Freight carriers in the United States of America are required to obey several government regulations. One of them concerns operating authority. Before engaging in a business for the transportation of goods or passengers, the entrepreneur needs to understand whether he needs these powers or not.
What are the operating authorities
In America, several terms are used to refer to this phenomenon. So that the carrier does not get confused, we list them:
- Interstate Authority;
- FMCSA Authority;
- MC Number;
- Motor Carrier Authority.
According to the documents of operating authorities, the transportation of goods is divided into three types:
- General, contractual or brokerage powers (MS). Such documents should be obtained by individuals and companies that undertake the transportation of passengers, personal belongings of citizens with payment.
- Mexican-domiciled Authority (MX). Such authorities are intended for private entrepreneurs or companies that organize the delivery of goods for the population living in Mexico.
- Freight forwarder (FF). Private entrepreneurs and companies that have received such powers can perform several operations with cargo:
- register ownership;
- provide storage;
- deliver goods to clients.
Each type of activity corresponds to one of the numbers MC, FF, MX. One company can have from one to three authorities.
Types of privileges
Interstate or State Road Freight (MC) comes in four types. The following types of cargo are available to carriers:
- Movement of citizens’ property for compensation.
- Transportation of passengers for a fee.
- Transportation of household goods for compensation.
- Delivery of goods by road carriers with the help of brokers or intermediary companies.
How to get credentials
Business owners and aspiring entrepreneurs receive operating authorities in different ways. The procedure for obtaining operational powers for beginners has its own peculiarities. When registering a business, they need to use the Unified Registration System (URS). Therefore, operating authority can be obtained simultaneously with the USDOT number without additional problems.
Owners of an existing business need to use the OP-1 form. You can also apply online. When applying for additional credentials, you need to provide a USDOT number and operating authority numbers that you are already using. When filling out forms, you need to follow all the instructions so as not to make a mistake. Registration of each room requires payment of 300 dollars.
Advantages of having an operating authority:
- the ability to work in many states;
- expand sources of income;
- possibility to choose cargoes and routes.
Remember, while getting an operation authority is a bit complicated, it gives you many benefits in the long run.
Who can work without operational authority
Not all companies or entrepreneurs are required to obtain operational authority. These include:
- owners of private trucks carrying their own belongings;
- carriers hired to transport goods, ;
- carriers of «commercial zones» in which transportation is declared by the government free from regulation by special bodies. This applies to several states adjacent to large cities.
Operational powers determine the insurance requirements for each type of transportation. You need to carefully study the requirements relating to your activities. Compliance with them will help to minimize the loss of your business in case of accidents on the roads.