Why brokers want a 1 to 2 year old authority
If you’ve just received your MC authority, you’ve probably heard “call us back when you’re 6 months old,” or 1 year, or 2. Here’s why brokers do it and what you can do about it.
Brokers are managing risk
A broker that books a carrier carries some of the risk if something goes wrong: cargo theft, a crash, or a carrier that disappears with the load. Fraud has grown in recent years, often through brand-new or hijacked authorities. Age is a simple filter, because a company that has run for a year or two has a record a broker can check.
What brokers check in carrier setup
- Authority age and status on FMCSA SAFER.
- Insurance on file and its history, including any lapses.
- Inspections, out-of-service rates and crashes.
- Safety rating.
- Identity checks through carrier-vetting services, such as matching the contact person to the company.
- Any changes to the company’s contact details, phone or email.
Options for new carriers
- Lease on to an established carrier and run under their authority while yours ages.
- Find direct shippers who don’t use the broker age filter.
- Look for smaller brokers with shorter age requirements.
- Buy an aged company that already meets broker requirements. See aged vs. new authority for the trade-offs.
If you buy, keep it clean
Brokers watch for sudden changes in contact details. After buying a company, update FMCSA records properly and tell your brokers about the ownership change, rather than trying to look like the previous owner. Transparency gets you approved. Concealment gets you flagged. Follow the transfer checklist.
Frequently asked questions
Why won’t brokers work with a new MC?
New authorities have no track record, and fraud is concentrated among new or recently changed carriers. Requiring 6 months to 2 years of authority is a simple way for brokers to manage that risk.
How can a new carrier get loads?
Lease on to an established carrier, work with direct shippers or smaller brokers with shorter requirements, or buy an aged company that already meets broker requirements.
Next step
Find an authority that already meets broker age requirements.
This guide is general information, not legal or tax advice. Have your own attorney review any purchase agreement.