QuestionWhat is the difference in Operating Authority between Motor Common Carrier of Property and Motor Contract Carrier of Property? Having both of these authority is there any advantage?
AnswerHi Ken...Thank you for the questions.
Presently, there isn't a great deal of difference between the two types of for hire carriers. Common carriers provide for-hire truck transportation to the general public. Common carriers must file both liability (BI & PD) insurance and cargo insurance.
Contract carriers provide for-hire truck transportation to specific, individual shippers, based on contracts. Contract carriers must file only liability (BI & PD) insurance.
To obtain operating authority, both must file the following applications with the FMCSA: OP-1 Application, MCS-150 or MCS-150B, and MCS-150A. After the MC Number has been assigned, completion of the application process also involves:
(1) Proof of Insurance $750,000 Liability (no HazMat property & no passengers); $5,000 Cargo (cargo requirement applies to common carrier only) for each vehicle
(2) BOC-3 Form, Designation of Process Agents
The motor carrier authority (MC#) application processing Fee is $300.00 (non-refundable) for each and the application processing time is generally approximately 4-6 weeks. There is a protest period before your authority becomes active. The protest period allows anyone to file reasons why authority should not be granted.
Depending on your particular operation, I'm not sure there is a significant advantage to have both authorities. Some shippers prefer common and some prefer contract.
Thanks again and I hope this answers your question. If not, please feel free to ask for additional clarification.
....Don
