Transcript Why Large Motor Carrier Fleets May Change Their IRP Bases Bob Pitcher Vice President, State Laws ATA.

Why Large Motor Carrier
Fleets May Change
Their IRP Bases
Bob Pitcher
Vice President, State Laws
ATA
A Controversial Issue
• Basing is governed by IRP §210:
– “Base jurisdiction” means, for purposes of fleet
registration, the jurisdiction where the registrant
has an established place of business, where
distance is accrued by the fleet and where
operational records are maintained or can be
made available….
[not substantially changed in the Rewrite]
Controversy, cont’d.
• Original drafters debated
“established” vs. “principal”
• Came down on side of carrier
flexibility
So Why Move??
• Level of Registration Fees?
– NOT under IRP
• Sales or Property Taxes?
– NO: large fleets are already in exempt
jurisdictions
• Moving a Large Fleet is Expensive
Why Move??
• CUSTOMER SERVICE
• INCIDENTAL JURISDICTIONAL
FEES & REQUIREMENTS
A Little Cost Can Make
A Big Difference
• Trucking is a low-margin business
• Motor carrier revenue/mile declined from
1980 to 2003 by 38% (adjusted for inflation)
• Average carrier profit, 1993-2002: 1.9%
• Per truck, that’s $3400/year or $0.03/mile
Increasing Costs
2004-05 very good years for business, but:
• Industry will pay $85B more for fuel this
year and probably next
• We’re short 11,000 drivers & counting
• Trucks started to cost $20,000 more in
2004; it will happen again 2007 & 2010
• Pressure from competitors and customers
never lets up
Incentives
• Jurisdictions fight over other industries with
tax incentives – but not trucking
• Successful fleets have learned to be as
efficient as possible
• No shame in going where it’s easiest and
most efficient to do business
Customer Service
POSITIVES:
• Can-Do attitude
• Accessibility of expert assistance
• Fleets assigned specific agency reps
• One-stop shops
• Electronic application/processing/payment
• Support of management
Customer Service
NEGATIVES:
• Waiting in line
• Limits on time or transactions
• Dealing at local levels
• Delays in paperwork
• Poorly trained, unhelpful staff
Requirements
POSITIVES:
• Electronic titles
• Self-issuance of (all) credentials
• Reciprocity for equipment inspections
• Permanent plates
• Single plate required on tractor
• Carrier-specific plates
Requirements
NEGATIVES:
• Expensive title & transaction fees
• VIN inspection requirements
• Environmental requirements
• Dolly registration
• Lien fees and paperwork
Requirements
NEGATIVES, cont’d:
• Annual stickers for plates
• Special licenses required of carrier
personnel
• Proliferating jurisdiction fees
Why Move?
• No advantages in registration fees or major
taxes
• No advantage in going to a place that
doesn’t want you
• Benefits come in increased customer service
& effiencies
Efficiency Can Make
A Big Difference
To Everybody:
TRUCKING ACCOUNTS
FOR 5% OF GDP