What Every Shipper Should Know Before Hiring A Motor Carrier
Below is a MRR and PLR article in category Vehicles -> subcategory Trucks-SUVS.
What Every Shipper Needs to Know Before Hiring a Motor Carrier
Introduction
Hiring a motor carrier involves risks, especially if they are underinsured, unauthorized, or unsafe. This guide aims to help companies minimize liabilities and ensure safer shipping practices.
Why Use a Freight Broker?
Freight brokers connect shippers with suitable carriers, offering expertise and cost savings. This is particularly beneficial for small to mid-sized businesses without dedicated transportation staff.
Risks of Direct Hiring
Directly contracting with motor carriers can lead to hiring those who are unauthorized or unsafe, exposing your company to potential liabilities. To mitigate these risks, implement thorough carrier qualification procedures.
Key Qualification Procedures
Motor Carrier Authority and Insurance Filings
1. Documentation: Create a comprehensive file for each carrier before assigning shipments.
2. Verification: Ensure the motor carrier's authority is active and includes the correct type, such as common or contract. Confirm that a BOC-3 agent is appointed and properly filed.
Safety Ratings
1. Safety Certification: Obtain the carrier's safety rating from the Department of Transportation. Avoid carriers with "Unsatisfactory" ratings.
2. SEA Ratings: A Safety Evaluation Area (SEA) rating above 75 is inadequate. Only work with carriers scoring below this threshold.
3. Additional Checks: If a carrier has a "Satisfactory" rating, verify business references and current insurance policies. Secure a signed carrier agreement.
Conditional or Unrated Carriers
1. Conditional Ratings: Obtain the report explaining the conditional status and verify improvement plans.
2. New Businesses: For unrated carriers, investigate their business history, particularly if ownership has changed.
Motor Carrier Policies
1. Safety Protocols: Inquire about policies on safety, substance testing, medical exams, driver training, and compliance.
2. References: Request and verify references to ensure reliable service records.
Insurance Verification
1. Insurance Analysis: Confirm that coverage is adequate and current. Check for exclusions and verify the match between carrier names on documentation and certificates.
2. Authorized Signatures: Ensure the insurance certificate has an authorized signature.
Ongoing Review
1. File Maintenance: Keep carrier files updated, regularly reviewing for changes in authority, safety ratings, or insurance coverage.
Double Brokering
1. Broker Authority: Verify if the motor carrier holds broker authority to prevent unauthorized double brokering, which poses additional risks.
Conclusion
While challenges exist in hiring motor carriers, implementing stringent qualification procedures can significantly reduce liabilities. These measures ensure safer and more reliable transportation operations.
You can find the original non-AI version of this article here: What Every Shipper Should Know Before Hiring A Motor Carrier.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.