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Owner/Operators Vs. Carriers

Discussion in 'Ask An Owner Operator' started by Drama519, Jan 30, 2014.

  1. Jan 30, 2014 #1
    Drama519

    Drama519 Bobtail Member

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    Jan 30, 2014
    0
    Hi Everyone,

    Newbie here. Trying to understand the key difference between Owner/Operators and Carriers. An O/O is a self employed truck driver(individuals or company who owns or operates one or more vehicle to haul freight in commerce.

    I read somewhere that If you are a driver with your own DOT#, operating authority, and insurance you are also evaluated as a carrier.

    What is the key differene between an O/O and a carrier? O/O is not required to have a DOT#? What is operating authority? O/O does not need to have operating authority, while carriers are required to have operating authority?

    Please help!! Been stuck on this for days!!

    Any responses are greatly appreciated!!
     
    Drama519, Jan 30, 2014
    Drama519, Jan 30, 2014
    #1
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  3. Jan 30, 2014 #2
    Ed MacLane

    Ed MacLane Light Load Member

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    Dec 20, 2012
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    The term "owner-operator" is used to refer to drivers who own their truck. Most owner-operators are leased to a carrier. Owner-operators that have their own authority are motor carriers. Some people argue that true owner operators have their own operating authority, but the way the term is used it is anyone who owns the truck they drive. I don't know why, but it's very popular to say "I'm an owner-operator with my own authority." A faster way to say that is simply, "I'm a motor carrier."
    Here's a link to an article I wrote called Ambiguity in Trucking Words.
     
    Ed MacLane, Jan 30, 2014
    Ed MacLane, Jan 30, 2014
    #2
  4. Jan 30, 2014 #3
    Drama519

    Drama519 Bobtail Member

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    Jan 30, 2014
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    Thank you so much, Ed.. That really clarifies it!! :)

    Essentially, the flag that identifies the difference between a carrier(MC) or a owner/operator is operating authority (issued by the government). You can be a O/O with or without operating authority. If you are an O/O and has operating authority, regardless if you are a driver or not, you are also considered a carrier or a MC.

    Thank you so much, Ed! You are awesome!! May I ask another question... then what is the difference between a carrier and a fleet?
     
    Drama519, Jan 30, 2014
    Drama519, Jan 30, 2014
    #3
  5. Jan 30, 2014 #4
    Turtles

    Turtles Light Load Member

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    Jun 10, 2011
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    A fleet is two or more trucks owned by the same legal entity. The fleet may or may not have have DOT authority.

    A carrier may own a fleet (company trucks) or may be a group of O/O and small fleets or any combination of the above.

    The carrier has the Authority and deals with the DOT.

    A fleet owner may or may not have Authority. The owner might drive one of the trucks or not. It is an ownership term.
     
    Turtles, Jan 30, 2014
    Turtles, Jan 30, 2014
    #4
  7. Jan 30, 2014 #5
    Ed MacLane

    Ed MacLane Light Load Member

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    Dec 20, 2012
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    A fleet is what Turtles said. (I edited my short response since Turtles was more elaborate and we posted simultaneously.)
     
    Ed MacLane, Jan 30, 2014
    Ed MacLane, Jan 30, 2014
    #5
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