What does authority mean in trucking? In the trucking industry, authority refers to the legal permission or certification that allows a motor carrier to operate commercial motor vehicles (CMVs) on public roads. It is a crucial aspect of the industry, as it ensures that only qualified and compliant operators are allowed to transport goods and passengers across the country. This article delves into the significance of authority in trucking, its various types, and the process of obtaining it.
The authority to operate in the trucking industry is granted by the Federal Motor Carrier Safety Administration (FMCSA), which is a division of the United States Department of Transportation. The FMCSA establishes and enforces regulations that ensure the safe and efficient movement of goods and passengers by motor carriers. To obtain authority, a motor carrier must comply with certain requirements, including proving financial responsibility, maintaining appropriate insurance, and passing safety audits.
There are several types of authority in the trucking industry, each serving a specific purpose:
1. Operating Authority: This is the most common type of authority, which allows a motor carrier to transport goods or passengers across state lines. To obtain operating authority, a carrier must complete an application with the FMCSA and provide necessary documentation, such as proof of insurance and a safety audit.
2. Broker Authority: A freight broker is an intermediary between shippers and carriers. To operate legally, a broker must obtain broker authority from the FMCSA. This authority allows brokers to arrange transportation for their clients while ensuring that the carriers they work with are compliant with safety regulations.
3. Property Broker Authority: Similar to broker authority, this type of authority is for property brokers who specialize in arranging transportation for goods. It requires the same compliance with regulations as broker authority.
4. Household Goods Mover Authority: This authority is specific to motor carriers that transport household goods, such as furniture and appliances. Carriers with this authority must comply with additional regulations, including those related to valuation and liability.
5. Exempt Authority: Some motor carriers may qualify for exempt authority, which allows them to operate under certain limitations. This type of authority is typically granted to carriers that transport only certain types of goods or operate within specific geographic areas.
The process of obtaining authority in the trucking industry involves several steps:
1. Determine the type of authority needed: Before applying for authority, a motor carrier must first determine the type of authority that best suits its business needs.
2. Complete the application: The FMCSA provides an application form that must be filled out accurately and submitted with all required documentation.
3. Provide proof of insurance: Motor carriers must provide proof of insurance to demonstrate their financial responsibility. This typically involves obtaining a bond or insurance policy that meets the FMCSA’s requirements.
4. Pass a safety audit: A safety audit is conducted to ensure that the carrier complies with federal safety regulations. If the audit is successful, the carrier is granted authority.
5. Maintain compliance: Once authority is obtained, motor carriers must continue to comply with FMCSA regulations and maintain their authority. This includes regularly updating their insurance, undergoing safety audits, and addressing any violations or deficiencies.
In conclusion, authority in trucking is the legal permission that enables motor carriers to operate on public roads. It is essential for ensuring the safety and efficiency of the industry. By obtaining and maintaining authority, motor carriers demonstrate their commitment to compliance and responsible operation.
