Who Needs Operating Authority?

Companies that operate as "for hire" carriers (for a fee or other compensation) that transport passengers or federally regulated commodities, or arrange for their transport, in interstate commerce are also required to have interstate operating authority.

The Reach of Operating Authority

FMCSA operating authority is also referred to as an "MC," "FF," or "MX" number, depending on the type of authority that is granted.

Unlike the USDOT Number application process, a company may need to obtain multiple operating authorities to support its planned business operations.

Operating Authority Dictates:

Type of Operation

What kind of business operations a company may run

Cargo Type

What cargo the company may carry

Geographic Area

Where the company may legally operate

Financial Responsibility and Exemptions

All of this also dictates the level of insurance/financial responsibilities a company must maintain.

Carriers NOT Required to Have Operating Authority:

✓

Private Carriers

Companies transporting their own goods

✓

"For-Hire" Carriers with Exempt Commodities

Exclusively hauling cargo that is not federally regulated

✓

Commercial Zone Operators

Operating exclusively within a federally designated "commercial zone" exempt from interstate authority rules

What is a Commercial Zone?

A commercial zone is a geographic territory that includes multiple states bordering on a major metropolitan city.

Example: Virginia/Maryland/Washington, DC area

Part 365: Rules Governing Applications for Operating Authority

Need Help with Operating Authority?

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