Average Increase Will Be 25%
Following two years of fee reductions, the Federal Motor Carrier Safety Administration is proposing to raise registration fees in 2025 under the Unified Carrier Registration Plan and Agreement (UCR). Although fees declined by an average of 37.3% over the past two years, FMCSA is proposing a 25% increase effective January 1, 2025. FMCSA's final rule, which is based on a recommendation from the UCR Plan’s advisory committee, applies to for-hire motor carriers, private carriers of property, brokers, freight forwarders and leasing companies.
Wondering why you must pay the UCR fee? The Unified Carrier Registration Act of 2005 was intended to replace the Single State Registration System (SSRS). Prior to UCR, companies operating in multiple states were required to submit separate applications and pay registration fees for each state where they operated. Complying with SSRS was a time consuming (and expensive) task. UCR is a streamlined system supported by the trucking industry through which carriers make one payment to one service and receive their certificate of compliance.
Annual UCR fees are based on fleet size for carriers, while brokers and other related businesses subject to UCR are levied the same fee as the smallest carrier. Penalties for failure to register are steep and include fines and the potential for companies to be declared ineligible to engage in interstate operations. These annual fees supplement funding for state highway motor carrier registration and safety programs.
For the Federal Register notice, visit https://www.federalregister.gov/d/2024-13192. Petitions for reconsideration must be submitted by July 17.
Every year, TAT (formerly called Truckers Against Trafficking) honors a member of the trucking, bus or energy industry, whose direct actions help save or improve the lives of those exploited or prevent human trafficking from taking place, with the Harriet Tubman Award
Bob Costello has indicated that the freight market has improved – but very slowly – since January. It must be said that ATA’s indices are dominated by contract freight as opposed to spot rates.
Now, however, with Republican control of both houses of Congress and the White House (and, some say, the Supreme Court) I am optimistic that trucking will get a fairer shake than it has during Biden’s term in office.