What Does It Mean To Have Your Own Authority In Trucking?

An operating authority enables you to haul freight as a legitimate entity recognized by the Federal Motor Carrier Safety Administration (FMCSA). Owner-operators need varying permits. The different authority types include motor carrier of property/household goods, broker of property/household goods, and U.S.-based carrier of international cargo/household goods.

The Different Types of Operating Authority Explained

Navigating between the different carrier authority types can feel a bit intimidating. Luckily, we can help. Use our quick guide below as a starting point on the most common operating authorities that truckers use:

• Motor Carrier of Property: Authorizes for-hire truckers to haul regulated commodities (non-hazmat freight) for the general public.
• Motor Carrier of Household Goods: Authorizes for-hire truckers to receive payment in exchange for transporting common household goods (i.e., furniture, appliances).
• Broker of Property: Authorizes the business entity to receive payments in exchange for arranging transportation solutions for those that need to move general property — excluding hazmat freight and household goods. Brokers cannot pose as clients or truckers.
• Broker of Household Goods: Authorizes the business entity to receive payments in exchange for arranging transportation solutions for those that need to move common household goods. Brokers cannot pose as clients or truckers.
• U.S.-Based Carrier of International Cargo: Permits U.S.-based trucking companies to move international cargo — excluding hazmat freight and household goods.
• U.S.-Based Carrier of International Household Goods: Permits U.S.-based trucking companies to move common household goods to or from foreign countries.

Overall, determining when to stop leasing and start applying for an operating authority is crucial to the success of any owner-operator. Operating authorities serve as the cornerstone of any thriving trucking business. Registering as an owner-operator enables you to take total control over your daily operations and treat your business like a legitimate company.

Do you plan on running your trucking business yourself? Assured Standard can help you get started. Check out our helpful piece explaining the basics of an independent owner-operator insurance policy.