New MC Authority

I just went thru all that about 10 months ago. The definition of interstate commerce is buying and selling products across state lines. If you're planning on working thru brokers you won't need OP-1.

 

What about getting freight directly from shippers?

 

I'm not an expert on this but I think that as long as you don't buy the load you don't need OP-1. I had a trucking business pulling dumps in AL and we hauled directly for the customer and never had any problems. We did buy and sell some rock but kinda flew under the radar. We had it sold before we loaded it. If I was to do it again I'd probably get a brokers license. If I'm wrong or someone knows more let me know. I'd like to know for sure too.

 

There's no S... it's OP-1 and yes you need to fill that out for an MC number. And it's MCS not MSC... MCS-150 is for a USDOT number. (I didn't dig into this, so perhaps I'm mistaken...check for yourself.) The FMCSA website lays it all out in detail very clearly. http://www.fmcsa.dot.gov/registration-licensing/registration-licensing.htm If you can't figure it out there are companies that can do it for you. If you're a member of OOIDA give them a call.

And a side note: Every person who owns or operates a motor carrier should read and study Protecting Motor Carrier Interests in Contracts. You can find it at http://seatonandhusk.blogspot.com/p/book-order.html

 

I don't deal with these forms either...but if I'm not mistaken the MCS-150 is to get a USDOT number and the OP-1 is for an MC number. If that is correct then you do need to fill out an OP-1 if you want/need an MC#.
I don't know for sure without looking into it...but for a typical interstate motor carrier authority none of the forms will ask if you're going to find any work using brokers because operating authority is needed regardless.

 

Ok. Ed is right. You have to fill out the OP-1. I think it gives you the options on there tho to choose motor carrier, broker, etc. You don't need to have a broker license to haul freight if your thru someone.

 

This stuff was confusing and still is somewhat but it's not impossible to work thru and it sure beats paying someone an arm and a leg to do it for you.

 

Broker authority is if you are (want to be) a broker. It has nothing to do with doing business with a broker. For moving property on road (not talking about other modes here)...for hire (commercial) only a motor carrier can do that. So if you own a truck you can lease that truck with or without a driver (leasing equipment to a motor carrier is being an owner-operator leased to a carrier) to a motor carrier or you can become/create a motor carrier (get operating authority).

A motor carrier is authorized to move property for money (for hire). A motor carrier can contract to transport property directly with a shipper or a broker. If arranging transportation with a broker then the person or business acting as the broker is the entity needing broker authority. Otherwise it is illegal for them to act as a broker of property. A broker is a person/entity that brings a buyer and seller together to help make a deal happen. The example of a real estate transaction is often used as an example. In a real estate example the real estate agent (aka broker) knows sellers looking to sell and buyers looking to buy...but the buyers and sellers don't know each other and can often use help to find each other. The broker helps bring the two parties together and eventually takes a commission for their service. Hopefully that's clear enough for this conversation.

To recap:

To offer to the public to move property (freight/cargo/stuff) for money (for hire)...motor carrier operating authority is needed.

To be paid to bring shippers and motor carriers together to make arrangements to move property...broker authority is needed.