Owner Operators - Owner Operator REXpert

Q

I brokered a load to a motor carrier and there was evidently some loss and damage. Is the motor carrier or the broker responsible for the claim?

A

It was never intended for brokers to be responsible for any loss and/or damage. A broker never takes possession of the shipment. The regulations governing this are contained in Title 49 of the Code of Federal Regulations Part 370.1 "Applicability of Regulations" that states:

"The regulations set forth in this part shall govern the processing of claims for loss, damage, injury, or delay to property transported or accepted for transportation, in interstate or foreign commerce, by each motor carrier, water carrier, and freight forwarder (hereinafter called carrier), subject to 49 U.S.C. Subtitle IV, part B."

You will notice that there is no mention of a broker. Download a copy of the regulations for your future use. http://www.rexevilsizor.com/Title49Part370.pdf

Q

What are the owner-operator leasing regulations and where can I obtain a copy?

A

The owner-operator leasing agreement regulations are found in Title 49 of the Code of Federal Regulations Part 376-specifically Parts 376.11 and Parts 376.12. Download a copy of the leasing regulations for your future use and compare your lease to the regulations. http://www.rexevilsizor.com/Title49Part376.pdf

Q

I want to apply for my own property broker authority, what records am I required to keep?

A

The regulation governing brokers of property are contained in Title 49 of the Code of Federal Regulations Part 371. Download a copy of the broker regulations for your use. http://www.rexevilsizor.com/Title49Part371.pdf

Q

I understand that I can transport exempt commodities without obtaining an MC Number. Where can I find a list of the exempt commodities?

A

The exempt commodities are found in Administrative Ruling 119. Download a copy of this ruling for your use. http://www.rexevilsizor.com/AdminRule119.pdf

Q

I have motor carrier authority and want to obtain a broker license. Should I get another MC number with a different name, or should I put the broker license on the same number and name as my motor carrier authority?

A

In my opinion, it would be best to obtain a new MC number with a different name. Most liability insurance companies do not like the same MC number on both the motor carrier and broker authority.

Q

I now have broker authority and want to start a motor carrier authority. How many trucks do I need to have in order to obtain the motor carrier authority?

A

There are no regulations that require you to own or lease any trucks in order to obtain a motor carrier authority. You don''''''''t even need to have a CDL. However, the insurance companies will require you to have a vehicle to insure. You will then need to find an owner-operator who will lease to your authority. You obtain their CDL and Vehicle information and provide this to your insurance agent. The insurance quote will be based upon the owner-operator.