When you look up a carrier and see "Inactive" next to their Common Authority, it's a clear stop sign. But what exactly does inactive authority mean, how does a carrier end up with it, and what are the risks of ignoring it?
Never book freight with a carrier that has Inactive authority. Doing so means the carrier is operating illegally and you could face significant legal and financial liability.
What Does Inactive Authority Mean?
Inactive authority means that a carrier's FMCSA operating authority has been revoked, surrendered, or suspended. They are no longer legally permitted to transport goods for compensation in interstate commerce.
There are three authority statuses in FMCSA records:
- Active — legally authorized to operate ✅
- Inactive — authority revoked, surrendered, or suspended ❌
- None — never obtained authority ❌
Why Does a Carrier End Up with Inactive Authority?
There are several reasons a carrier's authority can become inactive:
Insurance Lapse
If a carrier's insurance policy cancels and FMCSA is notified, the carrier's authority is automatically revoked. This is the most common reason for inactive authority. No insurance = no authority.
Voluntary Surrender
A carrier can voluntarily relinquish their authority — for example, if they're closing down operations or restructuring the business.
Safety Violations
FMCSA can revoke authority as a result of serious safety violations, failure to comply with safety requirements, or an Unsatisfactory safety rating.
Failure to Update Registration
Carriers are required to file an MCS-150 form (biennial update) every two years. Failure to do so can result in their authority being placed in inactive status.
Risks of Using an Inactive Carrier
Using a carrier with inactive authority exposes you to serious risks:
- Legal liability — knowingly using an unauthorized carrier may expose your company to regulatory penalties
- No insurance coverage — if authority is inactive due to an insurance lapse, there may be no coverage for freight loss or damage
- No recourse — if something goes wrong, the carrier has no standing with FMCSA, making claims difficult
- Shipper liability — in some cases, shippers and brokers can be held liable for using unauthorized carriers
Can Inactive Authority Become Active Again?
Yes — carriers can reinstate inactive authority by addressing the underlying issue. If the authority went inactive due to an insurance lapse, they can reinstate by filing new insurance with FMCSA. If it was due to safety violations, they must complete corrective action before reinstatement.
However, just because authority can be reinstated doesn't mean you should assume it will be. Always verify the current status at the time of booking — never based on a previous check.
A carrier telling you "we're working on getting our authority reinstated" is not a carrier you should book loads with. Only book carriers with currently Active authority — confirmed at the time of booking.
What About Pending Revocation?
Even more urgent than Inactive is a "pending revocation" — this means authority is currently Active but in the process of being revoked. FMCSA must provide a notice period before revoking authority, and during that window the carrier still technically has active authority.
Do not wait for the revocation to complete. If you see a pending revocation, treat it the same as Inactive.
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Inactive authority is a hard disqualifier. There is no scenario where booking freight with an inactive carrier is acceptable. Always verify authority status at the time of every new booking — it takes 30 seconds and completely eliminates this risk.