Contract vs. Common Carrier Authority
What are the main differences between the two and is there any advantage/disadvantage to having one or the other? I would be a single car o/o operation. Also, would I need to register seperately if I also hauled exempt commodities?
Common carriers have a posted tarriff rate. Such as UPS or Fedex where everyone is charged the same rate.
Contract carriers negotiate each load seperately and don't need a published tarriff rate.
Exempt commodities are just that they are exempt from the regulations. For example fresh fruit non-packaged is exempt, once the fruit is processed and packaged it is no longer exempt. Hay is exempt. Fresh cut logs are exempt, 2 X 4 lumber is not exempt.
Exempt commodities need a DOT number to be transported for hire. To transport non-exempt commodities a carrier needs an MC number and DOT number.
Keep the faith.
Someone correct me if I'm wrong. I was under the impression that tariffs weren't required any more for common or contract. Only for household goods movers??
Took me awhile but I knew I saw it some where:
377.103 Tarriff 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 tarriffs which contain the rates, charges and rules governing such service, which rules conform to the regulations in this part.
So I guess as long as you are paid before the shipment leaves or are paid by the shipper you're OK. But if the receiver is responsible for the charges you need a tarriff posted.
Hi Ho Silver and away.
Keep the faith.
This was still bothering me so I looked up 49USC13702.
"Sec. 13702. Tariff requirement for certain transportation
(a) In General.--Except when providing transportation for charitable
purposes without charge, a carrier subject to jurisdiction under chapter
135 may provide transportation or service that is--
(1) in noncontiguous domestic trade, except with regard to bulk
cargo, forest products, recycled metal scrap, waste paper, and paper
(2) for movement of household goods;
only if the rate for such transportation or service is contained in a
tariff that is in effect under this section."
This still leads me to believe that unless one of the two following things occur, you do not need a tariff filed.
1) You provide a noncontiguous movement of freight (had to look up contiguous, definition in this context meaning- connected in time; uninterrupted) ie, you moved the freight by way of more than one direct car, such as car to train to plane to car. Or maybe used more than one company to complete the move?
2) You move household goods
I sure hope I'm not reading more into this than there is.........
Sure wish Mel or Opie could say yes or no on this one. Or maybe help shed some light.
Hope you don't take this as an attack, because it isn't meant as one. I just tend to obsess (sp) when things aren't cut and dried.
OK Boys, break it up.....here is your answer to common vs. contract, and to tariffs.
You will learn herein, that there is no difference between a common and a contract carrier. You will also learn that tariffs are a thing of the past.
As per the ICC Termination Act of 1995:
Part B - Motor Carrier, Water Carrier, Freight Forwarder and Brokers Provisions;
Section 13102. Definitions #2 The terms motor common carrier and motor contract carrier are no longer defined, because the new statute no longer distinguishes between these two types of carriers. (Common/contract carrier - same thing.) The newly defined term is replacing these two is 'motor carrier'.
Next: Section 13702. Tariffs: Tarrif filing is ONLY REQUIRED for non-exempt carriers engaged in DOMESTIC OFF-SHORE COMMERCE.
In addition, the caring Industry Regulatory Reform Act of 1994 known as TIRRA, pronounced as TE-AIR-UH, eliminated tariff filing for motor property carriers. It also relieved passenger and household goods freight forwarders from tariff filing obligations. However, a household goods carrier must still maintained rates, and such rates must be made available to the shipper upon request, they are not filed anywhere else.
The ICC Termination Act, Section 13902 allows for the DOT to continue using the same application forms, as well as issuing either common or contract authority as the form is not modified to change to the new definition which is 'motor carrier' until such a time as the DOT can get it's poop in a group and reform the system. They are to combine the USDOT and MC numbering/registration systems into one system...this was to be done by December of 1997. See how fast they run! Ha.
And further, Chapter 141 of the Termination act Section 14101 - Providing Transportation: All carriers excluding Household Goods movers providing transportation for individual householders are authorized to enter into transportation contracts.
TO DECKERTRANS - I strongly urge you to apply as a contract carrier rather common. Even though there is no longer any difference, many people and brokers in the industry are unaware of this. Unless you are a car hauler, most shippers will be wanting to enter into contracts, and the term contract carrier is still widely used, even though extinct. Many shippers will still veer away from Common carrier authority because they believe that opportunity to came back on them later for filed rates exists...even though it does not.
Thanks Mel. I sometimes seem to chase my tail when I try to sift through that stuff. Never really sure if I'm right or not. lol
Glad your here to bail us out.
Hey Ron...I don't care what the 'girls' say about you...you're alright!
Cool... Now I know. Thanks for the helpful information.
Knowledge is power...
Use it wisely
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