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Q. Somone recently told me that soon
there will be no more ICC/MC Numbers?
USDOT
Practitioner: They are correct. Under SAFETEA, the
FMCSA will be implementing a new Unified Carrier Registration system
on January 1st, 2007. As long as they stick to the schedule,
from that point forward, motor carriers will only have USDOT
Numbers. The federal government began the process of phasing out the
ICC/MC Number ten years ago when Congress dissolved the ICC.
July 5th 2005 was the deadline for trucks to display a USDOT
Number rather than the ICC/MC Number. Under the new system, all
carriers (not just regulated for-hire) will have to pay FMCSA
government registrations fees in connection with the issuance of a
USDOT Number.
Q. What is Single State
Registration?
USDOT
Practitioner: Under the current carrier registration
system, regulated for-hire carriers are required to register their
federal/interstate operating authority with those states that have
adopted the SSR system. Carriers pay a fee of up to $10 to each
participating state they will pass through for each truck they will
operate in those states. Some folks confuse SSR with IRP. SSR is
interstate authority registration. IRP is vehicle (apportioned
license plate) registration.
Under the new system that
takes effect January 1st, 2007, there will be no more SSR. Carriers
will not pay states per truck, but per fleet. Additionally, private
and currently exempt carriers (haulers of fresh produce, livestock,
ect.) will now have to pay the states these fees. So will
intermediaries like freight brokers.
Q. I am thinking about
either buying a truck and getting my authority or becoming a freight
broker. Which is the best?
USDOT
Practitioner: Well, there are two things to
consider: money and happiness. In terms of money, it's pretty easy
to conclude that you can book many more loads in a day than you can
haul. But you need to ask yourself, am I the type of person that can
spend 8+ hours a day in an office, or do I need to be out on the
open road? Maybe you've done your time on the road and would prefer
to be home with your family. Only you can answer this question. Call
us at (888) 414-1874 for information on our one-day 'Introduction to
Freight Brokering' workshop.
Q. I hear that a law was
passed in 2005 that eliminates the need to get a freight broker's
license. Is this true?
USDOT
Practitioner: I think you are referring to the federal
highway bill passed last August (SAFETEA reauthorization). They
essentially changed the text of the law from 'FMCSA shall
register brokers' to 'FMCSA may...". It
initially appeared that FMCSA was looking for permission from
Congress to deregulate intermediary registration. However, in
reviewing the FMCSA website regarding the new Unified Carrier
Registration system, it appears they are keeping the broker license
requirement for now but they do reserve the right to change the
regulatory scheme in the future.
Q. Do I need to take a
test to become a freight broker?
USDOT
Practitioner: No. There are freight broker schools that
advertise a test but that is their test to confirm you have achieved
proficiency. There is no fitness requirement and no exam required by
the government.
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