Trucking has been the backbone of the economy when it comes to hauling cargoes across the country. Without trucks, you won’t receive the goods that you need on time. If you’d only rely on ships, trains, or planes, you’d probably spend more on the transport of your goods. In addition, trucks can deliver cargoes even in winters. These facts may have contributed to the boom of the trucking industry these past years.
If you want to get into the trucking business, you may want to know more about trucking authority. In this article, you’d find information that could help you understand what trucking authority is. In addition, this article tells how you could get a trucking authority in a few easy steps.
What Is Trucking Authority?
If you’ve already been issued with a trucking authority, you’d be able to receive payment in hauling freight. In other words, a trucking authority allows you to get paid. Furthermore, a trucking authority is necessary to transport cargoes across states. It’s proof that you’re a legal carrier. If you’ve been a trucker before and stopped for a while, you may need to reactivate DOT number. It’s a requirement to have a trucking authority again.
The Federal Motor Carrier Safety Administration (FMCSA) provides trucking authority to an aspiring trucker. The organization has a comprehensive list of documents that you’d need to accomplish first. Fortunately, you could visit and apply through the FMCSA’s website conveniently. But before you do that, you may want to know first the steps to secure a trucking authority.
How You Can Get A Trucking Authority
1. Know The Trucking Authority That You Need
Trucking authority, otherwise known as Operating Authority, has several types. Basically, the type affects the level and kind of insurance that the FMCSA will require.
The following are the authorities based on what FMCSA has issued. You may apply for any of them as long as you could submit the requirements:
- Motor Carrier: This refers to the authority that transports cargoes for compensation. FMCS further classifies this as Motor Carrier of Property, which doesn’t transport household items, and Motor Carrier, which solely focuses on transporting household cargo. These may also be identified as private or for-hire types.
- Private Carrier: This refers to the trucking authority of a company that moves its own properties or goods.
- For-Hire Carrier: This authority transports the properties and goods owned or produced by other companies.
- Broker: This may be an individual, partnership, or organization that arranges the transport of cargoes on behalf of clients.
For beginners, it’s best to determine what kind of trucking business you’d want to have before attempting to apply for a trucking authority. You may begin with for-hire carriers, and when you’ve earned enough experience and budget, you may grow to have more trucks and lease more vehicles. By the time you already have a trucking fleet, you may develop into a broker type.
2. Register Your Business
Trucking is a business, so you need to pick a business structure. Like any business, you may register your trucking firm as a sole proprietorship, partnership, or corporation. Depending on the business structure you choose, the requirements for business registration could differ. Your city or state may also have its own set of guidelines and requirements for trucking businesses. If you’re feeling overwhelmed, you could look for professionals who may assist you on this matter.
After registering your business, you’d need to register it with the US Department of Transportation (USDOT). This would allow you to access your vehicle, safety, cargo, and compliance data. It’s in this step that you need to know the number and types of trucks you’d use. Also, you need to declare the vehicle’s weight and the type of cargo you’d transport to the USDOT.
3. Apply For A Motor Carrier Number (MC), BOC-3, And Insurance
Your MC Number will allow you to join Interstate Commerce. In this step, you’d need your DOT registration to accomplish your application. After this, you need to file a BOC-3 or a process agent for representation purposes. Next, you have to apply for Liability and Cargo Insurance.
4. Secure The UCR And Register For Special Permits
You need to accomplish your Unified carrier Registration (UCR) to operate interstate and international lines. There’s also an annual fee to pay before you’ll be allowed to transport interstate goods.
If you’re planning to operate in New York, Kentucky, Oregon, and New Mexico, you’d need to secure some special permits. These states would require New York HUT, KYU Number, New Mexico Weight Distance, and Oregon Weight and Distance Permits.
Truckers play a significant role during the pandemic. The transport of medicine and necessities in bulk across the country is made possible due to the trucking industry. If you’re planning to get a trucking authority now, you may start securing the necessary documents to obtain your Operating Authority. Aside from your trucking authority, you also need to register your trucking business and even secure special permits to be able to travel interstate. These are important because you need these to be able to haul or deliver goods legally in various states.