Managing Your Transportation Risk

When contracting with carriers and brokers, far too many shippers focus only on cost and service criteria, while overlooking the need to protect themselves by actively investigating the carriers and brokers they are using.

Transportation risk represents some of the most significant potential liabilities that your company faces.

You cannot ignore the importance of risk management in your transportation operations. It is imperative that YOU take the responsibility for vetting your carriers and ensuring that they are safe and stable.

You need to understand where your risks lie; ask yourself:

  • What is my exposure to liability in the event of a catastrophic accident?
  • What is my loss exposure in the event of theft or damage?
  • How am I liable when a third-party contracts with an unqualified carrier for me?
  • What happens if my carrier goes bankrupt?

We recommend that you do everything you can to reduce your organization’s exposure by adopting a holistic risk management and carrier monitoring program. The program must watch and analyze carrier attributes so you make informed decisions.

You must also adopt standard policies and procedures to deal with key issues as they arise.

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