Showing posts from tagged with: motor carrier equipment interchange

Transferring Liability and Equipment Between Motor Carriers

Posted on November 01, 2016

shutterstock_348061355 amSometimes motor carriers need to exchange equipment. However, this raises questions about liability. In order for authorized motor carriers to interchange equipment, they must address the following.

Interchange Agreement

Motor carriers need a written contract or document that describes the equipment. This document should also detail how the motor carrier will use the equipment and how much compensation is required for the equipment’s use. All involved motor carriers must sign the agreement.

Operating Authority

Any motor carrier who wants to participate in an equipment interchange must register with the Secretary of Transportation. The Secretary will then supply the transport of equipment at the designated location for the physical exchange.

Bill of Lading

The original motor carrier must issue a bill of lading in order for the equipment interchange to progress. The bill of lading provides a receipt of services rendered.

Identifying the Equipment

The motor carrier receiving the equipment must identify all power units. The motor carrier must have a document verifying they are operating the equipment. The document should provide other details as well such as the date and time the motor carrier assumes responsibility for the equipment.

Connecting Carriers and Liability

Any motor carrier who transfers equipment from one motor carrier to another assumes ownership of the equipment. This applies to both leasing and returning equipment.