The process of freight carrier selection goes far beyond simply finding available trucks. As a leading freight broker, Next Exit Logistics understands that screening and selecting the right carrier is the foundation for each and every successful shipment. Our expertise lies in identifying reliable, safe, and efficient carriers that meet each shipment’s unique requirements and comply with federal and insurance regulations.
We act as an intermediary between shippers needing to move goods and carriers who have the capacity to transport them, thoroughly evaluating carriers to ensure they meet rigorous safety and performance standards. This is especially crucial for heavy haul, high-value, or specialized cargo.
In this article, we’ll take you through parts of our carrier selection criteria, so you better understand the process, and are confident about your next shipment.
Understanding Carrier Evaluation Criteria
How does Next Exit Logistics select carriers?
In the freight industry, carrier selection isn’t just about availability and pricing — it’s about finding partners who consistently deliver excellence. When you trust Next Exit Logistics with your valuable shipment, we follow a rigorous evaluation process that considers several factors.
Our selection of carriers involves multiple rating systems and evaluation tools that work together to create a comprehensive picture of a carrier’s reliability, safety, and sustainability record.
Here’s a detailed look at the key career selection criteria:
Carrier Credentials
The first item on the evaluation checklist is to be sure the carrier has the appropriate credentials from the appropriate governing agency. Freight carriers conducting interstate commerce must obtain a motor carrier (MC) number from the Federal Motor Carrier Safety Administration (FMCSA), the federal regulatory body that maintains safety standards across the trucking industry. Those who operate exclusively within one state (intrastate commerce) may receive a Department of Transportation (DOT) number in lieu of a MC number.
When we verify the carrier’s credentials, we also check to see if they have ever received an “out-of-service” status from one of the licensing entities. We do not work with carriers that have received this status.
Company History
Many freight brokers, including Next Exit Logistics, only hire carriers that have been in business for longer than six months. We don’t want to train a carrier or to have our customers’ freight part of a new their learning process.
FMCSA Rating
The FMCSA maintains safety standards across the trucking industry. It conducts comprehensive audits of carriers’ safety practices and operational procedures, assigning an FMCSA carrier rating based on compliance with federal regulations.
These ratings fall into three categories: satisfactory, conditional, and unsatisfactory.
A satisfactory rating indicates that a carrier has adequate safety management controls in place. Some carriers may not have a rating, which typically occurs when they haven’t undergone a compliance review. This can happen with newer carriers or those who haven’t triggered the need for an audit through their performance metrics.
At Next Exit Logistics, we maintain strict carrier selection criteria, working exclusively with carriers who hold a satisfactory rating due to their strong safety record. This selective approach helps ensure that your freight moves with our contracted carriers who prioritize safety and compliance.
Carrier Assure Grade
Next we screen carriers through a carrier performance reporting service to ensure they meet our standards. We often use Carrier Assure to provide these ratings.
Carrier Assure is a platform that provides comprehensive carrier monitoring and evaluation. It scores carriers based on market statistics, peer groups, and millions of data points, reviewing factors such as safety records, insurance history, and operational reliability. The Carrier Assure rating can range from A to F, suitable for more difficult shipments.
Next Exit Logistics only collaborates with trucking companies whose carrier performance rating (CPR) is A or B. This assures that your shipments are handled by dependable and trustworthy transportation partners.
Compliance, Safety, Accountability Scores
Compliance, Safety, Accountability (CSA) scores are percentiles calculated by the FMCSA to assess the safety performance of trucking carriers. They are calculated using data from roadside inspections, crash reports, and investigations over the last 24 months. The score is presented as a percentile ranging from 0 to 100, with lower scores indicating better performance. A lower CSA score suggests that a carrier or driver is operating more safely, while higher scores may trigger interventions from the FMCSA, such as warning letters, investigations, or even operational restrictions. Before doing business with a carrier, we monitor their CSA scores to ensure they are satisfactorily low.
Central Analysis Bureau (CAB)
The CAB provides comprehensive, up-to-date reports on any motor carrier’s performance, including safety records, financial stability, and overall operations. It pulls data from a wide range of sources.
CAB alerts are essentially red flags that indicate potential issues with a carrier, such as safety or operational concerns. A high number of alerts indicates increased risk or poorer performance.
At Next Exit Logistics, we hold ourselves to a high standard. We only work with carriers that have no more than one CAB alert on their record, ensuring that your shipment is in the safest possible hands.
Insurance Requirements
Insurance companies play a significant role in shaping carrier evaluation standards, acting as gatekeepers in the carrier selection process. Because they have a vested interest in minimizing risks, insurers establish strict evaluation standards that freight brokers must follow to maintain their coverage, which are audited annually.
These insurance standards help determine which carriers freight brokers will trust for different types of cargo. For high-value cargo or specialized shipments, insurance companies may require carriers to meet even more stringent criteria.
This system benefits everyone involved. It incentivizes carriers to be consistent and freight brokers to select carriers with a strong track record, which helps clients protect their shipments and insurance companies protect their interests.
Validation & Verification
DAT CarrierWatch is a comprehensive carrier monitoring and validation service used by freight brokers. Next Exit Logistics receives immediate alerts when the carriers we use have changes in their safety records or insurance status. We use CarrierWatch to validate the carrier’s credentials and their insurance coverage. We also verify these two criteria with FMCSA.
AM Best Rating
AM Best is a credit rating agency that specializes in the insurance industry. It serves as a crucial benchmark for evaluating the financial strength of insurance companies that provide coverage to carriers.
This independent assessment helps ensure that carriers have reliable insurance backing their operations. The AM Best rating scale ranges from A++ to D, with an A or A- representing an excellent ability to meet their ongoing insurance obligations.
Next Exit Logistics requires all our trucking carrier partners to be insured by companies with an AM Best rating of A- or better. This ensures that your goods are protected by a financially sound insurance provider in the unlikely event of an incident.
Leveraging Additional Evaluation Tools
At Next Exit Logistics, we believe in thorough verification through multiple sources. While our core freight carrier selection criteria provide valuable insights, we cross-reference this information with our own vetting process and other industry tools like Truckstop, CAB (Central Analysis Bureau), and carrier monitoring platforms to ensure compliance, safety, and reliability.
Truckstop gives us real-time access to carrier information, allowing us to verify and monitor a carrier’s status. It helps us with our freight risk management by providing details such as:
- Up-to-date safety ratings and compliance records.
- Insurance coverage verification.
- Performance history and reliability metrics.
This multi-layered approach to carrier evaluation helps us find the most reliable carriers for your specialized shipping needs.
FAQs About Selecting a Carrier for Heavy Haul or High-Value Trucking
Q. What is Heavy Haul Insurance?
Heavy haul insurance provides specialized coverage for oversized or overweight loads, which generally require extra transport precautions. It covers the unique risks of moving such large equipment, machinery, or other heavy cargo that exceeds standard weight and dimension limits.
Q. When is high-value shipping insurance needed?
High-value shipping insurance becomes essential when transporting cargo that exceeds standard cargo insurance limits. This typically includes expensive equipment, specialized machinery, or one-of-a-kind items.
Q. Is $100K Cargo Insurance Enough?
Whether $100K cargo insurance is enough depends entirely on the value and nature of your shipment. This coverage may be sufficient for many standard shipments. However, if you’re shipping high-value items, over $100K might not cover the full value of your goods.
Certain types of specialized cargo, like hazardous materials, may require specialized insurance coverage, which may not fall under a standard $100K policy.
Let Next Exit Logistics Arrange Your Transportation
Experience and attention to detail make all the difference when it comes to selecting carriers for your valuable shipments. At Next Exit Logistics, we provide exactly that, meticulously evaluating and selecting the best-qualified partners for your specific needs.
What sets us apart is our genuine passion for tackling complex logistics challenges. We specialize in the difficult, unique, and unusual shipments that other brokers might shy away from. Our team brings the same level of dedication and precision to every shipment, whether it’s oversized equipment, sensitive materials, or high-value cargo.
We pride ourselves on our proactive communication, top-notch customer service, and track record of successful shipments and satisfied clients. Contact Next Exit Logistics today for a quote and discover why leading companies trust us with their most challenging shipping requirements!
