Who Is Really Transporting Your Freight? The Importance of Comprehensive Carrier Vetting
In the logistics and transportation industry, the vetting of drivers and carriers may not always receive the attention it deserves to protect customer interests. From employing drivers with high accident and claim rates or low performance results to skipping background checks, this oversight can lead to significant risks, including shipping delays, loss, theft, and even double brokering.
As a recent article from Security Informed notes, many carriers lowered their quality standards during the COVID-19 pandemic to meet a higher demand for deliveries, resulting in hasty hires and unvetted drivers who pose a risk to product safety and delivery.
The Risks of Unvetted Drivers
The cost of hiring the wrong carrier or driver can significantly outweigh the investment of hiring a trusted and reliable one. Negligent drivers not only endanger the timeliness of your deliveries, but the security of your product — not to mention the safety of those around them on the road.
The top challenges include:
1. Carrier Fraud
Carrier fraud involves “bad actors” posing as legitimate carriers to intercept or misdirect payments and cargo, leading to extensive delays, insurance claims, and financial losses. In addition to a careful vetting process for carriers and drivers, the right digital tools with real-time data analysis help to identify and mitigate fraudulent activities.
2. Double Brokering
Traditionally, double brokering refers to when a broker or carrier has another third-party transport the load without your knowledge or permission, which is considered an unethical practice because of using carriers that may not be vetted at all. This increases your risk, complicates liability and insurance claims, and can cause the shipper to be double billed.
Additionally, double brokering scams are on the rise, which happens when entities pose as legitimate brokers or carriers to those looking to double broker a load that ransom the load or steal and sell it instead.
3. Inefficient Carrier Onboarding
Inefficient carrier onboarding, characterized by outdated and manual verification processes, significantly hinders timely deliveries. This can lead to operational delays and reduced responsiveness to market needs, which can impede a company’s ability to scale operations and maintain competitive advantage.
LiVe Carrier Vetting
LiVe addresses these challenges head-on by implementing a stringent vetting process as a core component of our operations. The importance of thoroughly vetting a driver goes beyond merely ticking boxes to comply with the U.S. Department of Transportation’s regulations. It involves a deep dive into the applicant’s history, qualifications, and the potential risks they bring to your business.
Our team’s approach includes thorough investigations into carriers and drivers, including:
- Accident rates
- Claim rates
- Business longevity
- Theft
- Holding tailers
- Timeliness
- Age and type of equipment, and more
LiVe prioritizes these factors over pricing, ensuring that safety and reliability are never compromised. Moreover, LiVe’s vetting process is dynamic, with daily and real-time updates, rather than a one-off check. This ensures continuous monitoring and assessment of carrier performance and reliability.
Enhanced Tech Solutions for Carrier Vetting
LiVe has partnered with leading technology firms specializing in identifying and vetting freight carriers, to enhance our risk management and provide peace of mind with reliable, highly vetted drivers. The robust platform provides a comprehensive three-tier approval process and employs decision trees for quick and effective risk mitigation.
The advanced transportation logistics platform is designed to prevent carrier fraud, double brokering, and the traditionally slow process of carrier onboarding. By integrating carrier vetting technology, LiVe has streamlined its vetting process, ensuring that only the most reliable drivers are selected, particularly for high-value and high-risk loads.
Our dedication to ensuring driver reliability goes beyond just vetting – we actively manage and adjust carrier assignments to maintain timeliness and safety. If a driver cannot meet a scheduled delivery, our team quickly reassigns the load to a driver capable of maintaining stringent delivery timelines.
A Commitment to Reliability & Performance
LiVe’s meticulous approach to carrier vetting—enhanced by our technology partnerships with industry-leading vendors—set a new standard in the industry for safety and timely delivery. Our promise is simple: to deliver unparalleled peace of mind with every load we manage.
Contact a member of our team to learn more about our transportation logistics solutions, and how we can help you lower your freight total cost of ownership.