Logistics organizations must provide careful documentation for their services and give brokers a chance to verify vital information. Hiring a shipping or logistics company requires verification of licensing and the status of the company, and any broker that wants to use the services must have all the correct documentation to protect the interests of all parties involved. Read more to find things to know when applying for a carrier packet.
What Is a Carrier Packet?
All a carrier packet is the documents a broker needs to give to their preferred carrier for the shipping and transport services. All carriers must fill out the forms and have them ready before the transport service or shipper picks up their shipments to send to the defined destination, and they must return the completed forms to the broker. Upon the review of the forms, the broker determines if the service provider follows all safety protocols as directed, and the selected carrier has documented proof that the broker is representing a legitimate company who requires the transport services.
What Is In the Carrier Packet?
The documents in the carrier packet include each document that the carrier needs to set up a freight agreement with the broker. Carrier packets include liability insurance, transportation licensing, the date of the agreement, the payment period, invoicing for procedures, and the broker bonds. Each of these documents must appear in the packet, or the carrier agreement is not valid, and the carrier cannot perform the services requested by the broker. For instance, if the transportation licensing isn’t in the packet, the carrier cannot prove that the driver is legally licensed t operate the transport vehicle and could face certain penalties.
Why Do You Need Them?
The carrier packets are a legal way to get it all in writing and ensure that all services are performed as expected and that there aren’t any surprises later. Brokers must know that the carrier is not conducting a fraudulent shipping business, and the shipments will arrive as expected without theft or any ill intent. The agreement defines exactly what the drivers are expected to do during the transport services and understands their rights and responsibilities when performing these shipping services for this specific client.
Who Creates the Packet?
Initially, the broker starts the packet, but the carrier and shipping and receiving agent manage specific tasks for creating the packet. Brokers start the draft of the carrier packet and the delivery agreement, and some transport services may involve an attorney to review all the legalities within the documents and ensure that all parties are protected under the agreement. There shouldn’t be any loopholes that cause legal problems later for anyone. The contract should be ironclad and define all the terms in language that everyone understands.
Who Is It Sent To?
After the carrier packet is completed, it is returned to the broker. The terms of the carrier packet define clauses to protect the broker and their shipment to stop liabilities related to damage. The carrier or transport service is protected against possible changes in the terms that are unexpected.
Before any broker uses a shipping or logistics company for regular transports, they need verification of licensing and proper insurance. These shipments are vital to the brokers, and they must rest assured that nothing will go wrong. Learn more about using carrier packets and the benefits they provide your company.