Arresting_Quack
February 8th, 2006, 00:29
When a person applies for their MC number and pay their $300 it is important to know the difference between a "Common" and ""Contract" motor carrier. The application fee is the same. However, there are different insurance filing requirements.
Part 165 (http://www.fmcsa.dot.gov/rules-regulations/administration/fmcsr/fmcsrguidedetails.asp?rule_toc=735§ion_toc=735) list the different types of carriers and the application process.
Part 387 (http://www.fmcsa.dot.gov/rules-regulations/administration/fmcsr/fmcsrruletext.asp?rule_toc=756§ion=387.303§ion_toc=1686) list the insurance requiresments for "Common" carriers.
§387.303 Security for the protection of the public: Minimum limits.
(c) Motor common carriers: Cargo liability. Security required to compensate shippers or consignees for loss or damage to property belonging to shippers or consignees and coming into the possession of motor carriers in connection with their transportation service, (1) for loss of or damage to property carried on any one motor vehicle--$5,000, (2) for less of or damage to or aggregate of losses or damages of or to property occurring at any one time and place--$10,000.
In addition to the "Cargo" insurance "Common" carriers are required to file. Common carriers may also be required to have a tarriff book of freight charges:
§ 377.101 Applicability.
The rules and regulations in this part apply to the transportation by motor vehicle of c.o.d. shipments by all common carriers of property subject to 49 U.S.C. 13702, except such transportation which is auxiliary to or supplemental of transportation by railroad and performed on railroad bills of lading, and except such transportation which is performed for freight forwarders and on freight forwarder bills of lading.
§377.105 Tariff requirements.
No common carrier of property subject to the provisions of 49 U.S.C. 13702, except as otherwise provided in §377.101, shall render any c.o.d. service unless such carrier has published, posted and filed tariffs which contain the rates, charges and rules governing such service, which rules shall conform to the regulations in this part.
The issue caused a carrier some problems. The carrier had to purchase special insurance to transport travel trailers. Since the carrier applied as a "Common" carrier the FMCSA would not process the carrier's application without the carrier's insurance company providing proof of cargo insurance. The carrier was upset because the cost of the special insurance for travel trailers was more costly than standard cargo insurance. The cargo insurance would have been an un-necessary expenditure.
To simplify the application process and eleminate carriers' obligation to file cargo insurance I would encourage new carriers to file as a "Contract" carrier. I am not saying shippers may require carriers to have cargo insurance. However, it will eliminate the need to file cargo insurance with the FMCSA.
I would recommend consulting a transportation attorney, some licensing agencies are not as knowledgible as they should be regarding the application process. As usual it's buyer beware.
Be safe.
Part 165 (http://www.fmcsa.dot.gov/rules-regulations/administration/fmcsr/fmcsrguidedetails.asp?rule_toc=735§ion_toc=735) list the different types of carriers and the application process.
Part 387 (http://www.fmcsa.dot.gov/rules-regulations/administration/fmcsr/fmcsrruletext.asp?rule_toc=756§ion=387.303§ion_toc=1686) list the insurance requiresments for "Common" carriers.
§387.303 Security for the protection of the public: Minimum limits.
(c) Motor common carriers: Cargo liability. Security required to compensate shippers or consignees for loss or damage to property belonging to shippers or consignees and coming into the possession of motor carriers in connection with their transportation service, (1) for loss of or damage to property carried on any one motor vehicle--$5,000, (2) for less of or damage to or aggregate of losses or damages of or to property occurring at any one time and place--$10,000.
In addition to the "Cargo" insurance "Common" carriers are required to file. Common carriers may also be required to have a tarriff book of freight charges:
§ 377.101 Applicability.
The rules and regulations in this part apply to the transportation by motor vehicle of c.o.d. shipments by all common carriers of property subject to 49 U.S.C. 13702, except such transportation which is auxiliary to or supplemental of transportation by railroad and performed on railroad bills of lading, and except such transportation which is performed for freight forwarders and on freight forwarder bills of lading.
§377.105 Tariff requirements.
No common carrier of property subject to the provisions of 49 U.S.C. 13702, except as otherwise provided in §377.101, shall render any c.o.d. service unless such carrier has published, posted and filed tariffs which contain the rates, charges and rules governing such service, which rules shall conform to the regulations in this part.
The issue caused a carrier some problems. The carrier had to purchase special insurance to transport travel trailers. Since the carrier applied as a "Common" carrier the FMCSA would not process the carrier's application without the carrier's insurance company providing proof of cargo insurance. The carrier was upset because the cost of the special insurance for travel trailers was more costly than standard cargo insurance. The cargo insurance would have been an un-necessary expenditure.
To simplify the application process and eleminate carriers' obligation to file cargo insurance I would encourage new carriers to file as a "Contract" carrier. I am not saying shippers may require carriers to have cargo insurance. However, it will eliminate the need to file cargo insurance with the FMCSA.
I would recommend consulting a transportation attorney, some licensing agencies are not as knowledgible as they should be regarding the application process. As usual it's buyer beware.
Be safe.