The Role of Operating Authority & Safety Ratings in Carrier Selection

Proper vetting and verification play a crucial role in every trucking business. Brokers and shippers must prioritize the safety and reliability of freight when selecting carriers. One key aspect of carrier selection is understanding and evaluating operating authority and safety ratings. In this blog, we will explore the significance of proper vetting and verification in the logistics industry and delve into the role of operating authority and safety ratings in carrier selection. 

Understanding the FMCSA Data

To effectively vet carriers, it's essential to understand the Federal Motor Carrier Safety Administration (FMCSA) and its role in regulating the trucking industry. The FMCSA collects and maintains vast data on carriers, which can be accessed through their database. This data includes operating authority, safety ratings, and insurance details. However, the data can be a nightmare for anyone in the initial stages of starting a trucking company. As a result, it’s better to think about the bigger picture things in the profile.

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Validating a Carrier's Operating Authority

Validating a carrier's operating authority is a crucial step in the vetting process. Checking a carrier's MC number provides a reliable way to verify their operating authority. Access the FMCSA website and input the carrier's MC number to do this. 

The website will provide the carrier's operating authority status, allowing you to ensure they have the necessary legal authorization to transport freight. It’s not a bad idea for shippers to regularly check for potential updates on authority too. This is especially true when you want to review a carrier’s authority and whether they have the proper authorization to provide services to your company’s loads. 

Reviewing Safety Ratings

Safety ratings play a significant role in carrier selection. The FMCSA assigns different safety ratings, such as DOT safety ratings, to carriers based on their compliance with safety regulations and their performance in safety inspections. This can be further enhanced by reviewing the CSA Driver Score Lookup functionality, or PSP screening.

Reviewing safety ratings, including crash information, before hiring a carrier ensures they have a satisfactory safety record. The FMCSA database, as well as CarrierSource, provides access to safety ratings, enabling you to decide about the trucking companies you choose to work with and helps shippers better understand the risks of working with your brand. 

Checking Insurance Details

Cargo insurance and general business insurance are essential for carriers. As a shipper or logistics provider, verifying a carrier's insurance details is vital to ensure adequate protection for your freight. Further, there are specific limits of liability required among carriers. 

The FMCSA explains, "$750,000- “$750,000 - $5,000,000, depending on commodities transported; $300,000 for non-hazardous freight moved only in vehicles weighing under 10,001 lbs, is typically required for freight transporters." The FMCSA database provides access to insurance details, including lapses, allowing you to verify the carrier's insurance coverage and ensure it meets your requirements.

Make Your DOT Score Review a Standard Process

To ensure the safety and reliability of your freight network, you must have a rigorous due diligence process for every carrier or driver you hire. This process should include verifying operating authority, reviewing safety ratings, and checking insurance details. Incorporating these steps into your vetting process helps mitigate risks and ensures compliance in the logistics industry. And of course, be sure all your team members follow it for every hire, every time.

Tap the Power of CarrierSource for an Easier DOT Score Review Process 

So the solution is clear: get the data. But how do you reliably source all that information and make it digestible for your team? One tool that can streamline the vetting process and provide access to aggregated carrier data and reviews is CarrierSource. 

CarrierSource is a comprehensive platform that allows you to search and evaluate carriers based on various criteria, including operating authority, safety ratings, and insurance details. Utilizing CarrierSource enhances your carrier vetting process and enables informed decisions when selecting partner carriers for your business. Learn more by connecting with CarrierSource today.