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"small truck" newbie questions - revisited
Question:
I posted a few days ago about operating a passenger van / 14 foot dual axle cargo trailer combination for hire, doing interstate deliveries of pinball machines. I received a lot of useful information as a result of that - the bottom line was that I would be subject to a lot of the DOT regulations including insurance, logbook, HOS, fuel tax returns, SSRS, etc., even though I wouldn't need a CDL or IRP plates, because I'd be over 10,000 pounds CGVWR, but below 26,000 pounds CGVWR. Thinking all this over this morning, I realized that I don't really need this large of a trailer for what I do. The pinball games themselves are pretty bulky, but not all that heavy (about 200-250 pounds each). My van's GVWR is 6,800 pounds. If I were to get a 12 foot single axle trailer (GVWR 2,990) instead of a 14 foot dual axle trailer (GVWR 7,000), I would only be able to haul about 20% less games per trip (8 instead of 10), but I would no longer be subject to a lot of these regulations, including about $7,000/year in insurance. (I realize I would still need appropriate insurance to operate the vehicle as a business vehicle, and not a pleasure vehicle, but not the 750,000 liability and 10,000 cargo insurance that would be needed for a vehicle over 10,000 pounds.) Is this assesment correct? It seems that if my CGVWR is 9,790, instead of 13,800, that this whole business suddenly becomes about 10 times simpler to operate. Before commiting to buying a new trailer though, I'd like to be sure that's accurate. I want to do everything safely, and "by the book", but I also need to do what makes the most sense business wise. If delivering a few less games per trip means it's going to lower my costs significantly, and greatly simplify my record keeping and reporting requirements, then that's the way to go. Will I still need a DOT number & MC number if I'm under 10,000 pounds, or is even that unecessary? Thanks again for any thoughts. - Jeff Answer: You would still be required to have a US DOT and MC number. Here is a link to the insurance requirements. § 387.303 Security for the protection of the public: Minimum limits. You would not be required to mark the vehicle or have a log etc. John Q. "If men were angels...No government would be necessary." 51st Federalist Papers _________________ John Q. "If men were angels...No government would be necessary." 51st Federalist Papers "Nichols' Fourth Law says, "Avoid any action with an unacceptable outcome" Answer: You would still be required to have a US DOT and MC number. Hi John, But the FMCSA's own FAQ www.fmcsa.dot.gov/factsfigs/faqs.asp states: 2. Now that I have determined that I will be operating in interstate commerce, what do I need to do to begin? A USDOT number is required if you have vehicles that are over 10,000 lbs, if you transport between 9 and 15 passengers (including the driver) for compensation, if you transport 16 or more passengers, or haul hazardous materials in interstate commerce. Wouldn't that mean I don't need a USDOT number or MC number? Here is a link to the insurance requirements. 387.303 But 387.3, "Applicability" states: (a) This subpart applies to for-hire motor carriers operating motor vehicles transporting property in interstate or foreign commerce. ... (c) Exception . (c)(1) The rules in this part do not apply to a motor vehicle that has a gross vehicle weight rating (GVWR) of less than 10,000 pounds. ... So wouldn't that mean I was excempt from that insurance requirement as well? I realize that 387.3 is part of subpart A, and that 387.303 is part of subpart B, but they seem to contradict each other, as they both apply to "motor carriers of property." I'm not trying to argue with you, just trying to get to the truth. This is confusing stuff unfortunately. I wish that they published some sort of "this is what you need to do for each class of vehicle" type guide, but it doesn't appear that they do. - Jeff Answer: John, Looking more closely at section 387.303 that you pointed me to, there seem to be only two items listed for vehicles under 10,001 pounds: 387.303(b)(1) and 387.303(b)(2)(d) The later seems to apply only to vehicles under 10,001 pounds carrying hazmat (definately not me), while the former says it applies to "Motor carriers subject to 387.301(a)(1)". I looked at 387.301(a)(1), and that seems to read "common or contract carrier ... transporting exempt commodities". In other words, it seems that the insurance requirements for vehicles under 10,001 pounds would apply only to vehicles transporting hazmat or exempt commodities? - Jeff Answer: Selective reading doesn't do you any good. Each Part has it's applicability. Part 387.3 applies to Part A. Generally, if you are operating as a " for-hire " motor carrier of regulated commodities or passengers in interstate commerce, you must also obtain interstate operating authority (MC number) unless your " for-hire " operation is limited to the transportation of exempt commodities, or you operate within a commercial zone, exempt from the interstate operating authority rules. Information about commercial zone exemptions may be found at 49 CFR 372. Administrative Ruling No. 119 provides additional guidance for identifying exempt commodities, which can be found on the Internet at http://www.fmcsa.dot.gov/rulesregs/fmcsrhome.htm . A list of commodities, which are NOT exempt from the operating authority rules, can be found at 49 CFR 372.115 or on the Internet at http://www.fmcsa.dot.gov/rulesregs/fmcsr/regs/372.115.htm . As I said, you need an MC number. § 387.301 Surety bond, certificate of insurance, or other securities. (a) Public liability. (a)(1) No common or contract carrier or foreign (Mexican) motor private carrier or foreign motor carrier transporting exempt commodities subject to Subtitle IV, part B, chapter 135 of title 49 of the U.S. Code shall engage in interstate or foreign commerce, and no certificate or permit shall be issued to such a carrier or remain in force unless and until there shall have been filed with and accepted by the FMCSA surety bonds, certificates of insurance, proof of qualifications as self-insurer, or other securities or agreements, in the amounts prescribed in § 387.303 , conditioned to pay any final judgment recovered against such motor carrier for bodily injuries to or the death of any person resulting from the negligent operation, maintenance or use of motor vehicles in transportation subject to Subtitle IV, part B, chapter 135 of title 49 of the U.S. Code, or for loss of or damage to property of others, or, in the case of motor carriers of property operating freight vehicles described in § 387.303(b)(2) of this part, for environmental restoration. (a)(2) Motor Carriers of property which are subject to the conditions set forth in paragraph (a)(1) of this section and transport the commodities described in § 387.303(b)(2) , are required to obtain security in the minimum limits prescribed in § 387.303(b)(2) . § 387.303 Security for the protection of the public: Minimum limits. (b)(1) Motor carriers subject to § 387.301(a)(1) are required to have security for the required minimum limits as follows: (b)(1)(i) Small Freight Vehicles: You are required to have $300,000 of insurance. As far as the US DOT Number, the MC number and DOT numbers are going to merge, the US DOT doesn't do much of anything with motor carriers unless they have a US DOT number. You must have the MC number which you have to pay for so the US DOT number is optional. However, US DOT numbers are now being assigned to shippers and cargo tank facilties that repair bulk cargo tanks. I imagine you will be assigned a US DOT number when you apply for the MC number whether or not you apply for for a US DOT number or not. You wanted advise and have been advised. What you do with that information is your choice. I encourage you to call the number provided regarding the MC number for information if you doubt the information posted. Best of luck. John Q. "If men were angels...No government would be necessary." 51st Federalist Papers _________________ John Q. "If men were angels...No government would be necessary." 51st Federalist Papers "Nichols' Fourth Law says, "Avoid any action with an unacceptable outcome" Copyright ? 2006 - 2007 www.thankhealth.com Privacy Policy
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