Do you really know who has your freight?

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The creation of web-based services such as Internet Truckstop and Transcore has revolutionized the transportation industry. However, as systems advance so too do the schemes created with the intent to defraud.

Any organization actively brokering or accepting brokered loads from internet load boards must be incredibly cautious and diligent in their research. Double-brokering, fuel advance scams, freight held hostage, and even employment scams happen to brokers and carriers all over the country.  

Recently a long-time load board scammer was sentenced to just under 11 years in federal prison for the nearly half a million dollars that he defrauded from unsuspecting carriers and brokers (Miller, 2012). And we’ve all heard the horror stories of carriers holding freight hostage and demanding payment for a higher-than-contracted rate, or shippers responsible for tens of thousands of dollars in freight charges due to a broker who never paid the contracted carriers but accepted payment themselves.

It is not only fraudulent carriers and other brokers that we brokers need to be concerned with, though. Failure to perform due diligence regarding safety records, insurance, or MC authority for carriers can have a catastrophic impact on one’s organization as well as one’s customers.  

According to an article on PRweb.com (2012), Heyl Logistics was ordered to pay $5.2 million in punitive damages for failure to accurately check the safety report and crash/tow history for a carrier and perform its due diligence in research.  The transporting company hired by Heyl who was responsible for fatally injuring another truck driver had not only  failed to perform routine drug testing on their drivers, but was uninsured and did not have an active operating authority (Prweb.com, 2012).

The value of research services is immeasurable when it comes to protecting cargo and one’s business. Management must ingrain a dedication to safety into everyday strategic operations and ensure safety checks are performed at multiple levels to provide for redundancy. Whether it is one employee who fails to check the performance records or your whole operations department, failure to do so could not only cost you a customer, it may cost you your business!

Interstate 48 Transportation has a very strict policy when it comes to standards of performance, safety, and maintenance.  We check the maintenance and safety records on a load-by-load basis for every carrier we do business with to ensure that even those that pass the initial standards we set for carrier approval are still monitored closely.  

 

Miller, E. (2012). Load-board scammer gets 10-year sentence and must repay $443,000 to fleets, brokers. Transport Topics, (3993), 5-5,46. Retrieved from http://search.proquest.com/docview/1011485379?accountid=35812

Unknown Author. Oregon Jury Renders $5.2M Verdict Against Trucking Broker and Driver in Negligent Hiring Case 3/06/12. Retrieved from http://www.prweb.com/printer/9258166.htm

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