danthewolf00
Veteran Expediter
I just got informed i now need a mc/dot number to run for at least one compeny so far anyone else get hit yet
the muti carrier driver push
- Thread starter danthewolf00
- Start date
Murraycroexp
Veteran Expediter
Need that for what?!?! Seems odd.
letzrockexpress
Veteran Expediter
Please elaborate. WHO informed you of this?
danthewolf00
Veteran Expediter
My van is under 10k and cant say what compeny because they yelled at me the last time i yacked. How ever it seams to be a insurance thing yet i keep full coverage thru cis.
Murraycroexp
Veteran Expediter
Someone is misinformed. Or they don't have carrier authority and want their trucks to carry their own.
Murraycroexp
Veteran Expediter
run!!!!!!!!!!!!!!
RonJonCMC
Seasoned Expediter
This is the second company I have heard of recently that is stating that their insurance company will no longer cover them if they have drivers that drive for multiple companies. Trucking industry was deregulated by the government years ago. Now it seems the insurance companies are picking up where the government left off.
Imho I think bigger fish are pulling the strings. To many small companies cutting into the profit margins of the big boys. Sure would be a quick fix to consolidate or eliminate the competition. Follow the money trail.
Imho I think bigger fish are pulling the strings. To many small companies cutting into the profit margins of the big boys. Sure would be a quick fix to consolidate or eliminate the competition. Follow the money trail.
letzrockexpress
Veteran Expediter
Uh huh, yeah, ok... I smell excrement. If you can't say then why bring it up?
danthewolf00
Veteran Expediter
5mins after i posted lol i got called about my post . At $500 for a mc/dot munber i am going to have to rethink who i run for.
letzrockexpress
Veteran Expediter
This is the first I have heard of such a thing. Was it one of your carriers or your insurance company who "informed" you about it?
danthewolf00
Veteran Expediter
So far 2 carriers same story. Wtf my money is good to take but i am a liabillty because i driver for more than one carrier!
Actually I think it is pretty easy to figure out. The insurance companies wrote these polices way below normal market not fully realizing the exposure. Over time risk vs price always comes into balance. So rates have been going up into the normal range that carriers pay. Now the tough part is how does a multi carrier pay the full rate for a unit that only runs for them part time? So my guess is that is why they are looking for the unit to have it's own MC and insurance. Of course with that set up they are really brokering the freight to the truck. Next problem is that is technically and legally double brokering. Again all of this is just my humble opinion, but I think the market forces on the insurance companies and loss ratios are the real simple answer here. Its simple math.
letzrockexpress
Veteran Expediter
Just checked with my two carriers. No such requirement with them. Must be an arbitrary requirement by one or more of your carriers... That, or, well, you know...
The information is likely coming from a carrier. Shelley did a great article addressing some of the liability problems with the multis. Just a matter of how much exposure a carrier wants.
Case in point, I am aware of a wreck involving a multi that had shipments on from two different carriers. Goes on all the time. Bad things happen when you start assigning liability in those cases.
The carrier likely wants you to carry all the insurance so they are exempt from any claims.
Case in point, I am aware of a wreck involving a multi that had shipments on from two different carriers. Goes on all the time. Bad things happen when you start assigning liability in those cases.
The carrier likely wants you to carry all the insurance so they are exempt from any claims.
Murraycroexp
Veteran Expediter
Good point. The lobbyists are not paid by the little guys. The multi carrier model is only a small step from the "group of like-minded drivers" running for a "small carrier" with lower overhead. Its a tough nut to crack, for the big boys, to pay for 2, 3, 4, 5 dozen semis, trailers, straights & plush offices.
I feel for them. I've worked in ops for a medium, but growing, carrier. $100k+ trucks and their maintenance take a big bite. And they're HUNGRY!!!
danthewolf00
Veteran Expediter
I pay cis to cover my van as well as the cargo plus i pay for each carrier. So i am doing it right yet i'm not.
letzrockexpress
Veteran Expediter
The exposure and thus the risk are exactly the same. Each load is hauled one at a time. The only thing that varies is the name of the carrier on the BOL. Double brokering would come to bear on the carrier, not the owner operator. The part time argument is not valid. There is no such thing as a full time contractor. One is either a contractor or not a contractor.