Interstate vs. Intrastate Trucking

Trucking is the backbone of the economy in America. Almost every item on the shelf in a grocery store, every raw material that mills feed, rides upon the trucks. But there are two main types of trucking that drivers, carriers and dispatchers should be aware of: interstate trucking and intrastate trucking.

As similar as the two sounds, they are very different in compliance, licensing, costs and growth. It’s important to understand the difference, because it could save time, money and legal problems – and because it could make a huge difference to which path a business decides upon depending on its objectives.

Here at Dexter Dispatch Services we partner with interstate as well as intrastate carriers, helping them to make more, reduce downtime, and remain compliant. In this guide we’ll go over everything you need to know about interstate vs. intrastate trucking.

What is Interstate Trucking?

Interstate trucking involves transportation that is done over state lines. If a trucker takes freight from Texas to California, that’s interstate trucking. Even if a load might be initiating one state, but was part of a shipment that travels to another state it is Interstate.

Examples of interstate trucking:
A load picked up in Florida, and delivered in Georgia.

• A freight hauled from a warehouse located in one state of Illinois to a store in a different state of Indiana.
• A shipment leaving a New Jersey port to PA.

Even if the driver never leaves his/her home state at all, but the goods are known as part of an interstate shipment (ex. a pool from Florida to Florida, wherein the goods started from California) then it is interstate.

Key Point: The origin and destination of the cargo, not just the route the driver takes, determines if the cargo is interstate.

What is Intrastate Trucking?

Intrastate trucking is the transport of freight within one state. Drivers and companies are the never crossing state borders and the cargo never leaves the state.

Examples of intrastate Trucking:

• Shipping produce from a farm in Texas to a grocery chain in Houston,
• Transporting building materials from a warehouse in Phoenix to a location in Tucson.
• Someone local for delivery in Los Angeles or Miami.

Intrastate trucking is typically local or regional in that it is under states rather than federal regulations.

Key Differences Between Interstate and Intrastate Trucking

Licensing and Regulatory Requirements

1. Interstate Trucking Regulations

If you operate interstate it falls under the jurisdiction of the FMCSA. Key requirements include:

• DOT Number (for Safety and compliance purposes)
• Operating Authority – (MC Number) if you haul regulated commodities or work as a for-hire carrier.

• Minimum Insurance Coverage (varies by type of cargo, common Insurance coverages are $750,000 – $5 million).
• Hours of Service (HOS) regulations.
• Electronic Logging Devices (ELDs) to monitor the hours driven

2. Intrastate Trucking Regulations

• Intrastate drivers are subject to their state’s DOT regulations. Requirements vary a lot, but often include:
• State DOT Number (if mandate of the state)
• Insurance minimums tend to be lower than insurance minimums for interstate.
• Age requirement is usually 18 or older – some states allow persons with a CDL who are under the age of 21 to only drive within the state.
• Some states don’t require intrastate carriers to use ELDs.

Insurance Considerations

One of the largest distinctions between trucks that travel between states and those that remain within the confines of the same state is the type of insurance they can obtain.

• Trucks crossing state lines are required by FMCSA rules to have insurance. Usually they have to have at least $750,000 in liability, but sometimes it is even up to $5 million. They also need to have insurance for the goods that they carry on most cases.
• Trucks which remain in a single state have insurance limits designated by the state. These limits tend to be lower in nature, and therefore less costly to small or local operators.

Pros and Cons of Interstate Trucking

Pros:

• You can earn more money.
• You will find that you can make more freight jobs, longer trip and cross country freight trips.
• You can deal with big brokers and shippers across the entire country.

Cons:

• Increased cost of insurance and rules
• More complicated rules to follow, like FMCSA, ELDs, HOS
• More time away from home, more so if you have a long-residing mission through driving.

Pros and Cons of Intrastate Trucking

Pros:

• Simpler access (less costs of insurance and licencing required)
• Home more frequently (runs to your local or regional area).
• Good for small carrier and new drivers less than 21.

Cons:

• “There aren’t many freight opportunities.”
• Salary is less than in interstate employment.
• Growth of business might be punctuated

Which is Better for You?

Choosing between interstate vs intrastate trucking depends on what you wish to do:

• If you are just starting out, under the age of 21, or like to haul locally, intrastate trucking may be best.
• So if you want to grow, use national freight, make more money, you need interstate trucking.

At dexterdispatchservices.com we help both interstate and intrastate carriers find good loads while helping to get those higher rates while cutting truck empty miles. Whether you make hauls cross states or just in your state, good help from dispatchers can turn a loss into a profit.

Dispatching in Interstate vs. Intrastate Trucking

Dispatch is very important when it comes to trucking between states, and trucking within a state.

• For trucks that run across state lines, dispatchers plan lengthy trips speak with significant brokers and ensure the truck remains in compliance.
• For trucking within one state, dispatchers try to make routes local better, and reduces idle and secures better local deals better.

If you work with a professional dispatch service like Dexter Dispatch Services, it allows you to keep driving, while we deal with the paperwork, talks and compliance.

Compliance Mistakes to Avoid

• If so, do you know if your shipment is interstate? Even if you use your trucks only within your own state, if the shipment travels outside of your state boundaries, the FMCSA rules apply.

• Skipping proper insurance. If you are dealing with some specific brokers, then they might not be good with me after the Below amount.

• Failing to get authority. Operation without the correct FMCSA Authority will result in fines and shutdowns.

• Ignoring Hours of Service. Whether you are a motor carrier operating interstate or intrastate, fatigue regulations can protect you and your business.

The Future of Trucking Regulations

Because e-commerce is increasing and the U.S. government is taking a closer look, the distinction between long-haul and in-state truck operators may become less distinct.
In order to make driver safety a better reality many states are adopting these federal rules for drivers who remain in the state.
By staying up-to-date and communicating with experts you can stay ahead of the game with your company.

Final Thoughts

When choosing between interstate versus intrastate trucking, it impacts costs, lifestyle and earnings. Each has advantages and disadvantages, but with the proper knowledge and a good dispatch partner, drivers can succeed with each one.

If you are ready to expand your trucking business, take a look at dexterdispatchservices.com to see how you can grow and expand your operations into both the interstate and intrastate with the help of our dispatch experts.

FAQs About Interstate vs. Intrastate Trucking