Owner-operators who want to start their own business, grow their trucking fleet, or expand their operations must know how compliance works. Compliance is essential because DOT truck inspections and other forms of enforcement are always going on.

Here, we'll look more closely at compliance regarding rules, safety, qualifications, efficiency, and other similar things.

Organizations like the Federal Motor Carrier Safety Administration (FMCSA) try to ensure that trucking companies and drivers follow safety and other rules that affect almost every part of the trucking industry. Owner-operators can run and grow a successful business if they keep up with changes to regulations, keep an eye on compliance scores and indicators, find and fix compliance problems, and train with and learn from other carriers focused on safety and compliance.

What Owner-Operators Need to Know About IFTA and IRP

The International Fuel Tax Agreement (IFTA) and the International Registration Plan, Inc. are two things owners-operators in the trucking business will need to learn about (IRP). The goals of each agency are essential for owner-operators who run their own trucking companies.

In the past, carriers had to get separate licenses from each state and pay fuel taxes to each state based on how much fuel they bought and used in each jurisdiction. This process was very time-consuming and inefficient, so a group of U.S. states developed the IFTA cooperative agreement to make these rules easier to follow. With this agreement, carriers would only have to file one set of tax forms through a base jurisdiction every three months. Member jurisdictions include the lower 48 U.S. states and 10 Canadian provinces.

The International Fuel Tax Association, Inc. is based in Arizona and runs and manages the International Fuel Tax Agreement. It does this by keeping track of tax collection agreements between the different U.S. states and Canadian provinces.

The IRP, Inc. knows about commercial motor vehicles registered in other places and takes care of their registration. Their main goal is to improve interstate business by getting more people to use U.S. highways.

Owner-operators who transport loads across state lines or plan to do so in the future need to know about IFTA and IRP eligibility, requirements, and how to follow them. Even though both of these groups are official, all owner-operators need to understand their roles, rules, and policies.

From Hours of Service to Truck Inspections

Owner-operators should know federal and state rules, especially in high-volume states like California, Texas, and Illinois. Keeping your business running effectively requires knowing what to expect during truck inspections and how to handle Hours of Service (HOS).

FMCSA, a DOT sub-agency, ensures truckers' road safety. They enforce federal restrictions on unsafe driving, a driver's crash indicator, HOS, vehicle maintenance, controlled substances and alcohol, hazardous materials, and driver fitness. Owner-operators should know these regulations and FMCSA's intervention process.

In addition to federal laws consistent throughout states, carriers must follow municipal regulations while transporting loads across jurisdictions. State to state, CMV, HOS, speed limit, lane, and load requirements may vary.

Compliance vs. Safety

As the FMCSA refines trucking and safety requirements, owner-operators must keep up. Rules enforce not all safety best practices; owner-operators can learn the difference between safety and compliance to optimize safety.

Compliance laws protect CMV drivers and other motorists. Driving, especially a CMV, is perilous; drivers must prevent unsafe driving for their own and others' safety. Safety best practices include avoiding distractions, signaling visually, and allowing space between vehicles.

Improve your safety by knowing how to handle inspections, idling, breaks, and parking.

Trucking compliance tips

Owner-operator compliance with laws and regulations can be the difference between success and failure in the trucking industry.

HOS, BASIC status, and CSA score are important compliance components for owner-operators. Owner-operators must also grasp the distinction between MC Numbers and DOT Numbers.

Staying compliant requires learning the rules, having the necessary gear and technology, like an ELD, to track driving hours, and staying on top of current requirements.

Carrier Requirements: RMIS and more

Owner-operators need to know what qualifications and compliance factors brokers and shippers look at when deciding whom to work with. For instance, brokers will check if carriers follow the rules and look for red flags like major DOT violations.

A critical step for owner-operators who want to grow or start is to learn about qualification criteria and how qualification is checked. For example, owner-operators must keep their insurance and driving records updated.

It's essential to sign up with a verification service like the Registry Monitoring Insurance Services if you want to work with freight brokers (RMIS). RMIS and other similar verification services are used to keep track of insurance for carriers and ensure they follow the rules.

Mastering Hours of Service

Over time, carriers learn how to maximize their HOS and road time. This implies you should start tracking your HOS, planning your driving time, and anticipating delays or detentions as soon as feasible. Once you know how to manage your HOS, you may minimize drowsy driving and improve efficiency.

How to Run a Good Trucking Company

Regulatory compliance is key to establishing a successful trucking company. Regulatory compliance enhances productivity and helps solidify your reputation as a reputable carrier.

Trucking can be profitable if you arrange your schedule, negotiate pricing, and stay compliant. Owners who control operational costs, understand the market, and follow local and federal regulations run an efficient trucking firm. Working with the appropriate partner and using the correct tools makes running a trucking company easier.

Checking Electronic Logs

ELDs are crucial for carriers—ELDs link with a vehicle's engine to record driving times and communicate HOS data (HOS).

All eligible vehicles and carriers must use ELDs. As an owner-operator, you must use an ELD. Which one is best? Your ELD may be underutilized. Learn what to look for.

Conclusion

A trucking business provides a great future for trucking business owners. The jobs and the career opportunities you have within your business are more than enough to keep you busy with your livelihood. However, many companies seek help from consultants and advisors who provide ideas of how their companies can be improved and upgraded. Here at Vallon Consulting, we provide services to all businesses today, and you must keep this option open to you.