No experience but getting Authority

Wow. A lot of points there. In my opinion, you are putting the cart ahead of the horse trying to dicker with FMCSA about your insurance filing. Just get it done. Now. You'll be more likely to call and speak to Santa Claus before you reach a live person at FMCSA. That filing should be your #1 priority right now because it's the easiest thing to screw up and the hardest thing to un-screw.

As far as insurance, go with whatever your comfortable with. I set my deductibles high and added general liability to make myself feel good. Since we haul a reefer and most brokers require it, we've added reefer breakdown coverage. I wouldn't get too wrapped up with the little add-ons. Get what you need to pass muster on the authority approval and worry about the extras after that is already posted.

+1 on the OOIDA checklist BigBadBill mentions. It's all there and simple to cover. If you're in I/T you may have been through a SAS-70 or ITIL audit. It works the same way. They're looking for evidence of certain paperwork and processes. You can pay someone hundreds of dollars to provide a system and an outline you will still have to complete, or just type it up yourself and print it out for the proper folder. A $500 DVD video program will earn the same check in the box that a one page process document will.

And avoiding rain and snow? Seriously? OK.. I'll give you a little bit on the snow. But with those types of dependencies, you're really going to limit your travel area and profitability. Any OTR trip East of the Sierra Nevada will take you through some kind of weather, and most definitely something frozen for a good part of the year. Unless you route through Phoenix to go somewhere besides Cali. Example: the load we just completed left Houston with sunny, humid, sweaty high 80's. A few hours later, the truck was in Joplin, MO. and freezing temps. My son was driving through Oklahoma he thought the a/c in the truck suddenly started working good... till he rolled down the window. Another hundred miles up in Kansas City it was snowing. When he comes back south there will be tornados, hail, or some other #### thing going on.

 

I believe that others have mentioned OOIDA, but you can also get everything you need off the fmcsa website. There are also handbooks you can buy from JJ Keller.

If I were you I would hold off on the hazmat. It sounds like you are already having some difficulties with some issues concerning getting your authority. Adding hazmat insurance will greatly enhance your startup costs. You are already concerned about compliance issues with just having authority. Hazmat is much more involved. I would first get my authority and run for a year or so. That will give you an opportunity to learn about this business and build your reputation prior to getting a hazmat permit. Besides, most hazmat pays very little more than non hazmat and the additional insurance coverage is likely going to be expensive, especially for someone who has no experience. The DOT looks more closely at hazmat due to the perceived risks over other types of freight. A small mistake with hazmat can cost you dearly.

 

It's been a few days and we're still in business. I keep getting better at finding decent paying loads and the truck has been performing trouble free after the initial tire issues. The last load was up through the mountains on I-77 thru W.Va. I had been avoiding that for a while but figured now is as good a time as any to stress the truck with some not too sensitive cargo and make sure it would hold together if we ran further out than we have. The trip went well and I got the following feedback from my son: "before this trip I thought I knew how to use that 13-speed. Now I do. #### I'm tired." Exactly as I predicted.


Today was a busy morning working with a broker to hustle new carrier paperwork and get our truck loaded. Seems the consignee was in a hurry to get their products so they nagged the shipper. Then the shipper started nagging his freight broker. Then I came along with a freshly empty truck ready to go. Let the fun begin.

After an email or two, I had it to the point that we were approved and just waiting for an insurance certificate. In the mean time, I'd gotten the pick up address and forwarded that to my son as a heads up. What I didn't know was the driver had his thinking cap on and fired the reefer back up for a frozen load and drove the 6 miles over to the shipper and parked outside the gate.

So while I'm trying to get my rate sheet, offline the shipper walks across the lot and asks my son if he's waiting to load some frozen freight for 09:30 pickup. He says yes, but I can't move until I get dispatch. Shipper says hmmm.. the broker said he had a truck coming in good to go, and walked back to his office. I'm imagining there was a short, really hot phone call right before the broker asked if I'd accept a rate sheet with the co name handwritten. It was a broker with a good reputation so I agreed and told him we could sort out a revised copy later in the day once the pressure was off him. No sooner than I clicked send, the fax came in. I was laughing about that broker getting caught in a lie by his shipper all morning. It being a light load and paying good made it all the better.

I had been in contact with BigBadBill from an earlier offer to meet over lunch and the broker tag had made me a little late. I'm glad we had a chance to meet. We spent about an hour over lunch probably rehashing everything already posted here on this forum LOL. From freight rates, to broker tricks, to truck specs. I definitely appreciate the help I've gotten through this forum to get as far as we have with this business. Bill, G/MAN, and a few others even more so for following this thread I hijacked and continuing to offer great advice and direction. In fact, we got the load today indirectly due to Bill encouraging me to pursue a particular broker I had avoided over concerns that a new carrier like us would get turned down in a hurry. I faxed in the package late last night just to avoid forgetting it later. Coincidentally it was one of their loads that popped up this morning and with that call we were getting loaded with a good rate. Bill I'm really sorry for that sandwich I got you LOL. I really owe you one. You got my number and you know anytime you're in the area and need something just call. Good luck with your FMCSA visit Monday and of course I'll be watching to see how it went.

 

It seems like you are getting off to a good start. I-77 in W. VA. can be fun, especially with a little ice on the road and a blowing wind. That road isn't that long, but it can sure wear you out. It can be especially taxing with a heavy load. I don't go that way much, but about a year or two ago I took an over size load up through there. It was wide and top heavy. The wind usually blows a lot in that area due to the mountains and my load caught a lot of wind. I was really worn out by the time I got back to civilization. I was on i-77 and I-64.

 

Ok, had my 3-hour new entery audit. Boy did I learn some things. It was good learning but somethings are a little goofy. I am going to create a list with all the codes and what they are looking for over the next couple of days and post in seperate thread.

A little scare when he put my CDL into the computer. He kept saying "that is not good" and "I don't like the looks of that" and "I sure hope this is a mistake". Turns out he was having computer problems that I learned about after he says he needs to call this in. I'm thinking "he's not armed and I doubt he will chase me if I run".

Couple fun facts.

Annual Inspection - From the company side (think office safety inspection not road side) you have to have a seperate form signed by the inspector stating that he is "qualified" to perform the inspection. Now, the word is "qualified" and not "certified". So if you think you are qualified you can perform your own annual inspection. And because I did not have that statement I did not pass my maintance file portion.

Other reasons I did not pass the maintance portion - did not have my make, model, year and VIN of tractor on the outside of the folder. Did not have a writen maintance plan in the folder despite having it on my computer and programed into my GPS as reminders.

Luck of the draw - I think I have two PU's or Deliveries that have any time stamps on them. And guess what, it was one of these days that he asked for BOL's. My logs reflected the correct times but I was running back in my head "did I double check these logs".

Other item that I had wrong. It is not just good enough that I have an application on file for myself I must have an application that is looking for the information that they want. So if you just printed out an application from MS Word like I did, PM me with your email and I will send you a copy of what he gave me.

 

I am sure that you are glad to have the audit behind you. Since you had a couple of things that were not quite correct, do you need to correct those and go through another audit?

At least they didn't fine you. The new entrant audit is a free pass. Whatever they find doesn't get you fined. Next time if they find something during an audit it could cost some serious money. I am curious about one thing. Did he mention how this audit would affect your CSA or safety score, if at all"

 

Yes, glad to have this behind me and that it happened so quickly.

Well yes and no. I need to correct things but some items like a copy of my MVR within 30-days of starting can't be corrected. But they will not perform another New Entry Audit. And unless I have a major accident or issue on road side inspections I should not have another one. In the 18-month window it takes less to triger an audit.

Yes and no on the fine. In IL, 5% of new entry audits result in fines and/or arrests. Was told this was ALWAYS for fraud or other illegal activities. And most of that happens out of Chicago area.

This does not affect CSA. He went over CSA and the changes. From a driver prespective and O/O it is a positive change. In the past when an audit was performed they had to do the whole thing. For a small firm that could take 2-3 days. Now they can target areas like logs or maintance files and perform them in less than a day.

 

Something else for anyone looking to buy any of these books to help you prepare. SAVE YOUR MONEY. I have returned a couple because they seemed to be geared towards selling you a service like driver file or drug program.

When I look back on them, simple things like a dirver application that the DOT wants to see should be included. Or sample maintance file with details on what needs to be on the outside.

But none of these had that. I now have sample forms and all the regs written out on what they are looking for. Disappionting that some companies feel they need to make someone pay for a marketing piece.

 

I also find it disgusting the companies charge for something you can download from FMCSA's website for free. They have all the forms you need in one package on their site. All it costs you in the ink and paper to print them!

 

Most truck stops have a "Driver Qualifications File." It includes an approved application and all the things that the feds require to have in a drivers file. I think they cost about $5.