The most important document that is to collect as a broker is the Bill of Lading. A BOL or a Bill de Lading is a document issued by the motor cargo ship as cargo entry for shipping. BOL has many important functions: proof of the transport contract, receipt of goods and supporting documents of ownership of the goods. DOTs and FMCSAs use the Safety and Fitness Electronic Records System to provide accurate electronic recording of a company`s identification, size, merchandise information and security record, including safety assessment. SAFER is a powerful tool to verify company information and, in particular, to identify the safety assessment of the self-propelled. The ideal safety assessment is “satisfactory” and often a “conditional” assessment indicates certain safety issues. Finally, if you enter into a contract with a motorized carrier, always make sure that the brokerage carrier agreement is signed and concluded before you ship the freight. Brokers working with an engine carrier are responsible for checking each vehicle before entrusting them with a charge. Consider checking individual COI (Certificate of Insurance) carriers and safety assessment before transmitting cargo. Checking the insurance certificate is a consideration that has a direct effect on the coverage of the charge.
Validating certification for appropriate blankets is the first step. Also confirm that they have the limit values and the right coverage conditions. Check that the insurer is financially solvent, the “A-” rating is recommended. Some claims take time to resolve and it is important to check the financial capacity of the insurance provider to determine if they will be in operation in the next 5 years. Always check the carrier and broker contract. Contracts are very specific and it is important to conduct a full review of the document before conditions are accepted. The text of these agreements may be the difference between covering a debt or covering the coverage of a loss out of pocket. Some critical terms that must be sought in a broker engine carrier contract are brokerage requirements, brokerage obligations, assignment/modification of agreements and non-exclusive agreements. Finally, as an engine carrier, it is important to ensure that payment can be made by the broker. Checking brokers is financially stable and timely payments are a good start. A credit quality check can give the car carrier the tools to confirm whether the broker is profitable or if there are pledges and/or legal judgments against them.
Transactions with a broker dealing with financial and/or legal matters will only result in severity if there are claims.