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June 3, 2022

What is Freight Broker Authority? How to get it.

Freight Broker Authority

The Federal Motor Carrier Safety Administration (FMCSA) grants an Individual, Partnership, or Corporation the authorization to arrange the transportation of goods to others by using a legal Motor Carrier (MC) number, known as Freight Broker Authority.

Depending upon the transportation of goods, Freight Broker Authority is classified into two categories:

  1. Brokers of Property (excluding household goods) – Transportation of goods to others by using a legal Motor Carrier (MC) number.
  2. Brokers of Household Goods – Transportation of household goods (Personal items and property that is used at home) to others by using a legal Motor Carrier (MC) number.

How to get Freight Broker Authority

As per FMCSA, if a broker is applying for Broker Authority for the first time, they can apply via the Unified Registration System (URS). After the broker applies on URS, FMCSA assigns an MC number, and completing the application requires keeping the following in mind:

  • Brokers of property: A surety bond (Form BMC-84) or trust fund agreement (BMC-85) in the amount of $75,000.
  • Brokers of household goods: A surety bond (Form BMC-84) or trust fund agreement (BMC-85) in the amount of $75,000.
  • Form BOC-3, Designation of process agent form
  • Application processing fees

And the FMCSA takes approximately 4-6 weeks for processing the application.

But if you are an existing Broker or Carrier then use existing forms/processes to update your authority or apply for an additional authority

  • Fill up the OP-1 form and depending upon the type of payment and method of delivery, mail it across to the addresses mentioned in the form.

It is crucial to keep an eye on your Broker Authority. To check your Authority contact a DOT Compliance expert or apply for it with DOT Compliance Group if you are not compliant.

What happens if your Freight Broker Authority is inactive or revoked?

To reinstate your Freight Broker Authority, you have to make sure that you

  • File proof of Insurance and Form BOC-3 with FMCSA
  • Have an active USDOT Number for Motor Carriers. If it is not active then submit an MCS-150 form along with a reinstatement request

The cost to reinstate Freight Broker Authority is $80, and it will become active after the 4th business day.

Some important definitions:

  1. Common Authority– When a Common Carrier provides a for-hire truck to the general public is referred to as Common Authority. And common carriers must file both liability (BI & PD) insurance and cargo insurance.
  2. Contact Authority– When a Common Carrier provides a for-hire truck to the specific, individual shippers, based on contacts is referred to as Contact Authority. And common carriers must file both liability (BI & PD) Insurance and Cargo Insurance

Getting your Freight Broker Authority can be a long and complicated process. With no room for mistakes, you cannot take the risk of making mistakes. So let DOT Compliance Group do it for you, Our professional team can obtain your Broker Authority for you.

FAQ

Who Needs a USDOT Number?

Businesses that run commercial vehicles weighing more than 10,000 pounds—whether carrying passengers or moving freight—are required to register with the FMCSA and obtain a USDOT number. This number serves as a unique identifier that allows federal regulators to track and review a company’s safety records.

How Much Does a USDOT Number Cost?

Acquiring a USDOT number is free when processing with the FMCSA. For a hassle-free process with one-on-one assistance, visit: https://dotcompliancegroup.com/usdot-number-application-form/ or call 972-232-2218.

What Documents and Information Are Required?

To obtain a USDOT number, you will need to provide your business and operational details and identification. This includes legal business name, physical and mailing address, contact information, EIN number and/or SSN, type of business, cargo/cargo type, and operating authority.

How Long Does It Take to Get a USDOT Number?

Applying for a DOT Number can be done as fast as a few minutes. To obtain your DOT number today, visit: https://dotcompliancegroup.com/usdot-number-application-form/ or call 972-232-2218.

What if I renewed my UCR with DOT Compliance Group last year?

If you renewed with us last year, please check your Customer portal. If auto-renewal is still active, your UCR will automatically renew. If you have turned off auto-renewal, you’ll need to submit your renewal here on this page.

If I Pre-Register for 2026 UCR, when will I be charged the total amount?

The total amount will be charged on October 1, 2026 for the 2026 year.

I am an Ag Exempt Farmer. Am I exempt from registering for UCR?

No, if you cross over state lines you are required to register for UCR. Your Ag exemption does not apply to UCR.

If I am an Amazon or Postal Service Contractor do I have to register for UCR?

Yes. Even though you do not cross state lines, your parcels do. That makes you an Interstate carrier and you would be required to register at the 0-2 fleet size.

Who is Exempt from UCR?

Private Motor Carriers of Passengers and All Motor Carriers operating solely within Hawaii, except those involved in moving household goods for individual shippers.

What states do not currently participate in UCR?

Currently Arizona, Florida, Hawaii, Maryland, Nevada, New Jersey, Oregon, Vermont, Wyoming, & the District of Columbia are non-participating states. (This information is current as of 6-16-2023. For the most up-to-date information check the FMCSA website.)

If my base state is a non-participating state that means UCR does not apply to me, correct?

No, if you operate as an interstate carrier and cross into a state that does participate, then you are required to register with UCR.

Who must comply with DOT regulations?

Any business operating a Commercial Motor Vehicle (CMV) with a USDOT number is required to comply with DOT regulations. This requirement applies to motor carriers, freight forwarders, brokers, and companies operating under a hazardous materials permit.

What documents are required for a DOT audit?

Documents required during an inspection include but may not be limited to:

  • State driver’s license or commercial driver’s license
  • Medical examiner’s certificate
  • Record of duty status
  • Vehicle registrations
  • Periodic inspections document for all vehicles being operated
  • Shipping papers or bills of lading
  • Information for hazardous materials being transported
  • Proof of insurance

How can companies avoid common DOT violations?

Companies can avoid common DOT violations by maintaining accurate records, including driver logs, vehicle inspections, and required documents. Regular vehicle maintenance and pre-trip inspections help prevent safety-related violations. Proper training ensures drivers follow Hours-Of-Service rules, secure cargo correctly, and meet CDL and medical requirements. Using technology like ELDs and fleet management software can streamline compliance and reduce the risk of penalties.

What happens during a DOT compliance review?

During a DOT compliance review, or audit, officers review both the vehicle and the driver to ensure compliance with federal and state regulations. They check registration, insurance, inspection reports, and inspect safety equipment and vehicle systems for proper operation. Drivers’ licenses, medical cards, hours-of-service records, and logbooks or ELDs are also examined. The inspection helps identify violations and ensure safety on the road.

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