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Within the recent court ruling in "Schramm V. Foster" the court said that a brokerage company was required to use "due diligence" in selecting a carrier. It is now more important than ever that you qualify your carriers prior to tendering them a load or you may be held liable along with the carrier.
"Due diligence" as applied by this ruling, requires each brokerage company to establish a corporate policy on qualifying carriers and always follow this policy before tendering to a carrier.
The following should be considered when establishing your policy:
A freight brokerage software system should include a way to establish a carrier file easily (preferably in electronic format to save time and money) and provide a monitoring process to know when it is time to update the carrier file with new insurance certificates and check their FMCSA file again.
TruckMaster Logistics Systems, Inc. has both the carrier file with electronic document storage and the carrier monitoring process which will not allow you to book a load on a carrier with expired qualifications.
You can't afford to ignore this court ruling, and I encourage all brokerage companies to stay current on this issue.
Craig Sorensen
TruckMaster Solution Provider
TruckMaster Your Freight Brokerage™
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