How to calculate a fuel surcharge?
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Base your fuel surcharge on the average retail price of diesel fuel for the region where you pick up a load on the day you load. This average retail price information is collected by the federal government's Energy Information Administration and updated every Monday unless affected by a federal holiday.

You can get the information by going to this Web site:

http://tonto.eia.doe.gov/oog/info/wohdp/diesel_detail_report_combined.asp

Most companies begin imposing a fuel surcharge when the price of fuel goes above $1.10 per gallon. They assume that their basic freight rates cover their costs when fuel is $1.10 and lower. When the price goes higher than $1.10 per gallon they impose a fuel surcharge to recoup those higher costs.

Here's a formula you can use to calculate your increased fuel costs and the amount of a fuel surcharge you should charge and collect

First, gather these numbers: The total billable miles for a load, say, 400 miles. Your truck's average miles per gallon, say, 9.5 mpg. And, the average retail price of diesel fuel for the region where you pick up a load on the day you load (check the EIA Website), say $2.45 per gallon.

Now do the math:
 
  1. Figure your increased fuel costs per gallon by subtracting your benchmark price from the actual regional price of fuel for the period when you moved the load.
     
  2. Divide the premium you paid for fuel by your average miles per gallon.
     
  3. Finally, multiply the Fuel Premium Per Mile by the billable miles for the load. (This does not include deadhead miles.)
     
  4. Click the calculate button in the form below and it will calculate the Surcharge for this load for you.

To figure a surcharge on a real load simply replace our red numbers with your actual numbers and our calculator will then figure the surcharge for you.

Fuel Cost/Gallon: (A)
Surcharge Trigger Point: (B)
Avg. Miles/Gallon: (C)
Loaded Miles: (D)
 
Premium/Gallon: (A - B)
Surcharge/Mile: (E / C)
Billing Surcharge: (F * D)
NOTE: Small business owner-operators and motor carriers do not need to get government approval or file an application with DOT to implement a fuel surcharge.
HOME                                                                      CDL License Requirements

 

In order to determine if you need a CDL license, you need, you need to understand how the Gross Vehichle Weight Rating (GVWR) is determined. First, the Gross Vehicle Weight Rating (GVWR) for each vehicle is established by the truck and trailer manufacturers for their equipment. For licensing purposes, your combined GVWR is determined by adding the Manufacturer's Gross Vehicle Weight Rating of your Truck plus the Manufacturer's Gross Vehicle Weight Rating of your trailer.

When do I need a CDL?
    A Class A CDL License is required when the combination of the Gross Vehicle Weight Rating (GVWR) totals 26,001 or more provided the GVWR of the vehicle(s) being towed is in excess of 10,000 pounds.

    A Class B CDL License is required for any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing a vehicle not in excess of 10,000 pounds GVWR.

    A Class C CDL License is required for any single vehicle, or combination of vehicles, that does not meet the definition of Class A or Class B, but is either designed to transport 16 or more passengers, including the driver, or is placarded for hazardous materials.

     
EXAMPLES:
    CDL requirements BEGIN at 26,001 lbs but gross vehicle weight rating (GVWR) on the trailer will determine whether you need a Class A or Class B CDL. The GVWR of the trailer must be 10,001 lbs or more to fall under Class A CDL.

    Example 1: Truck GVWR 11,000 lbs. + Trailer GVWR 13,000 lbs. = GCWR 24,000 lbs. - NO CDL required

    Example 2 : Truck GVWR 11,000 lbs. + Trailer GVWR 15,500 lbs. = GCWR 26,500 lbs. - Class A CDL required

    Example 3: Straight Truck GVWR 28,000 lbs. = GCWR 28,000 lbs. - Class B CDL required

     
Important Information!!
    It is extremely important to be aware that the combined GVWR of your truck and trailer determines the proper licensing. It is not what you happen to weigh when you are stopped at scale. You risk being subjected to heavy fines if, in fact, the manufacturers combined GVWR for your equipment is over 26,000 pounds and you are not licensed properly, regardless of what you happen to scale when you are weighed.
Endorsements and Restrictions
    Drivers who operate special types of CMVs also need to pass additional tests to obtain any of the following endorsements on their CDL:

     
    • T - Double/Triple Trailers (Knowledge test only)
    • P - Passenger (Knowledge and Skills Tests)
    • N - Tank Vehicle (Knowledge Test only)
    • H - Hazardous Materials (Knowledge Test only)
    • X - Combination of Tank Vehicle and Hazardous Materials

    If a driver either fails the air brake component of the general knowledge test or performs the skills test in a vehicle not equipped with air brakes, the driver is issued an air brake restriction, restricting the driver from operating a CMV equipped with air brakes.
Penalties
    The Federal penalty to a driver who violates the CDL requirements is a civil penalty of up to $2,500 or, in aggravated cases, criminal penalties of up to $5,000 in fines and/or up to 90 days in prison. An employer is also subject to a penalty of up to $10,000, if he or she knowingly uses a driver to operate a CMV without a valid CDL.

More information from the FMCSA website.

 

  HOME                                                  Controlled Substances And Alcohol Use And Testing
  • Am I Subject To Drug Testing Requirements?

You are subject to the drug testing requirements if you operate a motor vehicle or combination of motor vehicles used in commerce to transport passengers or property if the vehicle -

  1. Has a gross combination weight rating of 26,001 or more pounds inclusive of a towed unit with a gross vehicle weight rating of more than 10,000 pounds; or
  2. Has a gross vehicle weight rating of 26,001 or more pounds; or
  3. Is designed to transport 16 or more passengers, including the driver; or
  4. Is of any size and is used in the transportation of materials found to be hazardous for the purposes of the Hazardous Materials Transportation Act (49 U.S.C. 5103(b)) and which require the motor vehicle to be placarded under the Hazardous Materials Regulations (49 CFR part 172, subpart F).
For everything you may want to know and more, check the following page for a complete set of rules and regulations. Federal Drug Testing Regulations

 

  HOME                                                     Commercial Motor Vehicle Marking Final Rules

 

  • General Rules
  1. Requires all interstate motor carriers to display the USDOT motor carrier identification number.
     
  2. The identification number must be preceded by the letters "USDOT".
     
  3. Requires that CMVs be marked with the legal name, or a single trade name, of the business entity that owns or controls the motor carrier operation. This information must match the information on the motor carrier's Form MCS-150.
     
  4. Single trade name: The FMCSA will consider requests for assignment of individual USDOT numbers to corporate divisions on a case-by-case basis. Although the FMCSA does not wish to limit an organization's flexibility or its ability to promote a trade name, the agency must still consider whether the assignment of multiple USDOT numbers to a single corporate entity would compromise the integrity of the collection and processing of safety data.
     
  5. If the name of any person other than the operating carrier appears on the commercial motor vehicle, the name of the operating carrier must be followed by the required information, and be preceded by the words "operated by".
     
  6. Principal place of business address: The final rule DOES NOT require the motor carrier to mark its motor vehicles with the city and state. It does not prohibit this practice, either.
  • Size, shape, location, and color of marking
The marking must:
  1. Appear on both sides of the self-propelled commercial motor vehicle.
     
  2. Be in letters that contrast sharply in color with the background on which the letters are placed.
     
  3. Be readily legible, during daylight hours, from a distance of 50 feet (15.24 meters) while the commercial motor vehicle is stationary.
     
  4. Be kept and maintained in a manner that retains the legibility.
  • Construction and durability
    The marking may be painted on the commercial motor vehicle or may consist of a removable device, if that device meets the identification and legibility requirements.
  • Other identifying Information
    Other identifying information may be displayed on the vehicle if it is not inconsistent with the required required.
  • Special note for new motor carriers:
    You must file your MCS-150 before starting operations. You must also mark the power units of your CMVs before you put them into service and operate them on public highways.

 

                                                        Unified Carrier Registration

 

The SSRS (Single State Registration System) program ended on January 1, 2007 and has been replaced by the UCR (Unified Carrier Registration) program. This new program applies to all interstate motor carriers, motor private carriers, freight forwarders, brokers and leasing companies

UCR applies to businesses that:
  • operate a truck or bus in interstate or international commerce, or
  • make arrangements for the transportation of cargo and goods
The UCR Program requires all individuals and companies that operate commercial motor vehicles in interstate or international commerce to register their business under the UCR program and pay an annual fee based on the size of their fleet.

Companies operating solely as brokers, freight forwarders or leasing companies are required to register and pay a fee of $39. Companies providing both motor carrier services as well as broker, freight forwarder or leasing services are required to pay the fee level set at the motor carrier level.

A "commercial motor vehicle" is defined as a self-propelled or towed vehicle used on the highways in commerce principally to transport passengers or cargo, if the vehicle:
  • has a gross vehicle weight rating or gross vehicle weight of at least 10,001 pounds or more, whichever is greater
  • is designed to transport 11 or more passengers (including the driver)
  • is used in transporting hazardous materials in a quantity requiring placarding


IMPORTANT NOTE: You are not required to carry a credential in the vehicle but it is a good idea to carry in the vehicle a copy of the receipt that was issued when fees were paid.

It is also important to know that you must update this registration yearly!


 
 
Don't find out the hard way when you get stopped for an inspection and you wind up with an expensive ticket that you should have done a UCR registration for your company.
 
Who is required to register under the IRP?
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The International Registration Plan (IRP) is a registration reciprocity agreement among states of the United States and provinces of Canada providing for payment of license fees on the basis of fleet miles operated in various jurisdictions.

The information shown below is from the official International Registration Plan, Inc. Website and we suggest you visit the site for the latest information and answers to any questions you might have.

Who is required to register under the IRP?
According to the Plan under section 204, all apportionable vehicles, which means any vehicle except for recreational vehicles, vehicles displaying restricted plates, city pick up and delivery vehicles, buses used in transportation of chartered parties, and government-owned vehicles, used or intended for use in two or more member jurisdictions that allocate or proportionally register vehicles and is used for the transportation of persons for hire or designed, used or maintained primarily for the transportation of property and:...
  1. is a power unit having two axles and a gross vehicle weight or registered gross vehicle weight in excess of 26,000 pounds; or
     
  2. is a power unit having three or more axles, regardless of weight; or
     
  3. is used in combination, when the weight of such combination exceeds 26,000 pounds gross vehicle weight.
Note: Trucks and truck tractors, and combinations of vehicles having a gross vehicle weight of 26,000 pounds or less and buses used in transportation of chartered parties may be proportionally registered at the option of the registrant.
What is considered a fleet?
A fleet is one or more apportionable vehicles (allowing for single vehicle fleet apportionment).
Are trailers and semi-trailers required to be apportioned?
No, the Plan does not require the apportionment of trailers
How do I add/ delete or transfer vehicles in my fleet during a registration year?
These changes are accomplished through the submission of appropriate supplemental applications. For detailed information, contact your base jurisdiction. You can find contact information for jurisdiction offices at the following link: Jurisdiction Offices
Is there a procedure for changing registered gross vehicle weights during the registration year?
Yes. You must file a supplemental application and pay additional fees when the gross weight is to be increased. For detailed information, contact your base jurisdiction. You can find contact information for jurisdiction offices at the following link: Jurisdiction Offices
What's the difference between a member of IRP and a subscriber of IRP, Inc.?
An IRP member is a jurisdiction that has been voted into the Plan, pays annual dues and follows the rules and requirements set forth in the Plan. An IRP subscriber is a person or company who has purchased the IRP package subscription. The subscription benefits include receiving updates via email and newsletters. Upon purchasing the Plan subscription for $450.00 US you will receive:
  1. All IRP, Inc. jurisdiction notifications
  2. The IRP Newsline (a bi-weekly e-Newsletter)
  3. Access to participate in the IRP Yahoo! Groups
  4. A user ID and password for the Members Only protected areas on the Web site
More information on this topic can be found at http://www.irponline.org/Publications/.

NOTICE:
Most questions you may have can be answered by browsing the IRP website, but some questions require a more specific answer from a base jurisdiction. To locate an IRP office in your base jurisdiction go to this link: Jurisdiction Offices
The Plan:
Current Version of the International Registration Plan

Revised International Registration Plan - effective July 1, 2008
                                                                                         IFTA
                                                                 International Fuel Tax Agreement
                                                                         License Requirements

 

  • What is IFTA?
If you are considering getting into the Hotshot Carrier business, it is important that you totally understand IFTA and be absolutely certain you understand how the GVWR is determined so you don't wind up thinking you your GVWR is under 26,000 pounds when in fact it is over this critical number. The Gross Vehicle Weight Rating is determined by the truck and trailer manufacturers and if your combined GVWR is above 26000# you do need to have the IFTA license or get individual trip permits for each state each time you enter it you run which, of course you would normally not want to do because it is far more expensive.

IFTA is an agreement among all states (except Alaska and Hawaii) and Canadian provinces (except Northwestern Territories, Nunavut and Yukon) to simplify the reporting of fuel used by motor carriers operating in more than one jurisdiction. Persons who operate qualified motor vehicles are subject to IFTA licensing.

  • Who qualifies for an IFTA license and what is a "Qualified Motor Vehicle" under IFTA?

You qualify for an IFTA license if you operate your qualified motor vehicle in any U.S. state or Canadian province that is a member of the International Fuel Tax Agreement. To qualify, your vehicle must meet the following weight requirements:

A vehicle used or designed to transport property is a qualified motor vehicle if it:

  • Has three or more axles; or
  • Has two axles and a gross vehicle or registered gross vehicle weight of more than 26,000 pounds; or
  • Is used in a combination that has a combined or registered gross vehicle weight of more than 26,000 pounds. If you are a HotShot operator, it is extremely important to understand this qualification. Don't get caught up in the misunderstanding that you are not required to have an IFTA license if you don't scale over 26,000 pounds. If your registered gross vehicle weight is over 26,000 pounds, you qualify for the license regardless of what you might scale.
  • If you qualify for IFTA but do not choose to register, you must obtain fuel trip permits to travel into or through each member jurisdiction.
  • Carriers traveling in non-IFTA jurisdictions must continue to comply with the fuel tax reporting requirements of those jurisdictions.
  • Why should I register for IFTA?

The IFTA license offers several benefits to the interstate/inter-jurisdictional motor carrier. These benefits include one license, one set of decals, one quarterly fuel tax report that reflects the net tax or refund due. In addition, your fuel tax records will generally be audited only by your base jurisdiction. These advantages result in cost and time savings for the carrier and the member jurisdictions.

  • Where can I travel using IFTA Credentials?

Most Canadian provinces and US states are IFTA members.

The jurisdictions listed below are not IFTA members and IFTA credentials are not valid for travel there:

  • United States: Alaska, Hawaii and the District of Columbia
  • Canada: Northwest Territories, Nunuvit and Yukon Territory
  • Mexico: All states and the Federal District

If you plan to travel in these jurisdictions please contact them for information regarding their fuel tax reporting requirements.

  • Which taxes does IFTA cover?

IFTA covers fuel taxes only. It does not cover road taxes, weight mileage taxes, or any other jurisdiction specific taxes. You must continue to pay these taxes directly to the jurisdictions in which you travel.

  • What are the fuel tax rates for IFTA jurisdictions?

You may view, print, or download the fuel tax rates for all IFTA jurisdictions at http://www.iftach.org.

  • Are there penalties for traveling without valid IFTA credentials or a fuel trip permit?

Yes. If you travel in an IFTA jurisdiction without valid IFTA credentials or a fuel trip permit, you may be subject to a penalty, fine or citation, depending on the jurisdiction's laws.

  • When are IFTA reports due?

Under IFTA, you are required to file quarterly fuel tax reports. The reporting quarters and due dates are:

Reporting Quarter
Due Date
January - March April 30
April - June July 31
July - September October 31
October - December January 31
  • Are there any exemptions for off-road use or other unusual uses?

IFTA, Inc. posts lists of exemptions accepted in each jurisdiction that you might travel. You may find the list of exemptions at: www.iftach.org. Every attempt is made to keep this information current but we would recommend that you contact each jurisdiction before taking an exemption.

  • What records will I need?

You must maintain records that will adequately document all of the information you provide on your quarterly fuel tax reports.

Generally, you must maintain records to document all miles you travel - including the date of your trip, route of travel, total trip miles, and miles traveled in each jurisdiction. You must also keep all receipts for fuel you buy and place into your vehicles. If you maintain a bulk fuel storage facility, you must maintain additional records.

 

                                                                                KYU Number
                                                                (Kentucky Tax License Number)

 

What is a KYU Number?
 
    A KYU number is a Kentucky tax license number issued for the Kentucky Weight Distance Tax. Only carriers with one or more vehicles with a GVWR over 59,999 pounds who traveling in or through Kentucky are subject to this tax. If you are a Hotshot Carrier you GVWR is probably going to be well under this figure so you do NOT need to get a KYU Number.
Is the KYU number the same as IFTA?
 
    NO!!! KRS 138.660. establishes the fuel tax, surtax, and Kentucky Weight Distance Tax (KYU) You cannot pay for KYU on your IFTA tax form. IFTA is a fuel tax based on the fuel consumed by a vehicle within a certain IFTA jurisdiction.

    IFTA taxable vehicles start at over 26,000 pounds.

    KYU however, is a highway usage tax that is based purely on KY mileage. KYU taxable vehicles start at over 59,999 pounds. If your vehicle is over 59,999 pounds, you will need to pay both.
How long will it take to process the application?
 
    We are available seven days a week between 9am and 9pm EST to file for your KYU license electronically but the Kentucky KYU licensing office is only open on weekdays and it generally takes two to four hours for them to process the application. Consequently, we can generally get your license the same day if we file by lunch time on any weekday. Otherwise the license is generally available sometime the next weekday morning.
What do I do after I receive my KYU number?
 
    You will need to file your KYU quarterly taxes in a timely manner and keep your taxable inventory list up to date. There is no need to renew the license annually. However, failure to file your quarterly tax reports can result in your KYU tax license being revoked. If your KYU number becomes revoked, you may have to pay penalties, interest and a reinstatement fee, or even post a surety bond. The quarterly taxes are due on the following dates: January 31st, April 30th, July 31st, and October 31st. Tax filings must be postmarked by the last day of the month following the end of the quarter to be filed. This is the case even if that day falls on a holiday or weekend. You must also file the tax forms even if your vehicles do not run any KY mileage within the quarter.
Do I need to display the KYU number on my vehicles?
 
    It is not normally required to display the KYU number on the vehicle. Normally, a truck will pull into the weigh station, and the clerk will pull up the US DOT number on the truck. Since the KYU number is linked to the US DOT number, if the company has that particular truck VIN listed on the taxable inventory list and the KYU is active, then the truck should be fine as far as the KYU tax is concerned.
I am leased to another motor carrier for authority. What should I display on my vehicle?
 
    In the case of a lease please display the name, US DOT number, and MC number of the carrier that you are leased to. If your vehicle is subject to the KYU tax and the company with authority is not providing the KYU tax license, then you must obtain either a temporary permit for the KYU tax, or provide your own KYU tax license linked to your own US DOT number. Kentucky recommends that you display your personal KYU number. However, you are not required by law to display the KYU number. To avoid confusion and delay, it is best if the lease agreement is very clear about which company is paying for which credential.
 

                                                       New Mexico Weight Distance Permit

 

What is a New Mexico Weight Distance Permit?
 
    A New Mexico Weight Distance Permit allows commercial vehicles to utilize New Mexico highways. New Mexico imposes a Weight Distance Tax on motor carriers operating motor vehicles which weigh 26,001 - 80,000 pounds on New Mexico State Public highways. The tax is computed based on mileage traveled by commercial vehicles on New Mexico highways at a rate determined by the weight of the vehicle. The tax for Weight Distance is less per mile than the Trip Tax (Single Trip Permits). If you travel through New Mexico often, then it is to your advantage to obtain a Weight Distance Permit. If you don't have a permit, be sure to get a Single Trip Permit each time you enter the state.
Do I need to carry the New Mexico Weight Distance Confirmation Page on my vehicles?
 
    No, you DO NOT need carry the New Mexico Weight Distance Confirmation Page on your vehicles.
 

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