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Q: What is the difference between
an "MC Number" and a "USDOT Number?"
USDOT Practitioner: There are three
types of carriers in the industry: private, exempt-for-hire and
regulated-for-hire. All three types of carriers must set up a
safety tracking account with the USDOT if they transport
property across state lines in vehicles over 10,000 lbs. All
Carriers are audited after 90 days.
Some states, such as New York, have adopted the federal safety
tracking system and also now require an "INTRAstate USDOT Number" if
you transport property within the state and you do not already have
state operating authority. In addition, some states now require
owner-operators who are not carriers themselves to secure
"Registrant USDOT Numbers" in order to renew their apportioned
plates under the IRP program. These drivers are not audited by USDOT
as they are not carriers.
An MC Number is a
federal business license number that is assigned to the
regulated for-hire carrier group only. Formerly known as an "ICC
Number", this number is issued by the FMCSA to track a trucking
company's compliance with cargo and/or liability insurance and
process agent filing requirements.
Q: What happened to the ICC?
USDOT Practitioner: The Interstate
Commerce Commission ("ICC") was dissolved by Congress. The
Interstate Commerce Commission Termination Act of 1995 took effect
on January 1, 1996. So, despite the fact that we still see a
reference to "ICC Numbers" on the side of trucks, the federal ICC
has not been in existence for over 10 years. The current federal
agency that regulates the trucking industry is called the Federal
Motor Carrier Safety Administration ("FMCSA").
Q: What is a Process Agent?
USDOT Practitioner: A process agent is
merely a point-of-contact designated by a federal licensee (motor
carrier, freight broker, freight forwarder) for the purpose of
physically receiving legal process (i.e. lawsuit papers). All
license applicants must furnish a process agent for each of the 48
continental states when they apply for a federal business license.
To secure process agents,
click here.
Q: What is a Safety Audit?
USDOT Practitioner: Each new carrier
that receives a USDOT Number is audited by the USDOT after 90 days
of operations so that the USDOT can determine if the carrier has
proper safety management practices and controls in place. Auditors
can be federal special agents, state motor carrier investigators (I
used to be a DOT Investigator) or private contractors. Usually,
initial audits are friendly, "technical assistance" visits intended
to help carriers comply with safety regulations. Make no mistake,
however; you should put your best foot forward and be prepared for
your audit with respect to each of the audit topics.
DOTAuthority.com offers a "How to Survive a USDOT Safety Audit"
seminar in key locations like Dallas, Atlanta & Sacramento, which
can be combined with a 2-hour "Mandatory Reasonable Suspicion/Drug
and Alcohol Training for Supervisors". We also cover: hours of
service regulations, accident monitoring and reporting, driver
qualifications, CDL requirements, inspection, maintenance and
repair, safety fitness, hazmat, ect. Call Toll Free: (888) 414-1874
to learn more.
Q: Can a motor carrier broker freight out to an owner-operator?
USDOT Practitioner: No. That is, it's
not called brokering but dispatching. "Brokering" refers only to a
duly licensed freight broker arranging for motor carrier
transportation on behalf of a shipper client. A carrier who
dispatches a load to a leased-on owner-operator is not brokering the
load as the carrier remains responsible.
Some carriers also secure a freight broker license so that they can
outsource loads to other duly licensed motor carriers. However, in
such a case, the broker is not the carrier and is not normally
liable for the shipment.
DOTAuthority.com offers an "Introduction to Freight Brokering"
Seminar nationwide, which covers topics like: setting up a
brokerage, federal regulations, freight rate development, contract
negotiations and sales & marketing. Call Toll Free (888) 414-1874
for more information.
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