Types of Motor Carriers; a brief guide
A motor carrier is an essential part of the transportation industry. All the logistic chains and companies possess a motor carrier, depending on their needs and size of freight that has to be moved. There are various types of motor carriers and it majorly depends on the needs of the company, as to which type they would require. Furthermore, owning a texas motor carrier requires proper documentation and legal paperwork, so that the vehicle is legalized to transport cargo around the city.
Types of Motor Carriers:
Transportation authorities have various types of trucks and carriers available to them. However, every company has to make the right choice, according to their budget and requirements. But having knowledge about the variety that is accessible is always helpful as it aids you in making a better and smarter decision.
There are 8 types or authorities of motor carriers that you can apply for. you can either get one of them or a combination of some of them, or even all 8 of them; it depends on what you need and obviously, how much you earn and need to transport. You also need to make sure that they are leased and you must follow all the regulations to ensure safety of the carriers.
Here are the basic types of carriers that exist in the logistic industry and one must know about:
1. Motor Carrier:
Motor carriers are all about truck transportation. It helps in moving trucks from one place to another. There are two types of it; private and for-hire carriers. If you want to function as an interstate motor carrier, then you would have to invest in any of the two types of motor carriers.
2. Private Carrier:
Any company that is transporting its own cargo is a private carrier. It is commonly a part of business that produces or sells /buys the cargo that is being tugged.
3. For-hire Carrier:
Any company that provides the services of transporting other’s cargo and is paid for the transportation is known as a for-hire carrier. If you have to operate a for-hire carrier, you have to register it with the FMCSA too. Make sure you abide by the regulations and comply with the registration. When it comes to for-hire carriers, there are further two types. It can either be a contractor carrier or a common carrier. Both the carriers have separate registration and licenses. Thus, you have to know about them respectively.
4. Freight Forwarder:
Freight forwarders basically require a hire carrier to offer transportation services. It arranges the transportation for all types of cargo. The forwarder takes the responsibility of the cargo from one destination to the other, completely. Forwarders have to register with FMCSA too. Also, they are not brokers as newbies in the logistics and transportation industry, misinterpret the two largely. Forwarders arrange and manage the transportation for less than truckload cargos.
5. Broker:
Brokers are similar to forwarders as they are also responsible for arranging truck transportation of cargo, for others. Brokers also require a for-hire carrier for the truck transportation. The only difference between the broker and the forwarder is that the broker does not take any responsibility for the cargo and does not take its possession either. Also, brokers arrange and manage transportation for truckload transportation. However, a broker must also be registered with FMCSA.
6. General Freight Motor Carrier:
General freight transportation has everything involved in it, apart from household goods. If you want to transport household goods, then you require separate certification for it. This is to certify that you are trustworthy and fit enough to render specialized services for transporting household goods too. This does involve arbitration too and you have to deal with managing loss and damage disputes as well.
What is the best type or authority to get?
If you own your own trucks and have a plan to lease them, then the best pick for you is motor carriers or broker authority. However, it is essential to learn about the various functions and features of all authorities before making a choice. Learn and understand before you register as any of the logistic authorities.
