The goal of the article is to inform companies that hire motor carriers directly of the inherent risks associated with underinsured, unauthorized, and unsafe motor carriers and to present some recommendations on the procedures that can be implemented in order to minimize the risks.
Carrier, Freight, Transportation, Shipping
A freight broker matches shippers that need to transport freight with shipping companies. Freight brokers have access to many carriers and are able to obtain the right equipment for the move and can save money for shippers.
The use of a freight broker is ideal for small and mid-size companies that do not have dedicated personnel responsible for making transportation arrangements.
Shippers that contract with motor carriers directly may inadvertently hire unauthorized, unsafe, or underinsured motor carriers which can create unlimited liabilities for shippers in the event of damage or loss. Companies can significantly reduce these and other liability risks by implementing sound carrier qualification procedures.
Carrier qualification procedures might include the following:
Motor Carrier Authority and Insurance Filings
Develop a file for every motor carrier and check it before tendering shipments for the first time. The file must include a copy of the carrier’s operating authorities and insurance filings with the FMCSA as well as the carrier’s safety rating with the FMCSA.
Verify that the motor carrier