You do not need an operating authority if you’re leasing your trucks from a motor carrier. All motor carriers have their own authority. However, leasing truckers paying for their own authority and insurance policy can negotiate a higher profit cut from their truck lessors. Of course, you will also have to fulfill the required paperwork yourself.
Don’t worry if you find yourself stuck between leasing and operating under your own trucking authority. We have you covered! Read the pros and cons listed below to gauge what strategy would help your business reach new heights.
Pros
Cons
Pros
Cons
Overall, lessors do not need an operating authority. While the FMCSA does not prohibit lessors from getting their own authority, doing so defeats the purpose of leasing. Operating authorities come with several responsibilities. Leave them to your lessors and solely focus on expanding your trucking business instead. Once you decide to get your own authority, however, stop leasing.
Are you having trouble deciding whether to lease your trucks from a motor carrier or get your own authority? Let Assured Standard help! Use our piece on permanent motor carrier leases as a reference.
Arthur Williamson graduated with a degree in Business and Management at the University of California, Berkeley. He is knowledgeable about what small and big businesses require to keep operations moving.