Gagandeep Baidwan Lists 3 Fundamental Things to Know about Running a Freight Company
If there is a word to describe the freight transportation industry in the wake of COVID-19, it is: volatile. Indeed, while some carriers have seen a significant or dramatic drop in activity and revenues, others have seen surge in demand — which is one of the reasons why in the early days of the pandemic truck drivers (along with associated logistics personnel) were one of the first occupational groups declared as “essential workers” by the U.S. government.
If you are thinking of launching a freight company, then you will be pleased by the fact that historically, the strength of the freight transportation industry has mirrored the strength of the overall economy. For example, in the aftermath of the Great Recession that erupted in 2007/2008, as the economy recovered so did the freight transportation industry. This bodes well for the years ahead, as the economy searches for a new normal after COVID-19.
However, there are some critical considerations as well. According to freight transportation executive Gagandeep Baidwan, here are three fundamental things to know about running a freight company:
- Prepare for Plenty of Paperwork
Establishing a freight company, unfortunately, comes with a significant amount of paperwork. You will need to get authority for your company, obtain state permits, purchase license plates, and monitor road and fuel taxes. The good news, however, is that you can hire someone for whom this kind of paperwork (and related administration).
“Finding the right person or team to take on these duties may take a while, but it’s important to be patient and make sure that you make smart hiring decisions,” commented Gagandeep Baidwan. “You need to find people who are very detail oriented, reliable, dedicated, and have excellent communication and project management skills.”
- Preventative Maintenance is Your Ticket to Success
Major repairs to a single truck can easily run into the 5-figures, and for a fleet, the cost can skyrocket. While there is no way to eliminate these expenses, Gagandeep Baidwan suggests investing in a comprehensive fleet maintenance program to avoid paying an enormous amount later. Your fleet is a valuable asset, and if you do not have the working capital to cover these costs, then you may find yourself having to locate the funds last minute.
- Hire Professional and Dedicated Drivers
Finding qualified, experienced and dedicated drivers is challenging — but certainly not impossible. To start with, make sure that you use all digital channels at your disposal, such as your website and social media, to spread the word that you are looking for drivers. Once you start receiving applications, conduct background checks and screening, and speak with references. When you’re ready to hire, have an onboarding and orientation program that makes new employees feel welcome, and which gives them the resources and support they need to start making a contribution as early as possible. Once your new employees establish themselves on the roster (typically after the probationary period), do what you can to support and help them achieve work-life balance.
“One of the things we do at our company is have our drivers give us their preferred routes, so that they can be close to home in order to attend family events and special gatherings,” commented Gagandeep Baidwan. “This gesture goes a long way towards fostering engagement. Being a long-haul trucker can sometimes put a strain on family life, and we want to do what we can to make things a bit easier.”
The Bottom Line
Running a freight company can be extremely satisfying, both professionally and personally. However, it’s vital to keep the above factors in mind and heed Gagandeep Baidwan’s advice — otherwise instead of rewarding, your experience could be regrettable.
