Transporting cannabis requires maintaining strict standards for the safety and security of your vehicles, drivers, and products. Many things can go awry and negatively impact your business.
As more states are expected to legalize medical or recreational marijuana, here are eight matters to consider to ensure your fleet is compliant, safe, and efficient.
1. Know the Nationwide Rules
No matter where you conduct business, your company must own or lease their vehicles for any cannabis transportation. Individual vehicles owned by drivers and rental vehicles from a third-party business cannot be used to transport marijuana or cannabis-containing products.
Similarly, it’s a requirement in all medical states that any cannabis transport vehicle be unmarked. There should be no wraps or branding that indicate that the car is being used to move marijuana from place to place.
In some states, cannabis companies can have logos or branding on their vehicles. Still, they cannot include images of cannabis products, marijuana leaves, or other symbols that may suggest the use of the product.
2. Think State-by-State
Since regulations vary by state — and with more states expected to legalize medical or recreational marijuana — you’ll also want to understand the specific requirements in the states where you operate.
In some cases, vehicles transporting cannabis must have two people in the car or van at all times. In Illinois, for instance, marijuana must be transported in a vehicle with no rear windows. In Washington state, marijuana plants may be transported in a secured area within the inside compartment of a van or box truck — but cannot be put in an SUV, passenger car, or the bed of a pickup truck.
3. Consider SUVs and Sedans
In some states, you are not required to transport cannabis in vans and can rely on SUVs or sedans, which not only lowers vehicle cost but provides better fuel economy, further reducing your cost of operations.
My company, Mike Albert Fleet Solutions, helped one Florida client acquire a fleet of safe and reliable sedans. An extra benefit? We negotiated a further price reduction due to the number of vehicles ordered — essentially getting them three sedans at no cost.
Beyond their lower costs, SUVs and sedans have better safety ratings thanks to their side airbags and other special features. Furthermore, they are less conspicuous than vans and, therefore, more likely to blend in while making deliveries.
4. Perfect the Upfit
It’s not just the vehicle to ponder but also how it’s upfitted to meet state compliance requirements and make transporting your product more straightforward and efficient. Upfits may include racks and shelving, safes, refrigeration units, telematics, and camera solutions.
Specialized upfits are one way some cannabis companies are making use of SUVs and sedans. Take refrigeration, for example. Some companies need refrigerator vans or box trucks, particularly in warmer environments. However, we have worked with clients whose refrigeration needs aren’t as large, and a plug-in cooler, which is much more economical, is adequate for the job.
5. Rely on Technology and Data for Maintenance, Safety, and More
Proper maintenance is key to a healthy, cost-efficient marijuana transport fleet, no matter the size or type of vehicles in it. However, staying on top of each vehicle’s needs and when is challenging. Thankfully, fleet managers no longer need to rely on complicated spreadsheets.
With the right data platform and dashboard, every maintenance matter can be scheduled, and the driver or fleet manager can be alerted in advance. Data will also inform you about vehicles whose performance is concerning and needs attention.
It can even help you avert problems by identifying upcoming issues so they can be addressed before they become more problematic — and expensive. In addition, data can alert you if a driver is speeding, braking too hard, or cornering too harshly so you can take steps to remediate the problem.
In-cabin cameras are another requirement for cannabis distributors in many states. Massachusetts and Illinois, for example, require dual-facing cameras — one aimed at the road ahead, the other at the driver. These not only keep drivers accountable but can also protect them in the event of an accident or carjacking.
Other states have regulations dictating that a camera must always be trained on the product. While some drivers push back on cameras due to their “Big Brother” connotations, they do go a long way toward protecting drivers, vehicles, and companies.
Since cannabis remains a Schedule I drug, all states require GPS tracking. Many states and licensing bodies also require documentation of what specific inventory was put on board or taken out at a particular location. A comprehensive telematics solution makes confirming your drivers’ routes and deliveries easy.
6. Develop a Vehicle Cycle Strategy
Well-run fleets don’t just focus on the right vehicles to acquire and upfit but also the right time to cycle a vehicle out of the fleet.
Holding on to a vehicle too long isn’t good. You’ll invest more in maintenance, downtime, and fuel than necessary. So when should you cycle a vehicle out of your fleet? As with most things fleet, data will be your guide.
Identifying the right time considers many factors, including vehicle age, mileage, maintenance history, operating cost, resale value, etc. As with selling a stock, you want to time the market to get out at a high point. For example, tax return checks generally lead to an increase in prices in the spring, so, in some cases, it may be worth holding on to a vehicle for a few months to take advantage of this market dynamic.
7. Purchase From Manufacturers, Not Dealers
Cycle strategy planning also helps you know well in advance when new vehicles are needed so you don’t have to rush and purchase from a nearby dealer, but, instead, you can order from one of the Original Equipment Manufacturers (OEMs).
When you purchase from a dealer, you’re pretty much limited to what’s on the lot, which may mean paying more for a higher trim level than you need. You can order directly from the OEM when partnering with a Fleet Management Company (FMC), allowing you to “build” the vehicle to your exact specifications and guarantees you will pay the invoice price minus any applicable incentives.
What’s also worth noting is that buying all your vehicles from the same OEM will give you additional “buying power” to reduce costs.
As a company grows, fleet managers will want to consider how that changes fleet needs so they can cycle in new vehicles on a planned, less costly schedule. This is called fleet rightsizing, which is configuring a fleet that’s neither too big nor too small, both of which are problematic.
8. Retain the Services of a Fleet Management Company.
FMCs can make your life easier and give you more time to focus on other business areas beyond your fleet. In addition to lowering your Total Cost of Ownership (TCO), partnering with an FMC will reduce your administrative burden and help keep you out of the DMV.
Note that some FMCs choose not to engage with the cannabis industry and won’t provide the necessary fleet funding.
Additional benefits of working with an FMC include guidance and expertise regarding data, maintenance, cycle strategy, vehicle selection and ordering, upfitting, and more.
For instance, my company has an engineering team to determine the best upfit solutions. We have also negotiated rates with some 40,000 maintenance shops nationwide, saving our clients significant sums on repairs.
How best to evaluate an FMC? I recently heard the CEO and Founder of Sunburn Cannabis, Brady Cobb, speak at the Cannabis LAB conference. He suggested that cannabis companies consider four things when evaluating partners, such as an FMC. The four were:
- Trust: Is the potential partner worthy of your confidence?
- Knowledge: Does the potential partner understand the cannabis industry’s many nuances?
- Scalability: Can the company grow with you as you grow?
- Transparency: Is their pricing in line with industry standards?
Transporting cannabis is no simple matter, but considering the above topics will help ensure your fleet is compliant and advancing your business goals.
