In today’s blog post, we will answer the following question: Do box trucks need authority? We will explain what operating authority is and how to obtain it.
Do box trucks need authority?
Yes, box trucks need operating authority from the Federal Motor Carriers Safety Administration (FMCSA) in order to be able to cross boundaries or to carry goods for delivery purposes.
Operating authority is a mandatory requirement for any transportation in excess of 10,000 GVW that will be or expecting to cross state lines. To do this, you will need to obtain official clearance from the USDOT.
Why do I need the trucking authority?
Thinking of running your own trucking business? If you are already a driver-owner who is working through a trucking company, you may have been thinking about applying for your own authority for a while now.
Although there may be more risks when you are working through a company, having your own transportation authority can have many financial benefits, and it can work in your own time. In the long run, it is extremely beneficial to ask for their authority.
The 5 types of trucking authority
- Motor Carrier Authority: Businesses that transport passengers and goods for a fee require a motor carrier authority. It takes 5-7 weeks to complete a Motor Carrier (MC) authorization.
- Private Transportation Authority: A private transportation company gets a private transportation authority that transports its own goods, especially if the company produces or uses the goods or cargo that it transports.
- Rental carrier: This authority is obtained by a company that provides transportation for the goods of other companies. That is, the cargo of the ship of the company that belongs to another company or individual and they are paid to do so.
- Freight forwarder: A trucking company that is responsible for transporting goods from the point of receipt to the point of delivery by rail, motor, or water.
- Broker Authority: A broker is an entity that handles the transportation of goods for compensation. A broker does not transport goods but organizes a rental service to transport goods on behalf of its clients
How long will it take me to receive my Transportation Authority?
Obtaining your transportation authority certification is a long process. Generally, it takes between 5-7 weeks, depending on the administrative processing times. Also, note that there are many upfront costs to obtain trucking authority. There are also a substantial number of regulations and requirements for a trucking authority.
How to apply for trucking authority?
There are two types of trucking authorities you can apply for: federal and state.
- Apply for your MC number – Your MC number is issued by the FMCSA, the MC number will give you the authority to cross state lines as an independent motor carrier.
- USDOT Number – The USDOT Number will be the tracking number for your business, and it is issued by the US Department of Transportation The USDOT Number will record the number of drivers, trucks, and their overall safety classification.
- BOC 3 Process Agents – These process agents are assigned in each state and can accept any legal document on your behalf. They will then be returned to you, in your registered state of residence.
- Apply for insurance: Any carrier should obtain liability and cargo insurance. It is recommended that you apply for your insurance two weeks after submitting your MC number. The reason for this recommendation is to make sure there are no delays during the enforcement of the transportation authority.
- UCRA – Also known as the Unified Operator Registration Agreement. This document establishes that all motor carriers, exempt, private, regulated or freight forwarders, as well as leasing companies, must pay fees according to UCRA. UCRA calculates rates based on each company and how many commercial vehicles it operates.
- IFTA: The International Fuel Tax Contract or IFTA is for any truck weighing more than 26,000 pounds that operates interstate operations under contract or privately. Once you have registered, you will need to complete and file quarterly tax returns.
- IRP: IRP (The International Registration Plan) is for large trucks, again weighing more than 26,000 pounds. The IRP will cover all labels assigned to the truck. There is an annual fee to register your truck. The cost of your fare depends on the number of miles you run in each province or state.
- Simple Permits – Certain states require additional permits if you want to operate within their borders. The states that require permits are NY, KY, NM & OR; Each state will base its rate on the number of miles you have travelled in each state.
- Kentucky – For Kentucky, if your trailer weight is 60,000 pounds or more, then you must get a Kentucky weight distance number. To get the number, you do not have to pay a fee, but you must report your mileage on a quarterly basis.
- New York: If your truck travelling within New York State weighs 18,001 or more, then you need to obtain a New York Highway Use Tax also called a HUT permit. The tax you must pay is determined by the miles you travel and the weight of your carrier. Registering a truck costs $ 15.
- New Mexico: This is almost the same with New York. If your vehicle weighs 26,001 pounds or more, then you must obtain the New Mexico weight distance tax permit. The fees paid for the tax permit are also based on the miles traveled in the state and the weight of the vehicle. New Mexico charges $ 7 per truck.
- Oregon: Oregon for its part charges a security bonus of 2,000 to register for the Oregon Weight and Distance Permit. The voucher is normally returned to the trucking company if the company complies with all state rules and regulations for 2 years.
How to choose the best box truck for your business?
Below we share some important criteria to consider when searching the market for a reliable box truck.
- Identify your needs: Related to the weight load that you will carry, the volume of the load, type of bodywork, route to operate, monthly mileage, etc. It is not the same to transport weightless cargo with a large volume (of mattresses, for example) as a number of small heavy packages.
- Choose vehicles that suit the season: It is important that now the buses destined for the transfer of people, be it tourism and/or urban, have the biosafety requirements and protocols installed for the prevention of Covid19.
- Consider staff training: This allows the fuel consumption to be the best possible and the operator to know the benefits of the truck to get the most out of the specification, making it a more profitable one. There are dealerships like Mitsui, which include this service constantly and free of charge when purchasing these vehicles.
- Take into account availability: It translates into the elimination of unnecessary and/or unscheduled repairs that allow the truck to be used for a greater number of hours. Likewise, the after-sales service that includes the purchase of the vehicle must provide the necessary support from the acquisition to the renewal.
- Analyze your budget and financing plans: There are infinite options for financing; and, it will clearly depend on your situation and/or your company and the facilities that the banking system you choose can give you.
Applying for abox truck authority involves a mountain of paperwork, and you have to pay attention to the smallest detail because any lost or misplaced paperwork can delay your deadline. Likewise, you should keep track of the dates of all your appointments to meet all of them. It is advisable to have all the dates marked on a calendar that is in view so that you do not forget.
If you have any questions or comments on the content, please let us know!
FAQ on Do box trucks need authority?
What is the most reliable box truck?
The following are the most reliable box trucks:
- Mercedes Benz
What is the best tractor brand?
Kenworth, hands down the best in tractors. The leading brand in sales of heavy units, it is also in the cargo icon segment: that of tractors, with a market placement of 6,234 units, which represents 51.90% of the total
What is the best brand of American trucks?
The motto of the Americans is “The bigger the truck, the better.” This can be seen perfectly reflected in the best American truck brands such as Kenworth, Mack, Freightliner, Western Star, Peterbilt or International Trucks.
How to choose a cargo truck?
To choose a cargo truck make sure you respect the following criteria:
- Fast delivery.
- Reasonable costs.