- 1 What is a Box Truck Authority?
- 2 Purpose of Getting A Box Truck Authority?
- 3 Box Truck Authority Requirements
- 4 Different Trucking Authority Packages
- 5 Motor Carrier of Property (Excluding Household Goods)
- 6 Motor Carrier of Household Goods
- 7 Broker of Property
- 8 Broker of Household Goods
- 9 United States-based Enterprise Carrier of International Cargo
- 10 United States-based Enterprise Carrier of International Household Goods
- 11 Conclusion
Having an owner-operator trucking company won’t mean much if you aren’t making any real money from it.
Sure, there’s always the option of leasing firms. Offering your services to them is an easy way to get your own rig if you’re struggling with credit.
However, if you want to truly bring in the big bucks, you need to get hold of your own Box Truck Authority. An authority can be a consistent source for earning higher rates.
Moreover, it also sets the foundation for you to set up a multi-truck enterprise with other hired drivers in the future if you want to go down that road.
But first things first.
What is a Box Truck Authority?
For operating long-term and successfully in the trucking world, you need an Operating Authority, also known as Motor Carrier Authority.
It’s effectively a permission from the government allowing you transportation rights of goods in return for profit.
Granting permission for the trucking authority falls directly under Federal Motor Carriers Safety Administration or FMSCA.
The body is responsible to regulate the trucking industry. The law requires everyone related to the field to have a valid trucking authority. Without it, you won’t get the permission to carry goods for delivery or cross boundaries.
When it comes to trucking authority, there are primarily two types: Common and Contract. In the case of a Contract carrier, it can only haul freight for firms it’s contractually obligated to.
However, that isn’t the case for Common carriers. They can lend their services for hire to any entity who desires it for transporting their goods without the need for any pre-existing formal contract.
Purpose of Getting A Box Truck Authority?
Getting a trucking authority ultimately means you’re able to successfully remove any middleman from the whole deal.
Instead, you can approach the receiver, load matching services, and shippers directly for obtaining freights. This increases your workload as well as responsibilities. At the same time, that means bigger payoffs and higher profits.
Box Truck Authority Requirements
Before you obtain your authority, there’s one important thing to know about- setting up your IFTA account.
The IFTA or International Fuel Tax Agreement is an agreement that’s in place between 48 states and the Canadian provinces, aimed at simplifying the fuel tax collection process.
It’s a necessary step, especially for companies operating in several states. The IFTA sticker allows your fleet of trucks to travel seamlessly by having to pay fuel tax only to the base jurisdiction.
There’s no longer the need to pay tax to each member jurisdiction your truck travels to. With IFTA taken care of, the next steps for obtaining a trucking authority are fairly simple:
With the federal institutions taken care of, the next step will be to take care of the following with your registered state.
Different Trucking Authority Packages
Depending on the Operating Authority you request, the level, and type of insurance required by FMSCA will change.
That’s why you will have to be extra careful when selecting your Operating Authority and only select the type(s) relevant. The various types of Operating Authority to select from are:
Motor Carrier of Property (Excluding Household Goods)
The authority is applicable to for-hire carriers, who transport commodities, excluding household goods for the public in return for payment.
Carriers with the authority only have the permission to transport goods that a customer uses in their homes. So, a carrier can transport items that the customer purchased from a factory or store and deliver them to their homes.
It’s not necessary to have cargo insurance for obtaining the authority. However, you do need to file public liability (bodily injuries and property damage).
Motor Carrier of Household Goods
With the authority, a carrier can only transport household goods of their customers in return for payment.
Household goods refer to personal items used in homes. That means a carrier can also transport items from a store or factory if the customer who purchases it intends to use it.
For this authority, a carrier needs to file for public liability as well as cargo insurance with FMSCA.
Broker of Property
This authority is applicable to a corporation or partnership that receives fees for setting up the transportation of property (not including household goods) that belongs to others.
The broker never takes the responsibility nor the possession of the property.
Broker of Household Goods
The authority fits a partnership, corporation, or an individual who receives payment to arrange (that is, the load broker) the transportation of household goods belonging to others.
|They require registration if the carrier also provides the additional services-
United States-based Enterprise Carrier of International Cargo
The authority is applicable to companies that transport international cargo.
This excludes household goods, and the company must have headquarters in the US but is controlled or owned by a resident alien or a Mexican citizen.
The international cargo needs to originate or head out for a foreign country.
United States-based Enterprise Carrier of International Household Goods
This authority applies only to companies that deal with the transportation of international household goods. Household goods refer to personal items used in homes.
The company needs to have headquarters in the United States but is controlled or owned by a resident alien or Mexican citizen.
The authority includes shipping of items from a store or factory purchased with the intention of using in private homes. The international household goods need to originate or head out to a foreign country.
Anybody applying for the authority to operate as carries or freight forwarders of household items also needs to offer arbitration. This is a means for settling any losses or damages during delivering shipments.
Managing your own trucking business can be tricky. There are scores of permits, forms, invoices, and every other paperwork you need to deal with.
However, one of the most important among all of these that you can’t afford to forget when running your own trucking company is the Box Truck Authority. It’s vital and profitable as well.