Subpart D - Interchange regulations

kwexpress

Veteran Expediter
I have a group of 7 trucks and trailers that want to work together and more on the way but here are the problem each of these trucks are owned by different carriers mostly one truck companies who can’t get in on certain wealth building platforms alone. None of these carriers want to give up their own identity but would not mind a central dispatch system installed on the truck kind of similar to a Qual-com with routing and electronic logs. anyway to make a long story short can I use this regulation to be able to bring my group of trucks together and get around having to be a broker and be able to book freight on other carriers trucks without being considered double brokering?

Here is the regulation please read before posting.

Subpart D - Interchange regulations

Authorized common carriers may interchange equipment under the following conditions: (a) Interchange agreement. There shall be a written contract, lease, or other arrangement providing for the interchange and specifically describing the equipment to be interchanged. This written agreement shall set forth the specific points of interchange, how the equipment is to be used, and the compensation for such use. The interchange agreement shall be signed by the parties or by their authorized representatives. (b) Operating authority. The carriers participating in the interchange shall be registered with the Secretary to provide the transportation of the commodities at the point where the physical exchange occurs. (c) Through bills of lading. The traffic transported in interchange service must move on through bills of lading issued by the originating carrier. The rates charged and the revenues collected must be accounted for in the same manner as if there had been no interchange. Charges for the use of the interchanged equipment shall be kept separate from divisions of the joint rates or the proportions of such rates accruing to the carriers by the application of local or proportional rates. (d) Identification of equipment. The authorized common carrier receiving the equipment shall identify equipment operated by it in interchange service as follows: (1) The authorized common carrier shall identify power units in accordance with the FMCSA's requirements in 49 CFR part 390 of this chapter (Identification of Vehicles). Before giving up possession of the equipment, the carrier shall remove all identification showing it as the operating carrier.(2) Unless a copy of the interchange agreement is carried on the equipment, the authorized common carrier shall carry a statement with each vehicle during interchange service certifying that it is operating the equipment. The statement shall also identify the equipment by company or State registration number and shall show the specific point of interchange, the date and time it assumes responsibility for the equipment, and the use to be made of the equipment. This statement shall be signed by the parties to the interchange agreement or their authorized representatives. The requirements of this paragraph shall not apply where the equipment to be operated in interchange service consists only of trailers or semitrailers.(3) Authorized carriers under common ownership and control may interchange equipment with each other without complying with the requirements of paragraph (d)(1) of this section pertaining to removal of identification from equipment. (e) Connecting carriers considered as owner—An authorized carrier receiving equipment in connection with a through movement shall be considered to the owner of the equipment for the purpose of leasing the equipment to other authorized carriers in furtherance of the movement to destination or the return of the equipment after the movement is completed.

To me it seems like as long as each carrier involved has their own insurance naming each other as additional insured it can be done.
What am I missing?
 

OntarioVanMan

Retired Expediter
Owner/Operator
spend a couple hundred bucks and ask a lawyer....all you'll get here is opinions...not fact...:)
 

BobWolf

Veteran Expediter
Owner/Operator
Is this the new reg on the highway bill? The new reg in the just passed highway bill strictly regulates brokering, interlining of freight if its not you may want to read that. Like usual the regs are always written in leagal politician language and leave so much to interpetation. Just like gambaling at the casinos the rules and odds favor the house, the F.M.C.S.A. regs are written to the governments favor.

It might be easier to get your brokerage rather than play russian roulette with the FMCSA. I would get in touch with an attorney that specializes in transportation law on this one and the F.M.C.S.A. they will give you the right answer even if it is not the one you want to hear. I have found the F.M.C.S.A. would rather you call them and ask a question rather than you screw up and they audit you.

Bob Wolf.
 

ATeam

Senior Member
Retired Expediter
I have a group of 7 trucks and trailers that want to work together and more on the way but here are the problem each of these trucks are owned by different carriers mostly one truck companies who can’t get in on certain wealth building platforms alone. ...

I'm not clear about what you are trying to create. Regulatory questions aside, can the concept be simply explained? What exactly do you wish to develop? Who would benefit and in what way?
 
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purgoose10

Veteran Expediter
Contact an attorney @OOIDA. When you involve that many people on any kindof legality's you need an attorney.
Getting an attorney also shows all partys your serious about doing it right.
 

highway star

Veteran Expediter
Owner/Operator
Sounds like the question is, when is a trucking company not a trucking company?

I'm with those that say talk to an attorney.
 
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