How To Do Background Checks On Shipping Companies

Many manufacturing companies have an in-house shipping company. A major sign manufacturer may have a UPS Worldship system, a Fed-Ex shipping system, and many auto transport trucking companies that come in on a daily basis. But how did these companies come about choosing the specific carriers they have to transport their merchandise? The answer is, by a lot of research. When running a business, the shipping end is most important --- and this is no different in the car shipping industry. The shipping department is the last department the merchandise goes through before going out the door, and then it is up to the logistical side to get it there on time, in the condition that it left in and without an issue.

Every shipping company should have a detailed record of shipments made, losses, returns, and shipments actually delivered. It is extremely important to ask these questions when hiring a shipping company to manage and deliver your goods or vehicles.

What is their track record like?

• Do they have more returns and losses, than actual packages delivered?


• Were all of their packages or vehicles delivered on time? What percentage of the packages or vehicles were late?


• Why are there returns? Is it due to the packaging, or were they not secured when they were delivered?


• Were the items damaged in transit?

These are all thoughts that one should have when employing a shipping company to transport merchandise or automobiles. Running a background check on a particular auto shipping company may sound like a complicated task, but one must be sure that they are verified, legitimate, and successful.

Here are some criteria that can be used to verify a legitimate shipping company:

• Obtain basic information such as the company name, address, phone number, main contacts, website.


• Look at address history. Has the company moved many times? What could be the reason for this?


• References: Are all of the references provided by the car shipping company real? Do any of them seem sketchy? Are they all based out of the same area, or are they spread out, as to show that their service is used more widespread?


• Look for methods of shipping/promises/guarantees on their website: Does the company offer an expedited shipping service? Do they guarantee it will get there on time? Do they offer some kind of refund if the shipment is lost, damaged, or late?


• Customer Service: Is there a 24/7 customer service line available in the case of a problem or issue?


• Check out the BBB: What is their rating? Do they have any “less than great” car transport reviews? Chances are you will want to stay away from these companies.

UPS is a very well-known shipping and logistics company with a proven track record for many years across the United States and beyond. We know UPS because we have seen them on commercials and in advertisements everywhere we can possibly look, another important factor.

Let’s say for instance you are researching the company "XYZ Auto Shipping". You have never seen a commercial for them, never an advertisement. They have no legitimate website, and you can only find them in the phone book. When you call them, they seem to make shaky promises. This is an example of an auto shipping company you probably would not integrate into your business. A company not having a website, or even any basic information you can find with the click of a mouse would be the first red flag. Promises that aren’t anywhere in writing, would be the second red flag. I would much rather integrate a company with a well known reputation, who has a proven track record in writing that they could show me.

Background checking a company takes time and research, and there are many way to do so. While a company may seem professional, affordable and dependable, a further look should always be taken to secure that feeling. As stated previously, shipping is one of, if not the most important aspects of a company. A company can invest thousands and thousands of dollars into their work, spend countless man-hours on making sure it is safely packed, only to have it leave the door, taken by a little-known shipping company who was not thoroughly researched, and the money, just like that is gone.

Take the time. Do the research. It’s worth it in the end.