MC AUTHORITY IS REQUIRED FOR ALL CARRIERS HAULING FOR-HIRE ACROSS
STATES LINES INCLUDING VANS, LIMOS, BUSES, AND TOW TRUCKS.THE FMCSA
IN WASHINGTON, DC CHARGES $300 FOR EACH TYPE OF MC AUTHORITY.

TYPES OF MC AUTHORITY

CONTRACT CARRIER AUTHORITY:

A COMPANY THAT PROVIDES FOR-HIRE TRANSPORTATION TO SPECIFIC, INDIVIDUAL SHIPPERS BASED UPON PRIVATE CONTRACTS BETWEEN THE CARRIER AND SHIPPER, STIPULATING THE SERVICES OFFERED AND THE PRICES CHARGED. AS OF JANUARY 1, 1996, THE FMCSA NO LONGER DISTINGUISHES BETWEEN COMMON OR CONTRACT CARRIERS. THE ONLY DIFFERENCE IS THE INSURANCE REQUIREMENTS. A CONTRACT CARRIER IS REQUIRED TO FILE LIABILITY INSURANCE ONLY WITH THE FMCSA.

COMMON CARRIER AUTHORITY:

A COMPANY THAT PROVIDES FOR-HIRE TRANSPORTATION TO THE
GENERAL PUBLIC FOR CHARGES THAT WERE PUBLISHED IN A PUBLIC TARIFF. AS OF JANUARY 1, 1996, THE FMCSA NO LONGER DISTINGUISHES BETWEEN COMMON OR CONTRACT CARRIERS. THE ONLY DIFFERENCE IS THE INSURANCE REQUIREMENTS. A COMMON CARRIER IS REQUIRED TO FILE LIABILITY AND CARGO INSURANCE WITH THE FMCSA.

HOUSEHOLD GOODS CARRIER:

A HOUSEHOLD GOODS CARRIER IS DEFINED AS A COMPANY WHO MOVES HOUSEHOLDS FROM ONE HOUSE TO ANOTHER. A MOVING COMPANY IS AN EXAMPLE OF A HOUSEHOLD GOODS CARRIER. HOUSEHOLD GOODS CARRIERS MUST ALSO OFFER ARBITRATION AS A MEANS OF SETTLING LOSS AND DAMAGE DISPUTES ON COD SHIPMENTS.

BROKER AUTHORITY:

A COMPANY THAT ARRANGES FOR THE TRANSPORTATION OF CARGO BELONGING TO OTHERS, UTILIZING FOR-HIRE CARRIERS TO PROVIDE THE ACTUAL TRUCK. A BROKER DOES NOT ASSUME RESPONSIBILITY FOR THE CARGO AND USUALLY DOES NOT TAKE POSSESSION OF THE CARGO.

FREIGHT FORWARDER AUTHORITY:

A COMPANY THAT ARRANGES FOR THE TRANSPORTATION OF CARGO BELONGING TO OTHERS, UTILIZING FOR-HIRE CARRIERS TO PROVIDE THE ACTUAL TRUCK. THE FORWARDER ASSUMES RESPONSIBILITY FOR THE CARGO FROM ORIGIN TO DESTINATION AND USUALLY TAKES POSSESSION OF THE CARGO AT SOME POINT DURING THE TRANSPORTATION. FREIGHT FORWARDERS TYPICALLY ASSEMBLE AND CONSOLIDATE LTL SHIPMENTS INTO TRUCKLOAD SHIPMENTS.

 

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