A Guide to Interstate vs. Intrastate Trucking

Commercial truck drivers play a crucial role in moving billions of tons of freight each year¹. However, not all transportation operations are the same. For those interested in finding a career in trucking, it's important to know that there are two categories: interstate trucking and intrastate trucking. Understanding the differences between the requirements and expectations in these fields is key for anyone looking to start driving or opening a trucking business.

We'll explore the key differences between interstate and intrastate trucking, such as the varying regulations, vehicle types, and job prospects.

What Do Interstate and Intrastate Trucking Mean?

What is Interstate Trucking?

Interstate trucking involves transporting goods across state lines or national borders. This can include:

• Routes that cross state boundaries
• Trips that begin and end in the same state but pass through another state
• Transportation between the U.S. and neighboring countries, like Canada or Mexico

Just to be clear, a route automatically becomes interstate commerce and falls under interstate trucking regulations if it crosses state lines, even if that route begins and ends in the same state.

Another interesting nuance happens during multi-leg interstate transportation. For example, if you pick up a load from out of state to finish delivering it, that is still considered interstate trucking, even though you have not crossed any state lines yourself.

What is Intrastate Trucking?

Intrastate trucking, on the other hand, applies to any sort of goods transportation that falls entirely within state lines. This includes:

• Local deliveries
• Regional transportation within state lines
• Specialized services like garbage collection or concrete delivery

Key Differences in Interstate Trucking vs. Intrastate Trucking

Now that we have a general understanding of the different categories of trucking, we're ready to discuss how many rules and regulations are added to truckers who simply cross state lines.

Operating Authority and Licensing

Those participating in interstate trucking will be subject to more stringent licensing from various departments and organizations. This includes:

• A U.S. Department of Transportation (USDOT) number
• Compliance with Federal Motor Carrier Safety Administration (FMCSA) regulations
• Registration under the Unified Carrier Registration (UCR) Act
• Adherence to International Fuel Tax Agreement (IFTA) and International Registration Plan (IRP)

Intrastate trucking, on the other hand, has somewhat simpler regulations that will vary by state. However, many states will still require a USDOT number for their intrastate trucking.

Both types of trucking require that you have your Commercial Drivers Licence (CDL). However, for interstate trucking, you'll need to be at least 21 years old. For intrastate trucking, you can start as early as 18 years old, depending on the state.

Interstate vs. Intrastate Trucking Insurance Requirements

Another big difference between interstate and intrastate trucking operations is the insurance requirements. When crossing state lines and national borders, trucks must maintain a minimum insurance coverage set by the FMCSA², up to $5 million. Some of the minimums include:

• $300,000 for moving non-hazardous freight in vehicles weighing under 10,001 pounds
• $750,000 for operating a vehicle over 10,000 pounds
• $1,000,000 to $5,000,000 for transporting hazardous materials. The amount will vary depending on how dangerous and abundant the commodity is.
• $1,500,000 to $5,000,000 for transporting passengers. Higher amounts will be reserved for larger vehicles that can carry more than 15 people.

While these standards are set by regulations, many shippers will require insurance coverage that goes above the minimum set by the FMCSA.

Intrastate trucking insurance requirements are once again set on a state-by-state basis. While many will have regulations that mirror the above guidelines, there may still be many differences, so check your local laws.

Intrastate vs. Interstate Trucking Vehicle Types

Depending on whether you choose interstate or intrastate trucking, the typical types of vehicles you'll encounter will change.

Long-haul interstate trucks will include:

• Semi-trucks and tractor-trailers
• Refrigerated trailers (reefer trucks)
• Flatbed trailers
• Dry vans
• Tankers

On the other hand, intrastate trucks will tend to be more specialized in their utility:

• Box trucks
• Garbage trucks
• Dump trucks
• Concrete mixing trucks
• Tow trucks

Intrastate and Interstate Trucking Career Outlook

Whether you move forward with interstate or intrastate trucking, the job prospects for both look good as the economy continues to grow and more materials and products need transporting. Here are the U.S. Bureau of Labor Statistics (BLS) projections for the trucking industry:

• Interstate trucking: BLS projects 5% job growth from 2022 to 2032⁴
• Intrastate trucking: BLS projects 9% job growth over the next decade, far above the average job growth of 4%.⁴

Is Intrastate Trucking or Interstate Trucking Right for You?

Understanding the differences between interstate and intrastate trucking is crucial for anyone entering the trucking industry. While interstate trucking offers broader opportunities and often higher pay, it comes with more stringent regulations and extended time away from home. Intrastate trucking, on the other hand, provides more local work with potentially more straightforward regulatory requirements but may have limitations on expansion and earnings.

Regardless of the chosen path, both interstate and intrastate trucking play vital roles in the economy, ensuring the flow of goods and services across the country. As the industry continues to evolve, opportunities in both sectors remain strong, offering rewarding careers for those willing to take the wheel.

Team Up With ACV Transportation for Trucking Opportunities

Whether you choose interstate trucking or intrastate trucking as your path, the team at ACV Transportation can help you on the road ahead. With ACV Transportation, you'll have the ability to select from thousands of dealerships located all around the country that constantly need vehicles transported via our free load board. Even better with ACV Transportation, you will get a dedicated Account Manager to help grow your business and a dispatch team that is available nights and weekends.Sign up today to get more information about how to work with ACV Transportation.

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Sources

1. "Truck Freight Tonnage and Revenues Rise in 2022, According to Report." American Trucking Associations, 19 July 2023, https://www.trucking.org/news-insights/truck-freight-tonnage-and-revenues-rise-2022-according-report. Accessed 27 September 2024.
2. "49 CFR Part 387 -- Minimum Levels of Financial Responsibility for Motor Carriers." eCFR, https://www.ecfr.gov/current/title-49/subtitle-B/chapter-III/subchapter-B/part-387. Accessed 27 September 2024.
3. "Heavy and Tractor-trailer Truck Drivers : Occupational Outlook Handbook: : U.S." Bureau of Labor Statistics, https://www.bls.gov/ooh/transportation-and-material-moving/heavy-and-tractor-trailer-truck-drivers.htm. Accessed 27 September 2024.
4. "Delivery Truck Drivers and Driver/Sales Workers : Occupational Outlook Handbook: : U.S." Bureau of Labor Statistics, 29 August 2024, https://www.bls.gov/ooh/transportation-and-material-moving/delivery-truck-drivers-and-driver-sales-workers.htm. Accessed 27 September 2024.
   

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