Trucking 101 IFTA/IRP 2006 Audit Workshop Bob Pitcher Page Dunnegan DeAnn Williams Donna Burch Size & Scope (U.S.) � $585 Billion gross freight revenue (’02) � 86.5% of the Nation’s freight bill � 67.8% of US-Canada trade by value (’01) � 67.9% of all freight tonnage moved (’02) � 2.6 million heavy commercial trucks (’01) � 585,677 companies on file with USDOT � 92.9% operate 20 or fewer trucks � 10.1 million trucking-related jobs (’00) Bottom Line: TRUCKING REPRESENTS 5% OF THE TOTAL U.S. GROSS DOMESTIC PRODUCT 1
A Changing Industry � New Styles of Manufacturing & Retailing � New Logistics Demands � Just-in-Time Plus � Supply-Chain Management � Rolling Warehouses � Economic Regulation & Categories Gone: Competition Intense � Industry Now Must Be Flexible, Agile Old Categories Gone � Common Carriers � Contract Carriers � Exempt Carriers � Regular-route Carriers � Irregular-route Carriers Functional Categories Remain � Private Carriers � For-Hire Carriers � LTL � TL � Movers � Package Carriers � Other, by equipment, freight, operation � Truck Leasing Companies 2
Impacts on Household Goods Carriers “Household Goods Carrier” means a carrier handling: (a) personal effects and property used or to be used in a dwelling; (b) furniture, fixtures, equipment, and the property of stores offices, museums, institutions, hospitals or other establishments, when a part of the stock, equipment, or supply of such stores, offices, museums, institutions, including objects of art, displays and exhibits, which, because of their unusual nature or value, require the specialized handling and equipment usually employed in moving household goods. Characteristics of a Household Goods Carrier HHG carrier leases HHG Carrier vehicles from agent to operate under carrier’s operating authority Agent of HHG Carrier � Permanent lease or � Intermittent lease Characteristics of Agent of HHG Carrier Agent has own trucking Agent Vehicle operation and operates under: � Carrier’s authority and/or Either Agent owns vehicle � Agent’s own authority or leases from 3 rd party 3
Who Reports the IFTA? IFTA ARTICLES OF AGREEMENT ARTICLE V. LICENSING D5. In case of a household goods carrier using independent contractors, agents, or service representatives, under intermittent leases, the party liable for motor fuel tax shall be: a. The lessee (carrier) when the qualified motor vehicle is being operated under the lessee’s jurisdictional operating authority. b. The lessor (agent, IOO or service representative) when the qualified motor vehicle is being operated under the lessor’s (agent’s) jurisdictional operating authority. The base jurisdiction … shall be the base jurisdiction of the lessor, regardless of the jurisdiction in which the qualified motor vehicle is registered for vehicle registration purposes. Who Reports the IFTA? (continued) HHG Carrier Lease Agreement HHG HHG Carrier’s IFTA Return to Carrier’s Carrier’s base Authority jurisdiction HHG Agent HHG HHG Agent’s IFTA Return to Agent’s agent’s base Authority jurisdiction Which IFTA Decal Do I Wear? IFTA ARTICLES OF AGREEMENT ARTICLE VI. MOTOR VEHICLE IDENTIFICATION G. Qualified motor vehicles that are to be operated by more than one IFTA licensee during the calendar year may display IFTA decals for each active licensee concurrently. HHG CARRIER’S DECAL HHG AGENT’S DECAL 4
Types of Record Keeping Systems for HHG Carriers and their Agents HHG Carrier’s reports HHG Carrier’s computer system- electronically or manually Driver submits HHG Agent’s paper/electronic trip reports record to either HHG carrier or agent HHG Agent’s computer system- electronically or manually Types of Fuel Purchasing Practices for HHG Carriers and their Agents � OVER THE ROAD Fuel receipt attached PURCHASES to trip record Bulk fueling statement forwarded � BULK FUELING AT to HHG carrier by AGENT’S LOCATION agent � CARD LOCK FUELING Card lock statement forwarded to HHG AT AGENT’S LOCATION carrier by agent IRP Registration Options for HHG Carriers and Agents State IRP Apportioned Cab Card USDOT # - HHG CARRIER HHG Carrier Registrant – HHG Carrier Lessee/Lessor – HHG Agent Obtains IRP….. (Service Representative ) OR State IRP Apportioned Cab Card HHG Agent USDOT # - HHG CARRIER (Service Registrant – HHG Carrier Lessee/Lessor – HHG Agent Representative) (Service Representative) Obtains IRP….. 5
IRP Rewrite – Article XII Household Goods Carriers 254 SERVICE REPRESENTATIVE "Service Representative" means a person who furnishes facilities and services, including sales, warehousing, motorized equipment, and drivers under contract or other arrangement to a motor carrier for the transportation of household goods. 273 HOUSEHOLD GOODS CARRIER “Household Goods Carrier” means a motor carrier handling: (a) personal effects and property used or to be used in a dwelling; or (b) furniture, fixtures, equipment, and the property of stores, offices, museums, institutions, hospitals, or other establishments, when a part of the stock, equipment, or supply of such stores, offices, museums, or institutions, including objects of art, displays, and exhibits, which, because of their unusual nature or value, require the specialized handling and equipment usually employed in moving household goods. Article XII Household Goods Carriers 1200 EQUIPMENT LEASED FROM SERVICE REPRESENTATIVES A household goods carrier using a vehicle leased from a service representative may elect to base the vehicle in the base jurisdiction of the service representative or in that of the carrier. 1204 REGISTRATION IN BASE OF SERVICE REPRESENTATIVE When under section 1200 a household goods carrier elects to base a vehicle in the base jurisdiction of the service representative, the vehicle shall be registered in the name of the service representative, with the carrier shown as lessee, and the fees for the vehicle shall be apportioned according to the combined records of the service representative and the carrier. Such records must be kept or made available in the base jurisdiction of the service representative. A vehicle registered under this section shall be fully registered for operations under the authority of the service representative as well as that of the carrier. Article XII Household Goods Carriers (Continued) 1206 REGISTRATION IN BASE OF CARRIER When under section 1200 a household goods carrier elects to base a vehicle in the carrier’s base jurisdiction, the vehicle shall be registered in the carrier’s name, with the service representative shown as lessor, and the fees for the vehicle shall be apportioned according to the combined records of the service representative and the carrier. Such records shall be kept or made available in the base jurisdiction of the carrier. A vehicle registered under this section shall be fully registered for operations under the authority of the service representative as well as that of the carrier. [The names of both the carrier as lessee and the service representative as lessor must be shown, since the vehicle is operated on an intermittent basis under the carrier's interjurisdictional operating authority, pursuant to regulations of the U.S. Department of Transportation, and the service representative's local or intrajurisdictional operating authority pursuant to regulations of a state or province. Intrajurisdictional distance records are to be maintained by the service representative and interjurisdictional distance records are to be maintained by the carrier and furnished to the service representative as may be necessary.] 6
Are there differences between small and large motor carriers….and not just the size of the fleet???? Differences in Carrier Operations � Small carriers = one, two, up to 10 truck operation . � Medium size carrier = less than 100 vehicles � Large size carrier = more than 100 vehicles Small Carrier ( 1-10) � Many are owner/operators. Many will use a broker for their loads and will travel coast to coast. � In the Midwest we have many small carriers that will be regionalized and move agricultural commodities and may lease trucks to move the commodities. Fleets usually range from three vehicles up to ten. � Fuel and mileage reporting information is taken from a trip reports that may be completed as a trip or on a weekly basis. Fuel receipts are attached to the trip report. Local CO-OP’s will provide a monthly report on fuel purchased 7
Recommend
More recommend
