motor carrier number

Validating Freight Carrier is Operating Legally: How-to & Why Important

Why Validating Your Freight Carrier’s Operating Authority and Saftey Rating is Important

The process of hiring a motor carrier to serve as a shipping company or broker of freight is not just a process of sorting a spreadsheet to determine the cheapest price freight service company.

The subject matter of cargo insurance general business insurance safety rating and a valid motor carrier number from FMCSA (Federal Motor Carrier Safety Administration) must all be part of a strict screening process for onboard any carrier before granting to an asset motor company the very first bit of cargo.

The importance of checking the motor carriers of the logistics of a business cannot be overemphasized.

A mountain of precedent in case law places the complete liability for road accidents in which person(s) dies or is disabled on the part of the company that picked the carrier to move their cargo because they hired them to transport freight across the road. If the shipper had not hired the motor vehicle to transport the cargo, the truck could not be operating.

When choosing to utilize an agent for freight or another non-asset logistics services provider (LSP) it is crucial that they also possess the appropriate insurance and an active MC number. In selecting an unasset logistics company, you must also verify that they are a part of their carriers pool.

The process of vetting the motor carriers that are used by the company’s logistics team is not a once-in-a-lifetime procedure. The most reliable logistics service providers and freight brokers confirm the legality of their carriers base at least every day, and some validate their carriers each hour with an external service.

The whole process is exhausting for truckloads due to its dispersed nature. Based on the US Department of Transportation, there are more than 700,000 registered motor carriers, with 91.0 percent operating 6 or fewer trucks, and 97.3 percent operating less than 20 vehicles.

How to Validate Freight Provider Has a Valid Operating Authority & Operating Safely

To verify whether the freight company has valid operating authority, this can be accomplished by logging onto the Federal Motor Carrier Safety Administration (FMCSA) website and entering the MC numbers.

This site will verify whether the business is legally operating and will provide a full record of any modifications that have taken place since its MC number was approved.

Items to be reviewed using a carrier MCC number

  • Does the MC number legitimate?
  • How long has the company been operating?
  • Is the carrier’s operating authority been suspended at any time during its history, and why?

the next stage to check the validity of the carrier after the MC’s number has been verified is to verify the safety rating of the company, which can be done through the Safety and Fitness Electronic Records (SAFER) Site.

Shippers should verify the safety records of companies they choose to use to carry their cargo. Remember that having a good safety record could suggest a problem and therefore, do your research. For instance, if a company has been operating for some time and has not had any inspections, it could be a sign that they’re presenting the business with the status of an asset company, however, they then broker all load out.

A red flag that could be raised when looking over safety reports is when a company has an excessive percentage of their service being out of commission. This could indicate that they are being stopped on a regular level for further investigation from authorities like the Department of Transportation (DOT) for past infractions.

Once the FMCSA records are reviewed, be sure that you have received an insurance certificate (COI) for the overall insurance policy. Verify the dates of insurance policies as well as coverages and deductibles.

Also, the procedure for vetting freight providers has to be arranged so that it is a regular element of the business and repeated on an ongoing basis to make sure the carrier you are using can keep the rigorous standards that got them through the first time around.

In certain situations, the best option that firms have taken is to engage an agent for freight or a logistic service provider (LSP) to handle all transportation to ensure that the pool of carriers is always monitored by industry-leading practices to safeguard its customer base. In certain cases, this is via a managed transportation solution, or through non-asset-based providers, just similar to an asset motor vehicle.

Why Validating Your Freight Carrier’s Operating Authority and Saftey Rating is Important The process of hiring a motor carrier to serve as a shipping company or broker of freight is not just a process of sorting a spreadsheet to determine the cheapest price freight service company. The subject matter of cargo insurance general business insurance…

Why Validating Your Freight Carrier’s Operating Authority and Saftey Rating is Important The process of hiring a motor carrier to serve as a shipping company or broker of freight is not just a process of sorting a spreadsheet to determine the cheapest price freight service company. The subject matter of cargo insurance general business insurance…

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