Question 1

What is FMCSA operating authority?

Accepted Answer

Operating authority is a grant from the Federal Motor Carrier Safety Administration that allows a company to operate as a for-hire motor carrier, broker, or freight forwarder in interstate commerce. There are three main types: common authority (general for-hire transport), contract authority (transport under specific agreements), and broker authority (arranging transport without operating trucks).

Question 2

What is the difference between common, contract, and broker authority?

Accepted Answer

Common authority allows a carrier to haul freight for any shipper for compensation. Contract authority allows a carrier to haul under specific, ongoing agreements with particular shippers. Broker authority allows a company to arrange the transportation of freight by motor carriers without operating trucks themselves. A single company can hold multiple authority types.

Question 3

Why do carriers get their authority revoked?

Accepted Answer

Common reasons include failure to maintain required insurance, failure to file required reports (like MCS-150 updates), serious safety violations, or voluntary revocation when a carrier ceases operations. Revocations can also result from fraud investigations or repeated compliance failures.

Question 4

What does "net authority change" mean?

Accepted Answer

Net authority change is the difference between new authorities granted and authorities revoked in a given period. A positive number means more authorities are being issued than revoked; a negative number means the market is contracting. Note that this counts individual authority grants, not unique carriers — one carrier may receive multiple authority types.

Question 5

Why did new authority grants drop recently?

Accepted Answer

The trucking industry has experienced a freight recession since mid-2022, with lower rates and reduced demand making it harder for new carriers to enter the market profitably. This has led to a significant decrease in new authority applications and a rise in revocations.

Authority Trends

Authorities Granted Over Time

Authorities Revoked Over Time

Net Authority Change

Frequently Asked Questions

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