Motor Carrier New authority

[Makame]

I have just got new USdot and MC and did a quote on an insurance,13k with 2600 as a down payement, I am based out of Columbus ,OH.


My question is once I pay that insurance downapayement , what else do I need to be fully operational?

What is the best loadboard to get loads for a guy with new authority?

How long does it take for my MC to be active once I pay that insurance down payment?

Thank you guys and stay safe.

 

[ironpony]

I have just got new USdot and MC and did a quote on an insurance,13k with 2600 as a down payement, I am based out of Columbus ,OH.


My question is once I pay that insurance downapayement , what else do I need to be fully operational?

You're a motor carrier now, with no employees. So, you'll need to get your paperwork in order for the new entry safety audit, file paperwork for process agents, and hire yourself as a driver. That means the full hiring paperwork process including an application, a copy of your driving history, medical card and pre-employment drug test. You'll need to join a drug test consortium too.

The "Trucking With Authority" podcasts by Kenny Long are a great resource for new entry compliance issues...

Trucking With Authority

The first year podcasts go into these steps in detail.

What is the best loadboard to get loads for a guy with new authority?

I use DAT and ITS Truckstop. I have yet to get a load from ITS, but your mileage may vary. These are brokered loads, so you'll have to get together the information they require - "a carrier packet," and send it to them. They'll want you to sign a contract before you get a rate confirmation. Make sure all the financial condition you negotiate are written in the ratecon - you won't get them after the fact. Make sure you read and understand the contracts, because you're going to have to live with them.

Contracting to work with a broker comes before getting a load from them. I'd hit the load boards to identify the lanes you want to run, and Identify the "market makers" to target first. Hope you're good at dealing with rejection - you'll hear "NO!" a lot. You're going to have to prove yourself in the market before many people will trust you with their freight, especially if they've been burned by losers.

I visited with Convoy at MATS - they specifically said they would work with new entrants. I'd try Uber Freight and JB Hunt 360 too.

How long does it take for my MC to be active once I pay that insurance down payment?

Thank you guys and stay safe.

You should be good to go within 30 days. Good luck!

 

[mndriver]

Follow this link and use the forms from it.


This is exactly what you'll be audited for.

If you haven't done it yet, get enrolled in a drug testing consortium. It's the one thing that an auditor will shut you down on, guaranteed.

The Motor Carrier Safety Planner | FMCSA

The Motor Carrier’s Guide to Improving Highway Safety has changed to The Motor Carrier Safety Planner

www.fmcsa.dot.gov

 

[mndriver]

The employee file in that link is the exact same packet you can buy in a truckstop or on the jj Keller website.

The pack itself also is available off the jj Keller website for $270.

I'll only ask for a cup of coffee for giving you the link directly to the source

 

[ironpony]

The employee file in that link is the exact same packet you can buy in a truckstop or on the jj Keller website.

The pack itself also is available off the jj Keller website for $270.

I'll only ask for a cup of coffee for giving you the link directly to the source

You know how to use MS Word? Most of what's necessary is easily ginned up, or available as generic templates.

 

[mndriver]

Or you can use the fillable format PDF files that already exist for you to download for free.

The forms that inspectors are taught to look for and rarely see a carrier use.

I searched for template or forms for me to use and when I found the original format of the ETA manual,(it's changed website layout after 2016)

The difference between that link and the form jj Keller sells is nothing but jj Keller putting their company logo on it. The auditor that came and did my new carrier audit was telling me that jj keller had the contract to develop the government website. Part of that contract gave them permission to market the forms privately.

 

[ironpony]

Or you can use the fillable format PDF files that already exist for you to download for free.

The forms that inspectors are taught to look for and rarely see a carrier use.

I searched for template or forms for me to use and when I found the original format of the ETA manual,(it's changed website layout after 2016)

The difference between that link and the form jj Keller sells is nothing but jj Keller putting their company logo on it. The auditor that came and did my new carrier audit was telling me that jj keller had the contract to develop the government website. Part of that contract gave them permission to market the forms privately.

Last thing I'd want to do is spendore money at Keller... if I could avoid it.

 

[Mike]

Once you have gone through the week or two of waiting for your authority to go through it's public scrutiny, then it is time to get insurance. Takes around a week for your insurance to show binded to your authority once you get the insurance.

 

[Makame]

Once you have gone through the week or two of waiting for your authority to go through it's public scrutiny, then it is time to get insurance. Takes around a week for your insurance to show binded to your authority once you get the insurance.

Thank you for your help, I just want to share a quick update, I paid the insurance down payment today and the Insurance Agent said my MC will be officially in business by tomorrow,I am realy excited about this, I worked as driver for 10 years and looking forward to be an an Owner OP finaly

I am tons mostly spam e-mail and calls from all kind of companies, what is best company for factoring?

Any other wise thing you want to add to help me achieve this new task is highly appreciated.

 

[mndriver]

what is best company for factoring?

Best? Don't.

If you are. I use gulf coast business credit. Puts more money in my bank than any quick pay.


Plan on folks taking 35-45 days to pay otherwise. And don't be surprised to see some take as many as 50-60 days.

One game a broker likes to play is, "original bills must be mailed in.". And the day they are received is the day the clock starts. And then they'll tell you "30 business day only" and that means Saturday and Sundays don't count. I hope you are ready for the insults and poor business practices that are actually illegal from brokers and customers.

You thought a driver gets bent over, you ain't seen nothing yet.

 

[Mike]

Any other wise thing you want to add to help me achieve this new task is highly appreciated.

Get set up with Convoy and Uber Freight. You can bid on loads with Convoy, and with both you can do everything via an app. Best of all, they pay within a day or two.

Transfix is another one. I don’t see as many loads, but they are competitive with rates and also pay very quickly. This is another one where you can bid and select loads online.

I would not factor. At best, if I had no access to money, I would do it very selectively and for as little time as possible.

 

[mndriver]

I would not factor. At best, if I had no access to money, I would do it very selectively and for as little time as possible.

most factoring companies won't let you "not" factor if you use them. It's either all or nothing typically.

As a single truck, it's easy to allow brokers to have you finance them for 35+ days. This is an opportunity cost for you.

when you start getting 4-5-6 trucks and those drivers demand payment in 24-48 hours, it becomes a different outlook.

 

[Mike]

most factoring companies won't let you "not" factor if you use them. It's either all or nothing typically

This is why I say be selective. Only use one that lets you pick which brokers to factor.

If you get into the factoring nightmare, it’s difficult to get out of. This is why I avoided it.

 

[mndriver]

I used to feel that way. Factoring companies that are worth anything don't let you pick and choose. One week you'll factor say ch Robinson, next load you won't. Honestly, it creates a management nightmare remembering who has a notice of assignment and who doesn't.

As a single truck operation, it's easy to eventually "finance" the brokers and let them extend their payment terms to 30 plus days.

When I had settlement demands dictate cash flow it changed my views entirely.

Drivers demanded being paid in 10 days or less. You can't carry $18,000 in gross revenue for 35+ days waiting to be paid by a broker or direct customer.

It's a different dynamic entirely.

Single truck, sure. But at what opportunity cost to you are you letting the customer hold on to YOUR money? For that length of time as well.

 

[mndriver]

Last thing I'd want to do is spendore money at Keller... if I could avoid it.

If he follows that link, he's not buying it from JJ Keller. He would be downloading from FMCSA for free.

 

[CocoPlum]

Running under someones Authority
When a driver is running under your authority - and you charge a 15% etc fee. Does your fee come out after the driver pays factoring fees etc or you collect on the value of the load - ??

 

[ironpony]

Running under someones Authority
When a driver is running under your authority - and you charge a 15% etc fee. Does your fee come out after the driver pays factoring fees etc or you collect on the value of the load - ??

It comes out of the gross revenue from the load.

 

[CocoPlum]

cheers - i thought so. just wanted clarity.

 

[Mike]

Running under someones Authority
When a driver is running under your authority - and you charge a 15% etc fee. Does your fee come out after the driver pays factoring fees etc or you collect on the value of the load - ??

It is however they choose to set up the lease with you. Commonly, it will come from the Gross, but it's not set in stone.

 

[ironpony]

It is however they choose to set up the lease with you. Commonly, it will come from the Gross, but it's not set in stone.

You know anyone misguided enough to take their cut out after expenses?