Standard Carrier Alpha Code (SCAC Code)

What is Standard Carrier Alpha Code (SCAC Code)

The Standard Carrier Alpha Code (SCAC) is a unique two-to-four-letter code used to identify transportation companies. Administered by the National Motor Freight Traffic Association (NMFTA), SCAC plays a role in the facilitation of freight movement and data exchange across the transportation industry.
Without this code, carriers cannot pass Customs and Border Control.
It is widely recognized and utilized by carriers, shippers, logistics service providers, customs and border agencies, and other players within the supply chain.

Purpose and Application

SCAC serves multiple purposes across various sectors of the transportation and logistics industry:

Identification: It uniquely identifies carriers, brokers, and freight forwarders in documentation and electronic transactions.
Tracking: SCAC enables efficient tracking and tracing of shipments and freight billing.
Regulatory Compliance: It is used in customs and border processes by the United States and other countries to identify carriers transporting goods across international borders.

The Standard Carrier Alpha Code (SCAC) is prominently displayed on various transportation and shipping documents, including bills of lading, freight bills, packing lists, and electronic data interchange (EDI) transactions.

Integration in Industry Systems

SCAC codes are integral to several industry systems and processes, including the Automated Manifest System of U.S. Customs and Border Protection, freight bill auditing, payment systems, and electronic data interchange (EDI) transactions. Their widespread use ensures consistent identification of carriers across different platforms and databases.

Obtaining and Managing SCAC

Application Process

Companies can apply for an SCAC through the NMFTA. The process involves submitting company information and paying a fee. SCACs are valid for a calendar year and must be renewed annually.

Importance of Renewal

Timely renewal of SCAC is critical for maintaining seamless operations and compliance, especially for companies involved in international trade. An expired SCAC can result in delays and complications in freight documentation and customs clearances.

SCAC in International Trade

In international logistics, SCAC codes are vital for customs declarations and the security filing requirements of imported and exported goods. They ensure that the involved carriers are accurately identified in all documents, facilitating smoother customs clearance and compliance with trade regulations.

Challenges and Considerations

While SCAC provides standardization, companies must navigate challenges such as maintaining up-to-date codes, managing renewals, and ensuring that all partners and stakeholders use the correct SCAC for their operations.

The Standard Carrier Alpha Code is a foundational element of the modern transportation and logistics sectors, enabling efficient, secure, and compliant movement of goods. By offering a standardized method for identifying transportation entities, SCAC enhances operational efficiency and supports global trade. As the industry evolves with advancements in technology and changes in regulatory landscapes, the importance of SCAC in ensuring smooth and efficient supply chain operations continues to grow.