Defining FMCSA Operating Authority Types for Freight Forwarders and Brokers (FMCSA OFFICIAL VIDEO)

Continuing with the FMCSA’s Office of Registration “HOW TO” Video Series, we would like to present “HOW TO Define FMCSA Operating Authority (OA) Types for Freight Forwarders and Brokers”. If you’re registering with FMCSA for the first time, or if you are expanding your operations to offer additional services, you need to understand the requirements for Operating Authority (OA). In this video, we cover the types of Operating Authority (OA) for Brokers and Freight Forwarders, as these are distinct and different from Motor Carrier of Property (except Household Goods), Motor Carrier of Household Goods, and Motor Carrier of Passengers. The video summarizes regulatory guidance FMCSA issued on June 16, 2023, clarifying the definitions of “broker” and “bona fide agents”. It also explains the minimum levels of financial responsibility in the form of either a surety bond or trust fund agreement for $75,000 that both brokers and freight forwarders must maintain, as well as the appropriate levels of bodily injury and property damage insurance freight forwarders must maintain if they operate commercial motor vehicles. In addition, brokers and freight forwarders must designate a Process Agent in each State that they operate.