QuestionQUESTION: Hello!
I'm trying to open a small expediting company with 2 12 foot cube vans and couple owner operators to deliver freight nationally. The GVWR for all vehicles are under 10,000 pounds. Do I have to get a DOT and MC authority? Or maybe something else? And how do I find a freight to keep my trucks running?
Thanks!
ANSWER: Igor... Thank you for the question.
FMCSA regulations only apply to Commercial Motor Vehicles (CMV). A CMV as defined by FMCSA is 10,001 lbs GVWR or greater. Exceptions that could make smaller vehicles under 10,001 a CMV would be if you were transporting a specific number of passengers or any quantity of HazMat requiring placards. So the quick and easy answer is that you would not be regulated under FMCSA regulations. So based on the information you've provided and assuming you're only transporting non hazardous freight, you would not require a US DOT number or an MC number (motor carrier authority).
You would still need to check for any state laws that may apply. Also, check to see your insurance requirements and if your present insurance will still cover you when transporting for compensation. Many personal auto policies have a clause that specifically prohibits any business use of the vehicles covered.
****CMV definition from the regulation******
Commercial motor vehicle means any self-propelled or towed motor vehicle used on a highway in interstate commerce to transport passengers or property when the vehicle:
Has a gross vehicle weight rating or gross combination weight rating, or gross vehicle weight or gross combination weight, of 4,536 kg (10,001 pounds) or more, whichever is greater; or
Is designed or used to transport more than 8 passengers (including the driver) for compensation; or
Is designed or used to transport more than 15 passengers, including the driver, and is not used to transport passengers for compensation; or
Is used in transporting material found by the Secretary of Transportation to be hazardous under 49 U.S.C. 5103 and transported in a quantity requiring placarding under regulations prescribed by the Secretary under 49 CFR, subtitle B, chapter I, subchapter C.
**********
To determine for your self what applies to your individual situation, just in case I missed something..... go to the website below and run through the little exercise found under the "Help Me Register" & "Step by Step Registration Guide"
http://www.fmcsa.dot.gov/registration-licensing/online-registration/onlineregdes
Finding sufficient freight to keep the trucks running is purely a function of your business strategy and marketing. There is no fool proof way to do it. A few suggestions would be
(1) register with load boards that specialize in the size and type of shipments you'd transport
(2) develop long term business relationships with companies or individuals that ship frequently
(3) advertise
(4) many internet websites offer free listing for your services
Again, I appreciate your question and I hope that the answer helps. Good luck and feel free to ask any additional questions you may have.
....Don
SEMO Motor Transport Service
---------- FOLLOW-UP ----------
QUESTION: Hello! Sorry, i didn't respond right away, I was away from home for the past couple of days. First of all, thank you for your answer! I really appreciate this! But i have one more question for you. To find a loads you're suggesting to register on the load board websites. I can not do that, because they required to have a MC and DOT numbers. But as like you sad before i don't need them. So what should i do in this situation? And I'm not dealing with any hazardous materials. I already register the company with a state and got my EIN number. I also got the commercial insurance, so i have no problems with that. My biggest concern right now is how to register on those load boards and start bidding on LTL freight and also is there any sources in the internet about the companies in the US who ship frequently?
AnswerHi Igor...
You're correct that most of the load boards for LTL and FTL will require you to be a registered motor carrier and they'll verify your credentials before allowing you on that board. There are a few "courier service boards" and "package delivery boards" that will allow you to participate without being registered as a motor carrier.
One other possible consideration would be to register with FMCSA as a motor carrier and obtain your US DOT and MC number assignment. There is no charge for the DOT number and the MC number is $300. You'd also have to have a process server ($35-$75 one time) and your insurance company would have to file the forms for financial responsibility. Of course this would subject you to regulation and incur some additional requirements for you.
There is at least one board, although I'm hesitant to mention it, that will allow you bid on shipments. The reason I'm hesitant is because it is a "load matching service" rather than a freight board and it doesn't verify the credentials of any of the carriers. This results in you having to compete with illegal and uninsured carriers. It is uShip, which can be found on the internet. I hope this helps a little.
....Don
