Good evening and thank you for joining us for module one. Module one, we will be discussing the different types of authority and how they have a direct effect on the transportation industry. We will also be discussing what is an authority and which is the proper permissions that you will have from the government to operate in whatever capacity it is that you are attempting to, or endeavor to pursue. So with no further delays, let's jump into module one guys. We're going to talk about MCs and DOTs. Okay. So first things first, there are two types of authorities when it comes to the transportation industry. You have what's called a carrier. authority and you have what's called a broker authority. Okay. These are two separate authorities, but they pretty much allow the same thing. So the first thing that we're going to talk about is the carrier authority. So In the transportation industry, having a carrier authority, having your own operating authority means you have the government's permission to get paid for hauling freight as your own trucking company, okay? So per the rules of the Department of Transportation, you do have to have what is called an authority in order to legally haul freight and get paid for it, okay? everyone that hauls freight is required to have what is called an authority okay so that's first and foremost now when we talk about carrier authorities there are two different types of um authorities if you will uh there's two type of identifications for your authority the first one is called your dot number which stands for department of transportation that's how the department of transportation identifies you as a unique carrier okay it's almost like a social security number everybody has their own social security number it identifies us as an individual A DOT number in a, I'm sorry, identifies you as a individual carrier company. Okay. So that's what a DOT number does. We also have what's called a MC number, which is a motor carrier number. So Let's talk about why you would need one or the other or both of these, okay? So with a DOT number, DOT number, also known as Department of Transportation number, is a number assigned to you by the FMCSA Operating Authority. That's the Federal Motor Carrier Safety Administration, okay? all commercial motor vehicles that have a vehicle weight or gross weight combination of more than ten thousand pounds is required to have one okay or vehicles designed to transport more than eight passengers for compensation require dot numbers one major thing to consider is that a DOT number is needed no matter if your company operates within a single state or travels between state lines, okay? So you have to have a DOT number if your vehicle or what you're hauling in your vehicle combined weighs more than ten thousand pounds. That's automatically going to require that your carrier has a DOT number. Okay. And regardless of if he only operates in a single state or multiple states, he has to have a DOT number. Okay. So now let's talk about MC numbers. MC number, which is a motor carrier number, is a unique identifier assigned by, again, the Federal Motor Carrier Safety Administration to commercial motor vehicles that transport interstate cargo both inside their state and crossing over state lines as well so what this means is if you have a carrier or a truck whatever um that you're dispatching for if they plan on hauling freight throughout the country they have to have an mc number OK, if you have a DOT number, you can only haul freight within the state that that DOT number is assigned to. So if your carrier company is based in Texas, well, then that is the only state that you can haul freight in. If you want to haul freight outside of Texas, it doesn't matter if you go thirty feet out of Texas into Louisiana. If that's the case, you have to have an MC number. An MC number gives you the authority to travel anywhere interstate, okay? It allows you to travel anywhere throughout the country, okay? So that's the most important thing to realize. Both of these are unique identifiers for your carrier, whether they're a single truck operation or whether they have multiple trucks. A DOT number and an MC number identifies them as an individual company, okay? But a DOT number only allows you to work within the state that your company is in. An MC number gives you the authority to work and deliver or pick up throughout the state, okay? Now, last but not least, let's talk about broker authority. So... Broker authority. Broker authority is the permission granted by the government that allows you to facilitate load deliveries between shippers and carriers. And that's pretty much clear cut and dry. You can't make it any more simpler than that, right? That's what a broker authority is. It basically gives you the same permission that it gives truckers to pick up and deliver loads. Broker authority gives gives a broker the ability to facilitate those load deliveries between the shippers and the carriers. OK, and this is also something that is permission that is granted by the FM FMCSA as well. So this is what it would look like to have your broker authority. Looks very similar for your carrier authority, as we saw in the previous slide. But this is definitely something that you have to have legally in order to operate. Brokers are also assigned MC numbers as well, okay? So that's it. I know this was a pretty short chapter, but it's just one of many. So we will continue to move right along. As always, thank you for your time and I'll see you in the next chapter. Okay, guys, here we discussed the different types of authority. So now let's do a little question. A little Q&A, guys. We're going to start off with Christine. Christine, can you tell us what the two types of authority are? The two types of authority is carrier authority and broker authority. Okay, exactly. So the two types of authority are the carrier authority and a broker authority. Zyra, can you explain to us what is a carrier authority? So a carrier authority is having your own operating authority means you have the official approval from the government to run your own tracking business and get paid for transporting freight and also that this allows you to operate independently and legally hold freight for compensation. Exactly. Very good. I like the way you answered that. So a carrier authority, like Zyra said, gives you the government's permission to haul freight across state lines, whether across state lines or intrastate within the state that you're registered with. And it allows you to be a for hire company. Um, so carry authority gives you the government's permission to transport. Now let's talk about what a, what the other type of authority is. JM. Can you tell us what the other type of authority is? So the other type of authority is broker authority. This would actually give us the ability to facilitate between the shippers and carriers. In short, it's permission to facilitate also granted by the government. Awesome. Awesome way to sum up that answer. It gives the permission to facilitate. So whether, no matter whether you're a carrier or a broker, you both have to apply for what type of number, uh, Erwin? Uh, you have to apply for MC number or carrier number. correct so no matter whether you're wanting to transport or no matter whether you're wanting to facilitate you still have to apply for mc number now here's the caveat if you're a carrier if you plan to do both if you plan to operate uh in both capacities then you still have to have an mc number as a carrier, and that has to operate as a separate entity. And then you have to have a MC number as a broker, and that has to operate as a separate entity. You cannot combine the two functions together. And we're going to talk about that more and more as we go along. So, Raquel, can you tell us what a DOT number is? So DOT number is the one that is given to a carrier if that carrier is planning to operate just for the state that that carrier is registered. So it's intrastate. Okay, let me ask a question. Tashi, do all companies have to have a DOT number? Do all trucking companies have to have a DOT number? Yeah, so if the trucking company is willing to travel just within the state, they need to have a DOT number. But if they want to go interstate, they'll be needing the MC number. Okay. But even if they're wanting to go interstate, will they still need a DOT number? No, they will need to have the MC number. Okay. Now let's back up a little bit. You kind of got the concept right, but I think you're missing one key element. So let's clear this up. If you, regardless, if you have a commercial vehicle that weighs over ten thousand pounds, you must have a DOT number regardless of whether you're planning to go interest intrastate, which means stay within the state lines or whether you plan on traveling across the country, uh, which implies you're traveling across state lines. So regardless, if the gross vehicle weight of your commercial vehicle exceeds ten thousand pounds, you must have a DOT number. Now, if you do not plan on crossing state lines or doing interstate commerce, then you may not necessarily need an MC number, but if you plan on doing uh for hire transactions or business and crossing state lines going across the country then you must have both a dot number and an mc number so if you're if you have a semi truck and it weighs over ten thousand pounds regardless you must have a dot number If you plan on doing interstate commerce, you must have an MC number as well. So does everyone understand that particular? Yes. Okay. Awesome. Awesome. Awesome. Okay. That will conclude our first module guys of what is an authority and we will get ready for module two.