Until I get my own operating authority, can I lease my services to a for-hire carrier with operating rights?

One common question from truckers who have not yet obtained their operating authority (MC number) from the Federal Motor Carrier Safety Administration (FMCSA) is whether they can still lease their services to a for-hire carrier that has operating rights. According to Section 376.11, the answer is yes as long as the trucker meets all FMCSA requirements.

Provisions of Section 376.11

This section of government regulation allows authorized carriers to transport goods using non-owned equipment only when a signed lease exists. The carrier must have a written agreement with the owner of the equipment granting the right to use it under Section 376.12 of FMCSA regulations. Additionally, the carrier needs to have receipts that identify the equipment to be leased under this agreement. It needs to indicate the date and time of the equipment transfer as well as the following:

  • The authorized carrier must provide the owner of the equipment with a receipt when taking possession of it.
  • When the authorized carrier no longer has physical control over the equipment, he or she must provide a receipt under terms of the lease agreement if it requires one.
  • Persons representing the authorized carrier and/or the owner can take possession of the leased piece of equipment and either give or receive receipts as outlined in the lease agreement.

Section 376.11 further requires the authorized carrier to keep detailed records regarding his or her use of the equipment. The information below provides further detail on the types of records the authorized carrier must keep.

  • The authorized carrier needs to create a new record for each trip. It should include the name and address of the owner of the piece of equipment, origination point, date and time the authorized carrier started the trip, and the final destination.
  • The authorized carrier must carry documents describing the leased equipment on every trip. Additionally, this person must clearly identify the lading and indicate that the current transport of goods is under its authority. These documents should remain a permanent part of the authorized carrier’s transportation records.
  • If a lease between the two parties contains the same information described above, the authorized carrier may use it instead of creating separate documents. When a lease agreement is under the direction of a master lease, the authorized carrier may keep a copy of the master lease in the commercial vehicle in lieu of the above requirements.

Don’t forget to see what kind of insurance you might need when you drive for a for-hire carrier.

FMCSA regulations can be challenging to follow and understand. Even so, the agency expects commercial truckers to have the proper types of insurance according to whether they have their own operating authority, the types of loads they normally deliver, and several other individual factors.

TruckInsuraceQuotes.com is your one-stop resource for determining required and optional insurance policies for your situation – including if you’re leased to a for-hire carrier. One of our trucking industry specialists would be happy to help you in this regard.

You also have the advantage of receiving multiple quotes at once so you can evaluate which insurers can provide you with the best coverage. Click here to view the different types of insurance we offer. You can get started with truck insurance quotes by filling out our online form, giving us a call, or messaging us on LiveChat.

Source:

https://ask.fmcsa.dot.gov/app/answers/detail/a_id/206

https://www.govregs.com/regulations/title49_chapterIII_part376_subpartB_section376.11

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