Dispatch Service / No CDL Required / Government Transport

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. Keep sending in your questions and I will answer them to the best of my ability.

Every day I answer your transportation questions. The majority of the questions deal with property brokers and owner-operator leasing. The questions that I answer each month come from questions emailed to me during the previous month. All answers are up-to-date. With the cost of fuel continuing to increase, I also teach the truth about fuel surcharge.

WARNING: There are individuals claiming they can get your authority quick and get you trucking in just a few days. These individuals are charging $2,500 for this service and what you will get is absolutely nothing. BEWARE of those who claim they can get you trucking in just a few days. The reality is, the quickest you can get your broker authority and start brokering is three (3) weeks from the date you applied for you authority and filed your BOC-3 and surety bond or trust fund with the FMCSA. The quickest you can get your motor carrier authority and start trucking is three (3) weeks from the date you applied for you authority and filed your BOC-3 and insurance with the FMCSA, plus the extra time (from 1 to 3 weeks depending on the state) it will take to get your Single State Registration, IFTA, and other state requirements.


Q:

There is a debate going on in message boards that says, "You can be a dispatch service for as many trucking companies that you can get contracts from." Is this legal? And, if so, if the dispatch service does not pay you, where does the carrier go to get paid?


A:

If it was true that you can provide a dispatch service for more than one trucking company, then why is there a need to become a broker as this is exactly what a broker does? According to the broker regulation (Title 49 CFR 371) the definition of a broker is: "a person who, for compensation, arranges or offers to arrange, the transportation of property by an authorized motor carrier." In order to get your broker's license, you must have, on file, a $10,000 surety bond or trust fund. One of the reasons for the surety bond or trust fund is for the protection of the trucking company in the event the broker does not pay. Personally, the only time I would do business with a "dispatch service" is if they can prove they have a broker's license and a surety bond or trust fund on file at the FMCSA.


Q:

We are a house moving company. We actually move the house, not the contents. When we go out of state to move a house, the house is usually moved only a few blocks then we return home to our state. Do we need both the MC and USDOT numbers?


A:

You would definitely not need an MC number, but if the trucks you have exceed 10,000 GVW then you would need to get your USDOT number. The definition in getting an MC number is "if you are going to transport, in interstate transportation, for hire." You are going to get paid, but you are not going to transport in interstate transportation.


Q:

Do I need a CDL to start a hotshot transport service?


A:

You need a CDL if your vehicle is over 10,000 GVW or if you are going to transport hazardous materials. Also, you will need an MC number if you are going to transport, in interstate transportation, for hire, and it does not matter what type of vehicle you have.


Q:

I want to start a trucking company. I don't have a CDL and do not own a truck. What do I need to do to get started?


A:

Actually, if you don't want to get a CDL and you don't want to own or lease a truck, you can make application for the authority. There are no regulations that say you must own a truck in order to get your authority. After you get your authority, you will use owner-operators that will lease to your authority. You don't need to have a CDL and you don't need to know how to drive a truck in order to get your motor carrier authority.


Q:

I want to transport for the government, what do I need?


A:

Historically, the government wants you to have "common" carrier authority instead of "contract" carrier authority. There may be exceptions to this, but the primary reason for the "common" carrier authority is that the government official can go to the FMCSA website and actually see online exactly how much cargo insurance is on file. Whereby, contract carriers who have cargo insurance are not required to file their cargo insurance. If you are a common carrier, the insurance company should file the exact amount of cargo insurance you have on file otherwise it will show the minimum insurance requirement.


Q:

I have a chance to transport passengers in my seven (7) seat van to bingo games and casinos in adjacent states. Do I need a CDL?


A:

Since you have a vehicle that seats less than nine (9), you do not fall under the USDOT regulations and you do not need a CDL. But, you must obtain your MC number and have a minimum of $1.5 million liability insurance on file at the FMCSA.


Written By: Rex Evilsizor