross-country runs will be a LOT of time in a confined space with someone else 24/7.  Additionally, team drivers tend to run longer stints over the road. You could be in the equivalent of a 10×10 box with the same person for days or weeks at a time.

This could be too much to take for someone used to spending time alone. Even with the other person sleeping, personal phone calls might get overheard.  Or if there’s a disagreement on anything, there’s no place to go and cool off for a little bit.

With two drivers instead of one, more miles can equal a bigger paycheck as well. More miles in less time will likely equal more pay, and the ability to take on additional jobs. However, deciding on how bonus checks get split, and who drives the tougher parts of the runs, ultimately depends on how well both work together and pull their own weight. Work ethics in this case, need to be equally compatible to ensure fairness in take home pay.

Overall, there are certainly benefits to team truck driving.

However you’ve got to be 100% sure you’re very compatible with the other driver. If not, the pros can quickly be outnumbered by the cons.

team drivers

Valerie and David Lopez

One of the most popular team truck driving duos are couples. Spending more time with your partner/spouse can help strengthen your relationship, as you get to experience all facets of your life together.

When speaking with husband and wife team truck drivers, David and Valerie Lopez, they note that “sharing experiences is part of what makes trucking together special” for them. And overall, team truck driving together has worked out well financially for them and improved their communication at the same time.

Have you considered driving as part of team? Do you currently drive as part of a team? We’d love to hear your opinions on this topic, sound off on our Facebook page here.

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