The Advantage Differences Between Interstate & Intrastate Trucking
Interstate vs Intrastate: The Proven Benefit Between Interstate & Intrastate Trucking
Many people get confused about the differences between interstate vs intrastate trucking. But the FMCSA Registration LLC experts are here to help. Interstate trucking refers to driving a commercial motor vehicle over state lines. It also applies to leaving the country. Say that a carrier transports cargo outside of its base state.
This means that the carrier is engaging in interstate commerce. Why? Because it transports goods across state lines. Check out BOC-3.
Intrastate trucking refers to only operating a commercial motor vehicle within state boundaries. Say that a carrier’s role doesn’t apply to the FMCSA’s interstate commerce descriptions. That means the carrier engages in intrastate commerce on an exclusive basis. The final destination must exist in the same state that the goods originate from. Please continue reading to find out more about interstate vs intrastate commerce.
The driving force behind the trucking industry is ever-changing with a variety of factors influencing the number of carriers and drivers on any given day. Regulatory actions, business transitions, licensing issues, and other considerations may cause fluxes in interstate driver counts which are documented using data from FMCSA's Motor Carrier Management Information System (MCMIS). Similarly for states that do not mandate intrastate carrier registration numbers can be estimated via extrapolation based off state records. In the realm of trade, traffic, or transportation in the United States, compliance with carrier safety regulations (FMCSR) is paramount. The determination of interstate commerce hinges on a fixed and persistent intent for movement, as manifested by the driver.
What is the market growth rate for active motor carriers by type?
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Over the past few years, household goods carriers and brokers in the United States have seen a surge in activity. This statistic could be due to heightened awareness around the cost of living or even the implications of COVID. Either way making sure items are getting where they need to go has never been more important!
|Household Goods Carriers
|Household Goods Brokers
The total count of drivers and commercial driver's licenses (CDLs) has seen a significant shift from past publications. This helps ensure accuracy in motor carrier registrations. The Total Drivers in 2021 was 5,646,722 million. There is still a shortage in the USA for drivers which means more than 80,000 companies could start and you would still have work for them. Given that trucks move 72 percent of American freight it is a very important need for the US economy.
What Are the Differences Between Interstate and Intrastate Commerce?
The key differences between interstate and intrastate commerce are defined by the FMCSA. “FMCSA” stands for the Federal Motor Carrier Safety Administration. The FMCSA defines “intrastate” in the following manner. It's when a motor carrier performs transportation/trade ONLY within its home state. “Interstate” refers to carriers performing transportation/trade from one state to another. This can also involve moving goods and cargo outside of the United States. Check out the Motor Carrier Authority.
Interstate commerce can also refer to moving goods somewhere in the same state. But this only applies if a truck passes through a different state. (Before returning to the base state.) These are important concepts to keep in mind when it comes to interstate vs intrastate. Trucking businesses must make accurate designations on their FMCSA/DOT forms. Otherwise, they risk receiving severe fines and penalties from the US government. Visit Starting a Trucking Company Package.
Why Are the Differences Between Interstate & Intrastate Trucking Important?
It’s crucial for trucking companies to distinguish between interstate and intrastate trucking. Why? Because there are many laws and rules related to both concepts of commerce. Motor carriers must adhere to all these DOT/FMCSA laws and rules. Otherwise, a company can face severe fines and penalties. Every truck driver must make sure that he or she adheres to all trucking regulations. That is the basis of trucking compliance. Carriers have to ensure that they know which laws apply to their drivers. Doing so will protect the financial well-being of any carrier. Also, visit Driver Qualification Files.
Does your trucking company engage in interstate trucking? If so, then it’s subject to all FMCSR rules and regulations. “FMCSR” refers to the Federal Motor Carrier Safety Association. Now, say that your trucking company only takes part in intrastate commerce. This means a carrier isn’t subject to FMCSA and FMCSR rules and regulations. Instead, a company must adhere to individual state rules and laws. Here’s an example. Let’s say you own an intrastate trucking company in Texas. In this case, your carrier must refer to TMCSR rules and laws. What does “TMCSR” stand for? It stands for “Texas Motor Carrier Safety Regulations.” The Texas Department of Public Safety puts those regulations in place for carriers. Also, visit how to get the TEXAS dot number.
Each Interstate Transportation Company Needs a DOT Number
Every interstate trucking business must secure a USDOT Number. A “USDOT Number” and “DOT Number” refer to the exact same trucking registration. So, what’s the purpose of a DOT Number? The US government uses it as an identifier of interstate trucking companies. The number helps track crucial safety information related to motor carriers. Each interstate trucking business should get all DOT/FMCSA registrations taken care of. That’s the purpose of our organization. We help companies secure DOT Numbers and other FMCSA registrations with ease. Also, visit the Drug and Alcohol Program.
Let’s go over which type of carrier needs a DOT Number. The following conditions apply to any company in interstate commerce. A vehicle with a GVWR exceeding 10,0001 pounds needs a DOT Number. So does a truck that transports more than eight people for money. Even a truck that transports more than fifteen people for free needs a DOT Number. Federal rules stipulate that even within a single state, the driver's intent of transportation across state lines plays a pivotal role in defining interstate commerce.
Does your vehicle have a safety permit/transport hazardous material in intrastate commerce? If so, that vehicle must also have a USDOT Number. Keep in mind that some states have different rules and regulations than other states. Here’s an example. Certain states make all interstate commercial vehicles have DOT Numbers. You can find out more information by contacting your state licensing agency.
Securing Operating Authority With an MC Number
Are you unsure if you need to receive Operating Authority from the FMCSA? Almost all interstate trucking companies must secure an Operating Authority. They can do so by getting an MC Number. But carriers must also get a separate USDOT Number. Let’s go over which types of carriers need numbers with MC status. Any for-hire carrier operating by charging a fee receiving compensation needs the number. So do companies that transport passengers. Even a business that arranges for people to get transported needs an MC Number. Does your carrier transport FMCSA-regulated commodities? Or, does it arrange commodities to get transported through interstate commerce? Either way, a carrier that meets one of these conditions needs a number with MC status. Visit DOT Authority Package.
Remember that Operating Authority refers to registering with the US federal government. The DOT and FMCSA enforce what type of business a carrier can run. They also tell carriers what types of cargo they can carry under the law. The concept of Operating Authority relates to insurance. A carrier must figure out the limits of trucking insurance that it needs. It’s crucial for every trucker to carry the correct level of insurance. This way, a carrier can stay protected when accidents take place. Are you a new applicant and have never received Operating Authority before? If so, you must begin the registration process through the URS. “URS” stands for Unified Registration System. You can find that system online by going to the official URS website. New applicants can receive both an MC and DOT Number at the same time. Navigating the intricate landscape of transportation regulations necessitates a nuanced understanding of the Federal Motor Carrier Safety Regulations, ensuring the safety and integrity of the entire transportation network.
Interstate Motor Carriers Need Unified Carrier Registration (UCR) Registration
Many US carriers must complete Unified Carrier Registration (UCR) registration. It applies to for-hire interstate carriers of passengers or property. UCR is also for all private property carriers conducting interstate travel. UCR is even for carriers in Mexico or Canada that operate in the United States. The UCR registration period lasts every year from October 1 to December 31. Even a carrier that performs one single interstate move in a year has to register. The FMCSA bases its UCR fee structure on the size of fleets. A trucking company with a small fleet will not have to pay much money to register.
IFTA & IRP Trucking Compliance
The DOT and FMCSA refer to the International Fuel Tax Agreement (IFTA). They also operate to ensure IRP compliance for all trucking companies. This is where understanding differences between interstate and intrastate matters. IFTA and IRP are both government programs that apply to interstate carriers in the US. The IFTA registration focuses on collecting fuel taxes. IRP refers to filing registration paperwork in certain states. Through the programs, careers only have to file and pay taxes/fees in a single state. Doing so means that a carrier files the paperwork that applies to all other states. Visit FMCSA Registration Trucking.
So, when does the FMCSA consider carriers “interstate” for IFTA and IRP filing? Only when a truck’s wheels cross from one state line to another. Sometimes interstate carriers get classified “intrastate” under IFTA and IRP registration. Are you struggling with this common trucking problem? If so, please call our trucking professionals right now. They can help you complete IFTA and IRP registration. What’s considered an IFTA and IRP-qualified vehicle by the FMCSA? It’s a truck with a power unit that has two axles. The GVR (gross vehicle weight) must exceed 26,000 pounds. An IRP or IFTA vehicle can also have at least three axles, regardless of weight. Check out Trucking Authority Packages.
Carriers must track all miles of their IRP and IFTA-qualified vehicles. This includes empty miles and accrued miles when a vehicle is used for personal use. Miles should get logged even when a vehicle gets sent to a shop for maintenance. Or, if a vehicle undergoes any road tests. Do you need help maintaining fuel or mileage records? If so, please contact our organization today. Our experts can guide you to help your carrier follow all FMCSA rules.
Are There Insurance Requirements From the FMCSA for Interstate Carriers?
Yes, the FMCSA has strict rules in place about insurance requirements. These rules (and regulations) apply to all interstate carriers. For-hire freight carriers have to carry liability insurance coverage. The minimum amount is $750,000.00. Do you work for a for-hire or private carrier of specific oils and hazardous wastes? If so, you must carry a minimum of one million dollars in liability coverage. Carriers of other hazardous materials have to carry a bigger liability insurance policy. That total cannot be smaller than five million dollars. Private buses that carry fewer than 15 people need 1.5 million in liability coverage. Buses carrying more than 15 people need five million in liability insurance coverage. Check out MCS 150.
Do You Have Questions About Intrastate vs Interstate Trucking? Contact Us Today
FMCSA Registration LLC's team is ready to answer your intrastate vs interstate questions. Each staff member has extensive experience working in the trucking industry. They know all about registering (and maintaining compliance) with the FMCSA and DOT. You're welcome to call our phone number right now. Or, you can message us here on our website or send us an email. We look forward to serving as your resource for intrastate and interstate trucking. Visit DOT Audit.
What Regulations Do Truckers Need To Follow Within Interstate Trucking?
Each commercial vehicle traveling interstate must get registered through the FMCSA. A vehicle or truck must also have a USDOT number. This refers to a US Department of Transportation (DOT) commercial vehicle ID number. The number positions the FMCSA to recognize each truck on the road.
Regulations vary when it comes to interstate trucking within each state. Let’s use California as an example. Say that your commercial truck carries a load within California. It must use a California motor carrier permit ID number. This number gets issued through the California Highway Patrol. A carrier has to display the number on both sides of a vehicle. (It is also a common rule in Louisiana and other states.) This rule is much like the standard rule for displaying DOT numbers. Are there specific states that your carrier plans on operating within? If so, please give our organization a phone call. We can go over the regulations in every state.
Are There Insurance Rules Through the FMCSA for Interstate Carriers?
Yes. The FMCSA has a list of insurance rules for both intrastate and interstate carriers. These regulations focus on boosting safety and decreasing liability. That is why everyone in the trucking industry must pay close attention to the rules. Every interstate and interstate carrier has to file proof of insurance. This filing goes through the FMCSA. Plus, a carrier also has to fill out legal representation forms. But you do not need a lawyer or team of lawyers. Instead, our experts can fill out your carrier information for you right away.
Do not get on the road until your carrier meets all FMCSA insurance requirements. Otherwise, your trucking business could get fined due to safety violations. Every carrier must provide proof of commercial auto liability insurance. The insurance amount can vary from $750,000 to $5,000,000. It depends on the type of cargo that a trucking professional transports. Does your company transport hazardous materials with placarding? If so, please contact us. Our experts can go over insurance requirements for hazardous material vehicles.
Which Trucks Do Interstate and Intrastate Trucking Laws Apply Toward?
Let’s begin by going over the difference between intrastate and interstate trucks. Every interstate truck crosses state lines and travels to different states. Meanwhile, an intrastate truck only operates within one single state. Here are some common forms of intrastate vehicles. They are garbage trucks, dump trucks, tow trucks, and bucket trucks. But work trucks, box trucks, and delivery trucks can also count as intrastate. All these trucks get governed through the Federal Motor Carrier Safety Administration.
Can I Change the Level of Insurance My Carrier Has On File With the FMCSA?
Yes. Say that your amount of commercial insurance needs to get lowered or raised. A change in insurance must go on file with the FMCSA right away. The FMCSA recommends carriers to send changes to the following email address. It is: [email protected]. When you send the email, include the information below. If you can, use company letterhead.
When starting off, the FMCSA will need your USDOT number and MC number. Then, you must state the name of your company. Next, provide a request to either lower or raise your insurance level. Make sure that you include a specific desired amount. Place your signature at the bottom of the document. Let’s say that you take this key action with the FMCSA. Their insurance specialists will process the request in their online system.
Why Is the Difference Between Intrastate vs Interstate Trucking Important?
US government laws in the trucking industry vary. They’re based on whether you're operating an interstate or intrastate vehicle. That's why you must make sure that you understand the main differences. Otherwise, your carrier could make a big mistake. Then, a driver or your company could get fined and penalized by the FMCSA.
Say that your motor carrier engages in interstate trucking. This means that you become subject to specific FMCSR and FMCSA regulations. But let’s say that your carrier only specializes in intrastate trucking. This means a driver becomes subject to rules of an individual state. Or, the rules of a state regulation agency. Let’s use the state of Texas as an example. Say that you're operating an intrastate motor vehicle in Texas. Two state government organizations oversee intrastate carriers. There is the Texas Department of Public Safety. But there is also the Texas Motor Carrier Safety Regulations (TMCSR). Your carrier must adhere to the policies of agencies like these.
What’s the Difference Between Intrastate and Interstate Commerce?
As you've read above, there are many differences between these two concepts. “Interstate” refers to operating a commercial motor vehicle over state lines. (This can include leaving the country for international transportation.) Thus, the cargo gets transported from one state boundary to another state boundary.
Intrastate trucking also involves operating a commercial motor vehicle. But a driver cannot go beyond the boundaries of a state. Otherwise, a driver becomes engaged in interstate commerce on an automatic basis. Say that an intrastate driver decides to transport goods over state lines. This means the driver must first get commercial interstate registration. If the driver does not do this, he or she is in violation of DOT and FMCSA policies.
Which Trucks Get Used in Interstate Trucking?
Commercial motor vehicles within the interstate trucking sector appear large. They're designed to carry bigger loads than many intrastate vehicles. It is crucial for your carrier to understand the differences between the vehicles. Why? Because interstate vehicle accidents have strict regulations. That’s why insurance coverage is high for interstate trucks. Meanwhile, the cost of insurance is lower for intrastate motor vehicles.
There are three main types of vehicles in interstate trucking across the US. They are: eighteen-wheelers, semi-trucks, and tractor-reefer trailers. These three classes of vehicles can carry very large loads. Most of the weight in each vehicle comes from the rear. In most cases, a vehicle functions as a combination of the trailer and tractor unit.
More Information About Freight Interstate Trucks
Do you know what a tanker truck it is within and does it hold? It is a specific form of eighteen-wheeler. It can carry gas, liquid, and other hazardous substances across the interstate. These trucks are not easy to drive. That’s because of the large volumes of loads that they can carry. A fuel truck also uses a tank to move materials from and to work sites. There is also the flatbed truck. This truck features a leveled bed that’s attached to its rear. It’s a truck that’s ideal for transporting oversized or large loads for a customer. The truck makes unloading and loading processes efficient for carriers events of the trip.
Feel free to let us know if you need more information about specific vehicles that need insurancehub. We know that some carriers only transport certain materials like concrete. If that's the case for your company, we can assist. Our experts have years of experience in concrete mixing transportation. Even if you're using a tractor at your business, our trucking experts can help. Our federal motor team can ensure that you follow carrier safety policies. This applies to intrastate companies that use vehicles like tow trucks. Also, check out our frequently asked questions page. It features archives of USDOT-related questions. From UCR to IFTA to DMV registration. There's no limit to the interstate commerce services that we provide truckers.
Is there a specific type of truck that you need help getting registered? Our company registers all trucks with the FMCSA. From box trucks to flatbed trucks to tanker trucks. We also specialize in flatbed vehicles, bucket trucks, and tractor-trailers. Our team can even register tow trucks, dump trucks, tow trucks and garbage trucks. Please browse our website and blog for more information. It contains crucial data related to transportation commerce regulations. This way, your carrier can master all safety regulations in a matter of minutes.
Let Us Know If You Have Questions
There are many differences that intrastate trucking has between interstate transportation. Our team’s standing by to go over interstate and intrastate differences. We won't rest until your carrier knows the difference between the terms. Sure, there are a number of new concepts to learn. But we can make those concepts simple to understand for all types of companies. We’re prepared to help your motor carrier engage in commerce between all states. Our team has a full menu of services to provide your trucking business. Please give us a call today to get started.
Data Source: FMCSA, Motor Carrier Management Information System (MCMIS)