Operating Authority
FMCSA-granted permission to operate as a for-hire motor carrier.
Definition
Operating authority (also called MC authority) is the FMCSA-granted permission to operate as a for-hire motor carrier in interstate commerce. Types include: common carrier (hauls for the general public), contract carrier (hauls under specific contracts), and broker authority. Requirements include: USDOT number, MC number, BOC-3 filing, minimum insurance ($750,000 for general freight, $1M for hazmat), and UCR registration. Total startup cost is typically $3,000-$5,000.
Why it matters to you
Operating authority means the freight, the customer relationships and the liability are yours. It is the difference between being paid a rate and setting one. It also means insurance filings, IFTA, UCR, drug and alcohol programme enrolment and a safety record with your name on it. Most drivers who succeed at it spent time leased on first, learning the business side without carrying all the risk.
FAQ
What does Operating Authority mean?
FMCSA-granted permission to operate as a for-hire motor carrier.
Why does Operating Authority matter to a driver?
Operating authority means the freight, the customer relationships and the liability are yours. It is the difference between being paid a rate and setting one. It also means insurance filings, IFTA, UCR, drug and alcohol programme enrolment and a safety record with your name on it. Most drivers who succeed at it spent time leased on first, learning the business side without carrying all the risk.
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Related Terms
MC Number (Motor Carrier Number)
An operating authority number required for carriers engaged in interstate commerce.
Owner-Operator
A truck driver who owns or leases their own truck and operates as an independent business.
FMCSA (Federal Motor Carrier Safety Administration)
The federal agency that regulates the trucking industry.