Owner Operators - Owner Operator REXpert

Government Contracts / Customs Bonded Freight


By Rex Evilsizor

I am a retired Interstate Commerce Commission (ICC) Investigator with more than 45 years in transportation. For the past 11 years I have been a transportation consultant assisting those who would like to get their own motor carrier or broker authority. Send me your questions and I will use my expertise and knowledge to answer them.

Q

I am about to purchase my first tractor. I plan to lease as an owner-operator for the first year. During the second year I hope to have the capital to obtain my own common carrier authority. I will then become certified as a woman-owned business to do business with the government. I have a great business plan, but no practical knowledge of where to really begin. I live near Baltimore, Maryland, and would like to stay as near to home as possible. I am trying to find which sector of trucking that would best suit my plan for growth and obtaining government contracts. I have been searching all over and am still coming up blank. Please help. Thanks.


A

To obtain government contracts you should contact the GSA (General Services Administration) office in Washington, D.C. They publish papers that offer contracts for transporting to or from government installations. Baltimore is a great place to start because you are not that far from D.C. You might want to even drive to their office and spend some time with the GSA. To be a motor carrier, you don't even have to own trucks. Many motor carriers use only owner-operators and don't have any trucks of their own. Let me know how you come out. When you are ready to get your own trucking authority call me or visit my website where you can complete and submit the application for your own authority. Have a great day.

 

Q

I have broker authority and have potential clients that want me to provide my services to them, but they are transporting U.S. Customs Bonded Freight. Based on my research, it appears that I would need to obtain common or contract authority in order to become a Customs Bonded Carrier. Are common and contract carriers required to own a truck? And how easy or difficult is it to obtain Insurance?


A

Instead of common or contract authority, freight forwarder is the authority the customs people say you should have. Why? I don't really know. It does not make any sense to me except that freight forwarders, like motor carriers, take possession of the freight and are responsible for any loss or damage. Freight forwarders do not have to have any trucks, but they do have to have cargo insurance.

Your full name:

Your email address: (e.g.: you@aol.com)

Ask Rex...

Rex Evilsizor & Associates specializes in filing motor carrier authorities (both freight and passenger) with the Federal Highway Administration. Rex is a retired ICC investigator (Special Agent) and Licensed Insurance Agent with more than 49 years of transportation experience.

Due to the amount of questions we receive, we are unable to answer all of them individually. We will answer as many as possible in this column.

All submissions are subject to editorial review and may be edited or abbreviated to conform with space allocation, and other publishing guidelines. Unless noted in writing, by sending your submissions, you grant layover.com nonreversible permission to edit, reproduce, distribute, and publish your submission to meet guidelines or formats for publishing. Layover.com, Inc. reserves the right to not publish any submissions at their discretion.