How Much It Cost To Register Scac With Uiia

Planning to haul intermodal containers and chassis?

Remember to secure bones coverages before heading to ports or railheads. Reliance Partners Vice President of Sales Arvin Castellanos and Senior Account Manager Kelly Teg detail the insurance basics involved in intermodal hauling.

Intermodal refers to the transporting of freight via an intermodal container using more than than one mode of transportation: ship, rails and truck. This freight is near often fabricated up of large-calibration boxes stacked on trains or boats and brought to their locations via trucks.

Through this procedure, freight is not actually handled while irresolute modes, as information technology remains enclosed in the intermodal transport container. This makes this form of transport highly secure and less susceptible to damage.

It should be noted that coverage tailored to intermodal requires auto liability coverage to include hired auto, trailer interchange, and general liability with boosted insured or blanket additional insured included. Cargo coverage must as well accept intermodal containers listed as types of commodities in order to satisfy the varying UIIA endorsement requirements of insurance carriers.

Once coverage is in place, the next step is to purchase a Uniform Intermodal Interchange and Facilities Access Understanding (UIIA) certificate. Motor carriers without this certificate, adventure deprival into a port or rail yard.

What is UIIA? It's a standard manufacture contract amongst truckers and drayage companies, water and rail carriers, and leasing companies (equipment providers). The program is administered past the Intermodal Association of North America (IANA) and covers liability and other issues related to the interchange of intermodal equipment between the ii parties.

Information technology'south common for insureds new to intermodal to choose the most affordable insurance carrier, but Castellanos warns that the lowest cost isn't e'er advantageous. He advises fleets and owner-operators to carefully appraise whether the plan satisfies UIIA requirements.

"When information technology comes to UIIA, you need to find an insurance agent that knows what they're doing, because non all insurance companies tin do UIIA," Castellanos said. "[Without proper guidance], information technology'due south easy to make a mistake, only it's hard and costly to correct information technology once information technology is leap."

Furthermore, an boosted insured or UIIA endorsement must exist included with trailer interchange coverage, every bit Castellanos notes that many equipment providers require that drivers come across certain coverages and stipulations earlier hauling their chassis.

Teg recommends that insureds obtain a Standard Carrier Alpha Code (SCAC), a iv-letter lawmaking used to identify your visitor in both the UIIA and Equipment Providers (body of water carriers/railroads/leasing companies) databases. She said that providing this code to insurance agents allows them to fill out the UIIA certificate with the necessary insurance information on behalf of the motor carrier or owner-operator.

UIIA offers a quick reference guide for completing paperwork for its agreements, which can be accessed here. Motor carriers can use the Form 5C equipment provider list to specify whom they plan to piece of work with. Teg suggests filling this out helps the insurance provider determine trailer interchange limits during the quoting process, every bit limit requirements vary from visitor to company.

Castellanos also makes it clear that shippers in UIIA adopt not to associate with risk retentiveness group carriers.

"One Hundred percent of the time they prefer A-rated carriers," Castellanos said. "You lot can become away with working with a B or B-plus carrier, merely when it comes to chance retention companies, the client is going to limit itself to only a select few equipment providers. When that happens, they lose opportunities to make more money, because they're limiting themselves working with but sure carriers and equipment providers."

He continued, "If you go with a risk memory group as your carrier, then know that y'all're going to be express to piece of work with but these companies. Even so, if yous get an A-rated carrier, information technology might cost you $ane,000 to $2,000 more annually per truck, but you're going to have a higher chance of working with other companies that'll accept yous without whatsoever questions asked, as long as you have the minimum limit requirements that they're asking for."

Questions surrounding UIIA registration and requirements are common amongst new insureds, co-ordinate to Castellanos. However, Teg directs her clients to IANA'south oft asked questions (FAQs) section, stating that it does a good job of answering most basic questions.

After securing proper insurance and a UIIA certification upfront, you'll be prepare to hitting the road. Just go along in mind that intermodal hauling has many quirks, which means that learning how to mitigate its endless risks is crucial throughout your career.

Call up that you're hauling leased equipment, so e'er audit the chassis for damages before carrying information technology away. Hauling inoperable equipment risks racking up vehicle maintenance violations, which tin reflect negatively on your Primal Analysis Agency (CAB) score — and may also issue in increased renewal premiums the following twelvemonth, Teg and Castellanos explained. The final affair you lot want is problems upon leaving the thou, and so don't be afraid to voice your concerns with the lessor.

Click for more FreightWaves content by Jack Glenn.

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Source: https://www.freightwaves.com/news/insurance-basics-hauling-intermodal

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