Hotshot freight is simply hauling for a single customer that is needed in expedited fashion.
Don’t want a long-haul trucking commercial drivers license? Many for-hire haulers look to get started with hotshot trucking instead with their F-350 truck pulling a gooseneck or 5th wheel trailer to haul construction materials, cars, sheds, horses, etc.
In fact. we often see farmers get started hauling equipment for personal use and now want to take the next step to hauling commercially for customers.
In other cases, a driver wants to be their own boss but worries about going into debt from purchasing a big rig semi tractor and trailer.
The question we hear most often is “Do I need a CDL for Hotshot trucking?”
According to regulations, the simple answer is no. A Class A commercial driver’s license is not required in many states until you are driving vehicles commercially over of 26,000 lb. In other states a CDL is required for vehicles weighing more than 10,000 lb.
But we see many hotshotters come back to our CDL school to eventually upgrade to a Class-A CDL.
If you are looking to get started, below are 5 reasons why we recommend getting your CDL when hauling hotshot versus non-CDL hotshot.
Related Article: Did you know… you can Receive Out-of-State CDL Training with your Home State CDL Permit?
REASON #1: CDL hotshot drivers have flexibility and a back-up plan
Many who enter the hotshot business want flexibility.
If you are looking to haul commercial loads, it is easier to get hired anywhere with a Class A CDL. A clean driving record and a CDL gives your hotshot business a starting point to build your reputation as well as your customers.
If you are driving hotshot as a steppingstone to bigger things, then hauling hotshot with no CDL is not worth it because you do not have a back-up plan. With a CDL, you can start your business driving smaller hotshot loads locally that might not need a CDL to haul.
If you are not making enough money this way, you can move up to a larger vehicle or 40-foot trailer for bigger and more lucrative loads and haul interstate across state lines. If this is not enough, you can step up to a semi or be a company driver.
Basically, without the CDL, you are stuck hauling smaller local freight, and it will be harder to grow your business and ultimately harder to make more money.
REASON #2: Drive any vehicle over GVWR 26,000 lbs and pull a trailer with GVWR over 10,000 lbs
Hotshot haulers quickly find out the importance of understanding gross vehicle weight ratings (GVWR). The size of your truck limits the size of your trailer and ultimately limits the size of the load you can haul and the revenue you can earn.
Generally, commercial motor vehicles (CMVs) are defined as vehicles engaged in interstate commerce (crossing state lines) and:
- Weighing (including any load) more than 10,000 lbs, or
- Having a gross vehicle weight rating or gross combination weight rating of more than 10,000 lbs, or
- Transporting hazardous materials in a quantity requiring placards
As a hotshot your CMV can be a cut-away van, medium-duty box truck, a smaller F-250 or equivalent truck to a larger F-450/550 Super Duty or equivalent for towing. All of these vehicles differ in weight, which in turn affects the size of load you can haul.
Similarly, hauling hotshot can have a variety of trailers that are suitable for the types of loads you plan to carry. There can be smaller horse trailers, flatbed trailers, or larger 30 to 40-ft gooseneck trailers. These too differ in weight and affect the size of loads you can haul.
Remembering the regulations, if the GVWR of your truck, trailer, and cargo is greater than 26,000 lbs, then you need a CDL. Similarly, if you are towing, including the trailer weight, greater than 10,000 lbs, you need a CDL.
A CDL gives you the flexibility to haul different size loads with different equipment and vehicles needed for the types of loads you plan to carry.
REASON #3: No limitations on hotshot loads
Now that you understand the importance of GVWR, we can now talk about the economics of hotshot trucking without a CDL.
Simply, if you do not have a CDL, the max weight must be 26,000 lbs or less. If you have an F-350 that weighs 10,100 lbs and a trailer that weights 7,000 lbs empty, then this only gives the non-CDL hotshot the ability to haul a maximum of 8,900 lbs.
26,000 (max weight without CDL)
– 17,100 (weight of truck + trailer)
= 8,900 (max load for non-cdl)
If you have a CDL, you can haul over that 26,000 GVWR limit.
But let us take this a step further.
If you use a 2500 truck with a GVWR of 10,000 lbs and a tandem axle single wheel with 14,000 lbs GVWR, then the combination is rated and licensed for 24,000 lbs.
Empty weight is 14,560 lbs with fuel, luggage, and you in the cab. This means of the 24,000 lb rating minus 14,560 lbs empty is 9,440 pounds of cargo you can haul.
However, the rear axle is rated for 6,200 lbs and the trailer axles are rated at 7,000 each. That is a 22,000 lb design limitation, which you never want to exceed.
The trailer tongue adds 1,940 lbs of empty weight to the rear axle, which scales 3,200 lbs empty with no trailer and 5,140 lbs with an empty trailer.
So, 6,200 lbs minus 5,140 lbs means you can add 1,060 lbs to the tongue before exceeding the trucks design limits.
This is why it is imperative to know how much your cargo weighs and know where to put it on the trailer. If you do not have a CDL, you have fewer equipment and load options to make money.
CDL School Pricing: CDL Class A – Hot Shot Proficiency Program… LEARN MORE!
REASON #4: Gain more driving experience without expensive CDL schools
Whether you are looking to get a CDL or not, hotshot drivers do not need to go to an expensive big rig CDL school to be trained.
CDL trucking schools are focused on training semi-truck drivers and the federal regulations surrounding them. Much of the knowledge learned at these schools are not needed for hot shot drivers.
Landscapers, construction workers, small car haulers, and other hotshot haulers can be trained to drive an F-250 with a goose neck and a 30-foot trailer to get their CDL with no endorsements or restrictions instead of spending $5000-$8000 on CDL trucking schools driving a big rig.
The best way to get comfortable hauling hotshot is to learn 1-on-1 with training tailored to your needs and experience.
CNS Driver Training Center in Lititz, PA offers very affordable CDL hotshot training geared towards aspiring drivers who are looking to get their CDL quickly, outside of a traditional CDL school.
You Can Receive Out-of-State CDL Training with Home State CDL Permit
Our trainers are fully qualified to train you on any equipment you use while also offering our F-250 with automatic transmission and a 30-foot gooseneck trailer.
We will train you to have your Class A CDL so that you are able to drive any vehicle with a GVWR of 26,001 pounds or more and pulling a trailer that has a GVWR of 10,001 lbs or more.
We can customize any training package to your needs and skill level.
REASON #5: Avoid DOT fines: Licensing requirements for a new CDL hotshot
We talked a lot about GVWR and the importance of understanding weight regulations. If you are hauling overweight of the regulations or vehicle designed ratings, DOT inspectors can quickly fine you during a roadside inspection at the scales.
However, hotshot drivers must worry about other DOT regulations and licensing requirements. If you do not meet any of these requirements, it will be easy for DOT auditors to fine your company.
When it comes to licensing your hotshot, CDL fleets need a USDOT number, driver files, drug and alcohol consortium, MC number, BOC-3, UCR, and more depending on what you plan to be hauling.
If your maximum operating gross weight does not exceed 26,000 pounds, there is no requirement to have an IFTA (International Fuel Tax Agreement) sticker or IRP (International Registration Plan) plates.
You will, however, need to obtain commercial license plates from your home state.
As a new hotshot, you will need the following documents:
- Business License
- Vehicle documents, including title and registration
- Proof of Insurance
- Vehicle for Service Permit
- USDOT number required for interstate hauling
- Operating Authority (MC) obtained with the USDOT
- Commercial Driver’s License (highly recommended)
- Papers of incorporation of LLC status
Does this seem overwhelming? Don’t worry, CNS is here to help. Our CNS Driver Training Center is a subsidiary of Compliance Navigation Specialists, a company considered to be industry experts when it comes to DOT Compliance.
Our DOT compliance specialists take the time to learn about your operation and will let you know what you need to be completely DOT compliant.
We are here to assist with all DOT compliance and licensing needs, including DOT medical services, DOT audit services, DOT safety rating upgrades, IFTA fuel tax reporting, starting a trucking company and more.
For more information, contact us at 888.260.9448 or info@cnsprotects.com
7 Steps To Start Your Hotshot Trucking Company
Step1: DOT Physical and Medical Card
Before even applying for your own LLC, it is important to make sure you qualify to be a truck driver.
This is a requirement mandated by federal law for anyone planning to drive a commercial motor vehicle (CMV), including hotshot drivers.
Be sure to schedule a DOT physical exam from a trusted medical examiner. A DOT physical is a test of your general health, mental, and emotional well-being and will include:
- urinalysis
- blood pressure/pulse rate
- vision test
- hearing test
- physical examination
We offer DOT exams at our location in Lititz, PA with our Certified Medical Examiner (CME), and we also have mobile DOT physicals available.
Step 2: Federal Employer Identification Number
Next, you will need to obtain an Employer Identification Number (EIN). An EIN is a unique nine-digit number assigned to businesses in the United States by the Internal Revenue Service.
You will use this number to file your business tax return, open a business bank account, and receive payments from customers.
Our DOT Licensing Specialists can assist you in setting up your EIN, no matter what state you are in. In addition, we can help you decide what type of business you want to identify as, whether it be an LLC, Partnership, Corporation, S-Corp, etc.
Step 3: USDOT Number and/or Motor Carrier Number
Depending on what your company will be doing, you may need a USDOT Number or both a USDOT number and a Motor Carrier (MC) Number.
Companies that operate commercial vehicles transporting passengers or hauling cargo in interstate commerce must be registered with the FMCSA and must have a USDOT Number.
You will also need a USDOT Number if you plan to haul hazardous materials commercially intrastate for types and quantities requiring a safety permit.
In addition, companies are required to have both a DOT number and an interstate operating authority (MC Number) if they do any of the following tasks:
- Operate as for-hire carriers (for fee or other compensation)
- Transport passengers in interstate commerce (or arrange for their transport)
- Transport federally regulated commodities in interstate commerce (or arrange for their transport)
As you start your own authority and obtain your DOT Number and/or MC Number, the most important requirement to activate them is commercial trucking insurance.
Step 4: Hotshot Commercial Insurance Coverages
For commercial insurance, there are 5 critical hotshot insurance coverages needed to protect your business that can be customized for your specific needs.
As a new venture hotshot trucker there are many start-up licensing requirements you need, and the licensing rules require companies to meet certain insurance liability requirements.
For instance, primary auto liability, also known as Bodily Injury Physical Damage (BIPD), is required by the FMCSA at a minimum coverage of $750,000 to obtain your MC authority.
The 5 critical insurance coverages needed for your hotshot company are:
- Primary auto liability – $750,000 minimum
- Non-trucking liability
- Cargo coverage – $100,000 minimum (recommended)
- Physical damage coverage
- Uninsured motorist insurance
There are few insurance providers that will give a new trucking company a commercial insurance quote. We find that Progressive usually offers the best startup insurance quotes.
Non-trucking Liability: All time spent in a truck isn’t billable, but it is insurable. When you use your truck for non-business purposes, you need insurance coverage. Non-Trucking Liability offers liability coverage for property damage or bodily injury to a third party when trucks are being used for non-business purposes.
Cargo coverage ensures the contents of the trailer, temperature-control machinery, and other appliances or accessories that keep cargo secure. Coverage is custom and calculated based on the type of commodities hauled and the requirements of the shipper.
Physical damage coverage: Any time you drive, you are exposed to risk. Your truck could be damaged in an accident or from another disaster. It could be stolen or vandalized. Any of these issues could put your truck out of commission and compromise your business. While not required on your truck unless your vehicle is leased, it does offer 24-hour collision coverage for damages to your tractor or trailer.
Uninsured motorist coverage: If your truck/trailer is damaged or you sustain injuries in an accident that is caused by a party that does not have sufficient Auto Insurance coverage, this coverage will pay for your injuries.
Step 5: File a BOC-3 (interstate carriers)
A BOC-3 filing is required in the United States to activate your Motor Carrier Authority. This filing assigns legal agents if court papers ever need to be served to your company by an outside state. It is required before federal operating authorities can be granted in the U.S.
CNS, unlike many of our competitors, does not charge an annual fee for a BOC-3 filing.
Step 6: Get an International Fuel Tax Agreement (IFTA) Sticker (interstate carrier)
This agreement is between the lower 48 states and Canadian provinces, and it simplifies reporting of fuel use by motor carriers operating in multiple jurisdictions. Alaska, Hawaii, and Canadian territories do not participate.
An operating carrier with IFTA receives an IFTA license and two decals for each qualifying vehicle. The carrier files a quarterly fuel tax report. This report determines the net tax or refund due and redistributes taxes from collecting states to states where it is due.
Keeping track of all the requirements, receipts, mileage logs, etc. can be complicated, which is why our DOT Compliance Specialists will file your IFTA fuel taxes for you.
Step 7: Become DOT Compliant
Now you need to become compliant with the FMCSA. These items need to be maintained through the year.
You are required to keep impeccable records in the event of an audit. These driver files include MVR reports, previous employer history and inquiries, PSP reports, and more.
If you have a commercial driver’s license, you will need a pre-employment drug test and be enrolled in a DOT drug and alcohol consortium.
We at CNS are excited for your new venture to become reality. We’re here to help you navigate the path towards starting your hotshot trucking company.
Our DOT Essentials Program is a great place to start and our DOT compliance specialists are on hand to get you up and running as quickly as possible. The DOT Essentials Program includes many of the above-mentioned filings and registrations and is one of the most commonly used DOT Compliance Programs by our clients.
