FedEx Ground offers their contractors the option to register base plates and IFTA through FedEx, rather than requiring contractors to register for their own IRP and IFTA accounts with the State. FedEx makes it simple for contractors to complete this registration, but is this the right option for your company?
Benefits of registering through FedEx
It’s easy - just fill out two simple forms and FedEx completes all the formal paperwork with the state of Indiana (for your base plates) and Pennsylvania (for your IFTA).
You don’t have to file with the government - FedEx takes care of the formal filings for you. You still need to provide FedEx all of the required documentation.
Drawbacks of registering through FedEx
FedEx owns your base plates - this means that you aren’t able to use your truck for any purpose that is not working for FedEx. If you register for your own IRP account, you can cover up FedEx’s DOT number and use your truck with another carrier.
It’s more expensive - FedEx base plates cost between $1,750 - $1,950 per year. IFTA decals cost $12 each. As an example, If you register for both in Missouri, you would only pay $1,745 for your base plates and your IFTA decals would be completely free.
There are no refunds - you are required to tell FedEx if you are renewing your base plates almost three months before the renewal date each year. If you end up getting rid of a truck and don’t need the base plate anymore, FedEx will still charge you for it.
Bypassing FedEx and setting up your own IRP and IFTA accounts has significant benefits. A fleet of 10 trucks can save at least $2,000 each year. Making sure you have the resources to manage these accounts yourself, however, is the problem for most contractors. Working with a full service fleet management company, like Fleet Advocate, makes it possible to take advantage of these benefits without having to figure it out yourself.