Operating authority
Operating authority is federal permission to operate as a for-hire motor carrier, defining the type of freight a company may haul and the geography it may serve.
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Authority types distinguish, among other things, common carriers hauling general freight from contract carriers serving specific shippers, and regulated commodities from exempt agricultural freight.
New authorities face additional scrutiny in their first period of operation, including a safety audit.
Authority is not a one-time achievement. It lapses if insurance filings are not maintained, and a lapse stops freight the same day because brokers verify status before tendering. New authorities also face a safety audit within their first months of operation, and the biennial MCS-150 update is required whether or not anything has changed. Treating it as a live obligation rather than a certificate on the wall avoids the most common cause of unplanned downtime.