Thanks GMAN and no worries. I got nervous there because I put it as common carrier as that was the one that requires cargo insurance, so when I first read no-worries to do contract, I thought, "great first screw up to cost me $300.

Here's the definitions I went off of:


Common carrier' provides for-hire truck transportation to the general public. Common carriers must file both liability (BI & PD) insurance and cargo insurance.

Contract carrier' provides for-hire truck transportation to specific, individual shippers, based on contracts. Contract carriers must file only liability (BI & PD) insurance


I tell you I'm enjoying this. I updated the original post as I will continue to do so throughout the process.

Well I don't have a truck yet, but will have one soon but have now applied for MC#. I did this based off previous posts that this needs to be done ahead of time. I don't want to get truck say in 2 weeks and be ready to roll to make money and have to wait more time for authority.

Yes, I didn't realize you were going to keep the original post updated. It is probably better for me to just get rid of my post to keep from causing confusion.

But...it was my understanding that you would have to show insurance before you could get your mc#? Your saying that you've already got that too?

It would probably be best to file for your authority first. Since it takes several weeks to get the final paperwork back, this is the longest process and it is something you must have before you can do anything else. You could purchase a truck first but won't be able to drive it on the street until you have your authority, base plates and insurance. When you apply for your motor carrier authority, you will be issued a docket number. The docket number is also your motor carrier number, if memory serves. At least that is the way it was when I got my authority. The reason it usually takes a few weeks is that they must advertise that you have applied for authority and give anyone who wants to contest your getting authority to do so. At one time, your competitors could actually prevent you from obtaining authority. Now, pretty much any one who applies can get their authority. If you don't have your insurance before authority is issued, you will receive a letter giving you a certain amount of time to send proof of insurance or your authority will be void. At least that is the way it was when I got my authority.

As GMAN said, it really doesn't matter whether you do common or contract. Even though the Feds don't require contract carriers to carry cargo insurance everyone you haul for will. Common carriage is a remnant of days gone by where freight was hauled without a contract. Carriers posted a schedule of their rates and tariffs and worked off of that. Anymore, virtually all freight is moved under contract and you are essentially a contract carrier regardless of which authority you actually possess. You'll notice when you start signing contracts that most of them stipulate that you are providing service as a contract carrier. Again, it makes not difference which authority you have.

This is definitely an informative thread. Merrick, I hope follow through with your original post once you have all the pieces put together.

Gman, what other things will be involved once he has his authority? Isn't it required that he will have to join a random drug test agency of some kind? Any other things that have to be dealt with?

Thanks guys,

Arky

I'm definitely going to keep updating it. There was a whole list of things, drug plan, hiring plan, safety, I don't know there was a whole list of things that the system stated was required. I know somebody that does this compliance stuff as a side business, so I am going to have him set me up with a system. I will detail it as I go along in the original post.

You don't need a hiring plan or safety program. Just call your local hospital and put your name into the random drug testing consortium. Nothing to it.

Just finished getting new authority. Some tips. When you applied for your authority, you had to pay the $300.00 right away. After they publish it in the register it will be 20 days before it will be granted. You can start now filing your insurance. My insurance co would not file with FMCSA till premium was paid. If you join OOIDA, they will file your BOC-3 for free, they are a great help on information. If you have your insurance and BOC-3 filing done at the 20 days your authority will be active but you cannot operate until you receive your certificate. OOIDA can obtain a copy for $20.00, otherwise it will be about a 2 or 3 week wait for your certificate to be mailed to you. As a carrier you must have your IFTA in place to operate interstate. If you have your own plates, you can carry your certificate of authority to most state motor carrier office and they will issue your IFTA the same day, but they will not issue your IFTA without a copy of your authority. Start to finish getting authority and truck to work was 22 days.
Your authority is actually temporary for 18 months. They say you must pass a DOT audit to get permenate authority but most O/O I know have never been audited. They must be to busy for a 1 man operation.
Now that you are a motor carrier you must comply with FMCSA regulations as a motor carrier. OOIDA can supply you a checklist of information to comply with being a motor carrier.
Setting up your operation as a motor carrier is not that difficult, but does require a lot of paperwork and orginization. The people at OOIDA are a great help. Setting up a drug program, vehicle inspections, personnel files, driver qualification files, etc is just part of being a motor carrier.

The above is all the easy part of getting your own authority and being a motor carrier. The next part is the toughest part. GOOD WORK FOR YOUR TRUCK. I have saved information of everone I have hauled for 10 years. It will be very tough to get good freight unless you have good contacts. Not to be discouraging but if you don't have contacts forget your authority and lease on to someone until you establish some good contacts. Loads boards are ok when everyone is busy but you will die a slow death when freight is slow.

You will need to join a random drug consortium. Most charge from $100-150 per year for each driver. You also need to have a 10 year work history on file, even if you are the only driver. Some truck stops have a driver qualifications packet you can buy. It should list what you need for each driver. You should also be able to obtain those from J.J. Keller. Keep in mind that even if you are the only driver you still need to comply with all rules and regulations as if you were an employee. You should also have an annual vehicle inspection done on your equipment.

You want to make sure and keep your records current. The Feds are trying to audit all new carriers within the first 18 months of operation. My niece and her husband were audited during the first 6 months after they obtained their authority.