Descriptions
of the different types of interstate Operating Authority are
as follows:
- Motor
Common Carrier of Property (except Household Goods)
- An authorized for-hire Motor Carrier that transports regulated
commodities (except household goods) for the general public
in exchange for payment that is based on published tariff
rates. Motor Common Carriers of Property (except household
goods) must file proof of both public liability (bodily
injury and property damage - BI & PD) and cargo insurance
with FMCSA in order to obtain interstate Operating Authority.
- Motor
Contract Carrier of Property (except Household Goods)
- An authorized for-hire Motor Carrier that transports regulated
commodities (except household goods) for specific customers
in exchange for payment that is based on negotiated contracts.
Motor Contract Carriers of Property (except household goods)
must file proof of public liability (BI & PD) insurance
with FMCSA in order to obtain interstate Operating Authority.
Cargo insurance is not required. A Motor Contract Carrier
of Property (except household goods) cannot be a Motor Common
Carrier of Property (except household goods) without applying
for additional Motor Common Carrier Operating Authority
and filing proof of cargo insurance with FMCSA.
- Motor
Common Carrier of Household Goods
- An authorized for-hire Motor Carrier that transports only
household goods for the general public in exchange for payment
that is based on published tariff rates. Household goods
are personal items that will be used in a home. They include
items shipped from a factory or store, if purchased with
the intent to use in a home, and transported at the request
of the householder who pays for the transportation charges.
Motor Common Carriers of Household Goods must file proof
of both public liability (BI & PD) and cargo insurance
with FMCSA in order to obtain interstate Operating Authority.
- Motor
Contract Carrier of Household Goods
- An authorized for-hire Motor Carrier that transports only
household goods for specific customers in exchange for payment
that is based on negotiated contracts. Household goods are
personal items that will be used in a home. They include
items shipped from a factory or store, if purchased with
the intent to use in a home, and transported at the request
of the householder who pays for the transportation charges.
Contract Carriers of Household Goods must file proof of
public liability (BI & PD) insurance with FMCSA in order
to obtain interstate Operating Authority. Cargo insurance
is not required. A Motor Contract Carrier of Household Goods
cannot be a Motor Common Carrier of Household Goods without
applying for additional Motor Common Carrier Operating Authority
and filing proof of cargo insurance with FMCSA.
- Broker
of Property (except Household Goods)
- An individual, partnership, or corporation that receives
payment for arranging the transportation of property (excluding
household goods) belonging to others by using an authorized
Motor Carrier. A Broker does not assume responsibility
for the property and never takes possession of it.
What
is an MC Number?
A MC number is issued by the FMCSA. 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.
What is USDOT Number?
Companies
that operate commercial vehicles transporting passengers or
hauling cargo in interstate commerce must be registered with
the FMCSA and must have a USDOT Number. Also, commercial intrastate
hazardous materials carriers who haul quantities requiring
a safety permit must register for a USDOT Number. The USDOT
Number serves as a unique identifier when collecting and monitoring
a company's safety information acquired during audits, compliance
reviews, crash investigations, and inspections.
What
is IRP?
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 can cost anywhere from $800 to $2500 with the
average fee ranging from $1200 to $1600.
What
is IFTA?
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. The contiguous 48 states plus Canadian
Provinces participate in the program. Only 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.
What
is Intrastate Authority?
ntrastate authority is the right granted by a state to commence
for hire trucking operations within the borders of that state
only. 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.
What
states require special permits?
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. |