Over 70% of US cargo is moved by truck, generating about $800B a year in revenue. But this lucrative industry is also highly regulated. In order to tap into the income potential of trucking as a Motor Carrier, or as a trucking Freight Forwarder or Broker, you’ll have to comply with a whole list of State and Federal rules and regulations. These include: getting a Motor Carrier (MC) number, USDOT number, a BMC-84 Bond and more. Operating without the proper licenses, bonds and insurance can result in costly fines and unnecessary risks.
Everything You Need to Get Your Operating Authority or Freight Broker Authority
DB Schenker Trucking Solutions helps carriers and freight brokers get licensed and stay in compliance. We make the whole process simple and painless. Let us do the paperwork! We’ll get you up and running quickly and affordably, so you can focus on what you do best — building your trucking business.
The Federal Motor Carrier Safety Administration (FMCSA) requires that all Motor Carriers (private and for-hire) be registered with a Motor Carrier Number (MC Number, also called an ICC#). This also applies to Freight Forwarders/Brokers that deal with Motor Carriers. But trying to obtain an Operator Authority with the FMCSA can be daunting. You must have a number of documents in place, in order to submit your application and get your MC Number.
Unfortunately, mistakes on applications are all too common and can delay your application by months. We can make sure you have all the needed documents to apply, that your application is correct, and fast track your MC Number. We can also help you get your BMC-84 Bond, USDOT number, BOC-3, and Interstate Authority, as needed. Your filing requirements may vary depending on if you are a:
Private Carrier: Motor Carriers that transport cargo belonging to themselves (retailers, manufacturers, distributors, etc. with in-house trucking capabilities).
For-Hire Carrier: Motor Carriers that are paid to transport someone else’s cargo, licensed either as a common carrier (a carrier that provides services to the general public), a contract carrier (a carrier under contract with [a] specific organization[s]), or both.
Freight Forwarder: Companies that use for-hire carriers to transport cargo belonging to someone else. They frequently specialize in consolidating Less-than-Truckload (LTL) shipments, in order to save on shipping costs. Freight Forwarders usually take possession of the cargo at some point, and take responsibility for it from its origin to destination.
Freight Broker: Companies that, like Freight Forwarders, use for-hire carriers to transport cargo belonging to someone else. Unlike Freight Forwarders that consolidate LTL shipments, Freight Brokers don’t usually take possession of the cargo. They arrange for shipments by the truckload rather than LTL. Also, Brokers do not assume financial liability for the cargo.
Whichever Operating Authority you need, we’ll help you navigate the ins and outs of FMCSA compliance. We’ll have you up and running in no time!
Freight Forwarders and Brokers must purchase a $75,000 BMC-84 surety bond (Property Broker Bond, Freight Broker Bond, Transportation Broker Bond, or an ICC Bond) before receiving a freight broker license. Brokers that do not comply with the BMC-84 bond requirement may have their broker authority revoked by the FMCSA.
DB Schenker will electronically file your bond directly with the FMCSA for fast compliance. We only work with A+ rated Surety providers — we’ll get you the most competitive rate on the best bond available!
An SCAC (Standard Carrier Alpha Code) is a unique 4 letter code used to identify transportation companies. An SCAC is required for all carriers doing business with a U.S. Government agency. As such, all carriers crossing the border into the United States are required to have a SCAC in order to identify themselves to CBP.
SCACs are issued and maintained by the National Motor Freight Traffic Association. Carriers can apply for a new SCAC or renew an existing SCAC directly from their website, www.nmfta.org. When a new SCAC is issued, the information must be forwarded on to CBP, as per the instructions provided by NMFTA. Thereafter it can be validated in CBP’s computer systems. SCACs must be renewed on an annual basis.
For carriers crossing the border into the U.S., an SCAC is required as the beginning of the trip number on their ACE eManifest, as well as the beginning of any Shipment Control Number being used to identify freight.
Keeping up-to-date with the rules and regulations of Motor Carrier Trucking will save you time and money. Whether you’re a seasoned trucker, or you’re just getting started, DB Schenker’s training classes will benefit you. Our online courses cover a wide range of Motor Carrier compliance topics, including; Dangerous Goods transport and Logistics. Add to your success, by increasing your skills and knowledge, with DB Schenker.