How To Register A Interstate Trucking Company With The Dor

Every twelvemonth, more than 10 billion tons of freight are shipped by trucks in the U.S., generating $732 billion in gross freight revenues and $48.6 billion in federal and superhighway user taxes. Nearly a meg carriers and 38 million trucks are picking upwardly, hauling, and delivering goods across the country.

Whether carriers are hauling in-state or across country lines, the trucking industry plays a vital role in the land's economy. But how and where carriers piece of work affects how they do business, then you need to sympathize the difference between interstate vs. intrastate trucking.

Why is it important for carriers to understand the nuances betwixt interstate and intrastate trucking?

While the main difference between interstate and intrastate trucking is whether you cross country lines or national borders, there are details that many carriers don't always know. Freight that travels through multiple states falls under interstate commerce rules fifty-fifty if you just handled a part of its journey and never left the state. Likewise, if you're picking upwardly cargo in Billy Rouge, Louisiana, to deliver to Monroe, Louisiana, it might exist more efficient to apply Highway 61 through Mississippi before coming back to Louisiana. This would exist considered interstate trucking even when pick upward and deliver in a single country.

Declining to abide by federal and state rules can lead to fines or out-of-service orders, which shut you down until y'all can meet requirements or get it cleared. Out-of-service or disqualification terms can be lengthy and cost you coin.

Interstate vs. intrastate trucking: what are the differences?

What'southward the difference betwixt interstate and intrastate trucking? Commencement, we have to look at the interstate vs. intrastate trucking definition.

Interstate trucking

Interstate trucking carriers can booty freight that crosses state or national borders, including anywhere in the U.S., Canada, or Mexico.

For federal purposes, this can also include freight picked up and transported in the state if you have to cantankerous country lines to complete the commitment. Another overlooked state of affairs is when freight crosses state lines, simply your involvement is picking up and delivering to warehouses within the state. For example, a shipment from Chicago to Nashville might cantankerous Illinois, Indiana, Kentucky, and Tennessee. Even if yous only handle the Indiana portion of the trip, you are still participating in interstate trucking.

Intrastate trucking

Intrastate trucking companies haul freight within state boundaries and practice non cantankerous state or national borders.

Types of trucks used for interstate and intrastate trucking

Although any truck with proper licensing can exercise both, these are the most mutual types of trucks used in interstate vs. intrastate trucking.

Interstate trucking

Box trucks
Garbage trucks
Dump trucks
Physical mixing trucks
Bucket trucks
Tow trucks

Intrastate trucking

Reefer trucks
Tanker trucks
Flatbed trucks
Semi-trucks, tractor-trailers, and 18 wheelers

Insurance requirements

There are as well different insurance requirements for interstate trucking vs. intrastate trucking.

Interstate trucking

The Federal Motor Carrier Safety Administration (FMCSA) requires carriers hauling freight across state lines to run into minimum coverage limits for public liability insurance. Coverage minimums will vary depending on the type of freight yous move and the vehicle weight.

Non-hazardous transported in vehicle weighing less than 10,001 pounds: $300,000
Not-hazardous transported in vehicle weighing more than than 10,001 pounds: $750,000
Hazardous fabric moved past private carriers and for-hire: $5 million
Oil carried by private carrier and for-hire: $i million

These are minimums. Many shippers and brokers volition require yous to accept at to the lowest degree $1 million worth of coverage, even for not-hazardous freight.

Intrastate trucking

Insurance requirements for intrastate hauling vary past state. Some states, such as California and Colorado, mirror the FMSCA guidelines, while others have different minimums. Florida, for case, requires minimum coverage ranging from $50,000 to $300,000 depending on weight for non-hazardous cargo.

Operating authority

An operating authority functions similarly to a business organization license, and there are differences between intrastate vs. interstate trucking.

Interstate trucking

Before you can go an operating authority to operate beyond country lines, you'll need a US DOT number from the Department of Transportation. Anyone hauling freight across state lines needs an interstate operating authority except those working within a federally-designated commercial zone. Commercial zones are ofttimes almost major metro cities that cross states, such as Washington D.C., extending into Virginia and Maryland.

Intrastate trucking

Mostly, carriers do not demand a federal operating potency for intrastate commerce. Well-nigh half u.s. in the country exercise require land authority for operation. However, each country has unlike rules and regulations governing operating authority for intrastate transportation, then carriers should check with the appropriate state agency.

Unified Carrier Registration

Carriers operating interstate are besides required to annals their fleet equally role of the Unified Carrier Registration (UCR) Act. They must consummate UCR filings each year and fees based on the number of vehicles inside their armada.

It can be somewhat confusing because not every state participates in UCR registration. Currently, 41 states participate in the UCR program. But even if your state doesn't, yous nevertheless have to file if you cross state lines.

Interstate trucking companies are not subject to UCR fees but must maintain records of exempt vehicles with the UCR and comply with state-specific registration requirements.

IFTA compliance

International Fuel Tax Agreement (IFTA) and International Registration Plan (IRP) function as a manner for states to collect fuel taxes and file registration paperwork without requiring filing in each state. In other words, you lot only take to file and pay in one jurisdiction in most cases.

Several states, however, do require separate intrastate fuel permits, including:

Connecticut
Indiana
Kentucky
Maine
Northward Carolina
Pennsylvania
Utah
West Virginia

Carriers that only operate inside land borders can get temporary fuel and trip permits instead of registering for IFTA and IRP.

Similarities between interstate and intrastate commerce

There are as well similarities in interstate vs. intrastate trucking that apply to every freight carrier. Regardless of state rules, every carrier must comply with:

Commercial driver's license (CDL) requirements
Drug and alcohol testing
Commercial trucker insurance
Chancy materials

Carriers must likewise ensure drivers are qualified to drive commercial motor vehicles, maintain the proper insurance requirements, and follow all state, interstate, and federal trucking regulations.

Oftentimes asked questions (FAQs)

CDLs do not transfer from state to country. Drivers must have a valid CDL issued from the state where they live.

When applying for a CDL, drivers must select from interstate or intrastate. Drivers can change from intrastate to interstate (or vice versa) past filling out a cocky-certification course and providing the required medical documents through their state's Department of Motor vehicles. Unless exempted, drivers must as well require medical examiner'south certificates.

Alabama, Arkansas, California, Georgia, Hawaii, Illinois, Iowa, Kansas, Michigan, Minnesota, Mississippi, Missouri, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Isle, South Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin, and Wyoming.

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