Vet Your Carriers

It may obvious to state that cargo thieves work 24-7 to steal our cargo. However, this statement should inform and guide every aspect of a broker’s business: be aware and act aggressively knowing that every step in the carrier onboarding process is absolutely necessary to prevent cargo theft.

This vetting process costs extra time and money but offers the highest level of scrutiny, similar to a lawyer’s due diligence review, exceeding standard broker requirements. In addition to using programs like RMIS, Carrier Assure, and Carrier 411, brokers should take further steps to verify carriers. A carrier passing this stringent vetting, with a good credit score, can be certified as a thoroughly vetted carrier.

Disclaimer: This article represents personal opinion only and not legal advice and sets no legal or other standard for carrier vetting since it is intended to be informative and educational only.

Creating a Robust Carrier Compliance Program (CCP)

The first step is to ensure your CCP is based on an accurate, up-to-date understanding of applicable laws. Brokers must fully understand the laws, regulations, and policies governing carriers in both Canada and the U.S., including:

• Department of Transportation (DOT)
• Internal Revenue System (IRS) or Canada Revenue Agency (CRA)
• National Highway Traffic Safety Administration (NHTSA)
• Federal Motor Carrier Safety Administration (FMCSA)
• Ministry of Transportation – Transportation Safety Division (Ontario) (MTO)
• Corporate Profile Report (or equivalent from State/Provincial Government Registry)

Even if your Carrier Compliance Program is current, remember that cargo thieves continuously try to circumvent the laws. Thus, it’s advisable to have a transportation lawyer review and update your CCP annually. Implement these updates to ensure carriers meet the latest compliance standards.

Final note: It’s crucial to understand and integrate applicable laws into your CCP. 

Pull the Carrier’s CVOR

For this third step, cross-check the carrier’s safety and governmental records, such as Ontario’s CVOR, with the Corporate Profile Report. This helps identify discrepancies and red flags. This method ensures the carrier’s identity and helps detect cargo thieves, who rarely can create matching records.

CVOR Level 1: A Synopsis

Brokers can order a CVOR Summary (Public Abstract – Level 1) for carriers online using the provided link. This summary covers the carrier’s performance over a specified 24-month period and includes essential information like the company’s name, address, operating license number, and more. Some key points, marked with asterisks, should be cross-checked with the corporate profile report for accuracy. Other safety-related details are highlighted in yellow for review. Order here.

CVOR Level 2 (Long Form)

The CVOR Level 1 provides a basic overview but isn’t sufficient for thorough due diligence. Instead, brokers should request an up-to-date Long Form CVOR from carriers, which offers more comprehensive information. Only carriers or their agents can order the Commercial Vehicle Operator Record (Level 2). It takes time for carriers to obtain and produce this record.

The Long Form CVOR reveals a carrier’s true status from both business and safety perspectives, including accident details, charges, and convictions over a five-year period. It offers a chronological compilation of safety performance, allowing brokers to assess compliance accurately. The link to order: Commercial Vehicle Operator Record – Carriers Only.

There’s also a pilot project for real-time access to CVOR records, but it’s limited to carriers and their representatives. The link to the Online Carrier Record website provides further details and helpful online services related to commercial vehicles and carriers.

Cargo theft is a constant threat, with thieves employing increasingly sophisticated methods to target shipments. Implementing a rigorous vetting process within a Carrier Compliance Program serves as a strong defense. By identifying red flags and discrepancies across corporate profiles, carrier records, and government safety reports, you can catch potential issues before they escalate. Timely actions like placing a Do Not Use (DNU) order can prevent customer loss, the need for police reports, cargo theft, and costly insurance claims.

This article was co-written by TRAFFIX’ employees Heather Devine, CLO; Michael Meeks, VP Enterprise Risk Management; and Sarah Geisel, VP of Legal.

It may obvious to state that cargo thieves work 24-7 to steal our cargo. However, this statement should inform and guide every aspect of a broker’s business: be aware and act aggressively knowing that every step in the carrier onboarding process is absolutely necessary to prevent cargo theft.

This vetting process costs extra time and money but offers the highest level of scrutiny, similar to a lawyer’s due diligence review, exceeding standard broker requirements. In addition to using programs like RMIS, Carrier Assure, and Carrier 411, brokers should take further steps to verify carriers. A carrier passing this stringent vetting, with a good credit score, can be certified as a thoroughly vetted carrier.

Disclaimer: This article represents personal opinion only and not legal advice and sets no legal or other standard for carrier vetting since it is intended to be informative and educational only.

Creating a Robust Carrier Compliance Program (CCP)

The first step is to ensure your CCP is based on an accurate, up-to-date understanding of applicable laws. Brokers must fully understand the laws, regulations, and policies governing carriers in both Canada and the U.S., including:

• Department of Transportation (DOT)
• Internal Revenue System (IRS) or Canada Revenue Agency (CRA)
• National Highway Traffic Safety Administration (NHTSA)
• Federal Motor Carrier Safety Administration (FMCSA)
• Ministry of Transportation – Transportation Safety Division (Ontario) (MTO)
• Corporate Profile Report (or equivalent from State/Provincial Government Registry)

Even if your Carrier Compliance Program is current, remember that cargo thieves continuously try to circumvent the laws. Thus, it’s advisable to have a transportation lawyer review and update your CCP annually. Implement these updates to ensure carriers meet the latest compliance standards.

Final note: It’s crucial to understand and integrate applicable laws into your CCP. 

Pull the Carrier’s CVOR

For this third step, cross-check the carrier’s safety and governmental records, such as Ontario’s CVOR, with the Corporate Profile Report. This helps identify discrepancies and red flags. This method ensures the carrier’s identity and helps detect cargo thieves, who rarely can create matching records.

CVOR Level 1: A Synopsis

Brokers can order a CVOR Summary (Public Abstract – Level 1) for carriers online using the provided link. This summary covers the carrier’s performance over a specified 24-month period and includes essential information like the company’s name, address, operating license number, and more. Some key points, marked with asterisks, should be cross-checked with the corporate profile report for accuracy. Other safety-related details are highlighted in yellow for review. Order here.

CVOR Level 2 (Long Form)

The CVOR Level 1 provides a basic overview but isn’t sufficient for thorough due diligence. Instead, brokers should request an up-to-date Long Form CVOR from carriers, which offers more comprehensive information. Only carriers or their agents can order the Commercial Vehicle Operator Record (Level 2). It takes time for carriers to obtain and produce this record.

The Long Form CVOR reveals a carrier’s true status from both business and safety perspectives, including accident details, charges, and convictions over a five-year period. It offers a chronological compilation of safety performance, allowing brokers to assess compliance accurately. The link to order: Commercial Vehicle Operator Record – Carriers Only.

There’s also a pilot project for real-time access to CVOR records, but it’s limited to carriers and their representatives. The link to the Online Carrier Record website provides further details and helpful online services related to commercial vehicles and carriers.

Cargo theft is a constant threat, with thieves employing increasingly sophisticated methods to target shipments. Implementing a rigorous vetting process within a Carrier Compliance Program serves as a strong defense. By identifying red flags and discrepancies across corporate profiles, carrier records, and government safety reports, you can catch potential issues before they escalate. Timely actions like placing a Do Not Use (DNU) order can prevent customer loss, the need for police reports, cargo theft, and costly insurance claims.

This article was co-written by TRAFFIX’ employees Heather Devine, CLO; Michael Meeks, VP Enterprise Risk Management; and Sarah Geisel, VP of Legal.