Have you been working with trucking companies for many years? And you are considering stepping out to get your MC Authority? Having your motor carrier authority gives you many opportunities to increase your revenue and grow your trucking business. But it is not for everyone because many people have taken the leap and either burned out or failed.

Running a trucking company takes a lot of additional skills beyond driving. And many great drivers don’t have the business skills necessary to run a successful company. So, how do you know obtaining an MC Authority is the right move for you? Global Multi Services has compiled the cons of having your MC Authority, let’s dive in.

MC Authority

MANAGING THE BUSINESS SIDE

Having an MC Authority comes with the responsibilities of handling new roles in the company. It requires you to be more than just a driver and could have you working for longer hours than usual. You become your company’s CEO, sales and billing supervisor, dispatcher, manager, compliance ad safety office, and many more. These are often necessary if you are developing systems to make your business run smoothly. You may also have to work harder and smarter every week to keep your rig on the road.

FINDING LOAD IS DIFFICULT WITH NEW MC AUTHORITY

With MC Authority, drivers often struggle to find consistent freight at great rates. They are new to the business and have not built lasting relationships with shippers. Giving your load to a trucking company requires trust, loyalty, and experience. Everyone prefers companies with good track records and expertise that they can trust. And many new trucking companies do not have that. These make brokers hesitant to work with them. Growing your business requires you to actively and persistently look for new loads and negotiate your rates.

DEALING WITH COMPETITION

Trucking companies with the new MC Authority run into a lot of competition for top rates. They will be competing with big companies with years of experience, marketing teams, and loads of loyal customers. And the company can sometimes charge low to reposition their trucks. They will also compete with owner-operators who barely charge enough to keep fuel in their tanks. To build customer trust and increase your brand visibility, you need to adopt strategies and exceptional operating techniques.

RESPONSIBLE FOR MC AUTHORITY FEE AND OTHER EXPENSES

Operating under a company comes with enjoying their fleet benefits. And you will not have access to that when you are independent. You need to diligently keep track of your expenses and understand your cost per mile. You also have to pay for your MC Authority, license, insurance, Tax, fuel, and many more. All these expenses can add up quickly and turn what seems like a great opportunity into a nightmare.

EXTENSIVE PAPERWORK

Striking out on your own implies managing all of your paperwork yourself. These include bills, permit filing, receipts, invoices, and compliance documents. Big companies have departments that handle all their paperwork. But you have to do it all on your own and drive, maintain and manage all the other parts of your business.


The trucking industry is massive in the United States, with different sectors involved in various areas of the industry. Trucks transport 70% of the goods in the country, which makes the industry a massive market share. With the essential nature of the industry, why do many trucking companies fail? The trucking industry is highly regulated and staying compliant is very important. Trucking companies need to obtain their motor carrier permits, MC Authority, USDOT Number, and many more. Failure to do so can lead to a hefty penalty which can affect the company’s revenue.

They also face many challenges every day, especially the newbies. These include bad weather conditions, accidents, truck breakdowns, and many more. While there are many benefits of starting a trucking company, you also stand a lot to lose. But knowing the reasons other trucking companies fail can help you prevent being one of them. Read on, as Global Multi Services take us through why trucking companies fail.

Motor Carrier Permit

LACK OF RESOURCES

Resources are an essential part of every business, and it’s no difference in the trucking industry. A standardized trucking company must have good trucks, competent drivers, professional dispatchers with good management, and many more. Without these, meeting customer’s needs and operating with utmost efficiency can be strenuous. These can give the company a bad reputation and make them go out of business within the first few years.

POOR MANAGEMENT SKILLS

The trucking industry is different from other industries because most sales activities take place outside the business premises. Trucks haul freight from one place to another every day, and a lot of managerial effort is required to keep track of drivers. They need to ensure the drivers arrive on time and in perfect condition. Without good management skills, there might be loopholes in operation leading to customer dissatisfaction. Therefore, it is paramount to recruit employees base on qualifications and experience. That way, the company will have knowledgeable individuals who have a nodding acquaintance with business success.

POOR BUSINESS PLAN

While the idea of starting a business is exciting, rushing into it can be dangerous. It needs proper research and a definitive plan. Poor planning often led to business failure. Therefore, do your research and understand how the industry works. Know your target customers and partner with professionals to come up with a comprehensive plan. You need a firm foundation, great strategies, and techniques to operate efficiently.

FAILURE TO OBTAIN MOTOR CARRIER PERMIT

Starting a trucking company requires you to follow regulations given by the Federal Motor Carrier Safety Administration. These include obtaining your motor carrier permits, IRP Plate, IFTA license, MC Number, and many more. Every state also has its requirements depending on the type of freight, truck weight, and distance traveled by truck. Failure to stay in compliance can lead to license revoke, leading to business failure.

LOW PAYING FREIGHT

Running a trucking company is expensive, but your expenses should not exceed your revenue. Therefore, you need to keep track of your cash-flow statements and make quote adjustments accordingly to avoid losing. Make sure your income aligns with your business objectives to avoid business failure.


Trucking companies are responsible for transporting goods for many industries in the United States. They range in size from a single truck to hundreds of trailers. They are a critical function in the economy and make it possible to deliver finished goods to satisfy consumer needs. The trucking business is quite profitable but also has its downside. Trucking companies are required to register for permits and licenses to operate across multiple jurisdictions. These include UCR Permit, New York HUT, MC Authority, IRP, USDOT, and many more. They also need to comply with many regulations given by the Federal Motor Carrier Safety Administration and the Department of Transportation. Read on as Global Multi Services walk us through the pros and cons of using a trucking company.

UCR Permit

PROS OF USING A TRUCKING COMPANY

FLEXIBLE AND COST-EFFECTIVE

Trucking companies are undeniably the most cost-effective way to transport freight from one point to another. Trucks are the best mode of transportation and the cheapest of all. They can pick up and deliver goods from any land-based location. It is an attribute unmatched by any other freight mode. They are also the best for transporting goods and raw materials within a short distance.

FAST DELIVERY SERVICES

Trucking companies are responsible for transporting many raw materials and goods in the United States. They are the best for small and large cargo shipments. They are fast, reliable, also the best delivery system no matter the distance.

GREAT VISIBILITY AND CONVENIENT

Trucking companies use sophisticated technologies to streamline their services. These include providing tracking devices and satellite tracking that gives shippers real-time visibility to their freight at all times. Therefore, you don’t have to worry about the safety of your freight. They are a great option for companies that transport large quantities of goods.

MULTIPLE SERVICE

One of the benefits of using a trucking company is the provision of multiple services. Trucking Companies provides different services depending on your needs. These include LTL And FTL shipping, warehousing, inter modal transport services, same and next-day delivery, freight management, logistics, and many more. It helps build a relationship and use one trucking company to transport all your goods. It also results in cost savings and better reliability.

THEY HAVE UCR PERMIT

The Unified Carrier Registration is a federally mandated program that requires trucking companies operating interstate and international commerce to register their business in their base state. They also need to pay an annual fee, based o the number of vehicles in their fleet. The registration is used to organize safety programs for the trucking industry.

CONS OF USING A TRUCKING COMPANY
THEY CAN BE EXPENSIVE

Trucking companies are sometimes expensive for long-distance transportation of goods and raw materials.
These can be very much of high cost for the commodities which are little low graded and are to be transported from one place to another.

SUSCEPTIBLE TO TRAFFIC AND WEATHER

Trucks are often affected by traffic, weather conditions, infrastructures, and many more. These can cause a delay in delivery.