What will be the impact of electric vehicles on the trucking industry

Electric vehicles are no longer a distant possibility. Electric commercial vehicles have arrived and are all set to change the dynamics of the trucking industry. 

There are over 1.3 million electric vehicles in the U.S. alone. While personal electric vehicles are already popular due to their innumerable benefits, commercial vehicles are on the verge of a huge surge in demand. 

The first generation of electric vehicles was lacking in performance because of low powered batteries, which did not run for long distances. However, the latest version of electric trucks is bigger, stronger, and more efficient.  

According to a recent survey, 90% of fleet managers believe that electric vehicles are the future of commercial fleets. While light to medium-duty electric trucks are already used by various companies, the big push is much needed for heavy-duty vehicles for long hauls. 

There are many factors contributing to the rising demand for electric commercial vehicles. Reduced emissions and cost savings are the most significant factors pushing fleets to switch to electric vehicles. 

Reduced emissions

The governments’ world over are putting regulations in place to reduce the emission of greenhouse gasses and combat climate change. 

Tightened emission targets combined with the mandate to ban the use of fossil fuels by 2030, is pressurizing fleet managers to look for greener alternatives that help their companies go green. 

Electric trucks are the best alternative to conventional trucks that run on fossil fuels. Electric trucks run on clean energy and give out zero emissions. 



impact-of-electric-vehicles

Cost Savings

Though the initial costs of shifting to an electric fleet are higher, the long term benefits outweigh the costs. One of the major incentives for trucking companies is the cost savings provided by electric trucks. Electric vehicles provide two types of cost savings to companies –

  • Fuel costs
  • Maintenance costs 

 

Fuel costs Fuel costs are a major component of fleet management expenses. They form over 60% of the total operating expenses of a fleet. 

Reducing fuel costs is always a concern for fleet managers and trucking companies. 

According to the digital transformation advisory firm ARC, electric vehicles have low per-mile energy costs in comparison to conventional trucks that run on fossil fuels. 

As the technology is evolving, and the batteries are getting better, the future electric trucks are expected to run for longer distances, which will further reduce the costs.

Maintenance Costs – In addition to saving on fuel costs, switching to electric vehicles will also aid trucking companies to save on fleet maintenance costs. 

Electric vehicles do not have as many internal components as traditional vehicles and as a result, the maintenance costs are also low. The motor, battery and other electronic components of an EV require zero maintenance. 

The less abrasive breaking of electric vehicles means low wear and tear on the brakes, which in turn, means lower vehicle maintenance costs.  

Fleet managers can save a lot of maintenance costs on components like oil filters, engine sludge, fuel filters, air intake filters, and ignition coils. 

Impact of electric vehicles on fleet management

Though the fundamentals of fleet management such as safety, efficiency and delivery are the same for both fuel trucks and electric trucks, there are some differences in fleet management techniques that companies need to note. 

The significant difference in fleet management is the change in the monitoring metrics. They will have to monitor metrics such as battery life, charging sessions, power rates, etc. to ensure that their electric fleet runs efficiently. 

Fleet managers have to include telematics and FMS in their fleet operations to keep track of the critical data. 

Another critical area that concerns fleet managers is the availability of charging infrastructure for electric vehicles. 

Given the fact that the usage of electric trucks is just gaining steam, there is a lack of charging infrastructure. Though light to medium-duty trucks can be charged at the passenger car charging stations, the problem is for heavy-duty trucks that have to do long hauls. 

However, effective charging techniques such as overnight and mid-route charging can aid fleet managers in the effective management of their electric fleet. 

Fleet management software can again come to the rescue of trucking companies in monitoring data about the battery life of a truck and directing it to the nearest charging station in case of need. 

The third area of concern will be training the workforce to adopt the new vehicles. 

Drivers must be trained to use electric vehicles with ease. Service and maintenance staff will also need additional training to understand the components of an electric vehicle and its service requirements. 

In addition to the routine checks, a commercial electric vehicle may need additional checks such as regular battery inspections for leakage, coolant system checks, and regular software updates. This problem can be solved through telematics and FMS. 

Advanced telematics can help drivers, mechanics and maintenance staff to solve challenges associated with the inspection and maintenance of electric vehicles. 

As increased environmental awareness and stringent government regulations are pressuring trucking companies to switch to electric vehicles, fleet managers believe that electric trucks are the future of the trucking industry.  

However, the costs of electric vehicles and the need for charging infrastructure are two major constraints for fleet managers. Converting to a completely electric fleet will be profitable for trucking companies, once the cost of vehicles is reduced and an efficient charging network is established. 

To encourage trucking companies to adopt electric vehicles, governments must also provide tax incentives and other benefits. 

Fleet managers can use telematics and GPS enabled FMS to monitor their fleet performance while making the critical decision about converting to a fully electric fleet. They can use advanced software to measure vehicle performance and costs while optimizing fleet performance. 

A safe strategy for trucking companies would be to start with one electric truck and compare the costs and performance before changing the entire fleet. 

 

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Types of Trucks used in the Logistics Industry

In the logistics industry, road transportation is essential on connecting the last-mile delivery, to achieve this the role of trucks is quintessential. 

Trucks are the bridge between the manufacturer and the retailers, as they transport the consignment from Point A to Point B to reach the end-users.

In this, according to the industry and type of material transported there are different types of trucks that are available in the market.

In this article, we will the elaborated various types of trucks and their usage with vehicle dimensions, load capacity details.

Box Trucks

Box trucks are utlised in the logistics industry for the transportation of furniture, equipment, packaged goods and other goods that don’t consume lot of space. 

This type of truck is effective in transportation because relatively comfortable, easy to manage, cheaper when compared to heavy trucks.

It is ideal for small business operators and retail business usages. Apart from this, this truck is also suitable for the food business, who use trucks for the food business.

Flatbed Trucks

Flatbed trucks are open body trucks with cabin only for the driver. This type of truck are suitable to carry heavy loads on open space, mostly heavy iron sheets and rods can be transported using such vehicles.

This vehicle can load upto 20 tonnes depending upon the vehicle make and load-carrying capacity fixed by the manufacturer.

In the flatbed load vehicles there are different types namely extendable flatbeds, stretch single drop deck, side-kit, lowboys, double drop and RGN flatbeds.

Refrigerated Trucks

Refrigerated trucks are for the drugs and food industries, these trucks are designed in such a way that it can carry the perishable goods at the preserved temperatures. 

The reefer trucks are of utmost importance in the pharmaceutical industry, as most of the medicines need to be transported at regulated temperatures with continuous monitoring of temperature.

The vehicle is usually designed in that way with air conditioning facilities that can withstand temperatures from 50 degree Fahrenheit to -20 degree Fahrenheit.

Such reefer trucks consume more fuel than the normal trucks since the air conditioning refrigeration system is directly connected to the engine.

Semi-Trailer Trucks

These are trucks designed in a way to connect with one or more semi trailers. They are designed to carry heavy loads that are comparatively stronger that is not transported using the standard trucks.

The semi-trailer trucks have an automated brake system to avoid them moving away in case of any accidental scenarios.

Semi-trailer trucks need special maintenance to keep the vehicle healthy and it demands specialized drivers to drive the vehicle on highways. To drive such kinds of semi-trailer trucks drivers need special qualifications and training to drive. Also, the driver needs to get a driving license specifically to drive such vehicles.

Tail-Lift Trucks

It is also popularly called liftgate trucks. The purpose of this truck is to load heavy goods with the aid of a tail-lift on the truck. The tail is attached to the rear of the vehicle and the lifting is done mechanically.

This mechanical tail system will reduce the human effort in loading and unloading the heavy goods. The tail lift trucks can carry loads of more than 1 tonne depending upon the vehicle manufacturer guidelines.

Jumbo Trailer Trucks

The jumbo trailer is popularly known as a mega trailer, it is a combination of trailer and truck. It is a very long truck and it carries a load of over 20 tonnes. The beauty of this truck is, the load can be loaded in multiple directions including the back, sides, and roof.

Mini-Van

These mini van are used for “last mile” connectivity on Indian roads to reach the delivery location for goods dispatch. Mini Trucks are most popular on Indian roads, especially in rural areas. These kinds of mini trucks are used for agricultural goods career, used for shop owners to deliver goods, in courier services and the list goes on as this kind of light commercial vehicle offer multipurpose option to use.

Tanker Truck

Tanker truck is used to carry the liquid load such as fuel, petroleum products, chemicals, oil & gas, water, milk and any liquid material that need to be transported can be done using the tanker trucks.

The truck materials and design will change according to the industrial requirements as many time it carries inflammable materials on it and corrosive materials in the tanker.

Container Trucks

The container trucks are standardised containers that are used in the logistics industry to transport goods on the rail, cargo ships and trucks. 

The ideal purpose of these containers is to transport the goods long distances without affecting any damage to the consignments and easily transportable on all mediums of transportation.

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What are the Logistics Issues of a Large Distribution Center?

Advancement in technology has expanded horizons in the Logistics Industry. 

Delivery of products on time and in hand reduces the burden on customers in the logistics industry. 

Innovative technologies like vehicle tracking, telematics, GPS tracking, and fleet management software allows businesses to grow more efficiently and profitably. 

In simple terms, logistics is defined as management, detailed planning, implementation of complex actions, and organization. 

In most cases, logistics extend their workflow to both information and physical goods. It not only follows the physical directory but also checks in goods, including time and information. 

Despite the fact that logistics industries are evolving and integrating new technologies into local and global supply chains, many challenges continue to disturb them. There is no doubt that the larger distribution centers carry the greater burden of these challenges. 

Let’s discuss the most commonly faced logistics issues by every large distribution center.

Logistics Challenges of large distribution centers

With a turbulent start to the new era, transportation and logistics companies integrate with innovative technologies like telematics, GPS tracking, vehicle tracking, etc to meet the growing customer needs. 

The motto of the distribution centers is to make sure that the pick-up and delivery of the goods or information should be safe and hassle-free. 

Let’s dig deeper to know about the most common challenges in logistics industries.

1.Logistics management errors

Logistics are trying hard to run smoothly under all circumstances, but errors still appear. If the logistics are not regulated properly, then there is a chance of having misplaced products, errors in picking, packing, delivery, or shipping of goods, damage during storage, or incomplete orders. 

The impact of these human errors becomes much costlier. To reduce these unwanted costs, the logistics should adopt a proper logistics management system.

The warehouse management system helps the organization to reduce manual errors and unwanted cost damage. It also helps to streamline the overall process which makes it easier to track particular items without any delay. 

A well-trained staff is necessary to maintain the process more effectively with the newer technologies.



2.Transportation costs

One of the key issues in the logistics industry is cutting the transportation cost. The solution for this problem is combined with the supply chain management system of the company. 

Fuel costs keep on changing and mostly increasing, the key challenge is to keep the transportation cost low as feasible. It can be achieved by proper planning and innovative solutions. 

Transportation costs can be reduced by consolidating the shipments and the most space used in the transports. Communication between the carriers is an effective way to reduce unwanted costs. 

In a few places, there is a chance to reduce the number of carriers as well, it makes a huge difference. 

The most common and simplest solution for managing transportation costs is to rely on third-party logistics organizations since they will have many contacts with other carriers to consolidate the shipments, hence transportation costs will be reduced automatically. 

3.Delivery delays

Delivery delays are again, a common problem in the logistics industry. 

Delivery of products can be delayed or standstill due to many reasons like pandemic issues, labor strikes, factory shutdown, and protests. 

As these types of situations may affect the global supply chain, it’s best to have an alternative plan. 

Unless the logistics have a large infrastructure, handling a large number of shipments at a time is not possible manually. It also includes driver shortage, vehicle shortage, and labor shortage.

The above-mentioned problems may delay the delivery which in turn reduces the business reputation. These days, Internet has become the source of connection to logistics industries. 

Delivery delays can easily be handled by incorporating new innovative technologies like telematics, GPS tracking, vehicle tracking systems

4.Fragmented communications

The logistics supply chain has so many links in between production to delivery, manufacturing to distribution, and each and everything in between, hurdles tend to happen. 

Without a proper communication tool, tracking and catching manual errors is almost impossible. 

It can easily be eliminated by having access to effective communication software systems that can incorporate the logistics management software along with access to the end-users. 

This software involves everyone to access the goods, from production to delivery which helps to resolve the problem earlier.

5.Lack of manpower

The other most important challenge in logistic industries is manpower. If there is a shortage of skilled labor, then there are possibilities of having delays in the supply chain. 

To overcome this problem proper labor management systems should be followed. If the vehicle arrives at the logistics, there needs to be a crane operator, forklift, loader, and unloader to process the goods without any problem. 

Many advanced technologies have surfaced to maintain things effectively and smoothly.

6.Erratic demands

The other major concern of logistics industries is fluctuation in demands. The fluctuations in demand and supply have a major impact on the cost management systems of the organization. 

During emergency or pandemic periods, demands may vary which are not expected or anticipated by the logistics. 

To manage these demands during tough times needs proper information about manufacturing and retailing. Information gaps between the supplier and the logistics create a major impact on distributors to adapt to the changes. 

A network management system should be implemented in order to accommodate the erratic demands and avoid last-minute delays. 

Final words

There are still many more issues faced by the distribution centers on a daily basis. One simple and effective solution to the logistics industry is incorporating the right technology. 

The logistics industry is rapidly evolving and has new creative software and automation to ensure constant communication, real-time tracking of goods, warehouse management, and real-time responses. 

As a large-scale distributor, making use of these innovative technologies can help you handle almost all of the logistics issues listed above.

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Technology role in supply chain management

Today, the market is consumer-driven. 

Consumers are empowered, and they have choices. They are quick in changing brands if they don’t get what they want when they want it. 

It is driving companies to provide quality products at the right price at the right time. 

Supply chain management plays a crucial role in ensuring that the company receives the raw materials and finished goods are dispatched in time.

Technology is playing an important role here. The role of IT in supply chain management is ever-increasing, and it is high time companies realize its importance.

What Is Supply Chain Management (SCM)?

Supply chain management is a part of logistics management. It refers to the entire process of making available the right products to the right person at the right time. 

It is a process that involves suppliers, manufacturers, distributors, retailers, and consumers. 

Fleet companies assist in effective supply chain management. The use of software like telematics ensures that the company reaches its consumers in time and serves them quality products.

How Is Technology Important In Supply Chain Management?

In the past few decades, infrastructure development has made it possible for companies to reach consumers in less time. The processes have been digitized. 

Today, consumers can check where their desired product is, if it is in the company or on the road, whether perishable goods are being transported at an optimum temperature, etc. 

Companies can also keep an eye on the vehicles while they are on move. They can track vehicle idling, fuel monitoring, truck maintenance, etc., so their products reach consumers quickly, without any downtime.

Different Roles Of Technology In SCM

The technology aids supply chain management in the following ways.

1.Increased Efficiency

Proper fleet management makes it possible for companies to promptly ensure that the product reaches the consumers. Fleet management software like telematics allows keeping an eye on vehicle idling. 

It is an effective way to find out where you are losing time. Since managers, drivers, and workers are aware that they can be traced at all times, it increases their efficiency. Plus, it eliminates the manual tasks of creating useful information about fleet schedules, allowing managers to focus on other important tasks.

2.Fulfilling Consumer Expectations

Consumers are more demanding presently. They are aware that they can obtain the desired goods from multiple vendors. They expect 1-day, 2-day, and even same-day delivery. 

Customers can now check the progress of their order from its placement to order fulfillment. It increases transparency between the company and the customers, resulting in customer retention and loyalty. 

It is crucial for the success of every business. Companies cannot bear any breakdown, causing unwanted delays; else, they lose customers. 

Maintenance reminders by software allow the managers to keep the vehicles up-to-date, so no truck auto part betrays a driver on the move. 

In the supply chain, reaching consumers on time is the ultimate goal, which can be fulfilled by proper fleet management.

3.Increased Collaboration

Supply chain management includes the company, its partners, distributors and retailers. Information sharing with key partners is essential to execute the supply chain strategies effectively. 

The manufacturers can share real-time data regarding the procurement needs, and the supplier can fulfill it on time by tracking the activities. 

It creates an environment where informed decisions are made based on the real time information. 

4.Cost Reduction

With the availability of real-time data, companies can assess the customer’s demand in specific regions and make products available according to it. It saves the suppliers from understocking or overstocking the retailers.

Also, fleet management software allows checking vehicle idling, fuel monitoring, driving skills, sending maintenance reminders etc., which are crucial for reducing unnecessary expenses. 

By fuel monitoring, companies can see any significant changes in mileage, whether the vehicle is consuming more fuel than others, etc. It also allows keeping an eye on driver behavior through video dashcams. Vehicle idling also consumes excess fuel. 

All these minor issues create significant expenses for the companies.

Companies cannot raise prices in today’s competitive market, but they need to reduce costs to stay competitive. The fleet management technology contributes significantly to it.

5.Better Inventory Management

Supply chain management ensures that the right quantity of material is available for the right processes at the right time. An excess quantity can get obsolete, resulting in waste, while less inventory can stop the production. 

It leads to stockouts, delays in providing goods to the customers, and ultimately losing them if it happens often. 

Supply chain technology works on real-time data, which reminds the supplier when raw materials reach reorder quantity.   

To fulfill the flexible demands, a flexible transport system is important. By scheduled truck maintenance, companies have resources at their disposal, which can be deployed to fulfill the demands in emergencies.

6.Better Decision Making

Supply chain technology cannot work in isolation. A logistics system in place is crucial for supply chain strategies. 

Management is presented with data from the supply chain processes and how the demands can be fulfilled by proper fleet management. 

Fleet management has a greater role in the success of supply chain management. 

By reducing vehicle idling, ensuring timely truck maintenance through automated maintenance reminders, ensuring drivers understand their responsibility and what is expected of them, companies can ensure that a supply chain cycle works successfully.

Final Word

The road to success is made up of technology for companies who want to stay competitive in today’s marketplace. 

Technology lies at the heart of all the processes today, and the supply chain is no exception. But it is also true that its success lies on the shoulders of a well-maintained fleet. 

Increased consumer demands are pressuring companies to rely on privately-maintained fleets. It can change everything for a company. By installing telematics software for fleet management, companies can benefit greatly. 

Trust technology and expand your business. It holds the key to your success today.

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Why is it wise to choose a road transport service for consignment?

For overland freight shipping, logistics companies rely heavily on fleet management companies and their road transport services. 

Along with vehicles and drivers, fleet trucking companies provide advanced vehicle tracking systemsfuel monitoring, and dashcam services to deliver your consignment safely to your destination without any hiccups.

Transportation of consignments is not only about loading and unloading it at the source and destination location on schedules. 

It also incorporates selecting a cost-effective mode of transportation and choosing the best fleet truck providers with advanced software tracking services.

Fleet truck companies provide two shipping methods as FTL (Full Truckload) and LTL (Less than truckload). 

You can select shipping methods depending on significant factors like location, size, and weight of the freight, consignment type, delivery date, time, and budget.

Even though road transportation has its limitations in delaying your shipments in such situations as weather, traffic, accidents, and road conditions, it is the most preferred and heavily used mode of transportation among normal people and acts as a major contribution to the country’s growth.

Let’s explore why logistic sectors select road transportation over other modes of transportation? Is it cost-effective and speedy? Why is it wise to choose a road transport service?

Why is it wise to choose a road transport service for consignment?

Fleet truck service is an economic means of transport, providing complete door-to-door services even to the local or over-border deliveries in the rural areas.

Freight service providers give a live-stream update about the cargo location and vehicle, scheduled delivery time depends on road traffic, road constructions, weather conditions, and more. 

The packing, loading, and unloading service costs are comparatively lesser than the other modes of transportation. The innumerable benefits and advantages of road transport service are:

1. Less investment

Road transport service has relatively less initial capital expenses compared to the other modes of transportation. People can choose LTL shipping methods to deliver small goods to desired destinations with less investment, packing charges, loading, and unloading expenses.

The cost for road construction, maintenance, and other works requires less capital compared to airways and railways.

2. Door-to-door service

Door-to-door service for all the freight deliveries can be possible in road transportation, this feature makes it the core lifeline of the transportation industry.

The fleet operators provide door-to-door service to every part of the country including the rural or remote areas at a secluded time without any delays or hiccups. 

When you compare this to rail or Marine services, you will have to receive goods from the terminal after several security checks and need truck services to carry them to your place.

Both LTL and FTL shipping methods make road service more accessible and easier at any time.

3. Flexibility and rapid speed

In road transportation, the timings and routes can be altered easily to the convenience of shippers or receivers. Tracking software and its features help you to track your freight from anywhere and allow you to change the routes, as per your requirements.

For transporting over short distances, road transports are economically viable to load and unload the goods to avoid transit delays. 

Unlike railways, the road service does not need any prior booking or other formalities for taking your delivery.

4. Lesser risk of damages in transit

There is little chance of damage as there are no multiple instances of loading and unloading the consignments. Truck services carry delicate and fragile freight like glassware and chinaware with extreme care.

5. Saves packing cost

The process and procedure of packing goods in road transport services are minimal, less elaborate, and not complicated in comparison to other modes of transportation.

The road transportation will not require intermediate handling, and it will be more cost-effective and quicker to delay the cargo on schedule.

Road transportation does not require any special documentation, formalities in packaging costs, and security checks to deliver the goods, which is a flexible and hassle-free option. 

Even if water and rail are used for long-distance transportation, the starting and ending phases require road transport to carry charges in the terminals. Simply, it acts as a connecting link to other means of transport.

How do FTL and LTL shipping enhance the road transport service performance?

In order to deliver a high level of customized transport service to shippers, both FTL and LTL shipping methods play a significant role. A Freight Transport Line (FTL) is ideal for shipping large shipments that take up the entire vehicle space and work on a point-to-point basis.

In FTL, a single carrier is owned by only one shipper and drivers directly deliver to the destination without any intermediate stop. 

LTL freight works on a hub-and-spoke method, multiple shipments are collected together in a local hub and loaded into a single truck. The truck has multiple stops towards the destination.

Both FTL and LTL come with their own set of advantages. FTL can be used to carry fragile, sensitive, or hazardous goods, but is a little more expensive than LTL. 

LTL is flexible, cost-effective, and suitable for small shipments.

These shipping options help shippers to choose a truck service depending on the factors such as shipment volumes, freight type, delivery time, and budget.  

Both freight services have vehicle tracking and fuel monitoring systems to ensure the safety of the goods.

Every thriving business needs a good transportation mechanism to survive. Irrespective of the standard or express delivery speed, road transportation can help your business remain competitive. 

Choose a Road transportation service after checking the on-time placement ratio, consignment damage, and en-route visibility percentile. Aside from the service company, it is also about the fleet drivers for the next fleet delivery drive. 

Lead the competition, by choosing the best road transport service for your consignments. 



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Problems faced by Oil & Gas Transportation Fleet

The fleet transports a plethora of things on a daily basis. From small objects to large and hazardous things, everything is on the roll in a fleet industry. 

It is of utmost importance to fleet managers to keep track of everything and provide a safe and risk-free system to carry different types of goods. 

As with changing times and the coming of technology and creativity into fleet business, carrying goods is becoming safer, faster, and risk-free. There are many problems attached to carrying different types of goods through the fleet. 

Fleets can undergo thefts, accidents, and many other hazards while on the run. One of the most dangerous and hazardous goods that fleets carry are Oil and Gas. The transportation of gas and oil takes place in many phases from reserves to industrial areas and to other supply houses. 

The fleets carrying oil and gas are at higher risks as a slight mistake or accident can cause a lot of damage due to the inflammatory nature of these fuels. 

In this article, we will try to understand the challenges faced by fleet industries that carry oil and gas over their fleets.

 

What are the modes of transportation for Oil and Gas?

There are many ways through which oil and gas can be transported. For large fuel transport across borders and continents, many large fleet houses use ships and big water containers to transport these fuels. 

In the case of nationwide transportation of oil and gas or for interstate transportation fleet trucks are used. According to a report, more than 7 lakhs of fleets carrying oil and gas moved in the year 2020 in India and the number will keep increasing with time. 

Transportation through trains is another option for carrying out oil and gas transportation but it involves a lot of costs. 

Transportation through train is beneficial in case of large amounts of oil and gas for a long journey otherwise it is ineffective and very costly.

One of the most trusted and efficient ways of transporting oil and gas is through fleet trucks. Fleet trucks come in handy in transportation to different places and can easily transport preferred volumes of oil and gas. 

There are many challenges attached to the transportation of oil and gas through fleet trucks.

Challenges faced by Oil and Gas Transportation fleet

One of the major challenges for carrying out transportation of oil and gas and other fuels, fleet industries need to have proper infrastructure. It is extremely important to create systems and processes that eliminate risks of any kind of spillage, leaking, and accidents on the road. 

It is important to keep all efficient tools inside the fleets to reduce the risk of major losses in case of any mishappening.

The fleet industry must tie up with motels and other eateries throughout the large highways so that drivers and fleet can take rest over the journey and eat well. It is important to plan routes beforehand, one of the major reasons for accidents and other accidents is uneven and bad roads. 

Selecting a route that is smooth and even, having motels in between is extremely important for safe transportation of oil and gas. 

Fleet houses must own tankers that are efficient to carry these fuels such as oil, gas, petroleum, and other vulnerable things. Regular fleet trucks cannot be used for the transportation of these substances. 

Extremely delicate things like oil and gases are transported through tankers and fleet industries need to invest a good amount of money to purchase good quality tankers. As many industries check the quality of tankers before booking fleet houses.

Another challenge faced by fleet transport is road accidents and collisions with other vehicles on the road. 

Highways have a large number of vehicles and each day there are reports of collisions on the road. These accidents can cause a lot of damage to the fleet and may even cause a blast in case of a hard collision in the tanker. 

Transportation of oil and gas carries very high potential risks and can cause a lot of damage to life and property in case of an accident. Fleet trucks carrying oil and gas are not only a hazard to fleet owners but can also cause a lot of damage to neighboring people near the area of the accident. 

A blast can cause damage to several nearby people and a gas leakage can be harmful to the health of many people.  Fleet owners and managers need to be extra careful to assign skilled drivers to reduce the risk of accidents and other dangerous incidents on the road.

Fleet trucks that are assigned to the task of carrying oil are at extra risk of serious damages even after unloading the oil due to wet lines. The oil trucks are filled from the bottom of the truck and the oil gets stuck to the truck surface even after unloading the oil. 

It is very difficult to extract this residual oil from the fleet trucks and this residual of oil is called wet lines. The wet lines are a major threat to fleet trucks.

Another challenge is that fleet trucks follow the same ways of carrying oil and gas for many years. There is little innovation in the area of oil and gas transportation. 

Fleet owners are left helpless to carry out transportation with such heavy risks involved in the process. They do not have any option or higher technologies that can reduce the risks to make sure easy and affordable transportation of oil and gas. 

It is a constant pressure that fleet owners feel in the transportation of such goods.

Summing it up

Fleet trucks can carry different types of goods from time to time. Fuels such as gases and oils are one of the most challenging goods that fleet trucks transport. 

The transportation of oil and gases comes with many challenges such as infrastructure, high investment, dangers of accidents, and damages to life and property. 

Fleet houses need to be extra secure and should take all measures to maintain the safety of fleets. A well maintained and secured fleet having skilled and trained drivers is of utmost importance to carry goods such as oil and gas.

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Importance of Commercial Truck Insurance For Your Business

After a sluggish start in 2021, the trucking industry is looking forward to better opportunities and more open market access for 2022.

The global pandemic taught us the importance of being prepared for adverse health conditions, i.e., having comprehensive Health Insurance. And, the trucking industry has a lot to learn from it. 

Get your vehicle secured with comprehensive truck insurance from unforeseen adversities.

So, in today’s topic, we will discuss commercial truck insurance in detail.

Before we get to the heart of the story, let’s read some data points about India’s logistics and the trucking industry to understand the impact it creates. 

Amongst all the modes, rail and road transport are the most significant. Road transport holds a substantial share of 65% compared to road and rail.

One of the primary reasons is its flexibility to extend to any location across the country and provide door-to-door service. 

Thanks to the continuous expansion of connectivity via road.

Currently, this ever-growing transport sector offers employment opportunities to 22 million (approx.) of the population, from freight operators to transporters to humble truck drivers. 

Approximately 8.5 million trucks of all shapes and sizes run across different parts of the country. Out of that, most of them are family-owned and driven by owners or their relatives. 

It shows our trucking industry is just more than an excellent mode of freight transportation, providing income for livelihood for millions of people. 

So, if your vehicle is a critical component of your livelihood, you definitely will not want anything happening to it that obstructs your business operation. 

In that case, buying commercial vehicle insurance is the answer to securing your vehicles and taking care of the bills arising from any unforeseen adversity when your vehicle is ferrying on the road. 

Whether you own a truck or a fleet of trucks, insurance is essential to absorb those financial burdens.

A truck insurance policy covers all types of commercial trucks – mini, light, medium, and heavy-duty trucks.

There is no one size fits all insurance model for commercial trucks. Even though you can have basic truck insurance, it may not provide comprehensive insurance cover to your vehicle.

Classification of Commercial Truck Insurance

Depending upon the level of coverage, there are two types of commercial truck insurance:

  1. Liability Only Truck Insurance
  2. Comprehensive Truck Insurance

Liability Only Truck Insurance: 

This is the most common insurance type availed by truck owners in India. It is also called third-party liability insurance. It covers any damage caused by the insured vehicle to a third party. Therefore, this insurance covers damages incurred to the third-party vehicle and a person.

Along with that, it also offers personal accident cover for the owner/driver of the truck. 

Comprehensive Truck Insurance:

This type of insurance is a complete solution to the insured truck and the owner/driver, along with covering the third-party liabilities in case of any damages.

It financially covers the insured truck from the damages caused due to fire, accidents, theft, natural disasters, etc. 

Check out the infographics to understand the difference between Third-party liability only truck insurance and comprehensive truck insurance

Coverage type

Third-party liability only truck insurance

Comprehensive truck insurance

Third-party person or vehicle damage caused by the insured truck

Yes

Yes

Third-party person or vehicle damage caused by the vehicle being towed by the truck

Yes

Yes

Personal accident cover for owner-driver of the truck

Yes

Yes

Own damage cover

No

Yes

List of Beneficial Features Of Commercial Truck Insurance

By availing a commercial truck insurance policy, the insurer can get to access a variety of features. Some of them are

1.Cashless Vehicle Assistance/Repair:  You can get your truck repaired at any of the network garages of the insurer without having to spend from your pocket. This feature comes in handy while ferrying goods to a different state or city.

2.Insurance Claim Assistance: When it comes to any motor vehicle, accidents tend to happen than never. In that time of need, the truck owner can contact the support team of the insurer at any time for claim assistance. Getting their help at the right time will help register the claim successfully and stay at ease. 

3.No Claim Bonus: If the truck’s insurer hadn’t made any claim for the previous policy period, the insurer could avail of the discount on the commercial truck insurance cost with No Claim Bonus (NCB) 

4.Add-on Insurance Cover: As I said before, there is no one size fits all model when it comes to insurance. Every fleet owner / single truck owner have varying requirement of what needs to be covered under their insurance. 

It is necessary to take stock of your condition and choose the policy with add-on covers per your need. 

Though add-ons come with extra cost, it will be completely worth it at the time of need. Some of the add-ons cover include Zero-depreciation cover, roadside assistance cover, etc. 

If you are still not convinced and looking for some solid reasons to buy a truck insurance cover. 

Key Reasons To Buy Commercial Truck Insurance

1.Legal mandate: In India, as per the Motor Vehicle law, it is legally mandatory to have a valid third-party liability insurance policy for all the trucks plying on Indian roads. 

If you fail to have truck insurance, you can be penalized under the law.

2.Mitigate Financial Losses: All trucks are used for commercial purposes, which means it’s most often plying from one place to another. In such cases, damages or losses incurred to or by the truck can be of major financial burden. To avoid monetary loss, it is wise to buy the best truck insurance that suits your need. 

3.Prepare for Unforeseen Circumstances: While your truck is on the road, accidents are an unavoidable part of the business. Accidents or emergencies come unannounced. When it happens, it does not just damage your vehicle but also leads to loss of life. 

In such cases, comprehensive truck insurance will adequately prepare you for any unfavorable circumstances.

List of Things Covered Under Commercial Truck Insurance

Before you choose commercial truck insurance for your vehicle, it is necessary to know what things can be covered under a policy. 

1.Accidents: Damages caused due to accidents to the insured vehicle are covered.

2.Natural Calamities: Extreme climatic conditions and calamities like floods, lighting are regular occurrences these days.

3.Theft and Vandalism: It is a matter of great shock when a truck goes non-existent (theft) or gets smashed into pieces during unfortunate circumstances. It is always of great relief to have your losses covered under an insurance policy during these instances.

4.Personal Accident Coverage: Just like insuring your vehicle, having personal accident coverage to take care of the owner-driver in case of injury or death due to accidents is of great importance. You can get this covered under commercial truck insurance. 

5.Third-party losses (Personal & Property): In case of your insured vehicle causes any damage to the third-party vehicle or person, your liability insurance coverage will come to the rescue to take care of the financial need. 

6.Towing Disabled Vehicle: In the case of heavy-duty trucks, your commercial truck insurance covers the damages caused to the third-party vehicle by the insured vehicle. 



List of Things Not Covered Under Truck Insurance

As discussed above, truck insurances are good enough to save yourself, and your vehicle from unforeseen adversity, but not all adversities can be covered under commercial truck insurance. 

In such cases, it is wise to know the list of exclusions from the truck insurance coverage.

1.Driving without a valid license: Whenever an owner-driver is on the road, it is important to have a valid license in hand. If not, you will have to pay the penalty for your negligence and along with that, you will not be able to claim your insurance for the losses you have suffered. 

2.Contributory Negligence: Any kind of damage or losses incurred due to contributory negligence will not be covered under the insurance. 

Example: If you are driving your truck despite the flood and any mishap happens. In that case, an insurance claim cannot be made. 

3.Drunk Driving: If the truck driver is driving the truck under the influence of alcohol, in such cases, any damage that happens to the vehicle or himself will not be covered with the insurance. Such claims will be rejected. 

4.Consequential Losses/Damages: If any damage or loss happens to your truck that has not been directly linked to an accident of any kind, then your insurance coverage cannot be put to use to make up for the losses incurred. 

Example: If you damage your truck due to mishandling of the vehicle post an accident.

Now, you have a clear idea of under what circumstances one can claim insurance. 

Let’s plunge into one of the topics I introduced earlier – Add-on Insurance.

Add-on insurance cover costs extra than the default truck insurance, but add-ons, as the name suggests, come with an enhanced insurance feature under your policy. It gives you and your truck some extended coverage, which wasn’t originally part of your default insurance plan. 

Let’s see a list of add-on covers offered by commercial truck insurance:

1.Roadside Support

As a truck driver/ owner, any incident that goes against your trip plan is an emergency. Common emergencies that require a fix are flat tires, battery assistance, minor repairs, fuel assistance, towing facility, etc. 

For all the issues mentioned above, roadside assistance/ support will be or great support at the time of need. If you have this add-on under your insurance cover, it is like adding extra muscle power to your business. It’s worth considering it. 

2.Gearbox and Engine Protection Cover

As the anime suggests, this policy provides coverage specifically to your truck engine and gearbox during any consequential damages. 

3.No claim bonus protection:

This is an additional cover that comes on top of the original No Claim Bonus which would be covered in your comprehensive truck insurance. 

It means, even if you have made an insurance claim in a particular year, still will e be eligible to make an NCB claim. 

4.Zero Depreciation Cover

It ensures that you get the full claim amount without any deduction related to your truck depreciation due to age/repair and replacement of parts. 

5.Loss of Revenue Cover

This protection add-on will cover the loss incurred during this period in which your vehicle is under repair/maintenance in the garage.

Once you have insurance for your vehicle, you are good enough to conduct your business without worrying about the possible financial burden that arises out of adverse conditions. 

If anything happens, you need to make cashless truck insurance claims. Here are the steps to follow: 

Steps To Follow For Cashless Truck Insurance Claim

  1. As owner-driver, you need to inform about the emergency incident to the insurance company immediately.  
  2. Make sure your insurer conducts a physical inspection of the truck to assess the nature of the incident and claim. 
  3. Get the estimate from the network of garages authorized under your insurance.
  4. Get the estimate from the insurer and repair your vehicle.
  5. Post-repair, submit the bill to the insurance company, fill up the claim form and submit all other required documents.
  6. Finally, your bill amount will be directly settled with the network of the garage. 

List of documents required to make a truck Insurance claim: 

1.Registration Certificate of the truck.

2.Original loss estimate

3.Original repair bill

4.Final receipt of repair bill

5.Police FIR copy, in case of third-party liabilities

6.Car keys and Non-traceable certificate, in case of theft.

To wrap it up

When your life and your family’s livelihood depend on a truck or a fleet of trucks, then you need to take all necessary precautionary measures to safeguard it. – Insurance is the best way to do it.

Insurance can help you run your trucking business smoothly and keep you away from your financial burden. 

Never let your journey make an unnatural halt – be it your business or life. 

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Additional Requirement For Heavy Vehicle Licence

All logistics, transporters, and commercial vehicle driving vehicles handling business should ensure their drivers have the commercial driving license to drive on Indian roads. As per the Motor Vehicle Act, 1988, it is mandatory for an individual to have a valid commercial vehicle license.

In this article, we will discuss in detail the commercial vehicle license, how to apply and other mandatory information related to it.

What is Commercial Vehicle License / Heavy Vehicle License

A commercial vehicle license is an official document issued by the Regional Transport Offices (RTO) in the respective states, which authorises the person to drive commercial vehicles such as taxis, buses, goods carrier vehicles and any other motor vehicle that is not used for personal purposes.

If the vehicle driver is handling any public transportation that carries goods or people, the driver should possess a commercial driving license (CDL) after undergoing the test and documentation process to get the CDL.

There are various types of CDL issued by RTO offices in India depending on the vehicle types such as LMV cab driving license, heavy-duty license, trailer and machinery licenses.

Different Type of Commercial Heavy and Light Vehicle Licenses

Providing the detailed list of commercial vehicle licenses list issued by RTO offices in India.

What are the Eligibility Criteria for Commercial Vehicle License in India?

The driver looking for a commercial driving license should meet the below-mentioned eligibility criteria.

  • The minimum age to get a commercial license is 18 years and for certain categories, it is 20 years of age.
  • Minimum Educational Qualification is 8th Standard school passing certificate.
  • To process starts with the learner’s license.
  • The driver must undergo compulsory training in any government training school or a motor school associated with state governments. 
  • Motor vehicle test will be conducted in the presence of a Motor vehicle inspector of the respective RTO office.

Required Documents to get Commerical License

To get the commercial driving license the applicant must provide the below-mentioned document to complete the CDL process.

Address Proof (any of the following)

  • Passport
  • Aadhar Card
  • PAN Card
  • Voters ID Card
  • Utility bills under the name of the applicant
  • LIC Policy Bond
  • Ration Card

ID Proof / Age Proof (any of the following)

  • Birth Certificate
  • 10th standard mark sheet
  • PAN Card
  • Passport
  • Aadhar Card
  • Voters ID Card

PP sized photographs

  • 2  for a Learner’s Licence (LLR)
  • 3 for a permanent commercial driving license

Medical certificate

  • Medical certificate from a certified doctor

RTO Forms

The applicant has submitted the documents with the application form and the fee for a commercial driving license. The applicant can apply either online or offline.

How to Apply for Commercial Heavy / Light License?

Online application process for CDL

Applicants need to follow the below-mentioned steps to get the commercial vehicle license on online mode.

Step 1: Download the Form 4 Application from sarathi website

Step 2: Complete the details required on the application with relevant document upload and photo.

Step 3: Provide the medical certificate provided by the certified medical professional.

Step 3(a): If you are applying for heavy-duty license the applicant needs to provide a training certificate.

Step 4: Submit Form 5 with proof of completing the mandatory training from the government driving school.

Step 5: On completion of submitting the application, the applicant will get the serial number of the submitted application and the same will be sent to the registered mobile number.

Offline application process for CDL

Applicants need to follow the below-mentioned steps to get the commercial vehicle license on offline mode.

Step 1: Walk in to nearest RTO office and get the Form 2

Step 2: Get the medical certificate provided by the certified medical professional.

Step 2(a): If you are applying for the heavy-duty license the applicant needs to provide a training certificate.

Step 3: Fill up Form 5 with proof of completing the mandatory training from the government driving school.

Step 4: Submit all the above-mentioned forms with relevant documents (address proof, ID proof, and photographs).

Step 5: On submitting the application, the applicant will get the serial number of the submitted application and the same will be sent to the registered mobile number.

Whether you apply for a commercial vehicle license online or offline, once the form submission process is complete, you will have to appear for a driving test, taken by a Motor Vehicle Inspector, at the allotted center on the designated day

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Permanent Driving license & Eligibility Criteria

In India, the government of India has mandated to obtain the driving license to drive vehicles, be it two-wheeler, four-wheeler, or any LCV and HCV vehicles.

To obtain a driving license, the citizen has to follow the certain process prescribed by law. The Driving license is issued by the Regional Transport Office (RTO). To get a permanent driving license, the applicant must get a learner license first and after one month, the applicant can apply for a permanent driving license.

We will provide more information related to the driving license issued by the RTO office in India in this article.

Driving License in India

It is mandatory to have a permanent driving license in India to drive any motor vehicle under the Motor vehicle Act 1988.

The process to get the driving license is simple but it is time-consuming because the applicants will not be issued a permanent driving license first, it will be issued only after the learner license and driving test.

Why do individuals need to have a Driving License in India?

Driving license is an important official document in India not only to drive vehicles but also it serves multipurpose document.

Driving License as ID proof

The driving license issued by the RTO office can be used as a ID proof, it act as personal identification and in certain cases it will be used as address proof. The driving license is a national identification and it can be used all over India as a proof of identity.

Mandatory for Driving

It is not just a document to store in a cupboard, the user has to carry the driving license (a photocopy will be accepted) to be provided to the traffic officials on road, the driver has to provide the document on demand, failed to which there will be a penalty.

Details Provided in the Driving License

The below-mentioned details will be provided in the driving license issued by the Regional Transport Offices India.

  • Driving License (DL) holder photograph because of this aspect the DL is used as photo ID in India.
  • Unique DL number will be provided to the DL holder and which ensures the unique ID document of RTO authority.
  • The authority which issues the DL – Region, State, and other details will be provided in the DL card.
  • RTO authority issuing the DL with signature, stamp and hologram fixed on the card.

Details Provided in the Driving License

In India, two types of license are issued by the RTO offices, one is Learner License and the other is Permenant Driving License.

Learner Licence (LLR)

First, the user needs to apply for the Learner License (LLR) before applying for a permanent driving license. To get the LLR the user have to appear for a small written test related to road rules, later the user needs to provide relevant documents to get the LLR. 

The learner license (LLR) is valid for six months, within this period the user can apply for a permanent license after one month of getting the LLR.

Permanent Licence

The user can apply for the permanent driving license after one month period of receiving the LLR. To get the permanent driving license the user will have to appear for the driving test at the respective RTO offices. Based on driving test performance the RTO authority will qualify pass or fail. 

The driving test qualified will undergo the next stage of the driving license issuing process of document verification, fee payment and photograph, etc. The permanent driving license will be issued within a day of passing the driving test.

The person who failed the driving test can reappear again after a certain period of time to complete the process of permanent driving license issuing procedure.

Eligibility criteria to apply for a Driving License in India

The driving license and LLR is given dependent on the class of engine vehicle. In light of this, the qualification models shift. The accompanying table gives an outline of the most well-known class of vehicles in India.

Since you’ve a brief on the class of engine vehicle that you ought to apply for, let us check out the qualification models for getting a driving permit in India.

Documents Required for Driving License

The user needs to provide a set of documents alongside the driving license application. The table underneath gives an outline of the list of documents required while applying for a learner license (LLR) and permenant driving license in India.

How to Apply for Driving License?

The person willing to get the permanent driving license has to get learner license first with supporting documents. Then the applicant can apply for permanent driving license to the respective RTO office in his/her locality where LLR was applied.

Driving Licenses Fees

How to take Driving Test on RTO?

The applicant has to undergo driving test to get the permanent driving license for any vehicle type. The test procedure has been mentioned below:

Test Procedure for two-wheelers

For two wheeler driving test, the user has to drive motorcycle in 8 shape without touching his/her feet on ground, along with this the driver has to show the indicator signals that needs to be done on road driving during the driving test.

Test Procedure for four-wheelers

For four wheeler the applicant needs to drive the car in the forward direction, reverse gear mode, gear change modes and parking way on roads.

What is International Driving License?

An international driving license is a legal document provided by the RTO office in India to drive on international roads during citizen travel to abroad countries. (For more details read the International Driving License article)

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RTO Forms for Driving License and Vehicle Registration

RTO offices in India manage the vehicle details and driver information, also they are the authorized government body to issue the vehicle driving license to drive the vehicle on Indian roads. The major functions of the Regional Transport Offices (RTO) include-

  • Vehicle Driving License issuing
  • Vehicle Excise Duty Collection
  • Vehicle Registration
  • Emission Test Certificate and vehicle insurance examination

 

The RTO office issues various RTO forms that help the applicants to submit the details to the authorities to process their respective applications. The RTO forms are broadly categorized into two types one is Driving License Forms and the other is Vehicle Registration RTO Forms.

List of Driving License form / RTO form for License

RTO Form 1

The RTO Form 1 need to be filled and submitted to the RTO authority to check whether the applicant is suffering from any physical disability or disease that may affect the driving skills.

RTO Form 1A

This form is for applicant medical fitness check, which includes complete examination conducted by the medical expert to ensure the physical fitness of the applicant. This form needs to be submitted along with RTO form 1.

RTO Form 2

Application form to get the learner license for driving the motor vehicle before getting the permanent driving license.

RTO Form 4

Application form to get the driving license for two-wheeler, four-wheeler or heavy vehicle in the state of residence.

RTO Form 8

Application form to be filled by the applicant, if he/she requires to add a new type of vehicle to his driving license.

List of Forms for Vehicle Registration

RTO Form 20

Form 20 of RTO is the application form for the motor vehicle registration. The application form needs to be submitted at the time of vehicle registration. The applicant has to submit the form with the below-mentioned documents and details

RTO Form 26

RTO Form 26 is to get the duplicate vehicle registration certificate, in case, the owner lost the vehicle certificate.

RTO Form 27

RTO Form 27 is for those who move the residence from one state to another, in that case, they to register the vehicle in the newly moved state RTO offices. Along with this Form 27 the vehicle owner need to produce the NOC certificate issued from the current RTO office, original RC book, and vehicle fitness certificate.

RTO Form 28

The RTO form 28 is to get the No Objection Certificate from the RTO offices. The NOC certificate will be required for different cases. (For more information visit NOC Certificate article).

RTO Form 29

RTO form 29 is for transfer of vehicle ownership, this form needs to be submitted to the RTO office when the vehicle owner wants to transfer the ownership of the vehicle to another person.

RTO Form 30

If the vehicle owner wants to transfer the ownership, the owner needs to submit this form along with RTO form 29. This form is called a Report of Transfer of ownership of a vehicle.

RTO Form 31

One is required to submit a filled copy of this form if he or she wants to put a claim on the vehicle of a deceased person. For this, the applicant who wants to get ownership of the vehicle requires to provide his details along with those of the deceased.

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