Truck driver carrier packets

The trucking industry is extensive with many players and procedures. Products may go through multiple freight operators before they reach their final destination. There is a lot to keep track of, including information about the carrier who is entrusted with shipping the products. That is why carrier packets are needed in the trucking industry.

Carrier packets help producers of goods know that their products will be shipped by qualified carriers. Carriers meanwhile are able to get accurate information about their contracts. The carrier packet streamlines the relationship between producers and carriers because they contain all the necessary paperwork for the carrier.

What Is a Carrier Packet?

A carrier packet is simply a collection of necessary documents that a carrier fills out when they are hired to ship a product. Carrier packets are also known as broker packets because shipping brokers facilitate the business partnership between carriers and shippers. The packets are the first step to officially document and begin the job.

Once a carrier packet is filled out, the carrier can be approved to ship the products. Without the necessary documentation of a carrier packet, the producer will not have the contracts, qualifications, and other data of the carrier and will most likely not approve them for the job. Carrier packets are beneficial for the carriers as well because they provide legal assurances.

Who Is Involved in a Carrier Packet?

A carrier packet involves three parties; carriers, brokers, and the producers. Carriers and brokers are directly involved, while producers are indirectly involved. Still, all three are concerned with making sure the documents of the carrier packet are properly filled out.

• Carrier. A carrier is the firm that provides the transportation of the goods in trucking. They own the trucking equipment and are either a company, who hires company drivers, or, as an owner-operator, act as self-employed individuals.

• Broker. A broker is the middleman in the freight industry who facilitates communication between the carriers and the producers. The broker ensures that the agreements are documented so that the carrier can be approved. They are the ones who send the carrier packet to the carrier on behalf of the producer.

• Producer. A producer, also known as the shipper or consignor, are the ones responsible for organizing the transportation of goods. They pay for the costs of the freight which is why they hire the brokers to facilitate the hiring of carriers.

This is one reason why carrier packets are so important. There are many people involved so it is crucial that the terms of the agreement are accurate and the carrier is qualified to perform the task.

The Components of a Carrier Packet

Carrier packets confirm the agreement between the carrier and the producer/shipper with documentation including necessary contractual information. This is to ensure legitimacy and protection for both parties by clarifying roles and responsibility. Some items that are found in a carrier packet include:

• Motor Carrier operating authority and number. An operating authority is proof that the carrier has a right to operate a commercial motor vehicle to transport goods between states and their MC number is a unique identifier assigned by the Federal Motor Carrier Safety Administration (FMCSA).

• Agreement date, payment period, invoicing procedures. Dates are very important in shipping. A carrier packet will include the dates of the agreement and the details for how the carrier will be paid once the cargo is shipped successfully.

• Transportation licensing. Carriers need to prove that they have a commercial driver’s license (CDL) which allows them to operate their vehicles.

• W-9 form. A completed W-9 form is required by the IRS to show the exact amount of income paid to the carrier.

• Liability insurance. Carriers sometimes need to prove that their cargo will be insured during transportation. The broker is responsible for confirming that the insurance is appropriate for the agreement in order to protect the shipper’s product.

• Safety rating documentation. Carriers are given a motor safety rating issued by the FMCSA. There are three possible ratings, satisfactory, conditional, and unsatisfactory, which are issued after a Rated Investigation or compliance review.

• New carrier profile information. If the broker needs to onboard the carrier, they will need the carrier’s company name, mailing address, Motor Carrier number, the company’s Federal ID number, and Standard Carrier Alpha Code (SCAC) number, which is used to identify transportation companies.

• Broker bonds. Also known as BMC-84, a broker bond is required by the FMCSA to protect carriers and shippers. It is collateral put up by the broker to prevent fraudulent or unfair behavior

Why Are Carrier Packets so Important?

Carrier packets add a layer of legitimacy and protection for both the carrier and producer/shipper. For a carrier, a carrier packet provides information about the shipper and legal guarantees for payment. For a shipper, the carrier packet provides assurances that the carrier hired is qualified and insured while they transport the cargo.

Carrier packets help streamline all this information in one place and makes the process of hiring a carrier much easier for a broker. It can be risky hiring or being hired by a third party, so a carrier packet provides details to soothe all concerns and clearly defines terms and conditions to avoid misunderstandings.

How Are Carrier Packets Sent?

The process of a carrier packet begins when a broker on behalf of the producer/supplier sends the packet to the carrier. The carrier then fills out the packet and sends it back to the broker. Generally this is all done through a computer, either as an email with attached documents, or through broker software.

Carrier Packet FAQ

1. Are carrier packets required?

   No, carrier packets are not required by law. Though legally carrier packets are not required, they are strongly recommended because they clarify the responsibilities of everyone involved and add a layered of protection.

   Without a carrier packet, carriers are at risk of not getting paid properly and shippers are at risk of their goods not being transported correctly.

2. How do I create a carrier packet?

   As a broker, a carrier packet can either be set up manually or by a third party. Regardless, it is important that all necessary information is provided and organized effectively.

3. How much will my carrier packet cost?

   Carrier packet prices will vary depending on the broker and the extent of the packet. If you are a carrier or shipper, it is important to budget accordingly for your carrier packet.

By - Chris Kolmar

Chris Kolmar is a co-founder of Zippia and the editor-in-chief of the Zippia career advice blog. He has hired over 50 people in his career, been hired five times, and wants to help you land your next job.

His research has been featured on the New York Times, Thrillist, VOX, The Atlantic, and a host of local news. More recently, he's been quoted on USA Today, BusinessInsider, and CNBC.