Understanding FMCSA Authority Types: Common, Contract, and Broker

What Is Operating Authority?

Operating authority (also called "MC authority" or "motor carrier authority") is the federal permission granted by FMCSA that authorizes a company to transport regulated commodities or passengers for compensation in interstate commerce. While a USDOT number is required for all CMV operators, operating authority is an additional requirement for carriers that haul regulated freight for hire.

Search for carriers and their authority status on our authority search page.

Types of Operating Authority

Common Carrier Authority (MC Number)

Common carrier authority is the most widely held type. It authorizes a carrier to transport freight or passengers for the general public for compensation. Key characteristics:

• The carrier offers services to any shipper willing to pay the rate
• Required for most for-hire trucking operations
• Carriers must publish their services and cannot unreasonably refuse to serve a shipper
• Sub-types include: property (freight), passenger, and household goods

Contract Carrier Authority

Contract carrier authority allows a carrier to transport freight under specific, ongoing contracts with individual shippers. Differences from common carrier:

• The carrier serves a limited number of shippers under bilateral contracts
• Rates and services are individually negotiated rather than published
• More specialized service tailored to the shipper's needs
• A carrier may hold both common and contract authority simultaneously

Broker Authority

Broker authority authorizes a person or company to arrange for the transportation of freight by a motor carrier without actually transporting the freight itself. Brokers:

• Do not take physical possession of the freight
• Do not need to own any trucks or trailers
• Must maintain a $75,000 surety bond or trust fund agreement (BMC-84 or BMC-85)
• Must designate a BOC-3 process agent

Freight Forwarder Authority

Freight forwarders assemble and consolidate shipments, assume responsibility for transportation, and use the services of carriers to move freight. They are similar to brokers but take possession of the freight and issue their own bills of lading.

Do You Need Operating Authority?

You need operating authority if you:

1. Transport regulated commodities for hire in interstate commerce
2. Operate as a freight broker arranging transportation
3. Transport passengers for compensation across state lines

You generally do not need operating authority if you:

• Transport your own goods (private carrier)
• Operate only within one state (intrastate only)
• Transport only exempt commodities (unprocessed agricultural products, newspapers, etc.)

How to Apply

1. Register on the FMCSA portal: Complete the OP-1 form (or OP-1P for passengers, OP-1FF for freight forwarders) through the Unified Registration System (URS)
2. Pay the filing fee: Currently $300 per authority type
3. Obtain insurance: File proof of minimum required insurance (BMC-91 or BMC-91X for carriers, BMC-84 or BMC-85 for brokers)
4. Designate process agents: File your BOC-3 designation naming process agents in every state you plan to operate
5. Wait for authority grant: There is typically a protest period of 10 days for property carriers. Once approved, your authority status changes to "Active"

Maintaining Your Authority

Once granted, operating authority must be maintained. Common reasons authority is revoked:

• Failure to maintain required insurance levels
• Failure to update biennial registration (MCS-150)
• Unsatisfactory safety rating
• Failure to designate process agents (BOC-3)