How Long to Get Authority
I am a retired Interstate Commerce Commission (ICC) Investigator with more than 45 years in transportation. For the past 11 years I have been a transportation consultant assisting those who would like to get their own motor carrier or broker authority.
Q:
We are trying to get our own authority. How long should it take to get it?
A:
If you applied for your authority today, you could have your authority in 20 days providing your insurance and process agents are on file at the FMCSA. However, motor carriers will need to have their Single State Registration before they can start trucking and this could take up to a couple of weeks to get. Brokers, on the other hand, could start brokering on the 20th day providing they have their process agents and surety bond or trust fund on file and obtain a copy of their authority.
Q:
I am a motor carrier and I have more loads than I can handle. Do I need broker authority to broker the excess shipments?
A:
Yes, you always need a broker's "license" to broker loads. A motor carrier can have both a carrier's authority and broker's license. When a motor carrier obtains an authority, they are issued a "certificate" for common carrier and a "permit" for contract carrier's authority. Brokers are issued a "license." You can always check the top of the authority to see exactly what type of authority the individual actually has.
Q:
My husband has his own motor carrier and he needs help in getting loads. What authority does the spouse need to dispatch loads for her husband?
A:
You do not need any authority. The spouse does not need any authority to obtain loads for her husband's business. You could be classified as the dispatcher or the carrier's agent for your husband's trucking authority.
Q:
Is there a service that can expedite the amount of time it takes to obtain active authority?
A:
Some websites state they can get your MC number in just one day. This does not mean you can do anything. Twenty (20) days from the day your MC number is assigned is the fastest you can get your authority providing the insurance and process agents are on file. Then you will need to get your SSRS which could take an additional 1 to 2 weeks
Q:
I plan to get my broker and motor carrier in the near future. What is the first thing I should do now?
A:
Before you apply for any authority, make sure you can obtain the necessary insurance and surety bond or trust fund. If you apply for your authority and find that you cannot get or afford the insurance, you will lose the filing fees and other monies invested. Remember, you only have 80 days from the date your MC number is assigned to get your authority.
Q:
I am trying to get my own trucking authority, but my insurance agent will only sell me trip insurance. Is this proper? Also, how much insurance will I need to be a common carrier?
A:
You need to find another insurance agent. You need to obtain an insurance company that can file the Bodily Injury & Property Damage (BI&PD) and Cargo insurance with the Federal Motor Carrier Safety Administration. The minimum BI&PD required is $750,000, but you might want to obtain $1 million. The minimum cargo insurance requirement is $10,000, but you might want to consider getting $100,000.
Written By: Rex Evilsizor
