Signing Owner Op To My Company

You don't.

You can have a contract for him to seek out loads seperate from your authority and have him negotiate it directly but not leasing under yours.

If you have overflow from your fleet, you could work out a deal with him and the company to make sure that the work is covered.

 

He can do both but it's lot's of hassle with the logs, door signs, plates, registrations etc etc. He can give you POA so you can handle booking from brokers if you're doing spot freight. If you have your own contracted freight you may have to get a broker MC.

 

You either need Broker authority or to lease him on your own MC,

 

Why I run 12 other trucks who have their own authority insurance and they haul my loads. I just pay them once a week. They did sign a contract, but that was for percentages and back soliciting.

 

are you really asking me on why you need to follow federal laws?

 

I guess I'm not sure what federal law that would be. I have an agreement with my customers and I have a contract with these trucks. Not sure where I'm breaking the law.

 

Because technically what you’re doing may fall under the guise of double brokering, because you as the carrier accepted the load, but you passed on to another carrier to complete the load without the original broker’s consent.

Double brokering is not to be confused with co-brokering.

While double brokering is an illegal act, co-brokering is not. Co-brokering is the legal practice of multiple brokers and carriers working with the original shipper to arrange freight transport.

Additionally, the freight broker fee for the load is split among the parties involved in a fair and agreed-upon manner.

 

Why would I use a broker?

 

I am not too sure about the legality of it from FMCSA angle, but there definitely could be, (and there were), an insurance conflict with him being leased on to you, while keeping his authority alive. For his authority to be alive, he has to have active insurance, hence the problem.
I have seen this practiced, though. Despite the risks. Or, some people are leased onto two different carriers simultaneously. That's often done in the intermodal segment, where they use magnetic signs and change them like gloves. That's all right until there's a problem, a crash or a cargo claim, and insurance gets involved. As soon as they find out there's another insurance active, they want the other one to pay and vice versa. The outcome is that neither want to pay, they stall and it'll be awhile before they pay anything.