Contract Carriers

Driver there is NO DIFFERENCE between a CONTRACT carrier and a COMMON carrier anymore according to brittney over in authority at ooida when it comes to hauling freight. Only difference is a common carrier has to have a cargo policy on file. I ran into this when my authority was filed for and that's what I was told not to worry about it because there is essencially no difference between the 2 anymore.

 

I went through the same aggravation when I got my authority... as long as there is a contract for a load (even on a load by load basis), you will be fine... the FMCSA's definition:

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[TD]What are the definitions of common, contract, and broker authorities?
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Common carriers provide for-hire truck transportation to the general public. Common carriers must file liability (BI&PD) insurance but are not required to file cargo insurance.
Contract carriers provide for-hire truck transportation to specific, individual shippers based on contracts. Contract carriers must file liability (BI&PD) insurance but are not required to file cargo insurance.
Both common and contract motor carriers of household goods are required to file liability (BI&PD) insurance and cargo insurance.
Brokers arrange for the transportation of property by authorized motor carriers. Brokers are required to file either a surety bond or trust fund agreement.


All that having been said, a Rate Confirmation IS a contract with the broker... if a diesel bear at the coop is THAT freaking curious, the setup package with the Broker, combined with the Rate confirmation, meets ALL of the legal definitions of a Contract for both FMCSA and the courts if you ever have to sue for your $$$$.

Just for kicks, I went and obtained BOTH, just because the extra $300 is cheap compared to giving some F-Tard a class on Contracts 101 as applies to the transportation industry... Nonetheless, I have NEVER been hassled on this point... The only SERIOUS benefit to Common authority is that shippers and brokers know you have cargo insurance... just gives them one more reason to call YOU instead of the next guy.. IMHO, that is.

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Yes, and, the most important factor: on a day-2-day basis, the conversation about what kind of authority you have, is about a million to 1 shot... Both OOIDA and NASTC (Rick Gobbel, who used to BE an FMCSA inspector), have assured that contract authority is all you need.

 

THANK YOU!!!! I went through this headache as well. I didn't know and had to call around to find out. That does beg the question though...wouldn't it be a lot easier to just do away with either common or contract authority? I believe personally it's be a lot easier to just have either Contract/Common authority and Broker authority. Less confusion. IF we as drivers/company owners are confused think about how confused washington is

 

Remember who yer talking about --> FMCSA ! Once they get a rule in place, it takes Moses, the 10 Commandments, AND the great flood, just to get them to answer the dang phone on the issue, much less actually CHANGE something that would make life easier for the folks who do all the heavy lifting in this industry!!!

Yep... vented my spleen again... LOL!

 

You have a point there. Silly me...i don't think it helps matters that a Blonde is head of the FMCSA...although it does explain the new HOS rules we now have to deal with.

Glad you go your vent out driver. Do you feel better now lol. If not I can always grab the shotgun and the clays that always helps me feel better