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Contract Authority

$652.50

“Common” or “Contract Authority”: The OP-1 form requires an applicant to designate whether it is registering as a “common carrier” or a “contract carrier.

Product Description

“Common” or “Contract Authority”: The OP-1 form requires an applicant to designate whether it is registering as a “common carrier” or a “contract carrier.” The historical difference between these two types is reflected in the definitions immediately above. The ICC Termination Act of 1995 defines contract carriage as truck transportation provided under a contract, but, effective January 1, 1996, it no longer distinguishes between common or contract carriers.

However, the Act specifically authorizes FMCSA to continue registering applicants as either common or contract carriers. The current principal distinction between the two types is that common carrier applicants must file proof of cargo insurance while contract carrier applicants are not required to do so

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