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Operating Authority

What is Operating Authority?

Operating Authority is a legal certification issued by the Federal Motor Carrier Safety Administration (FMCSA) that grants motor carriers the right to transport goods or passengers for hire across state lines. This authority is represented by a Motor Carrier (MC) number, which is unique to each carrier. It specifies the type of transportation the carrier is authorized to perform, such as freight brokerage, household goods transportation, or general cargo shipping.

Operating Authority is essential for maintaining compliance with federal regulations and ensures carriers meet the requirements for safety, financial responsibility, and insurance. Without it, motor carriers cannot legally engage in interstate or certain types of intrastate commerce.

Who Needs Operating Authority?

  1. For-Hire Carriers
    Any business or individual that transports goods or passengers for compensation is classified as a “for-hire” carrier and requires Operating Authority. This includes motor carriers engaged in interstate commerce and certain intrastate operations.
  2. Freight Brokers
    Companies or individuals that arrange for the transportation of goods on behalf of shippers need Operating Authority specific to freight brokering.
  3. Carriers Transporting Regulated Commodities
    If you’re hauling regulated goods such as household items, hazardous materials, or agricultural products, you need Operating Authority to comply with federal requirements.
  4. Private Carriers Expanding to For-Hire Operations
    Companies that initially operated privately and now wish to transport goods for compensation must obtain Operating Authority.

Why is Operating Authority Important?

Operating Authority ensures that carriers:

  • Are properly insured for liability and cargo.
  • Comply with FMCSA regulations, promoting safety and accountability.
  • Establish credibility and trust with clients and partners in the trucking and logistics industry.

Need help obtaining your Operating Authority or have questions about the process? Contact North East Risk Management today! We’ll guide you through the steps, from paperwork to compliance, so you can hit the road with confidence.

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