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fatigue

Trucking Regulations and Driver Fatigue

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Driver fatigue is a leading cause of truck accidents, endangering lives on the road. Regulations and rules aim to prevent this, but managing fatigue requires more than compliance.

As a truck driver or fleet manager, understanding truck driver fatigue and knowing how to handle it is essential. Here’s what you need to know to help drivers stay alert and keep roads safe for everyone.

Causes of Truck Driver Fatigue

Truck driver fatigue is a serious concern that can have dangerous consequences on the road. Below, we explore the primary factors contributing to driver exhaustion and how these factors increase the likelihood of accidents.

  • Driving Late at Night: Our bodies are programmed to sleep at night. Driving when it’s dark goes against natural sleep patterns, making drivers more likely to doze off. Even if drivers don’t fall asleep, their reaction time is slower.

 

  • Afternoon Slumps: In the afternoon, circadian rhythms – our body’s internal clock – make us feel sleepy. This natural dip in energy can catch drivers off guard, especially if they’ve already been on the road for hours.

 

  • Long Hours Behind the Wheel: Truck drivers often work long shifts to meet tight deadlines. Federal rules set limits on driving hours, but many drivers still push themselves too hard. Sitting for hours without a break can cause mental and physical fatigue.

 

  • Single-Vehicle Accidents: Fatigue-related crashes often involve just one truck leaving the road. When drivers fall asleep, they don’t react in time to stay on the road. These accidents are common on major highways with high speed limits, where the consequences are often severe.

 

  • Signs of No Reaction: In many fatigue-related crashes, there’s no evidence the driver tried to avoid the accident. This means no skid marks or swerving, which indicates the driver may have been asleep or too slow to react.

 

  • Alcohol and Fatigue: Alcohol can make fatigue worse. If a driver is already tired, even small amounts of alcohol can make them dangerously drowsy. Some crashes blamed on drunk driving may partly be due to fatigue.

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Dangers of Truck Driver Fatigue

Truck driver fatigue is a major contributor to road accidents. According to the Federal Motor Carrier Safety Administration (FMCSA), fatigue plays a role in approximately 13% of all large truck crashes.

The National Highway Traffic Safety Administration (NHTSA) further reports that fatigue is a factor in 31% of fatal crashes involving large trucks.

Truck driver fatigue leads to slower reaction times, poor decision-making, and even falling asleep at the wheel. Here are the primary reasons truck driver fatigue is so dangerous:

  • Delayed Reaction Times: Fatigue slows a driver’s ability to react to sudden changes, like a car stopping or a pedestrian crossing.

 

  • Impaired Decision-Making: A tired brain makes poor decisions, such as misjudging distances or ignoring critical road signs.

 

  • Loss of Focus: Drivers who are tired are more likely to experience lapses in attention, which can cause them to drift out of their lanes or miss hazards.

 

  • Falling Asleep at the Wheel: In extreme cases, drivers fall asleep while driving, leading to devastating crashes, often with no attempt to avoid the collision.

These issues vastly increase the risk of accidents caused by commercial truck drivers.

Regulatory Framework

Importantly, there are truck driver fatigue laws and safety regulations in place to help prevent this issue for trucking companies.

Overview of HOS Regulations

The Hours of Service (HOS) rules apply to drivers of commercial motor vehicles (CMVs), like large trucks and buses. The FMCSA enforces these regulations. They outline:

  • How long drivers can drive in a day or a week.
  • When and how often drivers must take breaks.
  • The rest periods required between driving shifts.

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Key Limitations and Requirements

Here are the main points enforced by the Federal Motor Carrier Safety Administration:

  • Daily Driving Limit: Drivers can drive up to 11 hours after taking 10 consecutive hours off-duty. This is the maximum driving time allowed in one day.

 

  • On-Duty Time Limit: Drivers cannot work more than 14 consecutive hours in a day. This includes driving and other tasks like loading or unloading cargo.

 

  • Break Requirements: After driving for 8 hours, drivers must take a 30-minute off-duty break. This helps prevent continuous driving without rest.

 

  • Weekly Hour Limits: Drivers can work up to:
    – 60 hours over 7 consecutive days, or
    – 70 hours over 8 consecutive days.Once drivers hit this limit, they must take 34 consecutive hours off-duty (called a “reset”) before starting a new cycle.

 

  • Sleeper Berth Provision: Drivers can split their required 10 hours of rest into two periods using the truck’s sleeper berth.

Consequences of Non-Compliance

It is crucial for commercial vehicle drivers to adhere to these regulations. Failing to do so can result in significant consequences across multiple aspects of their professional and personal lives.

Legal Penalties and Fines

Breaking Hours of Service rules can lead to serious fines for drivers and companies.

Drivers may be ordered off the road until they comply, resulting in lost income. Companies that knowingly allow violations can face even higher fines and penalties.

In severe cases, such as accidents caused by truck driver fatigue, authorities may file criminal charges against the driver or company, holding them accountable for injuries or deaths.

Impact on Insurance and Liability

Non-compliance with HOS rules can also drive up insurance premiums or result in canceled coverage for drivers or companies.

If an accident happens during a violation, insurance providers may deny claims, leaving the driver or company to cover the costs.

HOS violations also increase the risk of legal liability in lawsuits, with substantial financial and reputational damage for businesses that fail to prioritize safety.

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Role of Electronic Logging Devices (ELDs)

Electronic Logging Devices (ELDs) are excellent tools to help combat truck driver fatigue. While simple, they can be effective in preventing truck accidents.

Functionality of ELDs in Compliance Tracking

ELDs automatically track a driver’s hours of service by connecting to the truck’s engine. They record driving time, on-duty time, and rest periods accurately.

By ensuring drivers follow HOS rules, the system helps prevent manual errors or falsified logs. It also simplifies compliance for drivers and companies while providing clear records during inspections.

Benefits of Using ELDs for Drivers and Fleets

ELDs save time by automating logbook entries and reducing paperwork.

For drivers, this means less stress and more focus on the road. Fleets benefit from better compliance, fewer violations, and reduced risk of fines.

ELDs also provide data to optimize routes and schedules, improving efficiency and reducing fuel costs.

Fatigue Detection Technologies

Fatigue detection technologies help keep drivers alert and prevent fatigue-related accidents. These systems monitor signs of tiredness in drivers and provide warnings to take action before it’s too late.

Some systems use cameras to track eye movement and blinking patterns. If the driver shows signs of drowsiness, the system sounds an alert.

Others use sensors in the seat, or steering wheel to detect slow reactions or unusual driving behavior. Advanced systems, like wearable devices, measure brain activity to detect fatigue early.

However, these tools work best when combined with good rest habits and compliance with HOS rules. While not perfect, fatigue detection technologies are an important step toward safer roads for everyone.

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Importance of Safety Training for Fleet Managers

Safety training for fleet managers is crucial because they play a key role in preventing accidents and ensuring compliance with regulations.

Proper training helps managers identify risks, enforce safety policies, and support drivers in managing fatigue and stress. It also teaches them how to use tools like ELDs and fatigue detection technologies effectively.

With the right training, fleet managers can create a safer work environment, reduce liability, and protect drivers and the public.

Tips for Managing Fatigue

Driver fatigue is something all commercial drivers need to be aware of. To manage it, here are some important strategies truck drivers should always keep in mind.

Techniques for Truck Drivers

Truck drivers can manage fatigue by sticking to a consistent sleep schedule and aiming for 7-9 hours of quality rest.

Taking regular breaks during long trips, staying hydrated, and eating balanced meals also help maintain energy.

Avoid driving during peak fatigue hours, like late at night, and use power naps to stay alert when needed.

Recognizing the signs of fatigue early, like heavy eyelids or zoning out, is critical to pulling over safely and resting.

Strategies for Owner-Operators

Owner-operators should plan their schedules carefully to avoid overwork and allow for proper rest.

Investing in tools like fatigue monitoring technologies and using apps to find rest stops can help maintain alertness. Prioritize health with regular exercise, good nutrition, and proper sleep hygiene.

Communicating openly with clients about realistic delivery timelines ensures they don’t feel pressured to push beyond safe limits.

Managing your workload responsibly is key to staying safe and productive on the road.

Conclusion: The Importance of Adhering to Fatigue Laws

Complying with truck driver fatigue laws is not just a legal obligation; it is vital for ensuring the safety of your drivers, your business, and everyone on the road. Prioritizing this responsibility is essential for both trucking companies and their drivers.

Are you an owner-operator or fleet manager? Then having a commercial vehicle financing partner that meets all your needs is essential. See how we can help at Mission Financial Services.

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What is a Fuel Surcharge In The Trucking Industry?

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The trucking industry keeps the world moving, delivering everything from groceries to construction materials. But there’s one essential (and expensive) resource that trucking relies heavily on: fuel.

Diesel powers the trucks that connect businesses and consumers, but fuel prices are anything but predictable. A sudden spike at the pump can disrupt budgets and eat into your profits, creating serious challenges for carriers and owner-operators.

That’s where fuel surcharges come in. A fuel surcharge offers a system that shares the burden of fluctuating fuel costs. Basically, instead of fuel increases cutting into your profits, a fuel surcharge protects your business when fuel costs rise.

Understanding how these surcharges work is essential for staying profitable and fair, whether you’re a shipper, a carrier, or an independent trucker. We’ll cover everything you need to know in the guide below.

What is a Fuel Surcharge?

A fuel surcharge in the trucking industry is an extra fee added to freight bills that helps carriers offset the fluctuating costs of diesel fuel.

Adding a fuel surcharge became common practice as fuel prices had big ups and downs, making it difficult for trucking companies to maintain stable operating costs. As a result, fuel surcharges became widely adopted, allowing carriers to adjust their rates based on fuel price changes, which often change weekly.

While there’s no standard formula for calculating fuel surcharges, each carrier typically uses their own method to help them manage the impact of volatile fuel expenses.

The Purpose of a Fuel Surcharge

A fuel surcharge helps trucking companies and owner-operators handle the unpredictable changes in diesel fuel prices. It protects carriers from losing money when fuel costs rise, making their operating costs more stable.

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This extra fee ensures carriers can keep its business running smoothly without being forced to absorb sudden fuel price spikes. At the same time, it creates a fair system for both carriers and clients by keeping freight pricing transparent and tied to real fuel costs.

Fuel surcharges don’t cover all fuel expenses, but they make the increases more manageable.

How Does the Fuel Surcharge Work?

Freight bills include fuel surcharges to help trucking companies handle changing fuel prices.

Carriers and shippers often agree on surcharge terms in their contracts, using a baseline diesel price. This is typically based on weekly reports from the US Energy Information Administration (EIA).

Surcharge rates go up or down depending on how fuel prices change. For contract freight, these fees are consistent and agreed upon in advance. In spot freight markets, surcharges are adjusted more flexibly to match the current fuel costs.

With a system like this, you maintain fair pricing for both parties while helping carriers manage fuel expenses without constant renegotiation.

How Does Fuel Surcharge Work for Owner-Operators?

As an owner-operator, dealing with fluctuating fuel prices can be a real pain in managing your business operating costs.

Fuel surcharges help owner-operators manage this by compensating for the extra cost of diesel. So, when fuel prices fluctuate, the fuel surcharge ensures the price hike won’t eat into your profits.

These surcharges are typically based on a per-mile rate that adjusts as fuel prices go up or down. While fuel surcharges can sometimes provide extra earnings, they depend heavily on fuel efficiency and proper calculation.

To keep it fair, owner-operators should include clear fuel surcharge terms in their contracts and base calculations on reliable data, like the EIA’s fuel price reports.

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Calculating Fuel Surcharge Fees

We calculate fuel surcharges using key variables to fairly offset fuel price fluctuations. Here’s how they work:

  • The base price of fuel: The base price of fuel is a predetermined “baseline” cost used as a reference. This is an agreed-upon threshold, which is based on national averages like the US Department of Energy’s weekly diesel price reports. If the current price rises above this baseline, it triggers a surcharge.

 

  • The truck’s fuel economy: Miles per gallon (MPG) determines how much fuel a truck consumes. A loaded semi-truck averages about 6 MPG, so better fuel efficiency lowers the per-mile cost of fuel. This efficiency directly impacts the surcharge rate.
  • The fuel price change: Fuel surcharges account for the difference between the base price and the current fuel cost. Regular updates from indexes like the DOE ensure accurate tracking.

How is a Fuel Surcharge Calculated?

While the exact calculation method can change for each carrier, here’s how it’s typically done.

Per Mile Surcharge

Subtract the base fuel price from the current fuel price to find the price difference. Divide this difference by the truck’s MPG to get the cost per mile.

Multiply the cost per mile by the total miles traveled to determine the surcharge amount.

Percentage of Load Price

Some carriers use a percentage surcharge based on the load’s price. The rate increases as fuel prices rise above the base price, using a predefined table.

For example, a surcharge might start at 10.25% and rise to 10.5% as fuel costs increase.

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Example of Calculating Fuel Surcharge

Here’s an example of calculating a fuel surcharge. Say the base fuel price is $3.50 per gallon, the current fuel price is $4.00 per gallon, and the truck gets 6 MPG.

First, find the price difference: $4.00 – $3.50 = $0.50.

Next, divide by the truck’s MPG: $0.50 ÷ 6 = $0.083 per mile.

If the trip covers 1,000 miles, the surcharge is $0.083 × 1,000 = $83.

Now, if the truck’s MPG drops to 5, the per-mile cost increases to $0.10, making the surcharge $100 for the same trip.

Small changes in fuel price or MPG can significantly affect these costs, so accurate calculations are essential.

National Average for Fuel Surcharge

The national average for fuel surcharge is generally determined using the US Energy Information Administration’s (EIA) weekly updates on diesel fuel prices.

Truckers and businesses use this average as a benchmark to set fair and transparent fuel surcharge rates.

This data keeps surcharges accurate, reflecting real market conditions for fair and transparent fuel surcharge calculations.

Where to Find a Current Fuel Surcharge Table

To find a current fuel surcharge table, start with the EIA’s fuel price reports, which provide up-to-date national and regional diesel price averages. There’s also data on alternative fuels on the US Department of Energy’s website.

Many trucking resources, like software tools for truck drivers, offer tools and calculators for tracking and calculating surcharges. Fuel monitoring apps also simplify tracking fuel prices and surcharge adjustments, making it easier for truckers and businesses to stay informed.

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Fuel Surcharge Laws and Regulations

Fuel surcharge regulations vary by region and country, but they generally focus on transparency and fairness in pricing.

In many areas, laws require that fuel surcharges are clearly outlined in contracts and adjusted based on verifiable data, such as national fuel price indexes. Some regions may have specific rules about how and when these surcharges can be applied.

It’s important for businesses and truckers to understand and comply with these laws to avoid legal issues and maintain fair pricing for both parties. Staying informed about local regulations helps prevent disputes and keeps the trust in business relationships.

Common Challenges and Pitfalls

While applying a fuel surcharge is important, getting it right can be tricky. Here are three common challenges truckers face when doing this.

Volatility in Fuel Prices

  • Problem: Sudden spikes or drops in fuel prices can disrupt budgeting and make it hard to predict costs. This is especially challenging for smaller carriers and owner-operators.
  • Solution: Use reliable tools to track fluctuations. Regularly review and adjust your surcharge agreements to keep them aligned with current market conditions.

Negotiation Disputes

  • Problem: Disagreements can arise between shippers and carriers over the baseline fuel price or the formula used for calculating surcharges. This can delay payments or strain business relationships.

 

  • Solution: Clearly define baseline prices, your fuel surcharge methodologies, and adjustment triggers in your contracts. Referencing standard industry practices helps prevent disputes and ensures consistency.

Owner-Operator Margins

  • Problem: Owner-operators may not always receive their fair share of the surcharge, reducing their ability to cover rising fuel costs. This can hurt their profitability.

 

  • Solution: Advocate for transparency in contracts to ensure surcharges are passed down appropriately. Track fuel expenses rigorously and use tools to verify calculations and fairness in payments.

Final Thoughts

Fuel surcharges are essential for managing the ups and downs of diesel prices in the trucking industry. By understanding how they work, you can protect your business from unexpected costs while still offering fair pricing to your customers.

Whether you’re a carrier, shipper, or owner-operator, staying informed about surcharges and fuel price trends is key to staying competitive.

Are you investing in a new commercial vehicle? Then get in touch with us at Mission Financial Services. We offer flexible, accessible financing for all, making it easy to purchase your dream semi-truck and become an owner-operator or expand your fleet.

 

MC AUTHORITY

How To Get Your MC Authority

MC AUTHORITY

If you’re an owner-operator, you’ll know that having all the right licenses and documents is essential for smooth business operations. If you run an interstate trucking business, you’ll need to add MC authority to your list of documentation.

This is an important legal requirement, and it can help make your life a lot easier when operating interstate.

While almost all interstate carriers need MC authority, it’s essential to understand the different types of authority that exist and how to apply for the correct one. We cover everything you need to know about this in the guide below.

What is MC Authority?

MC Authority, or Motor Carrier Authority, is a crucial component for companies operating within the transportation industry, specifically those involved in interstate commerce.

It is a legal authorization granted by the Federal Motor Carrier Safety Administration (FMCSA), a division of the U.S. Department of Transportation (DOT), that permits businesses to transport goods or passengers across state lines for compensation.

This authorization is mandatory for any for-hire carrier engaging in interstate commerce, meaning that if a company wants to transport goods or passengers from one state to another, it must obtain an MC number.

Getting an MC authority involves registering with the FMCSA and meeting specific requirements, including having the right insurance coverage.

Once approved, you get a unique MC number, which your company uses to operate legally in interstate commerce.

As a trucking business, it’s easy to fall under the category that requires MC authority. If you ever cross state lines on delivery routes, then applying for MC authority is important.

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Types of Authority

Motor carrier authority falls under three main categories. Here’s a breakdown of each type:

  • Motor Carrier of Property (Except household goods): This authority lets companies transport general freight, like raw materials or finished products, but not household items. If you haul anything other than household goods for hire, you need this.

 

  • Motor Carrier of Household Goods: This is for moving companies that transport household items like furniture or personal belongings across state lines. If you’re in the moving business, this is the authority you need.

 

  • Specialized MC Authorities: These are for companies that transport specific goods that need special handling, like hazardous materials, passengers, or animals. For example, a company hauling chemicals needs HazMat authority, and a bus service needs Passenger Carrier authority.

Having the right authority is essential to operate legally, avoid penalties, and ensure your business runs smoothly.

Who Needs MC Trucking Authority (And Who is Exempt)

Quite simply, you need MC trucking authority if you transport goods or passengers for hire across state lines or within a state as part of interstate commerce.

If you’re a for-hire carrier moving freight like machinery, electronics, or other commercial goods, you need this authority.

However, some carriers are exempt. If you only haul exempt commodities like unprocessed agricultural products, and certain food items, or are strictly an intrastate carrier (operating only within one state), you might not need MC authority.

Private carriers hauling their own goods or nonprofit organizations transporting people might also be exempt.

If you operate a trucking business, then you need to make sure you have the right type of MC authority to operate legally. If you’re unsure, it’s best to check the specific regulations for your type of cargo and operations.

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Steps for Getting MC Authority

Getting MC authority is a relatively straightforward process no matter what state you’re based in.

Step 1: Create a Business Entity

You’ll need to establish your business as a legal entity, such as an LLC or a corporation,to get granted MC authority.

A formal business structure is required to obtain your MC authority and ensure you comply with state and federal regulations.

Consult with a legal or business advisor to help you choose the right business structure for your trucking business.

Step 2: Apply for Your USDOT and MC Number

Once your business entity is set up, you can apply for a USDOT number through the FMCSA. This is the number used to track your company’s safety record and compliance with regulations.

Along with the USDOT number, you’ll need to apply for your MC number. Both numbers are critical for legally operating your trucking business.

Step 3: File BOC-3 Paperwork with a Legal Process Agent

After securing your USDOT and MC numbers, you’ll need to file a BOC-3 form. This form designates a legal process agent in each state where you operate.

The agent is responsible for receiving legal documents on your behalf, such as court notices or legal summons. Having a legal process agent is mandatory for all motor carriers and ensures that you’re properly represented in legal matters.

While it’s a legal requirement, it will also make your life running an interstate trucking business easier if any issues arise.

Step 4: File Your Unified Carrier Registration (UCR) Permit

The Unified Carrier Registration (UCR) system is a federal requirement for any carriers operating across state lines.

After you’ve filed your BOC-3, you’ll need to register under the UCR system. You need this registration to prove that you’re compliant with state regulations and that you’ve paid the required fees for operating in multiple states.

Failure to register can result in penalties and fines, so it’s important to complete this step as soon as you can.

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Step 5: Pay the Heavy Vehicle Use Tax (HVUT)

If your vehicle has a gross weight of 55,000 pounds or more, you’re required to pay the Heavy Vehicle Use Tax (HVUT) to the IRS. This annual tax helps fund highway maintenance and construction.

Paying the HVUT is a legal obligation, and failure to do so can result in significant fines. File your payment on time each year to avoid penalties and to keep your operations running smoothly.

Step 6: Register for the International Registration Plan (IRP)

The International Registration Plan (IRP) allows you to register your vehicle for operation in multiple states and Canadian provinces with a single registration.

This plan is essential for interstate travel, as it ensures your vehicle is legally registered in all the regions where you plan to operate.

The IRP also helps distribute registration fees based on the distance traveled in each jurisdiction, simplifying the process for carriers operating across borders.

Step 7: Set Up an International Fuel Tax Agreement (IFTA) Account

To streamline fuel tax reporting, set up an account under the International Fuel Tax Agreement (IFTA). This agreement simplifies how you report and pay fuel taxes for vehicles operating in multiple states.

With an IFTA account, you’ll file a single quarterly tax report instead of dealing with multiple fuel tax forms. This saves you plenty of time and helps ensure you remain compliant with fuel tax regulations across all the different jurisdictions you operate.

Step 8: Enroll in a Drug and Alcohol Testing Program

If you have drivers operating under your authority, it’s mandatory to enroll in a DOT-compliant drug and alcohol testing program.

This program ensures that all drivers are regularly tested, helping to maintain safety on the road.

The DOT requires pre-employment, random, post-accident, and return-to-duty testing for all drivers. Enrolling in a reputable program is important to staying compliant with federal regulations and promoting a safe driving environment.

Benefits Of Having Trucking Authority

Having your own trucking authority offers some clear benefits, giving you full control over your business operations.

With trucking authority, you can choose your own loads, set your own rates, and negotiate directly with shippers. All of this can lead to higher profits.

You’re not dependent on a third party to find work for you, which means more flexibility and independence in how you run your business.

Holding your own authority can also open doors to more opportunities for growth, allowing you to expand your fleet, take on larger contracts, and establish long-term relationships with clients. This is important for a more stable and prosperous business in the long run.

Conclusion

When operating a trucking business across state lines, there are several essential considerations to keep in mind. One of the most critical is obtaining MC authority, as operating without it could lead to serious consequences.

If you’re busy planning your trucking business, then the right documentation may be essential, but the first and most important step is acquiring the right vehicle. Get in touch with us at Mission Financial Services to discover the easiest way to access commercial truck funding.

Dashcam Privacy Concerns For Semi Truck Drivers

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Dashcam privacy concerns for semi truck drivers is a hotly debated topic in the trucking industry. Most fleet managers support dash cams because of their benefits, such as enhancing driver safety and providing insurance advantages.

However, many semi-truck drivers oppose driver-facing cameras, primarily because of privacy concerns. This guide delves into the legal aspects of this debate.

In this article we discuss the legislation regarding dash cameras in semi-trucks, address drivers’ privacy concerns, and examine the pros and cons of using these cameras. We also provide tips for fleet managers on how to address these concerns and comply with relevant laws when implementing driver-facing cameras in their fleet operations.

Are There Laws Against The Use Of Dash Cameras In Trucks?

Installing dash cams in semi-trucks is legal in nearly all states, as there are no specific laws prohibiting the practice. However, individuals have a right to privacy, and there are laws protecting against privacy invasion.

Most regulations regarding driver-facing dash cameras in the transportation industry aim to uphold drivers’ privacy rights and ensure safety. These regulations focus on how the cameras are installed and used.

Dash Cam Laws

Federal laws, like the Electronic Communications Privacy Act, prohibit using dashcams as tools for electronic surveillance and intercepting communications without consent. This means that trucking companies cannot install driver-facing dash cameras without getting a nod from their truck drivers.

Different jurisdictions have varying regulations regarding dashcams, particularly for audio recording. States with all-party consent laws are stricter than those with one-party consent laws.

For instance, in Delaware, everyone in the commercial vehicle, including customers, must consent to audio recording, which may limit driver-facing dash cameras to video only.

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Another critical legal factor is the installation of dash cams, which must comply with Federal Motor Carrier Safety Administration (FMCSA) regulations. These regulations state that devices mounted on the windshield must not obstruct the driver’s view. The FMCSA specifies how and where to install these devices, but implementation varies by state.

Some states, like Washington, Nebraska, Montana, New Hampshire, and South Dakota, prohibit mounting dash cams on the windshield, offering alternative locations like the dashboard. Other states have specific size requirements for driver-facing cameras.

Trucking companies should review local laws before installing dash cams to ensure compliance and avoid legal issues.

Driver Privacy Concerns

Several truck drivers are against introducing dash cameras in semi-trucks for three main reasons:

1. Perceived Invasion Of Privacy

Over-the-road (OTR) commercial truck drivers spend more than half the year on the road. To them, their truck isn’t just a vehicle but a second home, and having driver-facing dash cameras constantly monitoring every move they make feels like an intrusion of their personal space.

2. Data Security And Misuse

Another privacy concern for most drivers is data security and misuse. As technology advances, the prevalence of cyber-attacks and data breaches continues to increase. Truckers worry that cyber criminals might access and misuse the volumes of data dash cameras collect, leading to privacy violations.

3. Performance Pressure And Job Loss Fear

Constant surveillance at work increases performance pressure and job loss fears among many drivers. They worry that the dash cameras subject them to nitpicking by fleet owners and other safety managers, and any mistakes the cameras capture might lead to disciplinary action or termination. Prolonged worry can cause stress and anxiety, decreasing truckers’ performance.

Also, some truck drivers interpret the installation of driver-facing cameras as mistrust from their trucking company. This demotivates them, leading to poor performance.

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What Is The Purpose Of In-cabin Cameras?

In-cab cameras record the truck’s interior and driver’s actions. The information they offer is helpful for the following purposes:

Pros

  • Improving Driver Safety: Some dashcams provide a live feed of a trucker’s actions, allowing safety managers to offer immediate feedback and correct distracted driving and dangerous driving habits. Doing this helps prevent accidents and develops a safety culture within a trucking company.
  • Enhancing Driver Training: Driver-facing dash cams are reliable driver coaching aids. Fleet managers can review video footage of poor and safe driving habits to identify training gaps and create targeted training to improve drivers’ performance and safety records.
  • Speeding Up Claim Processing: Insurance companies favor fleets with driver-facing dash cams. They offer fast insurance claims processing because the cameras help build a poweful defense against fraudulent claims. Trucking companies using dash cams also qualify for reduced insurance rates because of decreased liability risks.
  • Settling Disputes: As video evidence, clear video footage from a dash camera is indispensable when settling disputes after road incidents. It can help establish the facts, leading to driver exoneration from wrongful blame. In doing so, trucking companies protect their reputation and avoid costly settlements.

Cons

Even though dash cameras have significant benefits in the trucking industry, they are not foolproof. A few major drawbacks of using these cameras include:

  • Technical issues: Dash cameras can fail to record because of technical glitches
  • Lack of context for certain behaviors: A driver-facing camera can capture a trucker’s behavior but fail to capture the external factors that led to the behavior.
  • Overreliance on technology: This can undermine the significance of driver intuition, which is essential for responding to changing road situations.

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Addressing Driver Concerns

To install driver-facing dash cameras in commercial vehicles legally, fleet managers must address drivers’ concerns while complying with all privacy laws in their jurisdiction. Here are a few tips for alleviating the major truck driver concerns we discussed earlier:

 

  • Define your reasons for using dash cameras and ensure you communicate this clearly to your drivers. Is your goal safety improvements, leveraging insurance claims advantages, or aiding in accident investigations?
  • Inform your drivers about how the driver-facing camera in their truck will operate. Will it record only during specific events, like hard braking or lane departures, or continuously in real-time? Be transparent about the camera’s intended use. In nearly all states, it is a legal requirement for drivers to be informed about the cameras and to consent to their use before installation.
  • Establish clear guidelines on accessing dashcam footage, data handling, and storage. Who will gain access to the data? How long will the data be stored, and what process will you follow to delete footage once the storage period elapses? Robust data management policies will help alleviate drivers’ concerns about data security and misuse.
  • Assure drivers of their job security by clarifying that the driver-facing cameras aren’t for capturing their mistakes and penalizing them for every error so they don’t have to work under pressure. Or get stressed over their performance. It will help to create an understanding and compassionate work environment.

Final Thoughts

Most semi-truck drivers’ privacy concerns with dash cams focus on privacy and the safety of their data and jobs. As a fleet manager, you can leverage all the benefits of dash camera usage by respecting your drivers’ concerns, fostering open dialogue about the device’s use, and implementing strict policies to protect your driver’s data and privacy.

Remember to review and update your policies regularly to factor in any changes in state privacy laws so your policies remain effective. Also, ensure you seek your driver’s feedback on any changes and consider their input before making any updates. It helps promote transparency and build trust with drivers. Both are essential for integrating dash cameras into your fleet effectively.

For more practical insights on navigating the trucking industry, visit our blog. You can also reach out to us if you want to expand your fleet. We offer customized commercial vehicle loans for both new and used truck purchases

check list

Start-Up Checklist For Owner Operators

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If you’re looking at launching a career in trucking you may want a detailed startup checklist for truck owner-operators to help you start your trucking company on the right foot and set it up to succeed long-term.

Becoming an owner-operator can be overwhelming if you don’t have sound guidance. You must complete lots of paperwork and go through various tests to gather the required documents and meet the safety standards for owner-operator trucking businesses.

Without the required documentation, licenses, and proof of compliance with various federal and state regulations, you’ll sabotage your trucking business before it begins.

What is an Owner-Operator

An owner-operator is a trucker who both owns their rig and manages their own trucking business. They handle client acquisition, route planning, freight transportation, and truck maintenance, while also bearing the risks and expenses of running the business, such as fuel costs and permits.

This contrasts with company truckers, who work for trucking companies and aren’t responsible for business operations.

Owner-Operator Startup & Compliance Checklist

Here’s our step-by-step owner-operator startup checklist you can use as a roadmap to get your own trucking business up and running smoothly.

Determine your business type and create your business plan

To run a successful trucking business, determine your business type and create a business plan first. There are two types of owner-operator trucking businesses.

  • Leased Owner operator. A leased owner-operator operates their truck under the trucking authority of another company. If you choose this route, you won’t have to get some of the legal documents discussed below.
  • Owner-operator with own authority. Operating under your own authority means you’re a fully independent trucking business.

Ideally, your business plan should include your trucking business niche, target market, and overall business goals. You also want to evaluate your finances during this step to ensure you have enough budget to begin and run your business well before the profit starts rolling in.

driver license

Obtain a Commercial Driver’s License (CDL)

You’ll need to get your commercial driver’s license (CDL) and relevant endorsements, depending on the type of trucking business you want to start.

There are three main classes of CDL licenses in the trucking industry:

Class A CDL. A class A commercial driver’s license is necessary to operate large commercial vehicles, including combination vehicles weighing 26,001 pounds or more. These are the most popular types of trucks used by trucking companies – from tractor-trailers and big rigs to 18-wheelers.

Class B CDL. With a Class B CDL, you can only operate single vehicles weighing 26,001 and above. Or, combination vehicles weighing less than 26,001 pounds, such as delivery trucks, dump trucks, and buses.

Class C CDL. A Class C CDL allows you to operate hazmat vehicles and vehicles designed to carry sixteen or more passengers (the driver included).

Besides your commercial driver’s license, you might require special endorsement for specific types of equipment and cargo.

We recommend getting a Class A CDL because it allows you to operate all types of commercial trucks. Check out our quick guide on obtaining your CDL to learn how to get your commercial driver’s license.

Register Your Business

With your business plan and CDL ready, it’s time to register the venture officially with the state, the Internal Revenue Service (IRS), and the Department of Transportation (DOT). Doing this allows you to get the official business info you require for obtaining licenses and other crucial documents before you begin your operations.

Your location and the business structure you select will determine the process you’ll follow to register your trucking company. There are four types of business structures you can work with in the trucking industry: sole proprietorship, partnership, corporation, and limited liability company (LLC).

Each business structure is regulated differently. There are tax obligations and various liabilities you’ll be responsible for. So, be keen to choose a structure that will work best for you.

buy a truck

Buy or Lease Your Equipment

To get the best trucking equipment, first, decide whether you want to buy or lease your truck. Purchasing your equipment might seem expensive when starting, but it’s the best option if you plan to commit to your business long-term. Leasing is cheaper in the short term, but you’ll likely pay more in the long run.

If you decide to purchase your truck, you’ll have two options – to buy a new or used semi-truck.

Whichever option you choose, partner with an established truck financing institution to ease the financial burden of purchasing your commercial truck.

Consider working with Mission Financial Services to get financial help tailored to your situation. We have suitable loans for first-time buyers of commercial vehicles and can customize our packages further, even if you have bad credit.

Get your MC Number and Trucking Authority

The Federal Motor Carrier Safety Administration (FMCSA) requires all truck companies involved in interstate commerce to have a Motor Carrier (MC) number. This step is crucial if you plan to operate independently under your own authority and haul freight across states.

You’ll also have to get insurance coverage as part of your operating authority application process.

If you plan to operate as a leased owner-operator, you can skip this step. You won’t need your own Motor Carrier number because you’ll be working under the MC number and trucking authority of the company you lease under.

Also, skip this step if you have no plans for operating commercial vehicles across state lines. Owner-operators operating within their state don’t require a Motor Carrier number.

File a BOC-3 Form with the FMCSA

Filing a BOC-3 Form is another mandatory Federal Motor Carrier Safety Administration requirement. It shows you have a designated process agent in the states you operate in. A process agent is an individual or business capable of receiving legal documents on your behalf if people file complaints against you.

The process agent stays on top of all legal communication, helping you avoid unnecessary fines. You can have one process agent representing you in all the regions you operate in to make your work easier.

owner operator

Obtain Your USDOT Number, IFTA License & HVUT Certificate

Other essential licenses and certificates you require to conduct your operations include:

USDOT Number. Like the MC number, a USDOT number is specific for owner-operators planning to haul goods across state lines. The Department of Transportation will use this number to confirm your trucking business’s registration status, compliance reviews, safety records, ratings, and inspections. Visit FMCSA’s registration portal to get your USDOT and MC number.

International Fuel Tax Agreement (IFTA) License. An IFTA license is mandatory if you operate in multiple states and transport taxable fuel. It allows you to report and pay fuel taxes to one state, simplifying your business processes. To obtain this license, apply through your state’s Department of Revenue.

Heavy Highway Vehicle Use Tax (HVUT) Certificate. If your commercial vehicles weigh 55,000 pounds or more and operate on public highways, you must have an up-to-date HVUT certificate. It shows you pay the IRS’s annual tax for such commercial vehicles. Visit the IRS website to apply for this certificate.

Owner-Operator Compliance Checklist

To ensure owner-operators comply with all FMCSA regulations, the Department of Transportation conducts unannounced audits periodically. There are four primary types of DOT audits you should anticipate:

  • New entrant audits. DOT conducts new entrant safety audits to ensure you’re within the safety guidelines as you get your commercial trucking business operations off the ground. Expect these within a year after filing and getting your DOT number.
  • Security audits. These examine your company’s driver training and safety plan and your security measures.
  • Hazardous materials audits. When performing a hazardous materials audit, the DOT checks your hazardous material labeling, training, plus shipping documentation.
  • Compliance review. Commonly known as a targeted DOT audit, this review happens when there’s an indication of poor performance. An indicator could be anything from increased crash rates to citizen complaints. However, FMCSA can also perform random compliance reviews without any cause.

The best practice to ensure you pass all DOT audits and remain in business is to stay on top of your DOT compliance requirements. Some key areas you should focus on being on the safe side include:

  • Adherence to hours of service regulations
  • Vehicle maintenance and inspections
  • Driver qualification and licensing documentation
  • Hazardous materials compliance requirements
  • Participating in DOT’s drug and alcohol testing program

Final Thoughts

Running a profitable trucking company as an owner-operator can be rewarding. There’s no cap to how much you make as you enjoy autonomy over your trucking business operations. However, you must set it up correctly for this to be true.

Our owner-operator checklist above is well-organized to ensure your business gets off the ground fast. If you follow it keenly, you’ll legally operate your commercial trucking business in many states and avoid the hefty fines that result from non-compliance.

Remember, you can always reach out to us if you need help purchasing your truck to get started. We’ll work to ensure our flexible commercial loans fit your budget and business goals so you can start your truck company on stable grounds financially.

apportioned plates

Understanding Apportioned License Plates

apportioned plates

If you’re a commercial truck driver who regularly crosses state borders, then you might need to get apportioned license plates. It’s also important that you understand IFTA and IRP registration.

This might sound like a lot of admin, but it can make your life a lot easier with managing your vehicle and tax reports. Registration is also a straightforward process. Plus, if your vehicle qualifies for these registrations, it is a legal requirement.

Still confused about what this all means and how it might affect you? We’ll answer everything you need to know about apportioned registration in the guide below.

Apportioned Registration and IRP Registration

Apportioned registration and IRP (International Registration Plan) registration cover what are called “apportioned plates.” Apportioned really just means divided or distributed – which applies to the area where the vehicle is registered.

When you see a semi-truck driver using apportioned plates, it means the owner has registered the truck to operate in multiple jurisdictions, making interstate or international travel a lot easier.

Apportioned plates allow commercial vehicles, like trucks and buses, to travel between different states. These plates distribute the registration fees among whatever jurisdictions the vehicle operates, based on the percentage of miles traveled in each area.

This system simplifies registration for vehicles that often cross state lines.

What is the Difference Between IFTA and IRP?

The main difference between IFTA (International Fuel Tax Agreement) and IRP (International Registration Plan) is what they cover. In the most simple terms, IFTA deals with fuel taxes, and IRP deals with registration for vehicles traveling across different jurisdictions.

IFTA is an agreement between the lower 48 U.S. states and 10 Canadian provinces, used to report and distribute fuel taxes paid by interstate motor carriers.

IRP is an agreement between U.S. states, the District of Columbia, and Canadian provinces. It allows commercial vehicles to register in their base jurisdiction and travel across state or provincial lines.

Commercial vehicles that frequently cross these borders will have both registration credentials to make travel a lot easier.

fuel

What is the International Fuel Tax Agreement (IFTA)?

The International Fuel Tax Agreement (IFTA) is an agreement between the lower 48 U.S. states and 10 Canadian provinces. It simplifies the reporting and distribution of fuel taxes paid by interstate motor carriers.

Under IFTA, carriers file quarterly fuel tax reports. These reports indicate the amount of fuel purchased and the number of miles traveled in each jurisdiction. Based on this, tax authorities can distribute taxes to the right jurisdictions.

This agreement makes it a lot easier to comply with fuel tax obligations. It also streamlines the tax reporting process for any motor carriers operating in two or more jurisdictions.

Who Must Register Under IRP and IFTA?

Not all trucks that cross state lines need to register under the IRP and IFTA. So, before taking the steps to get an apportioned license plate, make sure that your vehicle first qualifies for the registration reciprocity agreement.

Under the IRP, any commercial vehicle that crosses state lines and has a gross vehicle weight of more than 26,000 pounds, or has three or more axles, must register.

The IFTA requires registration for any motor carrier that operates qualifying vehicles in more than one jurisdiction.

If your vehicle falls under these categories, you must register under IRP and IFTA to operate legally across different states or provinces.

What’s the Difference Between Apportioned Plates and Commercial Plates?

The main difference between apportioned plates and commercial plates is where the vehicle can operate.

Apportioned plates are for vehicles, typically trucks or buses, that travel across state lines. Commercial plates are for vehicles that operate only within a single state. They do not have the design for interstate travel.

In simple terms, apportioned plates allow vehicles to operate across different states or provinces legally, while commercial plates are for vehicles that operate solely within one state.

If you’re a motor carrier, you need to have commercial plates, but you don’t necessarily need apportioned registration. Apportioned registration is also always commercial.

application

How Do I Get Apportioned Plates?

Follow these steps if you think your vehicle needs to apply for an apportioned license plate.

Confirm Your Eligibility

Before starting the registration process, ensure your vehicle qualifies for apportioned plates.

Vehicles that travel across state lines and meet certain weight or axle requirements are eligible.Typically, you can confirm this through your state’s Department of Motor Vehicles (DMV).

Register with IRP

If your vehicle needs apportioned plates, the first step in getting them is registering your vehicle with the IRP.  You can do this through your state’s DMV.

Fill out the apportioned plate application form provided by your state’s DMV. You’ll need to provide detailed information about your vehicle, including its weight, type, and other relevant details.

This information helps determine the proper allocation of registration fees among the states where your vehicle operates.

Submit Supporting Documents

Along with the application forms, you’ll also need to submit a few documents. This includes your proof of insurance, vehicle registration documents, and other required paperwork.

Double-check the specific requirements of your state or province, as the exact documents needed can differ.

Pay Your Fees

Once you’ve got all the documentation in place, you’ll need to pay the required registration fees.

The amount you need to pay will vary depending on your vehicle’s weight, type, and the states in which you will be operating. Be prepared to cover the costs associated with the apportioned plates.

Wait for Approval

After submitting your application and documents, you’ll need to wait for approval.

The approval process can take some time, so it’s essential to submit everything correctly and be patient.

Once your application is approved, and all fees are paid, you’ll receive your apportioned plates. Make sure you install the plates properly on your vehicle according to the regulations of your state or province.

Final Thoughts

A big part of operating any kind of trucking business is making sure that your vehicle complies with all regulations in any state it travels. Getting apportioned registration is actually a really easy way to stay on top of this.

Properly registering your vehicle ensures that you are operating legally across borders and makes any kind of reporting you need to do a lot more streamlined.

Are you considering purchasing a new commercial vehicle? Then you’ll need to get the right financing partner on board. At Mission Financial Services, we make this process easy by helping all truck drivers get financing for their perfect vehicle. Access your simple credit application today.

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