Owner Operators - Owner Operator REXpert


I am a Licensed Insurance Agent and retired Interstate Commerce Commission (ICC) Investigator with more than 49 years in transportation. For the past 16 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 Where do I learn the economic regulations and do I need to attend a broker school in order to broker or to work with brokers?
 
A As long as you are of legal age you can obtain either your motor carrier's authority and/or your broker's license. My transportation e-book is available FREE only from the layover.com website. Request your copy today and it can easily be used as a broker and/or motor carrier seminar.


Q Where can I find the actual cost of getting into the broker or motor carrier business? I need to know the costs of insurance, authority and state permits.
 
A Send me your request and I will obtain the quote for you. Remember, to start a trucking company, you really do not need to own any vehicles. Many motor carriers do not have any vehicles of their own; they have owner-operators leased to their authority.


Q I am new in transportation and would like to know where to obtain all the up-to-date transportation regulations?
 
A Go to www.gpoaccess.gov/ecfr then select Title 49 - which is all transportation regulations including motor carrier, rail, pipeline, waterways, etc. You will be interested in Parts 40, 300-399, and 1420 (other than hazardous materials). Also check out the "Simple Search" under "Database Features." This is continually updated by the USDOT. The good thing about this is that IT IS FREE.


Q What is the most important thing to know in transportation?
 
A The most important thing to know in any business is who you are doing business with. This can either make you or break you. Do your homework and check out the people you are doing business with.


Q I want to get broker authority to broker government freight. What are the provisions for brokering for the U.S. government?
 
A Normally, the government only wants to do business with "common" carriers. The reason for this is that common carriers must file both their liability and cargo insurance. The government wants to check "online at the FMCSA" exactly how much cargo insurance you have.


Q I want to get my broker's license so I can have owner-operators lease to my authority. What is involved to do this?
 
A Owner-operators can only lease to motor carriers. There are no provisions for owner-operators to lease to brokers. If you want owner-operators to lease to your authority, you will need to obtain either "common" carrier or "contract" carrier authority.


Q How soon must a broker pay a carrier? I pulled a load for a broker and the broker said he had to wait for the shipper to pay before he could pay the motor carrier. Is this right?
 
A The time limit for a broker to pay the carrier is one of the terms of your written contract. Check the terms of your written contract and if you need to make a change for the amount of days, you will need to rewrite the contract or make an addendum to the contract.


Q I am a licensed broker and I get loads from loadmatch services for my carriers. Is this double brokering? And is it legal?
 
A There was a decision in August 1990 that stated: "It is the view of the ICC that co-brokering is lawful and moreover, furthers the National Transportation Policy." The former ICC compared property brokers with real estate, stock, and commodities brokers. The broker does not appear to relinquish its function of arranging for transportation by contracting with another broker to complete the transaction. Nor does the broker lose its discretion, which is the distinguishing feature of a brokerage operation.

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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.

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