Equipment issues ranks as one of the top concerns for owner-operators and new trucking companies. That’s because truck driver equipment breakdowns are costly, and as the saying goes, if the wheels aren’t turning, you’re not earning. So, breakdowns are essentially a double whammy for truck drivers and owner-operators. Not only do you have to pay to have your equipment repaired, but you’re also sidelined, unable to earn until the equipment is back up and running.
What do we mean by equipment?
In the American trucking industry, equipment refers to
- Tractor unit, also known as the truck, or power unit
- Trailers
Trucking Equipment Types
A truck and a trailer are the two things every truck driver needs to be operational. But what about the types of trucks and trailers? What are the differences? Tractor units are pretty much universal and can be used to haul any type of cargo in most situations. But when it comes to the trailer it’s a different story. The kind of trailer you use will define the type of cargo you are capable of hauling.
Tractor unit
Also commonly referred to as the power unit, semi, or truck. This term covers the subtle variations in size, make, and models of tractor units. The tractor unit contains the engine, sleeper berth, and driver’s seat.
Trailers
Trailers come in different configurations to accommodate specific cargo types. Trailers are used in combination with tractor units.
Categories of trailers
Dry van
This is one of the most common trailer configurations. Dry van trailers can be used to transport a wide variety of goods that do not require additional handling like refrigeration.
Flatbed
Flatbed trailers are used for moving large pieces of equipment, materials, and other items that are too large or unwieldy to be moved using a dry van.
Step Deck
Also called a single-drop, step decks fulfill the same basic role as the standard flatbed trailer. The step deck does improve ease of loading and unloading in some situations.
Conestoga
Also known as a covered wagon, a Conestoga is basically a flatbed trailer that has a tarp kit that allows the trailer to be used as a dry van trailer.
Lowboy
Also known as a double-drop trailer, lowboys are mostly used to transport heavy construction equipment like excavators and bulldozers.
Refrigerated trailers
Also known as reefers, refrigerated trailers are identical to dry van trailers in appearance. However, because these are temperature-controlled trailers, they are constructed with additional insulation and a refrigerator unit, usually located on the nose of the trailer.
End dump trailers
These are used for hauling bulk raw materials like gravel, clay, grain, and feed. As the name implies, these are semi-length trailers capable of dumping their load out of the rear of the trailer by rising on a hydraulic piston. They come in several variations, with side dump, belt trailers, hopper bottoms, and walking floor trailers.
Tanker
These are giant tanks on wheels, used to move bulk liquids.
Most Common Equipment Issues
Wrong equipment for the shipment
This pertains to the type of trailer and the setup of the driver’s tractor unit. This only occurs when there has been poor communication between the shipper and the broker, or the shipper and the trucking company.
Supply chain disruptions
This sounds like an odd equipment issue for truck drivers and trucking companies to have since they are an integral part of the supply chain. However, when equipment breaks down, replacement parts are often needed.
Supply chain disruptions can affect how quickly a replacement part can be found, and if it takes a while, that’s money down the drain.
Here are a few causes for supply chain disruptions:
- Equipment producers facing delays and high prices for other source materials and components like rubber, steel, aluminum, tires, suspension parts, and wiring harnesses
- The shortages and delivery bottlenecks, are exacerbated by overwhelmed transportation networks and labor shortages
- Manufacturing labor shortages, along with a lack of both port workers and shipping containers for imports
Increase in prices
Long lead times and high prices for trailers of all types.
Equipment shortage
Not that long ago, the shipping lines were heavily involved in owning and operating tractor units and trailers. Before the pandemic, many of these companies chose to sell this portion of their business to a handful of equipment and chassis-leasing companies, which observers say now find themselves overwhelmed by the unprecedented demand.
How to Deal with These Challenges?
Dealing with these challenges requires a proactive approach. Research the types of equipment you intend to use in your trucking business until you have a thorough understanding of the equipment, how to operate it, and what kind of issues can arise. That way, you’re able to take preventative steps to minimize breakdowns, and when an unexpected issue arises, your response time will be quicker so that you can minimize the amount of money you’re losing from a breakdown.
Train your drivers
Make sure your drivers are trained on the type of equipment your company uses. The truck driver supplies the brain portion of your equipment operation, so make sure they understand they are the captain of the ship. The knowledge they receive from your training will help them make the right decision when it comes to putting your equipment in situations where damage could occur.
Establish a management style that fosters flexibility and adaptation
Be approachable with your employees. Avoid rigid thinking, it’s the fastest way to go bankrupt. Make flexible contingency plans so that your dispatchers and truck drivers can rapidly adapt to equipment issue situations.
For example, if one of your trucks has a breakdown, do you have a re-power plan in place, where your dispatchers can immediately dispatch another one of your trucks to assume the load and get the shipment to its destination on time without needing to clear it through you first?
Apply for leasing and/or financing options
If you have a healthy credit score, you are a great fit for financing your equipment. This is a great way to keep your maintenance overhead down by using newer equipment
Set aside a separate account for maintenance expenses
From an accounting perspective, it is important to have an account in which you save money for emergencies. If you need to buy equipment and there are issues with financing or leasing, this will help you cushion the impact of a big expense like this.
The standard recommendation for small trucking companies and owner-operators is to set aside 20% - 25% of your load revenue in a maintenance account to cover repairs and preventative maintenance.
Research equipment manufacturers
- Compare the quality of truck design, and trailer manufacture there are significant differences. Remember a cheaper trailer now may mean an expensive repair bill in the future
- Compare the maintenance costs between different manufacturers and even makes and models, as there is a lot of variation in the expense of things as simple as an oil change
- Compare fuel mileage consumption estimates to make sure you’re saving every penny you can by going with the most fuel-efficient equipment
Equipment issues should be a concern for owner-operators and trucking companies. A significant amount of issues can put a company out of business overnight. However, thousands of owner-operators and trucking companies continue to operate profitably because they prepare for and are flexible enough to counter issues in a timely manner.
Make sure you understand the type of equipment you need for your business needs. Train your employees in the type of equipment you use. And stay proactive and flexible so that you can stay ahead of any equipment issues that may arise.