Establishing a trucking business is challenging, given the industry’s regulatory landscape. One of the main stages is to obtain MC authority, which requires compliance with safety and regulatory requirements and accurate documentation.
One of the issues while receiving a motor carrier number is the waiting period. This phase is essential for building the credibility needed to secure consistent loads from brokers and shippers as you gain trust in the industry. During this time, trucking companies must balance the challenges of establishing their business with the need to remain compliant and financially stable.
This guide provides actionable steps to help you thrive in the early stages of your trucking journey.
The Importance of MC Number for Truck Drivers
A Motor Carrier (MC) number is a main component of working as a truck driver. It serves as a unique identifier assigned by the Federal Motor Carrier Safety Administration (FMCSA). With it, you can legally transport passengers or goods across state lines. It’s more than just a number; it represents compliance with federal regulations, ensuring your trucking operations meet safety and operational standards.
For new drivers starting their trucking career, obtaining an MC trucking authority is a required step if you plan to engage in interstate commerce or work as a for-hire carrier. The FMCSA registration ensures your compliance with federal rules for commercial motor vehicles, such as active insurance coverage, the alcohol testing program, and adherence to the International Fuel Tax Agreement (IFTA).
To obtain MC authority, new applicants should complete the Federal Motor Carrier Safety Administration registration process. This includes:
Filing for an operating authority application through the Unified Registration System (URS).
Paying apportioned license fees through the International Registration Plan (IRP).
Ensuring compliance with insurance coverage requirements.
Registering your trucking business as an official business entity and obtaining an Employer Identification Number (EIN).
An MC number can provide a range of benefits for commercial drivers, such as more job opportunities and higher salary rates. For instance, with an MC, you can obtain:
A right to operate across state lines. A motor carrier authority grants the ability to transport federally regulated commodities or passengers across state lines.
Partnership opportunities. Most freight brokers and shippers require carriers to have an active MC authority, which is essential for securing contracts.
Insurance and compliance. An MC interstate authority ensures you meet federal guidelines, such as maintaining insurance coverage, passing audits, and keeping a USDOT number up to date.
Competitive edge. Holding an MC authority positions you as a legitimate player in the trucking industry. This is especially important for carriers looking to transport goods in multiple states.
Once you have your own operating authority, staying compliant is crucial for successful operations. Trucking businesses must regularly update legal documents like their UCR permit, ensure proper vehicle registration through the International Registration Plan (IRP), and participate in programs like the alcohol and drug clearinghouse to pass safety audits.
For new drivers, obtaining and maintaining an MC number represents the start of professional and profitable trucking operations. By understanding the process and adhering to federal motor carrier safety regulations.
Understanding the Baking Period for Your MC
The baking period lasts between 3 to 12 months and is a critical phase for building trust and demonstrating professionalism in the transportation industry. During this initial phase, carriers with a fresh motor carrier operating authority may face challenges securing loads, as many freight brokers and shippers prefer working with motor carriers who have an established track record.
New drivers should focus on compliance, communication, and steady growth to navigate initial challenges to benefit from this period.
Typically, brokers consider motor carriers with newer MC numbers after 3–6 months. However, significant traction occurs after the 6–12 months when your interstate operating authority is considered “more established.” During this time, you’re not just waiting—you’re actively proving your reliability.
Challenges of the Waiting Period
The waiting period, often referred to as the baking period for your MC operating authority, involves several challenges. They can make it difficult for new carriers to operate in the trucking industry. Understanding these issues can help prepare you to face them, ensuring your trucking operations thrive from the very first day.
Difficulty finding loads. Newcomers to the trucking sector often struggle to secure loads, as freight brokers and shippers usually prefer working with experienced drivers who have a well-established operating authority. This can leave new truckers at a disadvantage, especially if they lack connections or strategies to find brokers.
Strict compliance requirements. During this period, maintaining compliance with FMCSA regulations and MC authority requirements is essential. You must comply with a range of requirements, such as proper insurance, apportioned fees, cargo insurance, and adherence to alcohol testing requirements. Failure to comply with federal or state regulations can harm drivers’ credibility and delay business growth.
Cash flow challenges. Operating with a limited load capacity can strain your finances. Costs like fuel, insurance, truck maintenance, and state permits add up quickly. Without sufficient income, paying for operational expenses or investments in your trucking operations can become a burden.
Reputation building takes time. The trucking industry requires trust. New motor carriers must prove their reliability through timely deliveries, clear communication, and compliance with safety regulations. Building relationships with brokers and clients can take months, delaying access to high-value loads or interstate commerce opportunities.
Lack of experience with systems and processes. New entrants to the transportation industry may struggle to navigate load boards, negotiate rates, and manage back-office operations. These administrative challenges can add to the difficulties of managing an emerging trucking company during the waiting period.
What to Do While Your MC Baking
The baking period can be an opportunity to build a strong foundation for your trucking operations. While this period can be challenging, there are actionable steps you can take to stay operational, generate income, and prepare for growth.
Finding Loads Independently
Taking the initiative to find loads allows you to ensure an income without relying entirely on brokers. In addition, you can reach out to smaller or niche freight brokers. They often have immediate needs and may be open to working with new MC numbers. This approach enables you to demonstrate reliability and begin building a good reputation in the trucking sector.
You can focus on smaller brokers needing non-regulated cargo shipments or exempt commodities. This can include more flexible requirements for new motor carriers.
It’s important to perform well to prove your reliability from your first routes.
Working With a Professional Dispatcher
Dispatchers can be a valuable partnership during the baking period. They often have access to load boards with exclusive offers and direct broker relationships. A trusted dispatcher can help secure steady work during this time.
QuickStart is ready to be your trusted partner. We can handle all your issues, from applying for an MC number to finding loads that match your needs. Contact us today to ensure consistent cash flow for your operations.
Leasing Onto an Established Authority
If finding work under your operating authority during the waiting period is challenging, you can lease into an established motor carrier authority. This option allows you to operate under the operating authority of another carrier operating in the industry. Thus, you can obtain access to more loads, allowing your MC number to age in the background.
If you are considering this option, select a trucking company with a strong reputation. This can provide exposure to high-quality interstate operations.
Securing Non-Recourse Factoring for Cash Flow Stability
During the MC barking period, maintaining a steady cash flow can be complicated. However, it’s critical for managing operational expenses like fuel, maintenance, and license fees.
Non-recurse factoring offers immediate payment for invoices, even if issued by a broker or customer. Thus, you can be sure of the stability of your cash flow.
Building Relationships With Brokers and Shippers
Establishing trust with freight brokers and shippers early can set the stage for long-term partnerships. Proactively communicating, meeting deadlines, and maintaining professionalism help build a solid reputation that brokers value.
New drivers should be persistent with follow-ups and provide clear, real-time updates on delivery schedules to demonstrate reliability.
Taking Advantage of Local and Regional Jobs
While long-haul loads or interstate commerce can be limited during the baking period, local and regional work can help generate income and establish a track record. Smaller trucking companies and local brokers often require urgent services. In addition, they may not have as strict requirements as larger clients.
Local jobs can reduce fuel and maintenance costs, making them a cost-effective way to stay operational while building your own trucking authority.
Leveraging Load Boards and Subscription Platforms
Load boards connect you with brokers and shippers looking to move goods. Subscribing to premium platforms like DAT or Truckstop.com provides access to features like advanced filtering, real-time updates, and direct communication with brokers, increasing your chances of securing work.
Pair load board access with factoring services, which may include premium subscriptions as part of their offerings, to streamline your operations and reduce stress.
Maintaining Compliance and Safety Standards From Day One
Compliance and safety are essential for any successful trucking business, especially for new carriers with fresh MC authority. You should demonstrate a commitment to federal regulations and industry standards. This will ensure smooth operations, protect your MC trucking authority, and build trust with brokers and shippers.
From the moment you receive your MC authority, adhering to Federal Motor Carrier Safety Administration regulations is essential. Requirements include obtaining an EIN, registering under the Unified Registration System (URS), maintaining active insurance, and appointing a process agent.
Employer Identification Number (EIN). This is your identity, issued by the IRS for tax purposes. It is required to complete the FMCSA registration process, file taxes, and open a business bank account.
Active insurance coverage. Insurance is a main component for adhering to MC authority regulations and protecting your business. These key coverages include primary liability insurance to cover damage to third parties, cargo insurance to protect transported freight, and physical damage insurance to safeguard your vehicles in case of damage.
Apportioned license fees and tax compliance. As a new motor carrier, you have to participate in the International Registration Plan (IRP) to pay license fees for commercial vehicles traveling across stateliness.
Appointing a process agent. A process agent is your legal representative for receiving legal documents on behalf of your business in the states where you operate. This is a mandatory step for the MC authority application process.
Drug and alcohol testing programs. For carriers operating commercial motor vehicles. Participation in alcohol and drug clearinghouses is crucial. These requirements help maintain safety and compliance with safety standards.
Universal Carrier Registration (UCR). Carriers involved in interstate commerce must register under the UCR permit program annually. This system confirms your compliance with FMCSA standards and ensures your business is legally authorized to operate.
Safety audits. During the early months of operating with an MC number, new carriers are subject to audits by the FMCSA. Preparing for these audits requires maintaining up-to-date maintenance logs, driver qualification files, and records of compliance with hours-of-service (HOS) regulations.
By adhering to compliance regulations and focusing on safety standards, you establish a reliable foundation for your trucking operations, fostering growth and reducing operational risks during the early stages of operating with your new MC number.
Conclusion
The waiting period for your MC number is often the most critical phase for building credibility across the industry. While the challenges can seem daunting, this time also provides an opportunity to lay the groundwork for a sustainable and profitable business. By focusing on strategic actions like finding independent loads, working with dispatchers, or leasing to an established authority, you can keep your operations moving forward.
The MC authority baking period is more than just waiting—it’s about setting your trucking business up for lasting success. With a strong foundation and the right strategies, you’ll transition seamlessly into full operation, ready to take on greater opportunities in the logistics industry.
QuickStart can be your trusted partner! We specialize in helping trucking companies and owner-operators establish their businesses, meet FMCSA requirements, and maintain compliance with ease. With over 13 years of experience in the trucking industry, our team offers comprehensive services, including assistance with obtaining MC numbers, the FMCSA registration process, insurance setup, and IFTA reporting.
Let QuickStart handle the regulatory and administrative details so you can focus on growing your trucking operations. Contact us today to take the stress out of the MC authority application process and gain the support you need to succeed!
