---
title: "Contract authority"
url: https://carrierkyc.com/glossary/contract-authority
description: "Contract authority is the operating authority status FMCSA records for a for-hire motor carrier hauling under continuing contracts with specific shippers rather than for the general public."
---

# Contract authority

**Definition:** Contract authority is the operating authority status FMCSA records for a for-hire motor carrier hauling under continuing contracts with specific shippers rather than for the general public.

Also called: Contract carrier authority, Contract carriage. Category: FMCSA & freight.

Federal law defines contract carriage, for transportation after 1995, as service under an agreement made under 49 U.S.C. 14101(b). That section lets a carrier and a shipper agree on specific services, rates and terms, and even waive certain rights and remedies in writing, but never the rules on registration, insurance or safety fitness.

In FMCSA's legacy authority data, contract status is tracked alongside common and broker status on the same docket, and many carriers hold both. For underwriting, the distinction rarely changes the decision. The practical questions are simpler: is a for-hire carrier authority active, is insurance on file, and does the legal name match your contract and the bank account?

> **Note: Why it still matters** A contract between a carrier and a shipper can't waive registration or insurance. If a client says it doesn't need active authority because it works under contract, check the record before funding.

See [common authority](https://carrierkyc.com/glossary/common-authority) and [operating authority](https://carrierkyc.com/glossary/operating-authority), or run a [carrier check](https://carrierkyc.com/tools/carrier-check).

## Related

- [Common authority](https://carrierkyc.com/glossary/common-authority)
- [Operating authority](https://carrierkyc.com/glossary/operating-authority)
- [L&I (Licensing and Insurance)](https://carrierkyc.com/glossary/l-and-i)
- [How to tell if a carrier is legit (with a live FMCSA check)](https://carrierkyc.com/guides/is-this-carrier-legit)
- [Carrier risk check](https://carrierkyc.com/tools/carrier-check)

## Sources

- [49 U.S.C. 13102: Definitions (broker, contract carriage, freight forwarder)](https://www.law.cornell.edu/uscode/text/49/13102) (Cornell LII)
- [49 U.S.C. 14101: Providing transportation and service](https://www.law.cornell.edu/uscode/text/49/14101) (Cornell LII)
- [FMCSA Carrier, All With History (legacy L&I)](https://data.transportation.gov/Trucking-and-Motorcoaches/Carrier-All-With-History/6eyk-hxee) (data.transportation.gov, last refreshed 2026-05-14)