The cost of hiring the wrong haulier
Last year, a mid-sized e-commerce distributor in the Midlands handed over a high-value shipment to what looked like a reputable haulage firm. No paperwork was exchanged. No insurance certificate was requested. The load never arrived. When they tried to contact the company, the phone number was disconnected and the registered address turned out to be a flat above a takeaway.
It happens more often than you'd think in freight and logistics. The barrier to entry is low. A van, a phone number and some confidence can be enough to convince someone you're legitimate. But the consequences of getting it wrong are expensive. You lose cargo. Your customer loses trust. Your insurance claim gets rejected because you failed to verify the operator's credentials.
If you're using third-party hauliers, couriers or freight forwarders, you need a system for checking them out. This isn't bureaucracy. It's self-defence.
Start with the operator licensing
In the UK, any operator carrying goods for hire or reward needs an Operator's Licence from the Traffic Commissioner. This is non-negotiable. It's not optional. It's law.
Ask to see the licence. Better still, verify it yourself on the DVSA website without relying on their copy. The licence number should be traceable. If they don't have one and they're moving goods commercially, they're illegal. Don't use them. It doesn't matter how cheap they are or how urgent your shipment is.
The Operator's Licence comes with conditions. Check what type they hold. There's a difference between an own-account licence (they only carry their own goods) and a public haulage licence (they carry for multiple customers). If they're supposed to be running a courier service but they only have own-account, something's wrong.
You can also check the licence status. Is it active? Has it been suspended? The Traffic Commissioner's office publishes this. It takes five minutes.
Insurance isn't optional, it's mandatory
Ask for a copy of their goods in transit insurance. Get it in writing. If they're vague about this or tell you "it's covered" without producing a certificate, walk away immediately.
You need to see their Certificate of Insurance. Check the following:
- Does it cover the value of goods you're sending?
- Is the policy currently active (check the expiry date)?
- Does it specify goods in transit coverage, not just third-party liability?
- What's the excess? Some policies have an excess so high they're practically worthless.
Ring the insurer directly if something looks off. Don't use the number on the certificate. Look it up independently. Fake insurance documents exist. Fraudsters have been known to use photoshopped certificates or policies from defunct insurers.
Consider whether you need to be named as an interested party on their policy. For high-value shipments, this protects you if they try to claim the cargo was lost or damaged.
Check vehicle compliance and maintenance records
If they're operating HGVs or large vans, ask about their maintenance schedule and MOT records. Vehicles that haven't been serviced properly or have failed safety checks are a liability.
The DVSA publishes roadworthiness data. You can request information about specific operators' vehicle compliance history. If a haulier has a pattern of roadworthiness failures, that tells you something about how they operate.
For temperature-controlled and refrigerated transport, check whether they have calibration certificates for their equipment. Cold chain logistics fail when equipment isn't maintained properly. It's worth asking.
Verify their actual trading history
Companies House records are public. Look up the business. How long have they been trading? Check their accounts. Are they solvent? Have there been any insolvency issues or legal cases?
If they're a sole trader or partnership, this is trickier. Ask for bank references, customer references, and how long they've been in business. Call their references. Don't accept the first contact they give you. Ask to speak to customers they haven't pre-selected.
Check Google reviews and industry feedback. Logistics forums talk. If a haulier has a pattern of late deliveries, damaged goods or poor communication, you'll find evidence somewhere. A completely pristine online presence with zero reviews can be suspicious too. A legitimate operator working in local distribution will have some digital footprint.
Ask about driver qualifications
Do their drivers have valid DVLA licences with the right categories? For HGVs, you need LGV category entitlement. For passenger vehicles with goods, different rules apply.
Ask whether their drivers have completed Driver Certificate of Professional Competence training. It's a legal requirement for most vocational drivers. If they dismiss this as unnecessary paperwork, that's a warning sign.
For specialist freight (hazardous goods, foodstuffs), ask what additional qualifications their staff hold. ADR certification for hazmat. Food hygiene certificates for perishables. These matter.
Get everything in writing
Before handing over any shipment, issue a proper freight contract or terms of carriage. This should include:
- Collection and delivery dates
- Liability limits and insurance cover
- What happens if the load is damaged or lost
- Payment terms and cancellation clauses
- How they'll track your shipment
Never work on a handshake. Never rely on a quote sent via text message. It's unprofessional and it leaves you with no protection if something goes wrong.
The reality check
Checking credentials takes time. So does verifying insurance and calling references. It's tempting to skip it when you're under pressure to move stock. But a four-hour background check now costs far less than discovering your shipment has vanished in four days' time.
Legitimate operators expect this scrutiny. They've got nothing to hide. They'll provide documentation without complaint. They've got systems in place. If someone becomes evasive, defensive or dismissive when you ask basic questions, that's your answer. Find someone else.
Your supply chain depends on trustworthy partners. Verify them properly.
