Q: I have a DOT number for an existing semi.  I purchased another truck, and would like an additional number for it.  How do I go about that?

USDOT Practitioner: You should only have one USDOT Number for your business. Said another way, no legal entity may lawfully have more than one USDOT Number. As you add trucks, you must use the existing USDOT Number that has already been assigned to you. The USDOT Number is used to track your safety record as a carrier in terms of all vehicles owned and operated.

Q: What exactly do the trucking companies have to have on the bill of lading when delivering and shipping?

Since 1996, when Congress dissolved the ICC, there no longer is a bill of lading prescribed by regulation. There is, however, something called a "Standard Truckload Bill of Lading" but it is not required to be used under Federal regulation. NMFTA also publishes a uniform bill of lading. We recommend carriers use one of these as

they are fair and balanced.

To learn more about the bill of lading requirement and the required entries, we highly recommend transportation Attorney  Hank Seaton's Contracts book, which has a sample form in the appendix that can be reproduced. To order, visit:

http://www.dotauthority.com/home.htm

Q: I am a carrier recruiter looking for drivers. Can you help?

USDOT Practitioner: In 2006, as you undoubtedly know, there is a strong need for motor carrier transportation. Currently, demand is high and supply is low. Shippers continue to report trouble finding carriers. As long as there continues to be a shortage of qualified drivers, carriers will continue to be in need of truck drivers. Of course, this all means a nice bottom line: higher freight rates and a willingness to accept fuel surcharges.

One solution for the Industry offered by DOTAuthority.com is the "Quick Jobs" driver recruitment program, which matches up carrier recruiters like you who are hiring with drivers who are looking for work. "Quick Jobs" is free to drivers. Recruiters pay a nominal monthly membership fee to get access to job seeker data. Recruiters then compete for drivers. For more information, click here:

http://dotauthority.com/recruit.htm

Q: Where can I get information on how freight rates are set?

USDOT Practitioner: DOTAuthority regularly helps owner-operators and new carriers learn how to set freight rates in accordance with current market conditions. DOTAuthority.com’s “How to Make Big Money in Trucking” and “Introduction to Freight Brokering” workshops offered nationwide help entrepreneurs learn how to deal with shippers, negotiate contracts, sell and market their services, and develop the right freight rates. For more information, call TOLL FREE: (888) 414-1874. 

DOTAuthority is partnered with TransCore. We recommend the DAT Partners product, which includes a valuable rate index tool.  For more information, email: DAT@dotauthority.com.  

Q: "What is factoring?"

USDOT Practitioner: Factoring refers to the selling of invoices to ensure a positive cash flow. Start-up motor carriers and freight brokers (and those wishing to grow rapidly) often factor their shipper invoices so that they can timely meet their expenses (i.e. pay drivers, fuel ect.).

When choosing a factor, however, be careful as to the terms. You should be concerned with how much a factor charges, how quick they pay and who is at risk. Factors buy your invoices but keep a percentage in exchange for getting you cash quick. The amount varies. "Next-day funding" helps you get your money 2-3 weeks sooner than waiting for the shipper to pay. There are "with recourse" and "without recourse" terms. "With recourse" means the factor can dump the bill back on your lap if the shipper does not ultimately pay. "Non-recourse" means once the factor buys the bill, it's their problem if the shipper never pays. You will see 5% non-recourse offers and you will see 1.9% with recourse deals. For example, if the shipper invoice is for $1000 under a 5% arrangement, the factor keeps $50 and pays you the $950. We recommend the non-recourse arrangement; that is, even though the rate is higher, the factor takes on the risk, not you. JD Factors is our preferred factoring provider for carriers. See www.factorauthority.com.

For more about factoring, I again recommend Hank Seaton's Contracts book mentioned above.