QuestionQUESTION: We own a truck with a drop deck trailer. Currently we do not have an authority for it and have been hauling exempt commodities. We are looking at getting our own authority. 1. Can you tell me the best way of doing this? (website, or business to do this through?) 2. How does the owner operator get his loads with out using a broker? 3. If you look for loads on the web at the different sites, are these not brokers? 4. What does it take to be able to find loads for our truck with out going through a broker, would we need to become our own broker as well? We are new at this and trying to find out as much information as possible, any info you would be willing to give us would be so greatly appreciated!
Best Regards
ANSWER: Thank you for your questions.... My answer is based on the assumptions that you will transport interstate for hire and that your truck-trailer combination has a combined GVWR of more than 26,000 lbs.
(1) First of all, as to getting authority.... You can quite easily do that yourself on line. Go to the FMCSA website for starters and run through the questions at http://www.fmcsa.dot.gov/registration-licensing/gettingstarted/guide0.10.htm. This exercise should help you determine exactly what registrations are needed. To begin the actual registration process go to https://li-public.fmcsa.dot.gov/LIVIEW/PKG_REGISTRATION.prc_option
and you can commence the registration process. There is no charge for registration for the US DOT number assignment. The MC number is your authority (federal license) to haul interstate for compensation. There is a fee of $300 for the MC# assignment. It can be paid with a credit card on line. If your intention is to provide services to the general public, you should register as a "common carrier" and check the block "for hire". You will be given a pin. Please remember or record that pin because it will be needed if you desire to make any changes to your MCS-150 at a future date. In 5 to 7 business days you can check for your number assignment at http://safer.fmcsa.dot.gov/CompanySnapshot.aspx by inputting your registered company name. Please note the authority will not be activated until your insurance company has filed proof of financial responsibility form MCS-90(9X) and you have a process server filed (BOC-3).
(2) There are numerous sources including internet based load boards. Some loads may be posted by brokers and some by the originating source companies. Some truck stops have free load boards. Not all, but many load boards charge a subscription fee that may be billed monthly or quarterly. At some time, you'll likely find it to your advantage and perhaps even unavoidable to utilize a broker's service. There isn't space here to go in to the pros and cons of using a broker, but it isn't all bad.
(3) Again, some companies post their own loads and some utilize the service of brokers, so there is no definitive answer to your question.
(4) A lot depends on your geographic base and operating area. You can try to establish business relationships with local companies that ship regularly. Finding and monitoring load boards is another way. I lack sufficient information to attempt to comment on obtaining your own broker's authority. Brokering is a separate component of the industry and a business of its own. From your initial questions, I'd suggest you may want to wait to determine if you'll want to register as a broker.
A couple of quick suggestions, if I may. Get solid quotes/offers for insurance before registering. Determine the radius from your base that you will need/want to operate. Unlimited distance will be the most expensive insurance but you can obtain 500 mile and 300 mile insurance also at a lower cost. As an interstate common motor carrier over 26,000 lbs CGVWR, you'll require $750,000 ($1,000,000 if hauling motor vehicles) BIPD and a minimum of $10,000 ($5,000 + $5,000) cargo insurance. Also, you'll need to research apportioned plates and registering IFTA.
Hopefully this has been of some help. If not feel free to ask any additional questions and we'll try to answer them.
Good luck // Don
SEMO Motor Transport Service
---------- FOLLOW-UP ----------
QUESTION: Hi Don - Thank you for the very useful info, I have a couple more for you. We are registered IFTA, (we have done exempt goods), what is the apportioned plates? THANK YOU AGAIN!
AnswerThanks again.... Each state issues the registration (license plates) for the vehicles. Since you're registered IFTA, you may already have apportioned plates (registration). It is possible that you don't and have some type of commercial or even a farm/ranch or agriculture tag. Without knowing your state and a little more about your business, it would only be speculation on my part and I could not give specific detailed information in regard to the type plates you have or will need. However in general, Apportioned Registration, also known as the International Registration Plan (IRP), is a program for licensing commercial vehicles engaged in interstate trucking. Apportioned registration lets you obtain registration credentials in one jurisdiction (your home base state), giving you the freedom of interstate travel without having to purchase trip permits. If your commercial vehicle is engaged in interstate operation, you may qualify for and probably are required to have apportioned registration. Very generally, if you travel in two or more jurisdictions (states, District of Columbia, etc.), you'll likely need apportioned plates. The term apportioned on a license plate refers to an interstate vehicle, usually a truck or a tractor. When a truck has apportioned plates on it, it pays road taxes to all the states it travels through - in proportion to how much of the time the truck is actually in that state. Thus, the tax fees are split up, or "apportioned", between the states where the truck travels. This way, the truck does not have to carry a license plate from each state it goes through or now, obtain individual state permits. The only plate required is the apportioned plate from the truck's home state.
I'd also like to mention that if you're registered over 55,000 lbs, you may be subject to Heavy Use Vehicle (HUT) taxes. For that, you file with your base state also. One source for information directly related to your situation is from your home state DOT. Each state usually has a "commercial carrier" division that provides information relative to your particular state's requirements.
Thanks again and please feel free to ask any other questions you may have.
I sincerely wish you the best of luck//...Don
