Key Differences Between Interstate and Intrastate Trucking

In the world of trucking and freight, it is important to understand the key differences between interstate and intrastate trucking operations. Mistakes when it comes to interstate versus intrastate trucking can have a negative impact on compliance, efficiency, and a company’s ability to be profitable.

Whether your trucks cross state lines or they just operate within your own state or province, adhering to trade regulations and optimizing your operations for each type of transport is important to your success. A Transportation Management System (TMS) can provide valuable support for trucking companies engaged in both interstate and intrastate trucking, by streamlining operations and helping companies remain compliant.

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What Is Interstate Trucking?

Interstate trucking refers to the transportation of goods across state lines or national borders. Freight companies involved in interstate trucking must be compliant with federal regulations set by the Federal Motor Carrier Safety Administration (FMCSA) in the United States and the Canadian Trucking Alliance (CTA) in Canada. For example — a truck carrying goods from California to Nevada or from the United States to Canada would be engaged in interstate freight.

What Is Intrastate Trucking?

Intrastate trucking involves transporting cargo within the boundaries of a single state, province, or territory. Intrastate operations are subject to state-specific regulations, which can vary from one state or province to another. An example of intrastate trucking operations would be a truck delivering cargo from Los Angeles to San Francisco, staying within California.

Interstate Trucking vs Intrastate Trucking

The differences between interstate and intrastate trucking can be significant and impact multiple aspects of a trucking company's operations. While the geographical scope is a key distinction, the differences extend far beyond simply crossing state lines or national borders. Interstate trucking operations are subject to a long list of federal regulations that govern aspects like driver qualifications, hours of service, vehicle safety standards, and environmental standards.

Intrastate trucking falls under the jurisdiction of individual states, which results in a mixed bag of regulations that can vary significantly from one state or province to another. These differences in regulatory requirements, licensing procedures, and operational considerations mean trucking companies need to have a clear understanding to ensure compliance and to better optimize their operations.

Key Elements of Interstate Trucking

• Interstate trucking involves longer distances and more complex logistics.
• It is subject to federal regulations that include driver hours-of-service rules and important safety standards.
• Interstate trucking requires a U.S. Department of Transportation Number and operating authority from the FMCSA in the United States or an equivalent identification in Canada, like a Commercial Vehicle Operator Registration in Ontario.
• It may involve crossing state lines and international borders, that require additional documentation and compliance procedures.
• Data provided by the FMCSA indicates there were approximately 1.3 million interstate motor carriers registered in the United States in 2023. More than 135,000 motor carriers were registered in Canada in 2022 with the majority involved in interstate commerce.

Key Elements of Intrastate Trucking

• Intrastate trucking typically involves shorter distances and less complex logistics — although intrastate trucking in Canada can involve large distances due to the low population density in many provinces.
• Intrastate commerce may be subject to state- or province-specific regulations, which can have different weight limits and licensing requirements based on where you are.
• Intrastate trucking companies may require a state-specific license or registration.
• It may often involve more frequent deliveries and pickups within a smaller area or region.
• The American Transportation Research Institute (ATRI) estimates that intrastate trucking accounts for approximately 40% of all trucking activity in the United States.

How a TMS Supports Interstate and Intrastate Trucking

A Transportation Management System — like TransPlus TMS — provides valuable support for both interstate and intrastate trucking operations. It can help companies optimize their operations and ensure compliance with relevant regulations. Here is a closer look at how a TMS can benefit both interstate and intrastate trucking companies.

• Route Optimization — A TMS has the capability to optimize routes for both interstate and intrastate trucking, considering factors like distance, tolls, fuel needs, road restrictions, and border crossings.
• Compliance Management — The right transportation management system can help maintain compliance with federal and state-specific regulations, including driver hours-of-service rules, vehicle inspections, and permit requirements with the right add-ons and integrations.
• Document Management — Technology can help manage and track important documents, such as driver licenses, vehicle registrations, and permits, ensuring compliance and reducing administrative overhead and the risk of errors.
• Dispatch and Communication — A high-quality TMS will streamline dispatch operations and improve communication with drivers with features that include available mobile driver apps like TransPlus Connect, regardless of whether they are on interstate or intrastate routes.
• Reporting and Analytics — The data provided by a TMS allows companies to track key performance indicators (KPIs) for both interstate and intrastate operations, providing valuable insights to help optimize efficiency and profitability.

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READ MORE: What Do Tariffs Mean for Trucking and Freight Companies?

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It is important to understand the key differences between interstate and intrastate trucking to be able to operate efficiently, maintain compliance, and maximize your profits. A TMS can be a valuable tool for managing both types of operations, providing the functionality and support needed to navigate the complexities of the trucking industry.

Do you want to learn more about how a TMS can optimize your interstate and intrastate trucking operations? Contact TransPlus today for a demo of our comprehensive TransPlus TMS solution and discover the benefits of our available add-ons and integrations.

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