Broker Authority Questions
Trucking Authority Questions
Q. What is an MC Number?
A. An MC number is issued by the FMCSA (Federal Motor Carrier Safety Administration). It grants the right to commence operations in interstate commerce in the transportation industry. There are several factors involved in obtaining an MC number including a USDOT number, BOC 3 Process Agents, and insurance.
Q. What is a USDOT Number?
A. A USDOT number is issued by the US Department of Transportation. It tracks all your company’s information with the different Federal and State Agencies. A USDOT number does not constitute authority to operate in interstate commerce.
Q. What is a BOC 3 Process Agents?
A. A process agent is someone who may be serviced with court papers in any proceeding brought against a motor carrier. In order to obtain your authority this requirement must be met.
Q. How much insurance do I need?
A. The Federal Minimums for insurance coverage is: $750,000 Liability and $5,000 Cargo. However, the industry standard and recommended coverage is $1,000,000 Liability and $100,000 Cargo coverage.
Q. How long does it take to get trucking authority?
A. It generally takes a carrier 5 to 7 weeks to obtain all the authority and permits required to operate in Interstate Commerce. There are 2 parts to the process: federal and state. The federal portion generally takes 16 business days to complete and then state permits can take an additional 2 weeks after the federal portion is complete.
Q. How much does it cost to get trucking authority?
A. GLAuthority.com offers several packages to help you obtain your authority depending on the level of help that you require and the different permits that you would need to begin operation.
Q. What is UCRA?
A. The Unified Carrier Registration Agreement states that all motor carriers, regulated, exempt and private as well as interstate brokers, Freight Forwarders and leasing companies are subject to the fees under the UCRA. Fees are calculated per company based on the number of commercial motor vehicles it operates. Commercial motor vehicles include the total number of trucks, trailers and power units operated by the company. The table below contains the fee schedule that a company would be subject to based on their fleet size:
Q. What is IRP?
A. The International Registration Plan (IRP) is for trucks with a Gross Vehicle Weight over 26,000 lbs operating interstate for-hire. All 48 states and the Provinces of Canada participate in the IRP Program. The IRP covers the apportioned tags for the truck. There is a yearly fee to register and operate your truck in each state or province. The cost is dependent on the miles you run in each state or province for the year. The average cost ranges from $1000 to $3000.
Q. What is IFTA?
A. IFTA stands for International Fuel Tax Agreement. It is a means to pay fuel taxes to the different participating states and provinces by registering and filing quarterly returns with your base state. Only the contiguous 48 states, plus Canadian Provinces and vehicles over 26,000 Gross Vehicle Weight participate in this program. Registration for the program is generally free but some states may charge a registration and decal fee that usually costs under $30.
Q. What is Intrastate Authority?
A. Intrastate authority is the right granted by a state to commence for hire trucking operations within the borders of that specific state. If a load’s origin and destination are within the same state then intrastate authority may be required. This generally takes less time to acquire than the interstate authority as only one government agency is required to issue permits. Also a company engaged only in intrastate activities does not need to register with the IFTA or IRP.
Q. What states require special permits?
A. Four states have special permits that are required to operate within their borders. You can register for these permits upfront or acquire trip permits. The states are New York (HUT), Kentucky (KYU Number), New Mexico, & Oregon (File Number). Depending on your operations you should consider registering for some or all of these states as most have a low registration fee of $15 or less per truck.
Q. What is a New Entrant Safety Audit?
A. A New Entrant Safety Audit consists of a review of the carrier’s safety management system conducted by a State or Federal Auditor within the first 18 months of operation. The areas of review may include: Driver Qualifications, Driver Duty Status, Vehicle Maintenance, Accident Register, and testing requirements for Controlled Substances and Alcohol use. To make sure you pass your Safety Audit, get a copy of Getloaded's Safety Compliance Kit.
Q. When can I expect a New Entrant Safety Audit?
A. Every new carrier will be audited during the first 18 months of operation (typically within 3-6 months after the carrier is granted their new entrant registration). The safety audits will mainly be conducted on-site at the carrier’s principal place of business. However, some safety audits may be conducted at other locations depending on the circumstances. To make sure you pass your Safety Audit, get a copy of Getloaded's Safety Compliance Kit.
Broker Authority Questions
Q. What is an MC Number?
A. A Motor Carrier (MC) number is issued by the FMCSA. It grants the right to commence operations in interstate commerce in the transportation industry. There are several factors involved in obtaining an MC number including having BOC 3 Process Agent and a Surety Bond or Surety Trust.
Q. What are BOC 3 Process Agents?
A. A BOC 3 process agent is someone who may be serviced with court papers in any proceeding brought against a broker. In order to obtain your authority, you must have a list of BOC 3 Process Agents available to be serviced on your behalf.
Q. What is a Surety Bond or a Surety Trust?
A. A Surety Bond or Surety Trust is a safe guard for carriers to collect monies for nonpayment from a broker. The bond or trust must be in the amount of $75,000. The main difference between a bond and a trust is that a bond is through an insurance company and a trust is through a financial institution.
Q. How long does it take to obtain freight broker authority?
A. It takes approximately 16 business days to obtain broker authority provided a bond or trust is in effect within that time frame.
Q. How much does it cost to get your authority?
A. Obtaining your broker authority is only $685 through GLAuthority.com. This includes: all federal and process agent fees and same day processing. Our streamlined process allows you to start brokering as quickly as possible!