2 companies using same truck question?

Discussion in 'Trucking Industry Regulations' started by AdamT2k, May 20, 2010.

  1. AdamT2k

    AdamT2k Light Load Member

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    I know my title doesn't make much sense, so I'll try to explain my question the best I can.

    An O/O has two trucking companies, each specializing in different cargo. We'll call them Company A and Company B. Company A owns the tractor and all the registration and permits that go along with it. Company A pulls a reefer trailer. Company B "rents" the tractor and driver from Company A to pull Company B's trailer, a specialized livestock hauler. The question is can Company A display their company info on the doors in some non-permanent manner (such as a magnet), and then remove it and place Company B's logo and info on the door when being used by that company? The DOT and MC numbers will be permanently applied to the truck. Can Company B operate under Company A's DOT and authority assuming Company A is the parent company of Company B? Or does Company B need its own? I know it's kind of a mess and will be an accounting headache, but what are your professional opinions? Thanks.
     
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  3. outerspacehillbilly

    outerspacehillbilly "Instigator of the Legend"

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    Wouldn't it be easier and a helluva lot less confusing to just have company A and let company B pay company A to haul their stuff?
     
  4. mastllc

    mastllc Medium Load Member

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    why not just run one company and have two divisions
     
  5. AdamT2k

    AdamT2k Light Load Member

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    Both very good questions. My wish is that each company has its own name and its own identity, and each of their names are fitting given the niche that each is in. I mean I could name the whole thing "Bob's Trucking Co" or something like that, but that's a forgettable name and doesn't tell the customer what their specialty is. (No offense to anyone named Bob) Company B would operate about 75% of the year during peak season, and Company A would operate the remainder.
     
  6. springbrake

    springbrake Light Load Member

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    There isn't too much ideal space to identify livestock trailers from what I have seen with all the slats and so forth. Just a thought.

    Does Company B have indentifiable trailers? Does it wish to remain anonymous for some reason due to the type of animals being transported?

    Is there an advantage for Company A to display Company B's logo on the tractor?




    It seems a little different from Wal-Mart trailers being pulled by U.S. Xpress tractors and Dollar General trailers being pulled by Werner.
     
  7. AdamT2k

    AdamT2k Light Load Member

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    Company A pulls a typical white reefer trailer that will be lettered in Company A logo and info. Company B pulls a high-dollar specialized hauler. Picture a NASCAR type trailer, only designed for animals (not cattle). As in the NASCAR industry, the trucks and trailers are a source of pride and advertising, as will be the case with Company B. Therefore it's important that Company B logo and such is on both the tractor and trailer so they are a matching unit, but also so that the tractor can revert back to Company A.
     
  8. 359kool

    359kool Light Load Member

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    This doesn't make any sense.
    In reality you only have one company, identified by the USDOT and MC numbers you said will be permanently applied, of which only the Dot number is required..

    So I don't get what you're worried about. If it's your truck and trailer, reserve a space for your USDOT number and IFTA sticker then put however many names you want over the rest..
     
  9. Mike_MD

    Mike_MD Medium Load Member

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    Both companies would have to have:

    1. A drug & alcohol testing program to include pre-employment and random. You could use the pre-employment exception for Company A or B provided you met all of the requirements of 382.301(b) and 382.301(c)

    http://www.fmcsa.dot.gov/rules-regu.../fmcsrruletext.aspx?chunkKey=0901633480023847

    2. A maintenance file for each company that controls the vehicle for more than 30 days.

    3. A driver qualification file. One carrier may qualify for a multiple employer DQ file per 391.63

    http://www.fmcsa.dot.gov/rules-regu.../fmcsrruletext.aspx?chunkKey=09016334800238c5

    4. A lease agreement that meet the requirements of Part 376.11 and 376.12

    http://www.fmcsa.dot.gov/rules-regulations/administration/fmcsr/FmcsrGuideDetails.aspx?menukey=376

    Each company that has a unique identifier, i.e. EIN/Tax ID number would require a seperate US DOT number and MC number as appropriate. Livestock generally meets the exceptions from having a MC number per Part 372.115. Because livestock is not listed livestock only requires a US DOT number no MC number.

    http://www.fmcsa.dot.gov/rules-regu.../fmcsrruletext.aspx?chunkKey=090163348008ef07

    To see a full list of exempt commodities see Administrative Ruling 119

    http://www.fmcsa.dot.gov/spanish/pdfs/adminrule.htm

    It's doable but will take some effort to keep the two entities seperate. The US DOT comes into play for interstate commerce. With CSA 2010 rapidly approaching it will be important to keep apples with apples and oranges with oranges to avoid having both companies face penaties associated with roadside inspections.

    Ensuring the vehicle is properly marked is imperative. I company B does not have a US DOT number; however, company B's name is displayed with Company A's US DOT number it would be a marking violation per Part 390.21

    http://www.fmcsa.dot.gov/rules-regu.../fmcsrruletext.aspx?chunkKey=090163348002389b

    Hope that helps.

    Be safe.
     
    AdamT2k Thanks this.
  10. Powell-Peralta

    Powell-Peralta Road Train Member

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    If you're talking about only having one DOT number, then you probably could do it---maybe.

    i know that when i was with jevic, there was this wife/husband leased team that put their "company" name on the side of the truck. (it was their truck which they were leasing to jevic) Of course Jevic's name was also on the door so that doesn't really answer your question directly.

    However, what name is registered under your DOT number? If a sole proprietorship/dba is registered under that DOT number, then i think you can do what you're trying to do.
     
    AdamT2k Thanks this.
  11. AdamT2k

    AdamT2k Light Load Member

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    Mike MD, thanks for the helpful response. In fact thanks to everyone who responded. Company B hauls show quality animals and animals used exclusively for breeding, so therefore it is not exempt from needing it's own authority.
     
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