Be aware of load board scams and take preventive measures

Online load board scams are causing threats to trucking industries to a great extent. With Load board scam the victims are suffering a huge monetary loss. The companies should conduct extensive research on their transportation providers and undertake preventive measures against scams.

As the shippers and brokers have to undergo a huge cost, they often does not pay attention to scrutinize the background of the transportation providers available on load boards. A company that fails to provide a yearly subscription to a credit agency, is chargeable up to $50 for each enquiry.

As soon as evaluating the cost of carrying out due diligence aligned with the cost of being scammed, one will at all times appear ahead by providing a simple credit check. One should also validate the address and phone numbers of carrier as well as safety record, and insurance policy.

In order to find out the authenticity of a carrier, one should confirm the active operating authority that facilitates carriers to haul commodities for other businesses. If a company's authority is active surpassing one year, one can consider it as legitimate.

Shippers and brokers can get help from various online resources to judge the legitimacy of the carrier. The companies can join online monitoring services and the Transportation Intermediaries Association to get deep understanding of their business partners and get access to carrier watchdog services that report poor performance.

In order to make sure that the information is authentic, shippers should go through on all online research and get in touch with the company's office and its insurance representative directly.

In June 2011, the Fighting Fraud in Transportation Act of 2011 was launch focusing on numerous policies to formulate more efficient transportation directive as well as growing the surety bond for brokers and freight forwarders from $10,000 to $100,000.

Increased bond liability is created with the increased bond amount that builds sureties stricter and elevates the bar for freight brokers. This will facilitate to get rid of scammers who are acquiring active authority. This will useful to defend shippers, brokers, and carriers.

In order to defend themselves from load board scams, the best solution is that the shippers, brokers, and carriers should collaborate with a third-party logistics (3PL) firm. With this partnership the shippers will be benefitted by utilizing the 3PL's trusted carrier base, and get the protection for being connected with a financially stable organization.

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Posted by
Rajib Dey
Business Executive
email : rajib.dey@suainlogistics.com
website : www.suainlogistics.com

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