flyer-1-v1.jpg

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.

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.


GMS-FLYER-1200x1697.jpg

With the development of new technology and more people ordering and tracking items than ever before, hiring a trucking company to move freight might be the best option for every business. The ability to move goods effectively over long distances is a crucial factor. And trucks have proven to be very affordable and safe. Trucking companies obtain motor carrier permit, IRP plates, and other licenses to operate in intrastate and interstate commerce. They also offer the perfect balance of weight, and the industry is well regulated. Trucking companies with good safety records, top-notch customer satisfaction, excellent service, experience, and expertise offer far more benefits than other means of transportation. With that said, read on as Global Multi Services takes us through the benefits of hiring a trucking company.

EXPERTISE, EXPERIENCE, AND MOTOR CARRIER PERMIT

Trucking companies have the expertise and experience it takes to transport your freight quickly and safely. They have been in the business for many years and have understood how it works. They also have the license and permit to haul. If you want your goods delivered safely, you need a trusted and reliable trucking company. With their right expertise and significant years of experience, they will put you at ease because they know what they are doing.

SAVES TIME AND ENERGY 

The faster you get your materials and goods where they need to be, the more successful your business will be. Trucking companies are experts in shipping goods. They know all the required documentation to transport goods from one place to another and have streamlined the process to make it easy and efficient. Using them will save you a lot of time and energy required to manage your fleet and figure out your shipment.

MOTOR CARRIER PERMIT

The trucking industry is a regulated industry in the United States. Motor carriers must obtain a motor carrier permit from the Department of Motor Vehicles before operating across state lines. The Federal Motor Carrier Safety Administration also ensures trucking companies comply with safety and commercial regulations by carrying out audits and inspections. These help to eliminate bad driving and reduce crashes and accidents.

TRUCK WITH MULTIPLE SERVICES 

Trucking companies offer a wide range of services. These include LTL&FTL truckload shipping, reefer freight, same and next-day delivery, warehousing, freight management, and many more. With this range of services, you can form a relationship with one trucking company that will handle your shipping needs. These lead to cost reduction, allows you to enjoy an exceptional level of service and improved customer satisfaction.

BETTER RISK MANAGEMENT 

The trucking industry is one of the most dangerous industries in the United States. More than 400,000 truck accidents occur every year, and the supply chain is in constant danger of interruption. Goods and materials are also prone to theft and damage. All these can be reduced by using a trucking company. They have all the licenses needed to transport your freight and have insurance coverage. These help them when things go south during the transportation process.


19-05-20213.jpg

Applying for your Motor Carrier Authority can be intimidating, stressful, and confusing considering the competing information available online about it. It is also difficult to keep track of all the steps you need to follow. Getting your authority also requires establishing a trucking company, commitment, USDOT Number, attention to detail, and providing all the necessary documents. Read on as Global Multi Services takes us through why every trucking company needs authority.

Meaning Of Motor Carrier Authority

Having your carrier authority means you have the government’s permission to haul freight as a trucking company and get paid for it. The authority is issued through the Federal Motor Carrier Safety Administration (FMCSA) in the form of a Motor Carrier Number. Having a Motor Carrier Permit gives you the ability to choose the type of load you want to carry and also figure out your schedules and routes. This means you have completer freedom on how you want to operate your trucking company.

There are different types of authority depending on the type of freight you want to start carrying and some commercial vehicles might require multiple authorities to cover different types of freight. Some states also require an interstate Authority if you want to carry freight within them. Therefore, you need to apply for a Motor Carrier Authority relevant to your business.

Benefits Of Motor Carrier Authority

It Is Profitable

When you work as a trucker or with an owner-operator for a long time, it’s natural to think of having your authority. The trucking industry is huge and filled with many career opportunities. It also gives you complete independence and also profitable if you’re running your business correctly.

It Gives You Total Control

Although having a Motor Carrier Permit comes with many responsibilities and work, however, it allows you to hire your truck drivers. Over time, you can increase your trucks and drivers. It also allows you to find and negotiate loads.

What You Need To Get A Motor Carrier Authority

Establish Your Business Entity

Having a trucking company is the same thing as becoming a business owner and you have to establish a structure just like every other business. What makes this difficult is that you have different ways to establish your business entity. It might be difficult to figure out the type of business entity to use. But don’t worry, you can contact  Global Multi Services to put you through the entire process.

Apply For Your Authority

Go to the Federal Motor Carrier Safety Administration (FMCSA) website and fill all necessary forms for your application. They might ask for truck information such as your Vehicle Identification Number, license plate Information, truck weight, tax ID number, and many more.

After submitting your application to FMCSA, the organization gives a chance of ten working days for anyone to protest your authority. Once this ends, you will be asked to post proof of insurance and your BOC-3 form. Which assigns a business in all the fifty states who receive and forward legal documents on your behalf

After completing the Motor Carrier Identification Report Form and your Safety Certification Application, the Federal Motor Carrier Safety Administration will give you your USDOT Number. This is very important if you have a commercial vehicle operating interstate.  After reviewing your authority, the FMCSA will send you a letter if they approve your Motor Carrier Authority.