Archive for April, 2010

Trucking Authority & Broker Authority

Wednesday, April 28, 2010
posted by 18 Wheeler 1:18 PM

Hello, Fellow Drivers,  It can be a daunting task to get trucking authority.  The first thing to know is what type of authority you will need to obtain in order to start your trucking business.  Below is a brief explanation of the two types of trucking authority and broker authority.  Enjoy the read and remember to be safe out there!

There are two Types of Interstate Authority For Trucking Companies: These two types allow a driver to haul loads across state lines.  INTRAstate authority allows a driver to conduct business within your home state only.  This is the first step toward starting a trucking business. 

COMMON Authority- Liability & Cargo Insurance are required to be filed with the FMCSA.

CONTRACT Authority- Liability Insurance only required to be filed with the FMCSA.

BROKER Authority- only required if Brokering loads for other Trucking companies.   This type of authority would be used to find loads for drivers that are looking for someone to get loads for them. 

For more information, look over the Federal Motor Carrier Safety Administration website.  It has recently been revamped and is chock full of valuable information.  Here’s their website:  www.fmcsa.dot.gov

Trucking Authority – Your Questions Answered

Monday, April 26, 2010
posted by 18 Wheeler 10:32 PM

Hello, Fellow Drivers,  Some of you are thinking about getting your own trucking authority and going out on your own to earn more money.  It’s a worthwhile endeavor but must be entered with wisdom, fore thought, and planning.  Below are some frequently asked questions about how to get trucking authority.  Enjoy the read and remember to be safe out there!

Trucking Authority Questions

Q. What is an MC Number?

A. An MC number is issued by the FMCSA (Federal Motor Carrier Safety Administration). It grants the right to commence operations in interstate commerce in the transportation industry. There are several factors involved in obtaining an MC number including a USDOT number, BOC 3 Process Agents, and insurance.

 Q. What is a USDOT Number?

A. A USDOT number is issued by the US Department of Transportation. It tracks all your company’s information with the different Federal and State Agencies. A USDOT number does not constitute authority to operate in interstate commerce.

 Q. What is a BOC 3 Process Agents?

 A process agent is someone who may be serviced with court papers in any proceeding brought against a motor carrier. In order to obtain your authority this requirement must be met.

 Q. How much insurance do I need?

A. The Federal Minimums for insurance coverage is: $750,000 Liability and $5,000 Cargo. However, the industry standard and recommended coverage is $1,000,000 Liability and $100,000 Cargo coverage.

 Q. How long does it take to get trucking authority?

A. It generally takes a carrier 5 to 7 weeks to obtain all the authority and permits required to operate in Interstate Commerce. There are 2 parts to the process: federal and state. The federal portion generally takes 16 business days to complete and then state permits can take an additional 2 weeks after the federal portion is complete.

 Q. How much does it cost to get trucking authority?

To get trucking authority depends upon if you hire a company to do the whole process for you (which can be very expensive) or if you do most of the steps yourself and save yourself a lot of money.  

 Q. What is UCRA?

A. The Unified Carrier Registration Agreement states that all motor carriers, regulated, exempt and private as well as interstate brokers, Freight Forwarders and leasing companies are subject to the fees under the UCRA. Fees are calculated per company based on the number of commercial motor vehicles it operates. Commercial motor vehicles include the total number of trucks, trailers and power units operated by the company. The table below contains the fee schedule that a company would be subject to based on their fleet size:

Fleet Size Fee
0-2 $39
3-5 $116
6-20 $231
21-100 $806
101-1000 $3840
over 1000 $37500

 Q. What is IRP?

A. The IRP stands for International Registration Plan. This covers the apportioned tags for your tractor. The contiguous 48 states plus Canadian Provinces participate in the program. You must register with your base state and select the states that you wish to operate in the current or coming year. This must be renewed annually and has a prorated annual fee. Only vehicles over 26,000 Gross Vehicle Weight participate in the program. The annual fee range is $800 – $2500.

 Q. What is IFTA?

A. IFTA stands for International Fuel Tax Agreement. It is a means to pay fuel taxes to the different participating states and provinces by registering and filing quarterly returns with your base state. Only the contiguous 48 states, plus Canadian Provinces and vehicles over 26,000 Gross Vehicle Weight participate in this program. Registration for the program is generally free but some states may charge a registration and decal fee that usually costs under $30.

 Q. What is Intrastate Authority?

A. Intrastate authority is the right granted by a state to commence for hire trucking operations within the borders of that specific state. If a load’s origin and destination are within the same state then intrastate authority may be required. This generally takes less time to acquire than the interstate authority as only one government agency is required to issue permits. Also a company engaged only in intrastate activities does not need to register with the IFTA or IRP.

 Q. What states require special permits?

A. Four states have special permits that are required to operate within their borders. You can register for these permits upfront or acquire trip permits. The states are New York (HUT), Kentucky (KYU Number), New Mexico, & Oregon (File Number). Depending on your operations you should consider registering for some or all of these states as most have a low registration fee of $15 or less per truck.

 Q. What is a New Entrant Safety Audit?

A. A New Entrant Safety Audit consists of a review of the carrier’s safety management system conducted by a State or Federal Auditor within the first 18 months of operation. The areas of review may include: Driver Qualifications, Driver Duty Status, Vehicle Maintenance, Accident Register, and testing requirements for Controlled Substances and Alcohol use.

 Q. When can I expect a New Entrant Safety Audit?

A. Every new carrier will be audited during the first 18 months of operation (typically within 3-6 months after the carrier is granted their new entrant registration). The safety audits will mainly be conducted on-site at the carrier’s principal place of business. However, some safety audits may be conducted at other locations depending on the circumstances.

Trucking Industry News – Trucking and Texting

Wednesday, April 21, 2010
posted by 18 Wheeler 9:07 PM

Hello, Fellow Drivers,  Here’s a little trucking industry news regarding texting and driving.  You will no longer be able to text and drive without the possibility of being pulled over for it.  First it was cell phones could not be used while driving.  Now it’s texting (which is using a cell phone while driving.).  Here’s what the US DOT is proposing.  Enjoy the read and remember to be safe out there. 

Hot Topics

DOT bans texting for CMV drivers

 

By David Tanner
staff writer

 U.S. Transportation Secretary Ray LaHood’s announcement in January that texting while driving is prohibited for commercial drivers is one step in a long list of actions being taken against distracted driving.

OOIDA supports a texting ban in principle, but says the U.S. DOT should have vetted the proposal through a rulemaking instead of jumping in with an immediate ban.

“We support where they are going, but not how they got there,” said OOIDA Executive Vice President Todd Spencer.

“Making their action effective immediately bypasses normal regulatory rulemaking processes. Those processes allow actions to be vetted for unintended consequences, as well as potential implementation and enforcement problems.”

LaHood justified the move, saying that “texting” fits into current federal safety regulations for the operation of commercial vehicles and that a separate rulemaking was not needed. LL

Trucking Industry News – Your CDL & Blood Sugar Levels

Monday, April 19, 2010
posted by 18 Wheeler 4:36 PM

Hello, Fellow Drivers, I saw this article in the latest Land Line Magazine and thought it newsworthy.  The bottom line in trucking is that without good health, you won’t make any money.  You will feel too sick or too tired to make your trucking business successful without exacting a heavy price from your body.  Check out this article about the importance of blood sugar levels and your DOT medical card.  This is definitely trucking industry news you want to check out for yourself.  If any of you drivers would like to see specific trucking related issues answered, please don’t hesitate to contact me.  I will be happy to research the question and get back with you.   Enjoy the read and remember to be safe out there!

Trucker MD

 Why the A1C test for drivers? – Understanding your blood sugar level is important for your CDL and your long-term health

 By John McElligott, MD
Land Line contributor

 Suppose a driver goes in for a DOT exam and his/her urine specimen indicates sugar “spilling” on the routine test. What does this mean?

The normal kidney can hold up to a 300 mg percent rise in blood sugar without spilling sugar into the urine. If sugar is detected in that urine specimen, here’s what happens next.

Usually, a medical examiner will order a “finger stick” to determine the blood sugar level. If the test comes back with a reading of 160 mg percent or higher, then the driver is diagnosed with new onset diabetes mellitus or uncontrolled diabetes that needs better treatment.

Such a diagnosis can lead to loss of a professional driver’s DOT medical card or a three-month medical card.

The driver must see his doctor – if he has one – and be treated or have his medication adjusted.

Then the driver must demonstrate to the DOT examiner (soon to be “certified medical examiner”) that his blood sugar is being treated. It must also be demonstrated that the driver is compliant with follow-up and is taking medication for his disease.

Here is where the A1C test is going to be a life-changer for professional drivers.

The number that most of us DOT medical examiners look for is an average blood sugar of 160 or less. But how do we find the average blood sugar when we have only three months to demonstrate compliance?

The answer is a test called “hemoglobin A1C.” This test measures the glucose found in the red blood cells. It just so happens that the human red blood cell lives for 120 days, so we can measure the sugar in it.

DOT medical examiners now have either instant A1C in office test or, at worst, a two- to three-day send-out test.

The good news is that the A1C instant test done at the time of a DOT physical can save your ticket to the dance. It provides enough information to put your average 90-day blood sugar into play, which could counteract the test for sugar in the urine and the finger stick, both of which are a snapshot in time.

So what else do you need to know about the A1C test?

  1. Make sure your examiner uses the instant A1C test to help you stay on the road.
  2. If you are diabetic, never eat before going in for a DOT medical exam.
  3. Take your medicine on a regular schedule.
  4. Get an A1C test from your doctor at least three months before your DOT exam is due and keep a copy to show the examiner.
  5. If your test shows that your average blood sugar is well-controlled, then continue the same routine every year.

Remember: Medication alone does not treat diabetes. The cornerstone of treatment is diet and exercise. LL


Editor’s note:John McElligott is an M.D. and Fellow of the American College of Physicians.

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