Help Me Understand What Is Trucking Authority
What Is Trucking Authority in Today's Market Place?
Do you want to learn more about Trucking Authority? If so, you’re in the right spot. Our organization understands that the principles of Trucking Authority can seem intimidating. But we are here to help by answering common questions about securing Authority. Listed below is our Trucking Authority FAQ's. Please call or message us if you do not see your question listed.
What Is Trucking Authority?
Trucking Authority is also called Operating Authority. It is when the FMCSA grants permission to a motor carrier for freight to get transported. (FMCSA stands for Federal Motor Carrier Safety Administration.) Why is having Trucking Authority so important? Because you cannot move freight over state lines without having Trucking Authority. Trucking Authority will give you the ability to select your own loads. Plus, you’ll have the freedom to determine your own schedules and routes. Successful truckers never operate without the status of Trucking Authority. Securing Trucking Authority is a must, as long as you plan to serve as an owner-operator.
Those with Trucking Authority must register for IFTA before conducting business. (IFTA stands for International Fuel Tax Agreement.) They also sometimes have to apply for state permits. The rules of operating with or without permits vary on a state-by-state basis.
Freight brokers must also secure Operating Authority. This comes in the form of an FF number. (FF stands for freight forwarder.) Keep in mind that the FMCSA plans to phase out FF and MC numbers in the coming years. Once this takes place, companies will get identified by their DOT numbers.
What is Carrier Authority?
Carrier Authority is the government's permission for someone to make money hauling freight. In other words, you can profit in a legal manner while operating as a trucking company. That’s what Trucking Authority, Carrier Authority, and Operating Authority refer to. These three terms mean the same thing. Authority gets provided through the FMCSA. The FMCSA issues Authority by way of a Motor Carrier (MC) number.
What Does It Mean to Have Trucking Authority Status?
Having Trucking Authority refers to gaining government permission to make money hauling freight. This means that someone Authority can operate as an independent trucking company. Trucking Authority/Operating Authority gets provided through the FMCSA. Once authority’s granted, the FMCSA supplies an individual with an MC number. Keep in mind that there are different forms of Authority. The form of Authority depends on the type of cargo getting carried.
Some carriers must have different authorities for covering separate cargo types. Also, some US states to demand proof of Intrastate Authority. This applies if someone transports loads inside certain states. The key is to ensure you're applying for authorities that have relevance to your business.
What Are the Major Benefits of Securing Trucking Authority?
It is normal for owner-operators and truckers to want to achieve Authority. Gaining Authority is a big-time career-boosting opportunity. Here are the three main benefits of securing Trucking Authority. 1. Securing Authority can grow your career fast. 2. Authority leads to operating with 100% independence. 3. Having Authority can lead to large increases in pay. (The key is running your business well.) Sure, having Trucking Authority leads to more work and responsibilities. But Authority also leads to having the opportunity to hire any driver that you please. As months go by, you can gain more trucks and drivers as revenue increases. Having Authority also gives you the power to find and negotiate loads.
Is It Better To Have Your Own Authority in Trucking?
Yes, as long as your goal is to make more money through owner-operator trucking. Securing Trucking Authority can also assist you in earning $2 to $3 for every mile on a consistent basis. Trucking Authority is a necessity if you want to hire new drivers and create a multi-truck empire.
How Much Does It Cost To Get Your Trucking Authority?
Gaining Trucking Authority is not an expensive investment. There is a one-time fee for $300, per individual. You must pay the FMCSA to secure Authority. There are other varying fees that you might have to pay for.
How Long Does It Take To Get Trucking Authority?
The entire process to secure Trucking Authority takes around five to seven weeks. Keep in mind that you might have to pay for upfront costs involving Authority. Plus, you also might have to read over many pages about trucking regulations.
Can I Get My Own Authority Without a Truck?
Yes, you can still secure Trucking Authority without owning or leasing a truck. There are no government regulations demanding that Trucking Authority applicants own their trucks. Say that you gain Trucking Authority without owning or leasing a truck. You can then have owner-operators lease on behalf of your authority.
Can I Run Under Someone Else's Authority?
Do you want to lease to a person that has Trucking Authority? if so, you have a right to operate under that Authority. Remember- the person with Authority has the responsibility of carrying insurance. Even when you lease to another carrier, you can still maintain your own IFTA account.
Can I Sell My Trucking Authority?
No, you cannot sell your Trucking Authority. Why? Because it is illegal to transfer a USDOT number. But keep in mind that you can sell (transfer) an MC number. Contact us today for more information about changing ownership of USDOT numbers.
How Do You Establish a TRUCKING COMPANY LICENCE?
Our organization has helped many people across the US start trucking companies. Here is our seven-step plan for doing so.
1. Create a business plan.
2. Establish the company in a legal manner.
3. Secure relevant business licenses and permits. Do so at the local, state, and federal level.
4. Lease or buy equipment that applies to the trucking industry.
5. Secure insurance coverage that fits your needs.
6. Learn how to track both income and business expenses.
7. Figure out where the best loads are so that you can grow your business.
What Does “Not for Hire” Mean on a Truck?
“Not for Hire” refers to a truck driver not having a DOT or ICC number. It can also mean that the driver is incapable of obtaining a DOT or ICC number. When you see a “Not for Hire” sign, realize that the vehicle cannot take part in any commercial purposes. Some truckers put this sign which should be the right size on their trucks to evade law enforcement. But almost all get caught and face severe penalties and fines.