The selection of the proper shipping and receiving parties may be just as crucial to a carrier’s success as selecting the best brokerage company. In many cases, a problem for a carrier begins at the shipper/receiver level and not necessarily at the brokerage level. The missed appointment, the unexpected fee, the lengthy delay, and/or the payment issue will all negatively affect a carrier’s schedule and ultimately their bottom line.
Carriers can now utilize freight rating tools, i.e., Freight Checkers (a web-based rating tool), which provide carriers the ability to view historical information regarding past shippers and receivers prior to selecting a load. Freight Checkers also provides a means for carriers to access real-time feedback from other carriers who have driven loads to those specific shippers and receivers. This allows carriers to select shippers and receivers that historically do not create problems.
Below are the top five areas that carriers should evaluate when considering a new load.
1. Payment Issues: Historically Slow Pay/Disputes
A carrier’s payment history is a clear indicator of the likelihood of that shipper/receiver paying timely. Therefore, if a number of carriers have historically complained of slow payment or have experienced disputed invoices, you should be extremely concerned. Look for common patterns of complaints such as:
- Multiple carriers are complaining of slow pay.
- Shipping/Receiving companies’ accounting departments are failing to respond to e-mail inquiries.
- Invoices are being disputed for excessive periods of time.
- Shipping/Receiving companies continually request the same documentation (i.e., Bill of Lading).
If numerous carriers have posted similar issues regarding the same shipper/receiver, there is a high probability of the payment history becoming problematic.
Freight Checkers has provided a means for carriers to research payment histories through real-time postings from carriers who have delivered to those specific shippers and receivers.
2. Compliance and Business Practices
Non-compliance with federal regulations results in delays, additional costs to carriers, and creates unnecessary paperwork for both carriers and shippers/receivers. Carriers commonly complain of non-compliance with various issues, including:
- Incorrect information on Bills of Lading.
- Incomplete or missing documentation.
- Improperly loaded cargo.
- Changes to the delivery parameters at the last minute.
All of the above examples result in the types of problems that cause delays while driving.
Utilizing a monitoring system will assist carriers in identifying shippers/receivers that have a history of compliance problems.
3. Excessive Wait Times Without Proper Compensation
Drivers’ time is money. Anytime a shipper/receiver holds a driver at their dock for an extended period of time without providing compensation for detention and/or communicating clearly with the driver, they should be flagged. Some common signs of prolonged waiting include:
- Extended delays beyond scheduled arrival and departure times.
- Dock personnel are failing to communicate to drivers when and how their cargo will be unloaded/loaded.
- Cargo is being slowly unloaded/loaded.
Additionally, carriers need to know that when a driver arrives at a dock, what process does the shipper/receiver use for submitting detention claims?
Prior to accepting a load, carriers can review whether other carriers have experienced similar prolonged waits at that specific shipper/receiver using Freight Checkers.
4. Lack of Communication During Delivery
Good communication is essential to smooth delivery processes. Some of the common warning signs that indicate poor communication at the dock include:
- No one is answering phone calls during delivery/arrival times.
- Different dock employees are giving conflicting instructions.
- Unclear/documented load instructions.
- Lack of transparency regarding delivery delays.
Poor communication is usually the primary cause of many avoidable disruptions.
By reviewing the location reviews prior to delivering to a shipper/receiver, carriers can determine which facilities have a consistent track record of poor communication.
5. Unacceptable Working Conditions and Safety Concerns
Safety is paramount to protecting both drivers and equipment. Common signs of unacceptable working conditions and/or safety concerns include:
- Insufficient space for safe truck maneuverability.
- Trained forklift operators.
- Unclear signage.
- Chaos at the dock, including under-staffed docks.
Any facility that has been repeatedly cited for safety concerns should be avoided.
6. Multiple Complaints from Other Carriers
While a single complaint may represent an individual circumstance, ten or more similar complaints may indicate a trend. The use of platforms such as Freight Checkers will enable you to identify trends and make informed decisions.
If you notice a pattern of complaints related to delayed payment, lack of communication, etc., then it is likely that you should consider finding another load.
Protecting Your Business Before the Load Starts
Problems related to shippers and receivers often begin long before a truck arrives at the dock. You can minimize risks associated with a potential load by evaluating ratings and feedback on Freight Checkers and selecting partners that have a documented history of reliability.
Making smart load selections will allow you to maintain your schedule and protect your revenue. Review the ratings, confirm the specifics, and choose shippers and receivers that respect and support the daily efforts of carriers.
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