For a freight broker, trucking company, intermodal marketing company (IMC) or 3PL, arranging the transportation of hazardous materials can feel intimidating. Hazardous materials transportation is governed by the U.S. Department of Transportation under Title 49 of the Code of Federal Regulations (49 CFR).
Shippers and carriers that perform defined hazmat functions must comply with the Hazardous Materials Regulations in 49 CFR Parts 100-185. A party that performs these functions for a shipment is treated as an "offeror." The functions include:
- Registration
- Classification
- Packaging
- Developing a security plan
- Documentation and shipping descriptions
- Marking
- Labeling
- Placarding
- Training and emergency response
If your firm only arranges transportation and does not intend to take on an offeror's responsibilities, train your employees not to perform any of these functions.
Brokers, IMCs and freight forwarders that only arrange the move
An entity like a property broker, IMC or freight forwarder that only arranges the move, and does not perform any of the functions above, generally does not need to register with PHMSA and is not subject to the Hazardous Materials Regulations. A property broker is still regulated by FMCSA under 49 CFR Part 371 and must keep its own broker authority and $75,000 financial security.
For entities not subject to the Hazardous Materials Regulations, the rest of this section is for information only.
While the legal responsibility under 49 CFR rests with the offerors, a broker that wants to serve its customers well should only use carriers that are properly registered with the Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Federal Motor Carrier Safety Administration (FMCSA).
Carrier qualifications to check
- Insurance of at least the federal minimum for the material: $1,000,000 for most hazardous materials, and $5,000,000 for certain materials carried in bulk (including hazardous substances in cargo tanks, portable tanks or hopper-type vehicles, Division 1.1–1.3 explosives, and certain Division 2.1, 2.2, 2.3 and 6.1 materials) and for highway route controlled quantities of radioactive material (49 CFR 387.9). The broker should get written evidence of this coverage. Check with your insurance provider about any additional requirements for hazardous cargo.
- Compliance with all local, state and federal laws that apply to transporting that type of cargo.
- An action plan for dealing with incidents.
PHMSA registration must be renewed periodically. Check the carrier's registration status and expiration date with PHMSA's lookup tool, listed under helpful links below.
Requirements for a Hazardous Materials Safety Permit (HMSP)
Initial or new HMSP applicants and holders of temporary HMSPs are subject to the standards in 49 CFR 385.407, including the fixed out-of-service rates and the crash rate thresholds. Once an HMSP becomes non-temporary, 49 CFR 385.407 no longer applies to the carrier's ability to renew its HMSP. Under 49 CFR 385.407, FMCSA may only issue an HMSP to a motor carrier that has:
- A "satisfactory" safety rating
- A crash rate below the threshold FMCSA has set for the current registration cycle, which marks the top, or worst-performing, 30 percent of the national average
- Driver, vehicle and hazardous materials out-of-service rates below the thresholds FMCSA has set in each of these areas, which mark the top, or worst-performing, 30 percent of the national average
- A satisfactory security program (and associated training) under 49 CFR 172.802
- A current Certificate of Registration with PHMSA
- A system of communication that lets the vehicle operator contact the motor carrier during transportation, including keeping these communication records
- A written route plan that meets 49 CFR 397.101 for highway route-controlled Class 7 (radioactive) materials, or 49 CFR 397.67 for Division 1.1, 1.2 and 1.3 (explosive) materials
- Proof of insurance on the MCS-90, showing the level of coverage required by 49 CFR 387.9 for the permitted materials being transported
Hazmat regulations exist to ensure safety in handling and transporting hazardous materials. In the event of an incident, failure to comply can result in civil or criminal penalties.
Hazardous waste
If a waste product is being hauled, an Environmental Protection Agency (EPA) ID number and a uniform hazardous waste manifest are also required. Some states have their own additional rules.
Helpful links
- PHMSA registration certificate lookup: hazmatonline.phmsa.dot.gov
- FMCSA Hazardous Materials Safety Permit program: fmcsa.dot.gov HMSP program
- EPA RCRAInfo (hazardous waste handler information): epa.gov RCRAInfo overview
- FMCSA hazardous materials information: fmcsa.dot.gov hazardous materials
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