Carrier MC - With No Trucks? "Aging" An MC#

Discussion in 'Ask An Owner Operator' started by rsconsulting, Jun 17, 2012.

  1. rsconsulting

    rsconsulting Light Load Member

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    This is (probably) an extension of a conversation on another thread - regarding "new MC#'s" and the seeming inability to get work from many shippers/brokers due to "date of inception".

    Is is POSSIBLE to do a Carrier MC, WITHOUT ANY TRUCKS?

    I would suppose, the "Initial Entrant Audit" would be kind of interesting, with no maintenance records or drivers.

    I haven't spoken to any of my "insurance advisors", to see if they could even underwrite a "Trucking Liability Policy" for MC# activation - with no trucks/drivers to actually extend coverage to.

    In anticipation to getting rolling in January (and still undecided whether I'm leasing on to another carrier, I have a couple of choices at this point - one appears to be a "good fit" for me - the other, perhaps "not so good", but convenient due to geography), I'm getting ready to set up a DBA (under my already existing corp), and do a "Registrant Only" DOT number (which can be "upgraded" later, if/when I decide to set the MC up).

    Obviously, the paperwork/compliance burden for a "truck-less carrier", would be pretty simple. Even if I had to do a DQ file on myself, and pre-employment DOT test (and join a testing consortium), it's not really that big of a hassle/expense to do so.

    The main/major expense is going to be the insurance.

    At any rate - just spitballing here.

    This would also (potentially) be a similar scenario to a guy on another thread - asking about getting his own numbers, but continuing to be leased onto his current carrier. Which brings about the question - WHO OWNS THE PLATES? How does it work when a CARRIER leases onto ANOTHER CARRIER (which, technically is more like a "brokerage agreement"), in whose numbers are on the side of the truck, etc.

    Rick
     
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  3. BigBadBill

    BigBadBill Bullishly Optimistic

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    This can't be done, legally. And you would have to be a pretty big outfit with some bad safety issues to really be able to afford to do this.

    It is not that big of an issue to get loads with new authority. By three months you will know all the majors that don't want to deal with you.

    Funniest thing is all these major training carriers that want 6-months and a year yet put guys with 3 weeks OTR training pulling the same load.

    Or my favorite, JB Hunt will call non-stop as soon as it goes active to get you to pull their trailer but if you want to broker a load in your trailer you need a year.

    But really this is a non-issue.
     
  4. SHC

    SHC Spoiled Rotten Brat O/O

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    So he couldn't just setup a MC# with say a 1 ton truck??? Once the audit comes around all you have to tell them is you have not setup any contracts yet but have everything else in order. My uncle did this 2 years before he retired and now runs his own excavating business, but the 1yr audit was a breeze for him since he still was not running yet.

    Why would it cost a lot??? Just wondering as I'm trying to learn as much as I can on this subject because my goal is in 2yrs to have my own authority and just run steel/gravel locally and be home every night. Just got to get my ducks in a row.
     
  5. rsconsulting

    rsconsulting Light Load Member

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    I would think the biggest cost would be the INSURANCE...

    I could (for example) buy an old POS truck (as SHC mentioned) and insure it.

    I have a number of broker & direct ship contacts that I could use to get rolling, and use as references.

    Just figured to setup the MC and have it as an "option" - just in case I decide to "roll solo" right out of the gate.

    Personally, I'd still feel a little better running under an F2F type of setup, while I build my "contact book", learn the lanes, etc.

    But, even in that case - I'd still like to get my own #'s setup, so when (if) the time comes to go out on my own - I won't have to start at the bottom of the "no loads for you newbie" pile.

    WITH a truck, but leased on - is it possible to run OBTAIN your own authority - naming the company you're leased onto as the "additional certificate holder" on your insurance? What do people that HAVE their own authority do with it, if they decide to lease onto someone else for awhile? Cancel their insurance and let it go inactive? Again - same story, no loads until it's been in a "continuously active state" for awhile.

    Rick
     
  6. BigBadBill

    BigBadBill Bullishly Optimistic

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    Yes, insurance is an issue. And you missed a key word in my post - legally. The audit isn't really the issue. The reason for the 18-months provisional is they are supposed to be watching your record to see that you are running a safe and compliant company. And when they shut someone down they don't want them jumping to an active authority.

    And all of us that are out here doing it right don't want this.

    And what you are describing you should not have an issue with getting loads with new MC.
     
  7. HDFatboy

    HDFatboy Light Load Member

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    I have had my authority for 4 months now and have only had 1 broker turn me down due to age of authority. It seems the ones with age requirements are the low paying ones anyway.
     
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  8. wichris

    wichris Road Train Member

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    You can lease on to a carrier when you have your own authority,just can't have any of your #'s showing. You could get your authority and insure a PU if you wanted to. All you will accomplish is spending money for insurance,you won't show any VMT and you'll not have any references. There are some brokers that try that so they can call themselves asset based. Takes less than a minute for someone to find there is no carrier operation in either instance.
     
  9. Old Man

    Old Man Road Train Member

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    Every one wants a shortcut to the top, you can't buy your way there, get out a earn it like a man. Maybe a little harsh, but I have drivers tell me the want to do what I do and have a setup like mine, I tell them get out there and earn it,.
     
  10. rsconsulting

    rsconsulting Light Load Member

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    Wasn't looking to short-cut the "dues paying" part of the equation - everyone has to establish themselves. Just enquiring if there was a way to "head-start" the process.

    In the case of leasing onto a carrier with your own authority - how does this (potentially) work with INSURANCE? You still have to maintain full MC insurance, pointing to your MC. Since most carriers that lease on, either "charge back" the trucking liability, or just "build it into" the percentage they keep - would you have to pay (essentially) double insurance - since the carrier has to have THEIR OWN insurance?

    Bill - how does this work with your guys, as far as folks that have already had an MC, or had their own MCS-90 filed.

    And again - just spitballing ideas in my head, to determine methodology.

    Rick
     
  11. BigBadBill

    BigBadBill Bullishly Optimistic

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    Aren't you leased to LS pulling RGN? Or am I thinking of someone else.
     
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