Understanding the Importance of Carrier Packets
As a motor carrier, having a well-prepared carrier packet is helpful in streamlining your operations. Your carrier packet is your MC as a company packaged into a neat and professional presentation with the pertinent information most brokers would request when considering working with a carrier.
This guide will walk you through the essentials of creating a comprehensive carrier packet, ensuring that you are well-equipped to handle new broker requests and maintain seamless operations while on the road. Most importantly, a pre-made carrier packet can help you reduce redundant paper pushing administrative tasks and free up time as a carrier.
What is a Carrier Packet?
A carrier packet is essentially a collection of documents that provides detailed information about your motor carrier authority and operations. It typically includes your MC’s information, insurance details, and other pertinent compliance information required by freight brokers. The packet serves as a formal introduction and verification of your legitimacy and capability to handle freight.
When is a Carrier Packet Needed?
Carrier packets are necessary when you begin working with new freight brokers or when there are updates to existing information that need to be communicated. They help ensure that all parties involved have the necessary documentation to facilitate smooth transactions and operations. Keeping your carrier packet up-to-date can help prevent delays in payment and streamline broker compliance approvals.
What documents are included in the carrier packet?
There are several key documents to include in a carrier packet. These documents coincide with information that is usually requested during a broker set-up. Here’s a breakdown of those documents listed in the order we recommend the packet to be organized:
1 - Cover Sheet with Carrier Profile Information
Create a cover sheet that includes your authority’s name, MC number, DOT number, and address in title-like font since it is the most pertinent information for the broker to get correct. If there is any other business identification number that is required such as a SCAC code, this would be an appropriate place to include them.
Also include contact information for your carrier for the owner(s), dispatch, and payment. Ideally a name, email, and phone number is provided for each contact. This sheet will serve as a quick reference for brokers acting like your carrier’s digital business card.
2 - FMCSA Certificate of Authority (COA)
This document proves that you have the legal authority to operate as a motor carrier. It is issued by the Federal Motor Carrier Safety Administration (FMCSA) upon the granting of a new authority. Note that this document may take up to 10 business days to be received and is typically issued 3-4 business days after the authority has been issued.
If there are any other special permits that your carrier has, include them here as well.
3 - Certificate of Insurance (COI)
Your insurance certificate provides proof of the required coverage to protect against liabilities and ensure the safe transport of goods. There are minimum required insurance coverage that every motor carrier has to carry. This should clearly also show that coverage along with the start and end dates as well as agent information (email and phone). The preferred format is an Accord Form. This form is provided by your carrier’s insurance provider.
4 - W-9 Form
A completed W-9 form is a required document when working with freight brokers. This form includes your business name, address, and tax identification number, and it certifies that the information provided is correct.
5 - Equipment and Compliance Information
This section should include details about your equipment, such as the type of trucks and trailers you have available. It should also list any special equipment or capabilities your company offers, such as refrigerated or oversized loads. Include documentation of your company's safety rating, CSA scores, and any other relevant compliance information.
6 - Trade References
In addition to official documents, including references from past clients can help brokers get a better understanding of your company's performance and reliability. This section usually lists 2-3 brokers you’ve previously worked with and ideally recently hauled for on a recurring basis. Make sure to include complete contact information (name, phone, and email). You may want to confirm with the brokers that there’s no concern for you to list them as a reference.
7 (For Factoring Carriers) - Notice of Assignment
If you use a factoring company, include a Notice of Assignment which informs brokers where payments should be directed. This letter should be provided to you from your factoring company. Similarly, if you’ve recently left your factoring company, include a Letter of Release from the prior factoring company.
7 (For Non-Factoring Carriers) - Payment to and Remittance Information
For those not using factoring services, include detailed payment to and remittance information to ensure timely payments. Include a voided check where payment should be issued to. If you don’t have a voided check, then a bank letter may potentially be sufficient.
How can the carrier packet be created?
Collect the documents listed above. Ensure they are current and accurately reflect your motor carrier operations. Assemble the documents in the order listed above. Where applicable, use clear headings and separators to make the packet easy to navigate. From there, you can scan the documents with a mobile app like TurboScan to create the carrier packet digitally. For a more polished version scan in the documents then consider using a beginner’s design platform like Canva which is free for one user.
Remember to save the carrier packet in an easy to access location, especially for an e-mail or SMS text attachment whether on mobile or laptop. This document is helpful to speed up the broker set-up process or answer any basic broker questions.
How often should I update my carrier packet?
At minimum, the carrier packet should be updated every year when your insurance renewal comes up, so the most updated certificate of insurance is included with accurate period coverages.
If there are any changes to your banking, motor carrier authority, or contact information, then the packet would need to be updated. Otherwise, the carrier does not require regular updates.
Saving Time on the Road
A well-prepared carrier packet can help save time when an owner-operator is on the road. For when questions come up with brokers or when payment information is requested to issue payment, the carrier packet can come in immensely handy. It's not just about appearing professional, it's a quick hack to save you time on the road.
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