NEWS September 17, 2020 INTRODUCTION In the freight and logistics world, getting your trucking authority can be a game-changing step. It represents going from working for a carrier to owning your own freight brokerage or 3PL business. However, what do trucking authority packages mean and why are they vital?
What is Trucking Authority?
This trucking authority — approved by the Federal Motor Carrier Safety Administration (FMCSA) authorizes your truck company to stay in compliance with U.S. laws and regulations, while you manage to grow your business. This authorization comprises registration, insurance, and compliance with federal as well as state regulations. That is just a providing all — that be they formality but it’s kind of similar to the license for allowing you to legally operate your trucks in Humboldt.
What Makes The Trucking Authority Package?
A typical trucking authority kit includes the following elements:
MC and DOT Numbers – These are very important identifiers. Companies That Transport Regulated Commodities in Interstate Commerce (Except Household Goods) or Arrange for Their Transport Must Have an MC Number A DOT number is a company identification that must be registered with the FMCSA.
BOC-3 Filing: This offers for the specification of a procedure representative in every state where the business operations. The agents also perform the function of legal attorney when sued or in other legal matters.
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International Fuel Tax Agreement (IFTA) -An agreement among U.S. states and Canadian provinces to simplify the reporting of fuel use by motor carriers operating in more than one jurisdiction.
IRP — International Registration Plan permitting of commercial vehicles normally goods carries that use any two or more jurisdictions. It enables fair location-wise sharing of registration fees based on the miles traveled(resources from ESMA).
Short of a contract backed by insurance coverage, no corporate action is too risky. This typically involves the maintenance of liability insurance and cargo insurance. You will also require a BMC-84 or BMC-85 bond if you engage in certain types of operations.
Why You Should Get a Trucking Authority Package
Simple Process — Getting authority requires cutting through a variety of federal and state regulations. All filings and registrations are included in the packaged service.
Compliance: You need to make sure that you are following FMCSA regulations An all-in package means that your business meets every legal requirement and the risk of fines or operational interruptions is lessened.
Save time: It is annoying for the new players taking complete the procedure. Packages take care of the overhead allowing you to focus on building your business.
Supervised Management: A majority of the time, these packages are managed by professionals who have spent years in the trucking business. Their experience and what they know can prove to be extremely useful giving you insights on the don’ts.
Cost Considerations
How much does trucking authority cost Price is determined by what is included in the package. Packages as simple opens can be less than a few hundred dollars and fully loaded kits may cost thousands. As you research these packages, think about the amount of support, who is providing it, and if it meets what your operation specifically needs.
Getting your trucking authority is one of the most important steps you can take when becoming an independent owner in the trucking business. It is a trek getting your own authority and for that reason investing in a trucking authority package can alleviate the hassle of knowing you are above water while saving time to continue driving toward your true goal to drive your business forward. These packages serve as a valuable resource to help applicants streamline the application process with knowledgeable support to guide them through various regulatory horizons in the trucking industry. You have what it takes to freelance and dominate the transport & logistics industry equipped with your authority.