trip lease logistics llc

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BLOOMINGDALE

TRIP LEASE LOGISTICS LLC

Trip lease logistics llc is a freight shipping trucking company from bloomingdale, ga. company usdot number is 3861347 and docket number is 1410670. transportation services provided: vans.

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What is Trip Leasing?

October 24, 2021

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Key Takeaways

Trip leasing originated from the need for a driver to return home profitably. An owner-operator (or company) leases their motor vehicle to another transportation provider for a single trip. Learn more about the practice of trip leasing and why it exists.

What is trip leasing?

Trip leasing is when an owner-operator (or company) leases their motor vehicle to another transportation provider for a single trip. Drivers may haul loads through the carrier’s operating authority or their own.

Trip leasing origins

Trip leasing a vehicle originated from the need for a driver to return home and/or profitability. Certain commodities are regulated in the U.S., and drivers need operating authority to transport these commodities. Truckers can transport exempt commodities without operating authority. (See the Federal Motor Carrier Safety Administration’s (FMCSA) composite commodity list )

However, hauling exempt commodities—such as unprocessed goods, fruits and vegetables, and items of little value—are a one-way movement. For example, drivers might haul the exempt commodities from their place of production to market points. But, there is no substantial movement of exempt commodities from the market points back to the places of production; no return loads. Generally, without a return load, hauling the exempt commodities to market is unprofitable.

Typically, only non-exempt or regulated commodity payloads are available for return load hauling. Thus, the practice of trip leasing was developed to ensure the lessor could make some money while returning home. An owner-operator without operating authority (uncertificated carrier) could offer a trip lease to another company or a certificated carrier for the return trip only. Like any other for-hire job, they could negotiate pricing and timing for each haul.

The original trucker could transport the load under the certificated carrier’s authority. Or, the certificated carrier would provide their own truck driver and the original driver rides along. Being under lease to a certificated carrier, the vehicle is eligible to haul non-exempt commodities under the lessee or shipper’s authority.

The trucking industry experienced deregulation after the Motor Carrier Act of 1980 was passed, which diminished the regulatory power of the Interstate Commerce Commission (ICC). It became much easier for owner-operators to obtain their own authority and haul regulated commodities. As a result, the practice of trip leasing has fallen into disuse.

Trip Lease Defense on Double Brokered Loads

When moving freight between states, shippers often hire freight brokers to arrange for licensed motor carriers to physically transport their freight from origin to destination. In order to arrange for that transportation, freight brokers have to be licensed (49 U.S.C. § 13904) and carry a bond (49 U.S.C. § 13906).

The shipper contracts with the broker using a shipper/broker agreement. The broker hires a licensed motor carrier (Carrier A) using a broker/carrier agreement. These contracts specify the transportation services each party will perform and identify the authority under which they are performing that service, as required by 49 U.S.C. § 13901.

Sometimes Carrier A—who does not have a license or bond allowing it to arrange for the transportation of freight—will transfer the load to another motor carrier (Carrier B) without the broker knowing and without Carrier B being tied to the contract chain. This is one type of double brokering that can create some legal hurdles if the freight is lost or damaged in transit leading to a cargo claim or there is an accident leading to an injury or casualty claim.

When a shipper, broker, or injured party takes legal action against Carrier A and/or Carrier B for loss or damage or injury, they often not only file a cargo claim or injury claim, they also bring a claim for unlawful brokering against Carrier A and Carrier B under 49 U.S.C. § 14916, Unlawful brokerage activities. Under that statute, any party that “knowingly authorizes, consents to, or permits” the arrangement for transporting freight without an active broker’s license and bond can be held liable “to the injured party for all valid claims incurred without regard to amount.” Id . That liability extends not only to Carriers A and B the companies, but also “to the individual officers, directors, and principals of such entities.” Id .

To avoid this personal liability, Carrier A and Carrier B will often defend the 14916 claim by asserting Carrier B is not liable for the loss or Carrier A did not wrongfully act as a broker because Carrier B hauled the load for Carrier A on a trip lease, which is defined as the lease of vehicle equipment to a motor carrier for a single interstate movement.

Under federal regulations, trip leasing of equipment between Carrier B and Carrier A is allowed, but carefully regulated. Consequently, shippers, brokers, and motor carriers have to evaluate the evidence to determine whether the trip lease defense will hold up. In order to qualify as a trip lease, there must be a written lease between the lessor (Carrier B) and lessee (Carrier A) of the equipment. See 49 CFR 376.11(b)(1). The leased equipment must also be marked by the lessee carrier as required by 49 CFR 390.21(b)-(d). Finally, a copy of the lease must be kept with the vehicle at all times during the lease. See 49 CFR 376.11(c)(2).

This firm recently resolved a case where Carrier A and Carrier B defended a 14916 claim by asserting Carrier B was carrying the load for Carrier A on a trip lease. In the referenced case, Carrier A and Carrier B did provide a written equipment lease between them. However, evidence from the accident site, including photographs and the police report, showed that the tractor was marked with Carrier B’s USDOT and MC number—not Carrier A’s as required by 49 CFR 390.21(b)-(d). Moreover, there was no evidence that the lease was kept with Carrier B’s vehicle at all times. Based on this evidence, the Carrier A and Carrier B trip lease defense failed.

When asserting or defending against a trip lease defense, make sure you familiarize yourself with the federal regulations and evaluate the evidence collected from the accident site.

With attorneys licensed in Utah, Idaho, Wyoming, and Nevada and a network of excellent transportation attorneys across the United States, SNJ’s trained attorneys and paralegals are ready to help you understand and resolve your cargo or casualty claim.

Skoubye, Nielson, Johansen Attorneys Salt Lake City Utah

Stevan R. Baxter 801.365.1019 [email protected]

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CMV Law: The Trip Lease Exemption

Motor carriers routinely swap out leased equipment. This is an economical way to keep loaded trucks on the road and therefore on a faster track for delivery. For example, an O/O may be under lease to motor carrier A, which does not have a load for him to take home after he finishes his delivery for it. The O/O may learn that motor carrier B has a load it needs to be delivered in the direction the O/O will be traveling to return home from dropping off the load for A. With the permission of A, the O/O may be able to temporarily lease its power unit to B, and a “trip lease” is born. But suppose the O/O causes a crash while pulling B’s load? Arguably, this situation is addressed by the regulations.

The Trip Lease (a/k/a The Sublease)

49 C.F.R. provides an exemption from the typical leasing rules for trip lease situations. Therein, an authorized motor carrier or a private motor carrier may lease equipment to another authorized motor carrier under certain conditions, such as:

1. Like the requirements under regulation, the equipment must be marked with the lessee motor carrier’s identification in the manner prescribed by Part 390; (“Identification of vehicles”).

2. The lessor must own the equipment or hold it under a lease;

3. The parties must fill out a written lease agreement, signed by the parties or their authorized representatives, and providing that control and responsibility for the operation of the equipment belongs to the lessee from the time possession is taken by the lessee and the receipt required by regulation is given to the lessor. The lease must also specify that the responsibility of the lessee terminates once possession is returned to the lessor and the receipt is received by the authorized carrier. In the event that the agreement is between authorized carriers, responsibility may also terminate when possession is turned over from one authorized carrier to the other.

4. A copy of the lease must be carried in the equipment. Carriers can use a master lease as well. Importantly, the regulations also provide that authorized carriers and private carriers under common ownership and control may lease to each other without marking the equipment or giving a receipt. However, such entities must still comply with the remaining requirements applicable to trip leases.

Observations and Pertinent Case Law

The regulation makes it sound like a proper trip lease takes the lessor motor carrier off-the-risk for the duration of the trip lease, with the “control and responsibility [being] that of the lessee.” This has not always been held to be the case. Several cases hold that the “permanent lessee” remains on-the-risk, despite the existence of a trip lease and the fairly clear language of the regulation. This tends to mean two things. First, there may be two policies applicable to the loss. Second, the two insurers are going to fight it out in a declaratory judgment action over “who’s on first.” However, not all courts have found a trip lease irrelevant to the liability of the “permanent” lessee. In Bailey v. Payne, the court observed that the trip lease provided that a permanent lessee was to remove the trip lessee’s placards at the conclusion of the trip lease. The plaintiffs argued the continuing presence of the trip lessee’s placards on the truck caused the trip lessee, and hence its insurer to remain, on-the-risk. The court found that the trip lease had terminated approximately two weeks before the incident and that the permanent lessee’s driver had signed a receipt for the equipment at termination. The court noted that “the regulations … foresee the lessee as having exclusive possession and control over the subject vehicle and… complete responsibility for its operation” and “both of these obligations… were expected to last only ‘for the duration of the lease’….” While not explicitly holding that a permanent lessee is per se absolved of liability during the trip lease, Bailey is reasoned in a way that would support such a result. However, the main body of authority on this point appears to recognize exposure for a permanent lessee even when the equipment at issue is the subject of a valid trip lease to another carrier.

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DOT Leasing Regulations

Table of Content

Subpart A – General applicability and definitions

Subpart b – leasing regulations, subpart c – exemptions for the leasing regulations, subpart d – interchange regulations, subpart e – private carriers and shippers.

§376.1 Applicability. The regulations in this part apply to the following actions by motor carriers registered with the Secretary to transport property: (a) The leasing of equipment with which to perform transportation regulated by the Secretary. (b) The leasing of equipment to motor private carrier or shippers. (c) The interchange of equipment between motor common carriers in the performance of transportation regulated by the Secretary.

[44 FR 4681, Jan. 23, 1979. Redesignated at 61 FR 54707, Oct. 21, 1996, as amended at 62 FR 15423, Apr. 1, 1997]

§376.2 Definitions. (a) Authorized carrier — A person or persons authorized to engage in the transportation of property as a motor carrier under the provisions of 49 U.S.C. 13901 and 13902. (b) Equipment — A motor vehicle, straight truck, tractor, semitrailer, full trailer, any combination of these and any other type of equipment used by authorized carriers in the transportation of property for hire. (c) Interchange — The receipt of equipment by one motor common carrier of property from another such carrier, at a point which both carriers are authorized to serve, with which to continue a through movement. (d) Owner — A person (1) to whom title to equipment has been issued, or (2) who, without title, has the right to exclusive use of equipment, or (3) who has lawful possession of equipment registered and licensed in any State in the name of that person. (e) Lease — A contract or arrangement in which the owner grants the use of equipment, with or without driver, for a specified period to an authorized carrier for use in the regulated transportation of property, in exchange for compensation. (f) Lessor — In a lease, the party granting the use of equipment, with or without driver, to another. (g) Lessee — In a lease, the party acquiring the use of equipment with or without driver, from another. (h) Sublease — A written contract in which the lessee grants the use of leased equipment, with or without driver, to another. (i) Addendum — A supplement to an existing lease which is not effective until signed by the lessor and lessee. (j) Private carrier — A person, other than a motor carrier, transporting property by motor vehicle in interstate or foreign commerce when (1) the person is the owner, lessee, or bailee of the property being transported; and (2) the property is being transported for sale, lease, rent, or bailment, or to further a commercial enterprise. (k) Shipper — A person who sends or receives property which is transported in interstate or foreign commerce. (l) Escrow fund — Money deposited by the lessor with either a third party or the lessee to guarantee performance, to repay advances, to cover repair expenses, to handle claims, to handle license and State permit costs, and for any other purposes mutually agreed upon by the lessor and lessee. (m) Detention — The holding by a consignor or consignee of a trailer, with or without power unit and driver, beyond the free time allocated for the shipment, under circumstances not attributable to the performance of the carrier.

[44 FR 4681, Jan. 23, 1979, as amended at 49 FR 47269, Dec. 3, 1984; 49 FR 47850, Dec. 7, 1984; 50 FR 24649, June 12, 1985; 51 FR 37406, Oct. 22, 1986; 62 FR 15424, Apr. 1, 1997] §376.12 Written lease requirements. Except as provided in the exemptions set forth in subpart C of this part, the written lease required under §376.11(a) shall contain the following provisions. The required lease provisions shall be adhered to and performed by the authorized carrier. (a) Parties — The lease shall be made between the authorized carrier and the owner of the equipment. The lease shall be signed by these parties or by their authorized representatives. (b) Duration to be specific — The lease shall specify the time and date or the circumstances on which the lease begins and ends. These times or circumstances shall coincide with the times for the giving of receipts required by §376.11(b). (c) Exclusive possession and responsibilities — (1) The lease shall provide that the authorized carrier lessee shall have exclusive possession, control, and use of the equipment for the duration of the lease. The lease shall further provide that the authorized carrier lessee shall assume complete responsibility for the operation of the equipment for the duration of the lease. (c)(2) Provision may be made in the lease for considering the authorized carrier lessee as the owner of the equipment for the purpose of subleasing it under these regulations to other authorized carriers during the lease. (c)(3) When an authorized carrier of household goods leases equipment for the transportation of household goods, as defined by the Secretary, the parties may provide in the lease that the provisions required by paragraph (c)(1) of this section apply only during the time the equipment is operated by or for the authorized carrier lessee. (c)(4) Nothing in the provisions required by paragraph (c)(1) of this section is intended to affect whether the lessor or driver provided by the lessor is an independent contractor or an employee of the authorized carrier lessee. An independent contractor relationship may exist when a carrier lessee complies with 49 U.S.C. 14102 and attendant administrative requirements. (d) Compensation to be specified — The amount to be paid by the authorized carrier for equipment and driver’s services shall be clearly stated on the face of the lease or in an addendum which is attached to the lease. Such lease or addendum shall be delivered to the lessor prior to the commencement of any trip in the service of the authorized carrier. An authorized representative of the lessor may accept these documents. The amount to be paid may be expressed as a percentage of gross revenue, a flat rate per mile, a variable rate depending on the direction traveled or the type of commodity transported, or by any other method of compensation mutually agreed upon by the parties to the lease. The compensation stated on the lease or in the attached addendum may apply to equipment and driver’s services either separately or as a combined amount. (e) Items specified in lease — The lease shall clearly specify which party is responsible for removing identification devices from the equipment upon the termination of the lease and when and how these devices, other than those painted directly on the equipment, will be returned to the carrier. The lease shall clearly specify the manner in which a receipt will be given to the authorized carrier by the equipment owner when the latter retakes possession of the equipment upon termination of the lease agreement, if a receipt is required at all by the lease. The lease shall clearly specify the responsibility of each party with respect to the cost of fuel, fuel taxes, empty mileage, permits of all types, tolls, ferries, detention and accessorial services, base plates and licenses, and any unused portions of such items. The lease shall clearly specify who is responsible for loading and unloading the property onto and from the motor vehicle, and the compensation, if any, to be paid for this service. Except when the violation results from the acts or omissions of the lessor, the authorized carrier lessee shall assume the risks and costs of fines for overweight and oversize trailers when the trailers are pre-loaded, sealed, or the load is containerized, or when the trailer or lading is otherwise outside of the lessor’s control, and for improperly permitted overdimension and overweight loads and shall reimburse the lessor for any fines paid by the lessor. If the authorized carrier is authorized to receive a refund or a credit for base plates purchased by the lessor from, and issued in the name of, the authorized carrier, or if the base plates are authorized to be sold by the authorized carrier to another lessor the authorized carrier shall refund to the initial lessor on whose behalf the base plate was first obtained a prorated share of the amount received. (f) Payment period — The lease shall specify that payment to the lessor shall be made within 15 days after submission of the necessary delivery documents and other paperwork concerning a trip in the service of the authorized carrier. The paperwork required before the lessor can receive payment is limited to log books required by the Department of Transportation and those documents necessary for the authorized carrier to secure payment from the shipper. In addition, the lease may provide that, upon termination of the lease agreement, as a condition precedent to payment, the lessor shall remove all identification devices of the authorized carrier and, except in the case of identification painted directly on equipment, return them to the carrier. If the identification device has been lost or stolen, a letter certifying its removal will satisfy this requirement. Until this requirement is complied with, the carrier may withhold final payment. The authorized carrier may require the submission of additional documents by the lessor but not as a prerequisite to payment. Payment to the lessor shall not be made contingent upon submission of a bill of lading to which no exceptions have been taken. The authorized carrier shall not set time limits for the submission by the lessor of required delivery documents and other paperwork. (g) Copies of freight bill or other form of freight documentation — When a lessor’s revenue is based on a percentage of the gross revenue for a shipment, the lease must specify that the authorized carrier will give the lessor, before or at the time of settlement, a copy of the rated freight bill or a computer-generated document containing the same information, or, in the case of contract carriers, any other form of documentation actually used for a shipment containing the same information that would appear on a rated freight bill. When a computer-generated document is provided, the lease will permit lessor to view, during normal business hours, a copy of any actual document underlying the computer-generated document. Regardless of the method of compensation, the lease must permit lessor to examine copies of the carrier’s tariff or, in the case of contract carriers, other documents from which rates and charges are computed, provided that where rates and charges are computed from a contract of a contract carrier, only those portions of the contract containing the same information that would appear on a rated freight bill need be disclosed. The authorized carrier may delete the names of shippers and consignees shown on the freight bill or other form of documentation. (h) Charge-back items — The lease shall clearly specify all items that may be initially paid for by the authorized carrier, but ultimately deducted from the lessor’s compensation at the time of payment or settlement, together with a recitation as to how the amount of each item is to be computed. The lessor shall be afforded copies of those documents which are necessary to determine the validity of the charge. (i) Products, equipment, or services from authorized carrier — The lease shall specify that the lessor is not required to purchase or rent any products, equipment, or services from the authorized carrier as a condition of entering into the lease arrangement. The lease shall specify the terms of any agreement in which the lessor is a party to an equipment purchase or rental contract which gives the authorized carrier the right to make deductions from the lessor’s compensation for purchase or rental payments. (j) Insurance — (1) The lease shall clearly specify the legal obligation of the authorized carrier to maintain insurance coverage for the protection of the public pursuant to FMCSA regulations under 49 U.S.C. 13906. The lease shall further specify who is responsible for providing any other insurance coverage for the operation of the leased equipment, such as bobtail insurance. If the authorized carrier will make a charge back to the lessor for any of this insurance, the lease shall specify the amount which will be charged-back to the lessor. (j)(2) If the lessor purchases any insurance coverage for the operation of the leased equipment from or through the authorized carrier, the lease shall specify that the authorized carrier will provide the lessor with a copy of each policy upon the request of the lessor. Also, where the lessor purchases such insurance in this manner, the lease shall specify that the authorized carrier will provide the lessor with a certificate of insurance for each such policy. Each certificate of insurance shall include the name of the insurer, the policy number, the effective dates of the policy, the amounts and types of coverage, the cost to the lessor for each type of coverage, and the deductible amount for each type of coverage for which the lessor may be liable. (j)(3) The lease shall clearly specify the conditions under which deductions for cargo or property damage may be made from the lessor’s settlements. The lease shall further specify that the authorized carrier must provide the lessor with a written explanation and itemization of any deductions for cargo or property damage made from any compensation of money owed to the lessor. The written explanation and itemization must be delivered to the lessor before any deductions are made. (k) Escrow funds — If escrow funds are required, the lease shall specify: (k)(1) The amount of any escrow fund or performance bond required to be paid by the lessor to the authorized carrier or to a third party. (k)(2) The specific items to which the escrow fund can be applied. (k)(3) That while the escrow fund is under the control of the authorized carrier, the authorized carrier shall provide an accounting to the lessor of any transactions involving such fund. The carrier shall perform this accounting in one of the following ways: (k)(3)(i) By clearly indicating in individual settlement sheets the amount and description of any deduction or addition made to the escrow fund; or (k)(3)(ii) By providing a separate accounting to the lessor of any transactions involving the escrow fund. This separate accounting shall be done on a monthly basis. (k)(4) The right of the lessor to demand to have an accounting for transactions involving the escrow fund at any time. (k)(5) That while the escrow fund is under the control of the carrier, the carrier shall pay interest on the escrow fund on at least a quarterly basis. For purposes of calculating the balance of the escrow fund on which interest must be paid, the carrier may deduct a sum equal to the average advance made to the individual lessor during the period of time for which interest is paid. The interest rate shall be established on the date the interest period begins and shall be at least equal to the average yield or equivalent coupon issue yield on 91-day, 13-week Treasury bills as established in the weekly auction by the Department of Treasury. (k)(6) The conditions the lessor must fulfill in order to have the escrow fund returned. At the time of the return of the escrow fund, the authorized carrier may deduct monies for those obligations incurred by the lessor which have been previously specified in the lease, and shall provide a final accounting to the lessor of all such final deductions made to the escrow fund. The lease shall further specify that in no event shall the escrow fund be returned later than 45 days from the date of termination. (l) Copies of the lease — An original and two copies of each lease shall be signed by the parties. The authorized carrier shall keep the original and shall place a copy of the lease on the equipment during the period of the lease unless a statement as provided for in §376.11(c)(2) is carried on the equipment instead. The owner of the equipment shall keep the other copy of the lease. (m) This paragraph applies to owners who are not agents but whose equipment is used by an agent of an authorized carrier in providing transportation on behalf of that authorized carrier. In this situation, the authorized carrier is obligated to ensure that these owners receive all the rights and benefits due an owner under the leasing regulations, especially those set forth in paragraphs (d)-(k) of this section. This is true regardless of whether the lease for the equipment is directly between the authorized carrier and its agent rather than directly between the authorized carrier and each of these owners. The lease between an authorized carrier and its agent shall specify this obligation.

§376.21 General exemptions. Except for §376.11(c) which requires the identification of equipment, the leasing regulations in this part shall not apply to: (a) Equipment used in substituted motor-for-rail transportation of railroad freight moving between points that are railroad stations and on railroad billing. (b) Equipment used in transportation performed exclusively within any commercial zone as defined by the Secretary. (c) Equipment leased without drivers from a person who is principally engaged in such a business. (d) Any type of trailer not drawn by a power unit leased from the same lessor.

[44 FR 4681, Jan. 23, 1979. Redesignated at 61 FR 54707, Oct. 21, 1996, as amended at 62 FR 15424, Apr. 1, 1997] §376.22 Exemption for private carrier leasing and leasing between authorized carriers. Regardless of the leasing regulations set forth in this part, an authorized carrier may lease equipment to or from another authorized carrier, or a private carrier may lease equipment to an authorized carrier under the following conditions: (a) The identification of equipment requirements in §376.11(c) must be complied with; (b) The lessor must own the equipment or hold it under a lease; (c) There must be a written agreement between the authorized carriers or between the private carrier and authorized carrier, as the case may be, concerning the equipment as follows: (c)(1) It must be signed by the parties or their authorized representatives. (c)(2) It must provide that control and responsibility for the operation of the equipment shall be that of the lessee from the time possession is taken by the lessee and the receipt required under §376.11(b) is given to the lessor until: (i) Possession of the equipment is returned to the lessor and the receipt required under §376.11(b) is received by the authorized carrier; or (ii) in the event that the agreement is between authorized carriers, possession of the equipment is returned to the lessor or given to another authorized carrier in an interchange of equipment. (c)(3) A copy of the agreement must be carried in the equipment while it is in the possession of the lessee. (c)(4) Nothing in this section shall prohibit the use, by authorized carriers, private carriers, and all other entities conducting lease operations pursuant to this section, of a master lease if a copy of that master lease is carried in the equipment while it is in the possession of the lessee, and if the master lease complies with the provisions of this section and receipts are exchanged in accordance with §376.11(b) and if records of the equipment are prepared and maintained in accordance with §376.11(d). (d) Authorized and private carriers under common ownership and control may lease equipment to each other under this section without complying with the requirements of paragraph (a) of this section pertaining to identification of equipment, and the requirements of paragraphs (c)(2) and (c)(4) of this section pertaining to equipment receipts. The leasing of equipment between such carriers will be subject to all other requirements of this section.

§376.26 Exemption for leases between authorized carriers and their agents. The leasing regulations set forth in §376.12(e) through (l) do not apply to leases between authorized carriers and their agents.

§376.31 Interchange of equipment. Authorized common carriers may interchange equipment under the following conditions: (a) Interchange agreement — There shall be a written contract, lease, or other arrangement providing for the interchange and specifically describing the equipment to be interchanged. This written agreement shall set forth the specific points of interchange, how the equipment is to be used, and the compensation for such use. The interchange agreement shall be signed by the parties or by their authorized representatives. (b) Operating authority — The carriers participating in the interchange shall be registered with the Secretary to provide the transportation of the commodities at the point where the physical exchange occurs. (c) Through bills of lading — The traffic transported in interchange service must move on through bills of lading issued by the originating carrier. The rates charged and the revenues collected must be accounted for in the same manner as if there had been no interchange. Charges for the use of the interchanged equipment shall be kept separate from divisions of the joint rates or the proportions of such rates accruing to the carriers by the application of local or proportional rates. (d) Identification of equipment — The authorized common carrier receiving the equipment shall identify equipment operated by it in interchange service as follows: (d)(1) The authorized common carrier shall identify power units in accordance with the FMCSA’s requirements in 49 CFR part 390 of this chapter (Identification of Vehicles). Before giving up possession of the equipment, the carrier shall remove all identification showing it as the operating carrier. (d)(2) Unless a copy of the interchange agreement is carried on the equipment, the authorized common carrier shall carry a statement with each vehicle during interchange service certifying that it is operating the equipment. The statement shall also identify the equipment by company or State registration number and shall show the specific point of interchange, the date and time it assumes responsibility for the equipment, and the use to be made of the equipment. This statement shall be signed by the parties to the interchange agreement or their authorized representatives. The requirements of this paragraph shall not apply where the equipment to be operated in interchange service consists only of trailers or semitrailers. (d)(3) Authorized carriers under common ownership and control may interchange equipment with each other without complying with the requirements of paragraph (d)(1) of this section pertaining to removal of identification from equipment. (e) Connecting carriers considered as owner — An authorized carrier receiving equipment in connection with a through movement shall be considered to the owner of the equipment for the purpose of leasing the equipment to other authorized carriers in furtherance of the movement to destination or the return of the equipment after the movement is completed.

[44 FR 4681, Jan. 23, 1979. Redesignated at 61 FR 54707, Oct. 21, 1996, as amended at 62 FR 15424, Apr. 1, 1997]

§376.42 Lease of equipment by regulated carriers. Authorized carriers may lease equipment and drivers from private carriers, for periods of less than 30 days, in the manner set forth in §376.22.

[49 FR 9570, Mar. 14, 1984, as amended at 51 FR 37034, Oct. 17, 1986; 62 FR 15424, Apr. 1, 1997]

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Truck Leasing Task Force (TLTF) Members

Steve Rush, Carbon Express, Inc. (Carrier) Chair . Mr. Rush has almost 60 years of experience in the trucking industry with 19 years as a driver. He founded Carbon Express, Inc., which employs 74 drivers and 20 additional employees. Mr. Rush is a past chairman of National Tank Truck Carriers (NTTC) and board member at the American Trucking Associations and the New Jersey Motor Truck Association. Mr. Rush received ATA’s Image award in 2021 and represented the NTTC at a Trucking Action Plan White House event in April 2022. Mr. Rush served previously in the U.S. Air Force.

Tamara Brock, Brock Logistics, LLC and Lewis & Lewis Logistics, LLC (Independent Owner-Operator) . Ms. Brock, a licensed freight broker and commercial motor vehicle (CMV) driver operating under her own authority, entered the trucking industry in 2014, leasing her first truck. She paid off that truck and started her own fleet in 2020. Ms. Brock now owns 3 trucks and has been a trainer for new CMV drivers since 2017. She founded Women Owned Carriers and Brokers, a non-profit to support women in the industry. Ms. Brock served as a board member for REAL Women In Trucking and as a former driver advocate for the Less-than-Truckload Trucking Drivers Board. She was featured on Season 9 of “Shipping Wars” on the A&E network and was a 2021 winner of a PBS short film documentary. Ms. Brock was featured on Good Morning America and Spectrum news for being on the Frontline during the pandemic issuing PPE to drivers to keep them safe.

Paul Cullen, The Cullen Law Firm, PLLC (Attorney) . Mr. Cullen founded The Cullen Law Firm, PLLC, in 1997. He has 25 years of experience focused on owner-operator/independent contractor truck driver issues involving federal and state civil and appellate litigation, rulemakings, administrative law, legislation, and issue advocacy. His litigation experience extends to truth-in-leasing and lease-purchase agreements, fair credit reporting act, broker and surety/trustee practices, anti “lumping” enforcement, and driver privacy interests under the Fourth Amendment. Mr. Cullen’s professional affiliations include the Transportation Lawyers Association and Administrative Law & Regulatory Practice Section of the American Bar Association. Mr. Cullen served as a Legislative Assistant to former Representative Jim Moran. He earned his Bachelor of Arts from the College of William and Mary and his law degree from Georgetown University.

Jim Jefferson, Owner-Operator Independent Drivers Association (OOIDA), Supervisor, Regulatory, Compliance, and OCC (Consumer Protection). With more than 24 years of experience in the transportation industry, Mr. Jefferson supervises OOIDA’s Regulatory, Compliance & OOIDA Compliance Connection Business Services department. Mr. Jefferson earned his associate degree in Business Management and Information Processing at Metro Business College, and his CISCO CCNA associate degree at Maplewood Community College. He is the owner and chief instructor of Karate for Kids, an organization that provides self-defense classes to children.

Joshua Krause, OTRLeasing, LLC (Business) . Mr. Krause has 14 years of experience in the transportation industry with a background in financial services. Currently, he is the Chief Operating Officer at OTR Leasing, LLC, and volunteers for numerous organizations in his community. Mr. Krause earned a Bachelor of Science in Economics at Kansas State University.

Kaitlyn Long, International Brotherhood of Teamsters (Labor Organization ). Ms. Long is the Director of Economics for the International Brotherhood of Teamsters, where for the last 13 years she has provided financial expertise and research in support of Teamsters members. Ms. Long earned a Bachelor of Arts in Economics and Political Science from The George Washington University and a Master of Arts in Economics, Certificate in Financial Management, from Johns Hopkins University.

Lesley Tse, Getman, Sweeney & Dunn, PLLC. (Attorney) . Ms. Tse is Of Counsel to the law firm Getman & Sweeney, PLLC, of Kingston, NY. Prior to this, she was a senior associate attorney with Getman Sweeney for 11 years, where she litigated several large collective and class action suits on behalf of owner-operators under the Fair Labor Standards Act in federal courts throughout the country. Notable cases include Van Dusen v. Swift, which resulted in a $100 million settlement on behalf of a class of truck drivers, and Cillufo v. Central Refrigerated Servs., Inc., et al., which resulted in a settlement on behalf of a class of truck drivers. Ms. Tse has conducted extensive research and analysis on lease-purchase agreements and their impacts on truck drivers and is knowledgeable about the statutes, regulations, and case law that apply to and affect lease-purchase drivers and their work. Ms. Tse earned her Bachelor of Science in marketing and finance from New York University and her law degree from Fordham University School of Law.

Steve Viscelli, University of Pennsylvania (Other) . A sociologist and Associate Professor of Practice at the University of Pennsylvania, Dr. Viscelli has more than a decade of experience in academia studying work in freight transportation with a focus on the truck driver and labor markets. His book, The Big Rig: Trucking and Decline of the American Dream (2016), won several academic awards, including the Richard A. Lester Book Award for Outstanding Book in Labor Relations and Labor Economics from Princeton University’s Industrial Relations Section (2017). Dr. Viscelli holds a Ph.D. in Sociology from Indiana University.

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FMCSA Forms New Task Force to Combat Predatory Leasing Practices

WASHINGTON – Today, the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) announced the nine members who will serve on the Truck Leasing Task Force (TLTF) chartered by Transportation Secretary Pete Buttigieg. TLTF will evaluate lease agreements in the industry and their potential safety and financial impacts on owner-operators. TLTF is established as a statutory committee under the authority of Section 23009 of the Infrastructure Investment and Jobs Act (IIJA), Pub. L. 117-58 (2021), in accordance with the Federal Advisory Committee Act (FACA), as amended, 5 U.S.C. App. 2.

TLTF will address areas that have long needed intense focus. It will be tasked with providing best practices to assist drivers in assessing the impacts of a leasing agreement prior to entering into such agreement and recommendations on changes to laws to promote fair leasing agreements. TLTF’s work will contribute to FMCSA’s efforts to ensure that drivers have access to fair leasing agreements.

“At a time when our country needs truck drivers more than ever, we must do everything we can to support the men and women who work in this vital industry,” said U.S. Transportation Secretary Pete Buttigieg. “The Truck Leasing Task Force is taking a hard look at leasing agreements as part of our effort to ensure every truck driver in this country has good working conditions and can make a good living.”

Truck leasing is an important step that many owner-operators in the trucking industry take to get started in the business. Leases that contain terms that are inequitable to drivers may discourage safe drivers from continuing to work in the industry.

TLTF members include representatives from labor organizations, motor carriers, consumer protection groups, owner-operators, and other businesses, as well as attorneys and educators.

The nine members who will serve on FMCSA’s Truck Leasing Task Force are:

Tamara Brock, Brock Logistics, LLC and Lewis & Lewis Logistics, LLC (Independent Owner-Operator)
Paul Cullen, The Cullen Law Firm, PLLC (Attorney)
Troy Hawkins, TTOH Consulting & Logistics, LLC (Independent Owner-Operator
Jim Jefferson, Owner-Operator Independent Driver Association (Consumer Protection)
Joshua Krause, OTR Leasing, LLC (Business)
Kaitlyn Long, International Brotherhood of Teamsters (Labor Organization)
Steve Rush, Carbon Express Inc. (Carrier)
Lesley Tse, Animal Defense Partnership, Inc. (Attorney)
Steve Viscelli, Ph.D., University of Pennsylvania (Economic Sociologist)

“The Truck Leasing Task Force addresses one of trucking’s great challenges. Leasing can have a major impact on people choosing trucking as their career, and protecting drivers is of the utmost importance,” says FMCSA Administrator Robin Hutcheson. “FMCSA is committed to addressing issues that may impact the recruitment and retention of drivers in the trucking industry.”