How do I check how a freight brokerage vets its carriers?
Ask to see the carrier onboarding file for a sample of carriers: the application, insurance certificates, references and any safety information the brokerage collects. Then check who reviews it, how often records are refreshed, and what happens when a carrier fails a check.
A brokerage is only as dependable as the trucks it hires. Ask for the written process for approving a new carrier and compare it to what is in the files. Pick several carriers at random, including recent additions and long-time favourites, and see whether each file is complete.
Look at how checks stay current. Insurance expires, ownership changes and performance slips. Ask who tracks renewals, whether the system flags gaps and how often a carrier is reviewed after approval. Ask what the brokerage does when a carrier misses pickups or damages freight.
Review the incident history: cargo losses, late deliveries, carrier disputes and any claim where the brokerage was blamed for the choice of carrier. Ask your lawyer and insurance adviser how those cases were resolved. Finally, talk to the person who actually does the vetting. If their method lives only in their head, note that for the transition plan. Ask also whether vetting is lighter for carriers the team knows well, because a familiar name can slip past the same checks that a stranger would face. The answer shows how consistent the process really is in a busy week. Note whether checks are done by a person or by an automated step, and who covers when that person is away.
Key takeaways
- Compare the written approval process to a random sample of carrier files.
- Ask who tracks insurance renewals and re-reviews carriers after approval.
- Study incidents where a carrier choice caused a loss or dispute.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Transport CanadaGovernmentMotor carriers, commercial vehicles and drivers
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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