Home > Forum > Possible To Maintain Own Authority For Most Of The Year And Run Under Another Company'S Authority Occasionally?

Possible to maintain own authority for most of the year and run under another company's authority occasionally?

Aug 24, 2017 at 11:34 AM CST
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We've operated a trucking business for the last decade and have always ran under our own authority. Recently we started dragging milk tankers around occasionally for another trucking company when they need some extra help or we are slow in the hopper bottom business. This trucking company does not have a brokerage license and has recently wanted to have the discussion with me about leasing on with them since "technically" he is double brokering some of these loads by taking a percentage out for my company pulling his trailers We are hauling product that he has found on from a broker. The owner of the milk tanker company is fine with our current arrangement(if it can work), he just wants to make sure that his insurance company is good with what he's doing and we are doing everything legally.
The milk tanker company doesn't have enough work to keep us busy all the time, thus I am wandering if it's possible top keep my own authority to keep hauling my own products when we are busy and throw an operated by "xyz milk hauler" and his associated dot numbers on my truck when I am pulling his tankers.
I spoke with the Iowa DOT and they said we would need to change cab cards every time we would switch from his authority to mine. This wouldn't be overly difficult if it we knew we'd be dedicating a truck to the milk company for a month or two at a time. There are some weeks I've got 3 trucks hauling milk and 4 pulling my own hoppers and then the next week we may have them all pulling my own hoppers again.
I'd take any advice on what needs to be done(if it can even happen) from anyone that's went down this road or has similar situation. Thanks a bunch
Replied on Thu, Aug 24, 2017 at 12:23 PM CST
It would be best for him to get brokage authority. To back door it, show leasing the trailers. You collect the freight bill and pay him rental. But you need to carry the insurance. There is no good way but the right way to do it.
Replied on Thu, Aug 24, 2017 at 02:04 PM CST
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I not sure if a Trip Lease is legal But then you could lease to the company with the milk haul , and just put a sign on you door with his name and DOT # and carrier his INS , IFTA , and ect , I would check with someone if it's still legal to do and about the length of time you can run under a trip lease
good luck
Replied on Fri, Aug 25, 2017 at 08:06 AM CST
Hi, I am about to do the same. However, because I am not from your state, I won't comment.

The best way to get exact answer is by calling FMCSA or DOT
They are very helpful!
Replied on Fri, Aug 25, 2017 at 09:35 AM CST
I maintain my Authority through out the year while leasing to a company with Haz-Mat authority. I haul fuel in the winter and summer with him. Spring and fall I
I pull a hopper around. It cost a little to maintain my insurance requirement. Fillings, BOC 3 but He carrys the liblity when I'm working for him. You can do it and
I think it helps to confuse the State and feds. I do the ifta all year and prepass in my name. Safty is his concern when I'm operating under him and in mine when I
pull the hopper.
Replied on Fri, Aug 25, 2017 at 03:56 PM CST
We have done this for 25 years. We maintain our authority for our own hauling plus are leased on to a Hazmat carrier year round to haul anhydrous ammonia and propane when ever needed. You just maintaine every thing for your equipment ( plates,ifta,insurance,etc.) Sign a lease agreemet with milk hauler and run under his insurance when hauling for him,put a sign on your truck stating (Operated By -------- , with his DOT # ) and cover up your DOT#.
Replied on Sat, Aug 26, 2017 at 09:29 AM CST
Originally Posted by: JOHN MYERS
Quote: " We have done this for 25 years. We maintain our authority for our own hauling plus are leased on to a Hazmat carrier year round to haul anhydrous ammonia and propane when ever needed. You just maintaine every thing for your equipment ( plates,ifta,insurance,etc.) Sign a lease agreemet with milk hauler and run under his insurance when hauling for him,put a sign on your truck stating (Operated By -------- , with his DOT # ) and cover up your DOT#."

Thanks for the reply. I've got a couple questions
Would I need a separate set of insurance cards from his insurance company?
Do I need different registratio(cab card) when pulling for the milk hauler and operating under his dot number?
Do I need to carry a copy of the lease agreement with me?
I would like to visit with your more on this subject, and see a sample lease as both myself and the milk hauler would like to get this done so we are doing everything correctly

You are welcome to shoot me an email at [email protected] if you'd rather respond that way. Thank you in advance
Replied on Sat, Aug 26, 2017 at 11:23 AM CST
Yes you will need a separate insurance card from milk hauler (provided by him ). No you do not need a seperate cab card . Yes you have to carry a copy of lease agreement in the truck . A standard lease agreement is basically what we use . If you have a fax # we can probably send you one . our email is [email protected]

Replied on Sun, Aug 27, 2017 at 12:23 PM CST
Be aware even though it is legal, some insurance companies frown on this. I was in same situation couple of years back .my insurance carrier didn't like it. the way they communicate to you is they send you notice of cancelation affective immediately .