owner operators running under multiple authorities

Discussion in 'Ask An Owner Operator' started by mugurpe, Dec 10, 2015.

  1. mugurpe

    mugurpe Medium Load Member

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    So I'm trying to get a more thorough understanding of how owner ops run under other companies' authorities but also maintain their own. Specifically, I own a HHG company and I'd like to hire an owner op to provide power only for some of my loads, but let him book his own backloads under his own authority, but he'll be loading those onto my trailer. Does that work? can you mix and match DOT numbers and authority like that? Is it simpler if he owns the trailer too but runs my loads in it under my authority? I appreciate the replies and if anyone can cite cfr's all the better.
     
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  3. nutcase

    nutcase Light Load Member

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    I would contact an attorney that specializes in working with motor carriers for specifics.

    If he's doing power only(no loading/unloading) pulling your trailer with your customer's shipment there should not be a problem. This is not unusual in the HHG business during the busy season. As far as his back hauls, you may need a trailer interchange agreement or something similar.

    Again, find an attorney experienced in transportation and they should be able to make sure everything works smoothly.
     
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  4. Bogi

    Bogi Light Load Member

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    They need to run under his authority only.
    You rent them trailer, and you provide loads to them under your broker authority.
     
  5. RustyBolt

    RustyBolt Road Train Member

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    I guess the tricky part to this is the o/o hauling his own loads in someone else's trailer. I know folks that pull other company's trailers and loads. But I'm pretty sure they aren't grabbing their own backhauls. This is an interesting question.
     
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  6. powerhousescott

    powerhousescott Medium Load Member

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    We have worked with other carriers in a Power Only situation and hauled our loads in their trailers plenty of times. That is what we have non-owned trailer insurance for. The originating carrier had their brokers authority as well therefor making the whole thing a legal transaction. The only work around this is the trip lease option, he would trip lease the loads out under your authority (that would involve him putting your decals on a sign and putting it on his truck for that load). Take the sign off and run back under his own authority, this most likely will be the way you will have to do it because you have the authority for HHG and he most likely does not.

    I have a guy signing on with me Monday that is deactivating his authority to run under mine. He will keep his company's decals on his doors, he has already added Leased to Powerhouse Transportation, LLC and my DOT# to the side of his truck. His cab card will be changed over on Monday to show his company as the owner of the plate and mine as the carrier responsible for safety. There can only be one carrier responsible for safety on that cab card.

    This is the reason I suggest you look at the following options:

    A. He leases on under your authority like this guy is doing with me
    B. You get your brokers authority and broker the load to him and rent him the trailer as part of the deal
    C. You trip lease with him and make sure he understands that he can only be showing one DOT # at a time on that truck.
    D. Forget the whole thing there are plenty of guys out there right now looking to lease on to a company, many smaller carriers are biting the dust each and every day.
     
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  7. mugurpe

    mugurpe Medium Load Member

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    powerhousescott: thanks for the info, that makes a lot of sense. I really appreciate your informed answer, just the kind of info I was looking for.
     
  8. Bogi

    Bogi Light Load Member

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    The insurance gets 25% down, usually $2400 to get the tractor liability covered.
    He needs to pay down payment each time doing trip-lease ?
     
  9. wrongwaytommy

    wrongwaytommy Light Load Member

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    check out the master trip lease agreement from OOIDA
    it is legal and they run under their own authority,whether you provide the trailer or not is another story.I have 3 guys who work for me like this.They run their own numbers.If you want to tell them to get their own backhauls with your trailer that is between you 2.Maybe you should get a small percentage or fee for using your trailer or just let them use it for free on the backhauls.
    If they are leased on to you maybe you can provide the backhauls

    we do not put my numbers on their trucks at any time.They do carry a copy of the lease agreement in their truck and they pickup loads under my company name.
     
  10. tnpete

    tnpete Medium Load Member

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    Always remember if they have your name on there truck. When they finish that load, and no longer under your authority. That they remove anything that will tie them to you. AS if (May not do this anymore) they write your info on something and its taped to there trucks. That its no longer there. Know a guy that was out Millions back in the 1980's over this. Guy had finished out the load. But still had the guys numbers on his truck. Wrecked east of Nashville tn. And even though he was not hauling for that guy at that time. He lost everything as they went after his for his rights were still on the side of the truck.
    PEte
     
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