Jul 27, 2017 • Carriers

Trucking Authority

Trucking Authority

Trucking authority allows owner-operators an opportunity to be their own boss and potentially maximize earnings by hauling freight.

Trucking Authority

Trucking authority also known as operating authority means the FMCSA will allow you to transport freight as a motor carrier. Let’s say you’ve been a company driver for over a decade now or that you’re a leased owner operator and want to start your own trucking company. Getting your trucking authority is the next step.

Essentially, you will be on your own to find and book loads giving you the freedom to search on load boards for truckloads that are the best fit for you. This allows you to set your own schedule, decide what type of loads you want to haul and what routes you want to take.

Trucking Authority Requirements

Trucking authority requirements are implemented by the FMCS trough the Unified Registration System (URS)for new applicants seeking trucking authority.To get trucking authority you will need to register through the Unified Registration System first.

It will take about 20-25 business days to process according to the FMCSA (unless subject to further review by the agency, in which case it could take an additional eight weeks).

Types of Trucking Authority

The different types of authority will affect the type of insurance a carrier will need to meet the requirements of the FMCSA.

Motor Carrier of Property – requires proof of public liability and cargo insurance
Motor Carrier of Household Goods – doesn’t require cargo insurance

Regardless of the type of authority, you will need to complete this OP-1 form to file for trucking authority.

Trucking Authority Requires Insurance

In order to get your authority the FMCSA requires you to provide proof of insurance that you have liability coverage. Your insurance agency will need to submit form BMC-91 which covers public liability in case of an accident causing injury or property damage.

Remember DO NOT submit your proof of insurance directly to the FMCSA. The FMCSA requires that your insurance company submit the form and insurance certificate on your behalf.

Trucking Authority Cost

The tucking authority cost is a $300 filing fee that is associated with registering for the FMCSA URS.

Before you start booking loads to haul, there are additional costs and fees. When you’re ready, explore our detailed guide that is sure to help you start your own trucking company.

How to Start a Trucking Company

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Nov 23, 2020 • Community

Winter Driving Tips for Truckers [p]Winter is here bringing with it the end of yet another year. For truck drivers though, winter is no different than any other season. It is the same endless driving through city and country roads no matter the season. The only thing that changes is the way you drive because winter brings rain and snow resulting in wet and slippery roads throughout the country. You need to be extra careful and exercise patience as the odds are stacked against you when it comes to driving in winter. Accidents are not uncommon, with many truckers trying their best to meet delivery deadlines. In such perilous conditions, there are certain protocols to follow, including changing your driving style. Let's talk about what else you can do as a trucker to improve your chances of meeting deadlines this winter. [/p] <h2></h2> [p][b]Focus on the Road [/b][/p] [p]If the road is slippery, you need to keep both your hands on the steering wheel and focus on the road. A slight shift in focus, and the next thing you know, your truck has lost control. You mustn't be distracted by anything, be it music, the radio, or anything else.[/p] <h2></h2> [p][b]Reduce Speed [/b][/p] [p]Yes, you need to meet your delivery deadlines, and for that, you need to drive at a certain pace. But you know what they say, it is better to arrive late than never. Therefore, reduce your truck's speed, judge the road's condition, and increase speed only when it is safe to do so. If you drive slow, you can stop earlier and avoid getting into any accidents. [/p] [img src="https://truckerpath.com/uploads/2020/12/TP-BLOG-Winter_Driving_Tips_for_Truckers-Reduce_Speed.jpg" alt=""] <h2></h2> [p][b]Avoid Sudden Maneuvers[/b][/p] [p]To protect yourself and others on the road, you should drive a bit smoothly. That means you should accelerate slowly, brake easy, and turn with caution. Do nothing that would decrease your truck's traction and cause you to lose control of your vehicle. It is good practice to keep more than a safe distance between you and the other vehicle in front of you so you can react at the right time. [/p] <h2></h2> [p][b]Use Lights [/b][/p] [p]Your truck's headlights, taillights, and fog lights are your dearest friend in harsh weather conditions. Poor lighting is a recipe for disaster, therefore before you set out on the road, inspect your truck's lights. The important thing here is that while you should be able to see the cars in front of you, others should also be able to spot you from behind. [/p] [img src="https://truckerpath.com/uploads/2020/12/TP-BLOG-Winter_Driving_Tips_for_Truckers-Use_Lights.jpg" alt=""] <h2></h2> [p][b]Signal in Advance[/b][/p] [p]Use your signals way before you intend to turn. As a general rule, wait for four to five blinks before gradually turning a corner or changing lanes. If you are driving slower than the traffic, we suggest you switch on your four-way hazard lights to let everyone else know that you are slow allowing them to make adjustments. [/p] <h2></h2> [p][b]Watch the Other Truckers [/b][/p] [p]Veteran truckers are on the road for a reason. They have been trucking for so long that their experience counts for everything. As a beginner, you should learn from them. When big-rigs slow down or pull over, you should too. There is no reason to keep on going if everyone else has decided to call it a day. [/p] [img src="https://truckerpath.com/uploads/2020/12/TP-BLOG-Winter_Driving_Tips_for_Truckers-Watch_Other_Truckers.jpg" alt=""] <h2></h2> [p][b]Check the News and Weather Apps[/b][/p] [p]It is better to be safe than sorry, especially when it comes to trucking. Therefore, before setting out on your journey, watch the news, check some weather apps, or talk to other truckers who have taken the route you are intending to take. Leave the safety of wherever you are only when you are sure that it is safe to drive. [/p] <h2></h2> [p][b]Try for Traction [/b][/p] [p]When it comes to driving on slippery roads, traction is everything. You need good tires, expert driving skills, and some good luck to make it through winter. The only thing you have under your control among the three is tires. Buy snow tires with a deep tread and with several grooves to get good traction[/p] [img src="https://truckerpath.com/uploads/2020/12/TP-BLOG-Winter_Driving_Tips_for_Truckers-Try_for_Traction.jpg" alt=""] <h2></h2> [p][b]Final Thoughts[/b][/p] [p]If it were up to us, we would recommend not driving in winter, but that's for you to decide. Winter driving is dangerous, and no matter what you do, there is always a very high risk of getting into a sticky situation. However, if you do decide to weather through the storm in your truck, then avoid high-risk highways. [/p] [p]You want to avoid the state of Michigan, Pennsylvania, and New York during the winter, and all the highways going around and through these states. Let's not even talk about Alaska, as that is one place that is always a high risk regardless of the season. [/p] [p]With that said, we wish you a safe winter driving season! What are your winter driving tips? Share them in the comments below. [/p] <h2></h2> <h2></h2> [p][b]By Aldous Aldwin[/b][/p]

Dec 29, 2020 • Carriers

How to Become a Freight Broker? [h2] How to Become a Freight Broker? [/h2] [p]To become a freight broker you need to understand the <a href="https://truckerpath.com/blog/trucking-industry-trends/">trucking industry trends</a> first. Thousands of products need to be moved across America and companies use every venue possible to ship their freight, but none more than through truck freight. The trucking industry produced $726.4 billion in revenue for 2015 and freight tonnage has increased since. Freight is hauled by truck drivers but moved by freight brokers. Here's how you can become a freight broker and enjoy a piece of the lucrative pie. [/p] [h2]1. Register your Freight Broker Company [/h2] [p] There are a couple routes you can choose to become a freight broker. The easiest way to start is to get hired by an established freight broker company. There you will fall under their insurance and use their capital as well as being provided training about the trucking industry. If you've already done this and have the necessary capital, this is where you would be registering your business with the local licensing department. Once you register your LLC you will receive your Tax ID Number [a href="https://irs-tax-id.com/?utm_source=bing&utm_medihttps://irs-tax-id.com/?utm_source=bing&utm_medium=cpc&utm_campaign=irs%20tax%20id%2Fein&utm_term=irs.gov%20tax%20id%20number&utm_content=irsum=cpc&utm_campaign=irs%20tax%20id%2Fein&utm_term=irs.gov%20tax%20id%20number&utm_content=irs"]from the IRS[/a]. [/p] [h2]2. Have a Plan For Your Freight Broker Company [/h2] [p] The most important part of becoming a freight broker is to have a clear vision and plan, especially if you need to generate funding from lenders. Know your target, stick to your strengths, and don’t be afraid to grow. [/p] [p] Understand your region and what types of loads move through, who's your ideal customer base? What type of services will you offer? How will you market your freight brokerage? [/p] [giphy]<iframe src="https://giphy.com/embed/Sg21YDdh3Onqo" width="480" height="288" frameBorder="0" class="giphy-embed" allowFullScreen></iframe>[/giphy] [h2]3. Build a Carrier Base [/h2] [p]Life as a freight broker is all about who you know. Networking and connecting with motor carriers is the only way you will succeed in moving freight. You need to start building a list of trucking companies with capacity and willingness to work with you. [/p] [p]This is when networking meets relationship building. Establishing trust and showing that your work efficiently and provide good service can be the difference when finding carriers. The best way to find carriers is by using load boards from trusted companies like Trucker Path Truckloads. Load boards allow you to post your freight for carriers to view and then contact you if they're interested in hauling them. This way you can move more loads quickly and from anywhere. [/p] [p] Don't forget, freight brokers also need to connect with shippers who need freight moved. Here's a closer look at <a href="https://truckerpath.com/blog/how-do-freight-brokers-find-shippers/">how freight brokers find shippers</a>. [/p] [h2]4. Freight Broker Authority [/h2] [p]You’re well on your way to becoming a freight broker now that you have a registered business and a carrier group to connect with, but there are still a few more requirements. You must apply for a US DOT number with your local Department of Transportation branch. Once you are approved, take your DOT Number to the Federal Motor Carrier Safety Administration (FMCSA) to get a Motor Carrier (MC) number and broker authority. This is approved through the completion of the [a href="https://www.fmcsa.dot.gov/registration/form-op-1-application-motor-property-carrier-and-broker-authority"]OP-1 Form which includes a $300 application fee[/a].[/p] [p] Here are a few more details as to how you can get your <a href="https://truckerpath.com/blog/freight-broker-license/">freight broker license</a>. [/p] [h2]5. Freight Broker Bond [/h2] [p] To show carriers and companies alike you have the financial backing to broker your business you will need at least a $75,000 <a href="https://truckerpath.com/blog/freight-broker-bond/">Freight Broker Bond </a>(BMC-84 or BMC-85). Think of this as insurance for your business. This will cover you in the instance something goes wrong leading to monetary losses of a company. [/p] [p] Let's say the carrier you contracted to haul a load shows up to the receiver with a truckload of spoiled milk because you instructed them to cool the reefer to 74 degrees instead of 47. You were deemed responsible and your client seeks repayment of damages for a load of milk valued at $65,000. Your bond covers that cost similar to the way car insurance companies handle a car accident. [/p] [giphy]<iframe src="https://giphy.com/embed/3o6Zt2iHqqrjNlbPS8" width="480" height="270" frameBorder="0" class="giphy-embed" allowFullScreen></iframe>[/giphy] [h2]6. BOC-3 Blanket of Coverage [/h2] [p] One of the last filings you will have to complete in order to become a freight broker is your [a href="https://www.fmcsa.dot.gov/registration/form-boc-3-designation-agents-service-process"]BOC-3[/a]. This is the Blanket of Coverage for your company. Basically, you must file your BOC-3 in each state you will be operating. You will need to select a process agent to file. The process agent is the company who will be handling your legal processes in each state you have operating authority. [button-white href="https://www.fmcsa.dot.gov/registration/process-agents"]List of FMCSA Agents[/button-white] [/p] [h2]7. Freight Broker Essentials [/h2] [p]The tools of the trade for a freight broker are office equipment and supplies to make work easier and more organized. You'll need the basics like a computer with internet, printer, scanner, and fax machine. But you'll also need a phone with several lines and a quality headset to communicate with drivers and clients. [giphy]<iframe src="https://giphy.com/embed/VmNVXIMH3bCsE" width="480" height="353" frameBorder="0" class="giphy-embed" allowFullScreen></iframe>[/giphy] [/p] [p] Don't forget<a href="https://truckerpath.com/blog/freight-broker-software/"> broker software</a> as you'll want software that allows you to keep track of your loads, customers, carrier locations, and truck status (some load boards will do all of this for you). DR Dispatch and ITS Dispatch are a few of the programs that can be beneficial. [/p] [p] Look for broker software offering GPS tracking based on logged location updates, bill of lading/invoice generators, pickup and delivery location (shed) logs, note taking/documentation, and most importantly rate confirmation generation. These are the essential functions needed to manage your loads from pick up to delivery. [/p] [h2]8. Freight Brokerage Financials [/h2] [p]In order to continue your carrier relations, you need to get backing from a bank. As a freight broker, you will be paying the carrier after they deliver the load. Pay terms for carriers range from 1-28 days (sometimes more). Whereas you will be extending the customer a line of credit or they will pay up front for the services. [/p] [p] You make your money off of the margin known as the "spread". For example: [ul] [li]Company X pays you $3,000 to find a motor carrier[/li] [li]You pay Carrier Y $2,500 to haul the load[/li] [li]You earn $500 for brokering the arrangement. Of course, this isn't all profit as overhead costs will apply, but you get a general idea.[/li] [/ul] [h2]9. Marketing Your Freight Company [/h2] Lastly, in order to succeed as a freight broker, you have to make a name for yourself by building awareness surrounding your freight company. Reliable service that is transparent and convenient is key to building a reputation with carriers. Word of mouth is critical for growing your freight business locally but you have to put yourself out there and raise awareness just like any other startup if you want to be a successful freight broker. [/p] [button-green href="https://truckerpath.com/truckloads/broker-load-board/?utm_source=blog&utm_medium=becomeafreightbroker&utm_campaign=july12"]Get Started With Truckloads[/button-green]

Jul 12, 2017 • Brokers