There is an EPIDEMIC in the Transportation World right now, today – 2008. YOUR freight is being illegally double brokered by your Carriers to other Carriers without your knowledge or permission. When this happens – YOUR freight is no longer insured!!!
True story: A few months ago, a carrier brokered a load of pipe to a friend who had a trucking company. There was no paperwork exchanged. While transporting the pipe, the driver took a corner too fast, and rolled the trailer and all of the product down a steep mountainside.
The problem: THE SECOND CARRIER WAS UNINSURED. He had no cargo insurance and no liability insurance.
The result: The Shipper was left with the problem of suing the first carrier for the value of his pipe. The first carrier simply filed bankruptcy and started a new company one month later under a new MC# (learn why MC#s give you instant critical info).
The Shipping Manager was screwed, and he was fired for using the first carrier.
What could the Shipper have done to avoid this expensive loss? They could have qualified the trucking company to a service and performance “standard”. This is not a guarantee that they would not have had the same problem. But odds are they would have avoided the problem. (learn more about setting your own “standard”)