New MC Authority vs. Aged MC Authority:
In the trucking industry, an MC authority could be considered your empirical score card. It’s a reflection of how you run your trucking business. The importance of maintaining a clean authority cannot be understated. In this article, we’ll cover how a new MC authority compares to an aged MC authority.
Any new entrant that intends starting a trucking business (a trucking company or an owner operator) and wants to haul outside of their home state must procure an MC authority. A new MC authority costs $300 across most states and the procedure to apply is drawn out in the FMCSA link here: https://www.fmcsa.dot.gov/registration/get-mc-number-authority-operate
Consider that now, have a new MC authority and are geared for business with a clean MC that you can build a profitable, sustainable business around. However, there are some downsides to a new MC authority. Let’s do a quick comparison of the pros and cons around the operational aspects that MC authorities affect:
| New MC | Aged MC | |
| Initial Investment | $300 across states | Could be a substantial investment depending on the market and MC health -from $25,000 |
| Insurance rates | Higher insurance rates for new MC authorities and CDL holders. Harder to find affordable insurance quotes. | Insurance rates could be significantly lower in comparison to a new MC |
| Brokerage Rates | No hauling records puts new authorities lower on the Internal Carrier Ranking Systems that brokerages use to offer loads | A good safety and hauling record of an MC authority can put carriers on the top of ranking list allowing better paying and more frequent hauls. |
As we can clearly see, an aged MC requires an acquisition from an existing trucking company and can be a significantly higher investment than a new MC authority. Depending on what your business goals are, both operations serve the purpose of starting up a trucking business. If you are getting into the business with multiple vehicles, an investment into an aged MC authority will allow you significant operational savings and higher returns.
With over a decade of experience in the trucking industry consulting services, we at TruckStaff Solutions are adept with the transfer process and can help you make a better decision based on your individual/business vision.