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Ask the USDOT Practitioner - July/August 2006

"JAMES P. LAMB, USDOT PRACTITIONER"
 

Question: What is the OTC?

 

Practitioner: “OTC” stands for Orlando Truckers’ Conference. The OTC is a special, new Industry trade show for average truckers produced and managed by my company-- DOTAuthority.com. Unlike most “truck shows,” which are geared toward bringing truckers and recruiters together, the OTC is focused on helping truckers make more money in trucking by getting their own transportation business license. Essentially, the idea is to cut out the middle man so don’t expect too many recruiters there.

 

Admission is $10. Those truckers who attend the OTC (February 16-18, 2007 at the Orange County Convention Center) will learn the secrets that trucking company executives know; namely, how to find freight and how to set freight rates. There will be up to 100 exhibitors and seminars by DOTAuthority.com, Florida DOT, Highway Watch and other companies. Big Rig Parking is free and there will also be a free concert for pre-registered CDL-holders by the “Road Hammers”. So, if you’re looking to make big money in trucking, as our radio jingle says: “Meet me at the OTC!” See: www.go2otc.com.

 

Question: I have a dually pick-up and a four horse trailer. I have a USDOT Number. What else do I need to haul horses for a fee?

 

Practitioner: Well, that all depends on what type of horses you are talking about. If you mean farm horses, then they are considered exempt commodities and you only need to register with the states you will go through. If they are race horses, then they are of exceptional value and there is an exception to the exemption; that is, you need interstate motor carrier authority if you cross state lines (along with Single State Registration for each state you will pass through; SSR, by the way, is about to be dissolved by FMCSA on-- or soon after-- January 1, 2007 and replaced with a new “Uniform Carrier Registration” program, which eliminates SSR and MC (formerly, ICC) Numbers). You might also need state authority for race horses, depending on your state’s policy for regulating transportation. If you had been a farmer transporting his own horses… then just a USDOT Number would have done it.

 

Question: Is it true that I do indeed need a MCC number as an o/o for hire to pull a company’s trailer ? Even though I already have my US DOT number and apportioned plates?

 

Practitioner: If you transport general commodities for-hire across state lines, then you either need your own motor carrier authority (MC Number for now; but this will be changing in 2007), along with your own commercial transportation liability insurance ($750,000), or, you need to be leased onto a carrier who must supply you with a written lease agreement. The carrier must insure your vehicle or they run the risk of being sued by the insurance company if there is an accident involving your vehicle and your vehicle was not registered with the insurance company. The carrier must also supply, for now, a Single State Registration receipt, identifying your vehicle as a member of its fleet. You must also display your carrier’s USDOT Number on your cab and identify the carrier operating your equipment.

 

Some states are now requiring O/Os to get their own USDOT Number solely for the purpose of renewing their IRP plates. This is not the same type of USDOT Number as a carrier USDOT Number; rather, this is called a registrant USDOT Number. You should not mark your vehicle with your registrant USDOT Number when leased on; again, your carrier’s USDOT Number should be displayed. If you are operating under your own authority, then you should have your own carrier USDOT Number and you will undergo a mandatory new entrant safety audit.   

 

Question: I am new to Independent trucking. I have always drove for a company. I have bought a truck and I am going to become a owner operator. I was wondering if I would be better off getting my own DOT number, or would I be better off just running under there number? Please let me know. Also let me know what all I have to have to get my own DOT number.

 

Practitioner: Well, it depends on whether you really want to run your own business or not. If you lease on, you will most likely make less money then if you got your own authority and MC & USDOT Numbers and set your own freight rates. But if you become a carrier then you are responsible for dispatching yourself. You see… there is a trade off:  more money brings with it more work. You might want to consider attending out “Trucking Success Workshop” (call 888 414-1874) or the Orlando Truckers’ Conference in February (www.go2otc.com).

 

Question: I'm confused about what exactly an operating authority is. Does the operating authority changed based on what I haul? How does this compare to temporary trip permits? Thank you for your help.

 

PractitionerTrip permits are temporary extensions of IRP, which is vehicle registration. Operating authority is pretty much a business license; a grant of legal permission from a regulatory agency to transport regulated commodities for hire (as opposed to exempt commodities like fresh produce, livestock; essentially commodities that are in their raw, natural state). INTERstate authority is granted by the federal government (FMCSA) so carriers can go from state to state. INTRAstate authority is a grant of permission issued by a state to a carrier to operate point to point within that state. Not all states require you get authority. For some, just a USDOT Number will do (but for now, that is not evidence of authority).

 

There are different types of authority such as: general trucking (property) authority, household goods authority (for movers), passenger authority for bus companies, freight forwarder authority and a freight broker’s license.

 

With respect to hazmat, there are additional restrictions, including, but not necessarily limited to: higher levels of insurance-- contingent upon the nature of the hazmat (i.e. paint thinner versus dynamite), driver background checks, annual hazmat permits, safety permits, driver license endorsements and placarding requirements.

 


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