Obviously, we applaud efforts to enforce good transportation safety practices. But it’s also important to keep in mind that the main purpose of a fine is to deter would-be violators. If an unscrupulous carrier can greatly increase profits by cutting a few corners, the cost of a fine might well be considered a minor cost of doing business, i.e., not much of a deterrent.
Yet if brokers stop using problem carriers, at least part of the problem will solve itself. Safety and operating authority information is available to the public—if the broker knows where to look. The threat of losing business is a pretty strong deterrent, and if carriers know a broker intends to enforce compliance—and has the means to check up on violations—carriers are more likely to comply.
As our October Broker of the Month, Dennis Baxter, says, brokers are “lunatics if they don’t do carrier background checks.” Baxter’s company, National Carriers, uses CarrierWatch as part of their carrier development program. (For more on how National Carriers benefits from CarrierWatch, read Baxter’s Broker of the Month profile.)
A lot can happen to a carrier who had a stellar rating six months ago. Every week (on average), the CarrierWatch team updates its database with the following FMCSA carrier changes:
· 900 new authorizations
· 50 revocations or reinstatements
· 275 carriers put on 30-day notice
· 300 changes to BIPD and/or cargo insurance status
· 100 name changes
· More than 100 phone or fax number changes
(To learn more about how CarrierWatch can protect your business, and get your free CarrierWatch audit, visit our CarrierWatch page.)
Should the FMCSA be held responsible for keeping problem carriers off the road? Yes…but if the carrier’s involved in an accident while hauling your load, you’ll be the one paying the lawyers. In our opinion, brokers can best protect themselves by ensuring that they’re using top-notch carriers to begin with.
In the long run, self-enforcement is usually the best, and least expensive, option. Does your firm do anything special to reinforce good carrier practices? Take our survey, and let us know…or post a comment below.