| Despite the many advances in technology, interstate | | | | This is why it is important for the broker to be |
| trucking or transportation is still a preferred choice | | | | familiar with the ins and outs of the business. He |
| when it comes to delivering goods nationwide. | | | | should also be licensed and insured. An interstate |
| Practically all U.S. commodities are transported by | | | | truck’s “license” is called an ICC number. |
| truck at certain points in the distribution process. And | | | | As a result of the cessation of the Interstate |
| since about 82% of communities in the country are | | | | Commerce Commission, the term ICC number was |
| served exclusively by trucks, it is no wonder then | | | | changed to MC (Motor Carrier) number. This |
| that an estimated $543 billion in revenues is expected | | | | important number is a mandatory permit that truck |
| to end up in the trucking industry at the end of 2008. | | | | drivers should carry every time they travel. |
| By the end of 2008, the trucking industry is | | | | Since trucks are insured and given an ICC number, |
| expected to deliver at least 9.3 billion tons of freight. | | | | brokers and manufacturers will not have a difficult |
| According to the American Trucking Association | | | | time tracking them down when there is a need to. |
| (ATA), this estimate covers more than 63% of the | | | | Trucks that travel across different states carry a |
| total freight deliveries for the United States. | | | | wide variety of commodities. Some trucks transport |
| This is one of the reasons why more and more | | | | goods from the furniture industry while a good |
| people and companies are switching to the trucking | | | | number of interstate deliveries are made for |
| industry; they realize its value and potential for | | | | wholesale and retail companies. Specialized services, |
| success. | | | | like newspaper delivery, are also a common thing. |
| However, before an interstate trucking company can | | | | The bulk, however, comes from the retail and |
| operate, it has to acquire interstate authority in order | | | | wholesale trade companies – making up 25% of |
| to obtain permission to carry various goods and | | | | the 2006 2.9 million trucking industry total. Other |
| items within the state and across other states. It is | | | | industries benefiting from interstate trucking |
| considered the most important legal permission and | | | | businesses include the construction and manufacturing |
| functions like a business license. Normally, the | | | | companies. |
| permission is obtained immediately but its activation | | | | Since the trucking industry is more flexible compared |
| may take around 3 weeks. | | | | to other modes of transportation, the interstate |
| Formerly issued by the Interstate Commerce | | | | authority has issued more legal permissions to |
| Commission, interstate authority is now issued by the | | | | interstate truckers than to those operating delivery |
| Federal Motor Carrier Safety Administration (FMCSA). | | | | businesses via air, sea, or rail transportation. |
| This permission, or license, must be obtained | | | | Interstate trucking continues to be an effective |
| together with truck insurance and cargo insurance. | | | | mode of transporting goods because trucks are able |
| There are basically 2 types of interstate authority for | | | | to reach practically almost all locations within the |
| trucking companies. Common Carrier Authority is | | | | United States. A freight broker authority will exert |
| required to file both liability and cargo insurance with | | | | more effort in convincing manufacturers or producers |
| the FMCSA. On the other hand, Control Carrier | | | | to transport their commodities or goods through |
| Authority is expected to file only liability insurance | | | | other modes of transportation that have limited |
| with the FMCSA. Other forms of authorities like | | | | reach and services according to their route flexibility. |
| household goods carriers and broker and freight | | | | No matter what technology has to offer, like |
| forwarder authorities, usually deal with truck business | | | | expanded railways or revolutionary shipping vessels, |
| involving middlemen or brokers. | | | | truck drivers will remain to be a constant presence in |
| A middleman, or a freight broker authority, acts as | | | | national and interstate highways. They will continue to |
| the bridge between the producers or manufacturers | | | | deliver a variety of goods that range from perishable |
| and the truckers. The freight broker is considered an | | | | fruits to canned goods to cars. Interstate trucking is |
| expert in the trucking industry and has a good | | | | the only authorized delivery system (with MC/ICC |
| reputation in both the trucking and business | | | | numbers) that can deliver commodities on a |
| communities. A freight broker authority must possess | | | | door-to-door basis. Even producers, who transport |
| technical skills or expertise and must have | | | | their goods through ship, train, or airplane, still use |
| background in management and accounting, especially | | | | trucks at a certain point in their distribution process. |
| nowadays when technology is constantly changing | | | | And with most modern improvements, like cushioned |
| and advancing. | | | | seats, high technology entertainment systems, better |
| In difficult or doubtful times, a freight broker | | | | ventilation, and bigger cabs, truck drivers will be able |
| authority is who manufacturers will turn to, especially | | | | to do their driving in a more comfortable manner and |
| when freight demand overpowers carrier capacity. | | | | hence, reach their destinations quicker. |