Do I Need Interstate or Intrastate Authority?

Having "authority" is often thought of as having a USDOT number, but it's more that that. Interstate authority is the ability to move property or people that belong to somebody else for compensation.

Having authority is often referred to as having an "MC Number." The most common types of interstate authority are property for-hire, passenger for-hire, household goods, broker and freight forwarder. It is possible for the entity that never operates commercial vehicles to need authority. Straight brokers are an example of this. You must pay a $300 one-type fee for each type of authority that you need.

A company or an individual can get a USDOT number easily, to obtain authority is much more difficult and time consuming. There is a vetting process which requires the applicant to demonstrate financial responsibility and designate process agents. There's also a fee associated with obtaining for-hire authority.

Authorities are not all-inclusive. Separate authority is needed for each type of service offered. For instance, a for-hire over-the-road carrier that also wants to be able to resell its extra demand will need both for-hire and brokerage authorities.

Intrastate authority is separate from interstate authority. Some states require authority to make a single intrastate move. Intrastate authority can be described as state-to-state cabotage rules. You can bring a movement into a state, and complete a move out of the state, but you need to be registered with the state to move goods or people from one location in the state to another location in the state. Authority rules vary considerably from state to state. They differ in what types of movement can be made, authority that is needed, and how strictly the state enforces their authority provisions.

How J. J. Keller Can Help

Our team of expert Authority Advisors will help obtain your required authorities fast and hassle free. In addition to handling the entire process on your behalf, they'll verify that you have the proper authority needed for your operation.

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Talk with a Compliance Specialist today at: 888-473-4638 or fill out the form and we'll contact you.

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