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Operating under 2 authorities?

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Old Apr 24, 2005 | 01:02 AM
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Operating under 2 authorities?

I haul RV's for a living. I deadhead a lot and it's getting hard to make any money at it with fuel prices what they are. My question is, is it legal to operate under two different authorities? I would be hauling an RV from one company out under their authority and haul another back from a different company under their authority. I would be operating under both of the companies authorities. Is this legal? Some say it is illegal, others say it can be done. If I could get backhauls, that would make this business worth it for me.

I was thinking of getting my own US DOT # and own Operating authority and am curious as to how hard it is to do and how long it takes. The reason for this being that if I can't operate under 2 authorities, than maybe I can operate under my own authority and haul with whomever I choose when ever I choose. I like the RV hauling because I can get around $1.00 a mile for a small 5000-6000# TT. They are not too stressful on the truck and I have a place to sleep when I am under load. I am single, don't own my own home, don't have any kids and don't really have very many bills to pay, so for me it's profitable. Any ideas or suggestions?
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Old Apr 24, 2005 | 04:56 AM
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I'm in the same situation . You could ask your recruiter if anything in your contract forbids you to haul for someone else . I was told by my insurance company insurance causes a conflict . If you deliver for one company and are on the wat to pick up a trailer for another company , whose insurance covers you . Non-Truckng liability does not cover this , it's for personal use . One answer is to get nonladen liability instead of non-trucking . Then you are always covered when unhooked . Unladen through OOIDA cost me less than non-trucking through Brown & Brown . OOIDA can also help you get your own authority . The process takes about a month . First you get your DOT number and MC number . You'll need a BOC3 which is agents in each state . OOIDA provides this free to members . It'll cost about $900 to get your own authority and around $8500 a year for required insurance . You'll also need to be in a drug test program because you'll need to get a prehire test for yourself and be in a random pool . OOIDA can also get you his service for around $100 a year . If you don't belong to OOIDA check them out at OOIDA.com . By the way , I was prepared to start my authorit process 2 days ago and got a call from a hotshot company that will pay me $1.50 to $2.30 a mile to pull a 40 ft. flatbed delivering things like plastic pipe and air conditioning units . They get their drivers home weekends . They're sending me info in the mail . If you deliver to the Northeast , did you know exit 1 0n I-84 in NY is actually in NJ and has the cheapest fuel anywhere on I-84 ?
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Old Apr 24, 2005 | 01:53 PM
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Isn't that basically what owner/operator OTR drivers do? They haul one way for one company, then haul back for another.
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Old Apr 24, 2005 | 04:46 PM
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Most O/O's are leased to one company . It makes paperwork a lot simpler and insurance costs are lower . Not many O/O's own their own trailer either .
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Old Apr 24, 2005 | 06:02 PM
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If I can haul for 2 companies without getting my own authority and DOT number by just getting non laden liability instead of non trucking, that would be the way I would like to go. Getting my own authority sounds like an awful lot of hassle, but would probably be worth it b/c it would open up more opportunities. However, I olny have a single rear wheel and I would be limited in what I could take, so hot shoting would be out of the question. So I guess it's a catch 22. I'm going to give these OOIDA guys a call and see what they have to say. I have not delivered to the northeast, but always thought of NJ as having some very high fuel prices. I guess you learn something new every day.
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Old Apr 24, 2005 | 06:53 PM
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I have probably seen you!
You would not believe the amount of rv transporters I see on I-80 deadheading back to Indiana in a week. It is easily 30 or so. I just can't see how anyone can be making any money with the current fuel prices. They are all doing 55-60 to get max mpg. I see equal amount of all truck manufacturers.

So, If it can be done why is no-one else hauling back east.
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Old Apr 24, 2005 | 11:41 PM
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So, If it can be done why is no-one else hauling back east.
I dont know. A lot of people get into this and don't stick with it. The place I work for had about seven drivers dead head to Indiana from Washington. These guys pulled one load and quit. Not one of them turned in their bill of Lading; they did not get paid the money that was owed to them. If I can run under 2 authorities/lease with 2 companies legally (if the DOT does not have any laws against it) and olny have to worry about the two companies I would be working for finding out about each other, I'll do it. I figure the worst that could happen is I would lose my lease/job with one of the companies (or both). Big deal, I'll just go work for someone else. It sure as hell beats deadheading.
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Old Apr 25, 2005 | 12:57 AM
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Getting your own authority seems like lots of paperwork but once it is done it is done. DOT # is free, MC # is $350 1 time fee. Don't sign up until you are READY (get insurance quotes first). I signed up for an MC # and they took it away because I didn't use it. When I eventually use it I'll have to pay a $80 reinstatement fee. I don't see why you couldn't haul for 2 different companies at once as long as you don't violate any rules (like hours). I don't think it's anyones business if you work for someone else. If company A isn't giving you a backhaul then it is your incentive to find yourself one, as long as your contract allows it.

What's the difference between unladen and non trucking? What about bobtail? I'm talking about personal liability and comprehensive (theft and collision) on your vehicle when unhooked?

I think the figure of "$1/mile" is hard to interpret. Is the company that you haul for paying for the big expenses, i.e. primary liability and cargo insurance? If so, what type of insurance do you need to have, and how much does that cost you (more than regular old insurance?)

How many loaded miles can you get per year at $1/mile?

If regular insurance + bobtail or unladen insurance is say $2000 a year, and FULL commercial primary liabilty, comprehensive and cargo is $8000 or even $10,000 a year, is $6000 or $8000 worth the difference between getting paid $1/mile and getting paid $2.50/mile? It doesn't seem like it to me, provided you can get work.
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Old Apr 25, 2005 | 01:49 AM
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Actually it is real simple, owner operators trip lease all thetime. You have to have a sign, even cardboard will do, that says "operatied by" and the name of the authority that you are operating under. I have a case where everyone knows me by the old name BTS so I still have it on the truck, but then under it, operatied by and the rest of the names and numbers. Lease companies used to, may still, let you operate under their authority for 10% of the load. Generally if you are under lease, short or long term, even for a day, you are under their cargo and liability. Of course that is all determined on the contract, which you must by law have.

Insurance is purchased for your truck and your name and/or business name, you tell them what companies need to be "held harmless" and they will send a form stating that you are insured and the amounts holding them harmless. These mail outs cast nothing with a reputable company. I have a half dozen that go out each year. I pull for a couple of companies that require a form, as do most auctions that I pull for if the cars belong to them.

If you get into this, be sure to use an insurance company that deals with truckers even though any of them can sell you insurance. The rest of them don't know what you have to have. There is also a big cost difference in 300 mile radius insurance and unlimited. I have a good deal where I pay for 300 mile radius and can pull up to 10% of the loads further out.
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Old Apr 25, 2005 | 01:53 AM
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Need to add another thing, as NJoverkill said, make sure you personally have insurance on the truck, the lease company does NOT insure you while you do not have property of theirs on your truck.
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Old Apr 25, 2005 | 04:53 AM
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Non- trucking liability and unladen are both bobtail . Non-trucking is just that . It's for personal , off duty use . Unladen covers you anytime you are lot loaded . A lot of RV haulers are not told they have another load after dropping a trailer . They just drive to the nearest terminal and hope they get something .It's questionable whether NTL will cover you between loads when on duty . Property damage covers te truck . I pay $290 a month for unladen and property damage . Carrier pays loaded liability and cargo . Manufacturers give no advance notice of what loads they will be turning out . I rarely deadhead back to Indiana from the Northeast . I can pickup in Williamsport MD or Somerset PA . Still quite a bit of deadhead but 600 miles less than back to Indiana . From PA or MD I have gotten loads to within 100 miles of home in KY but if I go to TX or TN the deadhead is still considerably less than the haul . A lot of drivers made good money hauling FEMA trailers after the hurricanes . FEMA bought over 40,000 trailers . Some of them were just put in storage in MD , FL , and TX for future use . Now some drivers are working picking up FEMA trailers people have moved out of . I heard FEMA bought over 30 F350's to do their own hauling . That would be a sweet government job , driving one of them . Knowing the government I bet they bought single cabs to save money and pay for drivers' motels and meals . These jobs are probably around Cumberland , MD or Fort Worth , TX . As for RV haulers going 55-60 mph for fuel mileage , I've never seen that . They all run the speed limit or better and my 3500 seems to get better fuel mileage at 70 m.p.h. than it does at 60 .
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Old Apr 25, 2005 | 12:49 PM
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Alabama Georgia and Tennessee, it is hard to find any larger vehicle going near the speed limit the last couple of weeks. The fast trucks are doing 68, most campers and trucks doing 65.
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Old Apr 25, 2005 | 02:19 PM
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When you get your own authority,you beme a truckin company just the same as J>B> Hunt and have to comply with 9 million rules and regulations. To run one truck,I think its not wise to get your own authority.the best deal is probably to lease on with a company that will let you trip-lease for other companies for back-hauls.
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Old Apr 25, 2005 | 02:27 PM
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remember guys,the cost to operate per mile is about .70cents,figuring depreciation,fuel,repairs,maintentaince,insurance, permits,taxes etc.,so even if you gross 1.00 per mile your still working for .30 cents per mile its a hard way to make a iiving,thats why recruiters are constantly seeking new contractors,because its a no-win situation for the truck owner.
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Old Apr 25, 2005 | 02:32 PM
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Originally posted by hammajamma
When you get your own authority,you beme a truckin company just the same as J>B> Hunt and have to comply with 9 million rules and regulations. To run one truck,I think its not wise to get your own authority.the best deal is probably to lease on with a company that will let you trip-lease for other companies for back-hauls.

That depends on what you are doing. If you are under 26k and don't need ifta there is not much paperwork, and really none more than lease operation. With a lease you still have to keep records for irs. State authority is more demanding than the federal. Once into ifta you do have paperwork to keep up with. But really you have to keep the same trip sheets for lease operation but the company does the reports for you.

So far as being the same as JB Hunt, I hope you are smarter, but if you are on the road you ahve to keep the same standards. And I might remind you, if you have to fudge on any records, no one is looking over your shoulder like a lease operation.

I'll give you a big tip but can't explain why on here. When you pick a dba, the name you will operate under, think of JB Hunt not Roadway. Don't pick a name like "Interstate Trucking Co." or something like that, use a variation of your name. If you have ever been in business you will know why.
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