Double Brokers, Linehaulers, Co Brokers and Interliners

htcollections

Suspended Member
#1
Continuing on from the last post, but a little off topic.


Many carriers themselves double broker. In my view, as long as every party is being paid what they were promised to be paid, everyone should be happy.

We see carriers back soliciting at times, but we also see brokers not paying the carriers. I don't see an issue with the Quarterback, Ch Robinson, FlS TQL type companies. ( They all double broker, triple broker, and so forth) They can be helpful for carriers, as long as they are paying the end carriers.
Bottom line, Everyone needs to pay their bills based on the contracts that were agreed to.
 

loaders

Site Supporter
#2
Receiving payment is only one of the problems with re-brokering freight. In most cases, the original broker is unaware that their freight is being hauled by a party other than the one they contracted with. It creates too many links in a chain that would otherwise have only two....shipper to broker to carrier. Adding additional brokers or carriers can stretch that chain making it weaker and subject to breakage. If a broker needs assistance with a load, dig deeper and find your own carrier as opposed to giving it up to another broker. If a carrier can't fulfill his commitment and move the load himself, give it back to the broker as opposed to selling it to another carrier. I can't speak for other brokers, but the last thing I would do with my hard earned customers freight, is throw it out the window and hope that any passing gust of wind will get it moved.
 

htcollections

Suspended Member
#3
Yes but many brokers get freight from other carriers then sub contract to others. I saw 6 transport names on a single load when i was trying to collect. 1 of them didn't pay so it caused an issue. In my opinion, as long as everyone is making payment, I'm personally ok with it. Many of us do it, even the ones that complain others are doing it.
 

Jim L

Active Member
#4
Continuing on from the last post, but a little off topic.

Many carriers themselves double broker. In my view, as long as every party is being paid what they were promised to be paid, everyone should be happy.
Sure, if everyone is paid there should be no issue but the frustrating part, that I don't understand, is how can there be that much money involved in a shipment that it can be double brokered not to mention maybe triple brokered.

I understand that once in a while a carrier may give it to another carrier to go the 'last mile'; especially if there is equipment breakdown or capacity issues etc. but this is an exception and not the norm.

I understand the value in a shipper, broker, carrier relationship because a shipper may want only one contact and the brokers role is to find carriers that run the many lanes the shipper offers. I still don't see why a broker would give it to another broker to do it. Most brokers I speak to will not do this knowingly.
 

loaders

Site Supporter
#5
I have to wonder, just how long it takes to get an update on the delivery status of a load that has 6 different parties involved? I would assume that by the time you received an answer, the shipment would (hopefully) already been delivered! Oh, but I quess if everyone gets paid, it's all OK. Sorry, I just can't buy that. I guess we're just different. When I tell my customer that we select only the best, most reliable carrier to move their shipment, we actually mean it. And we don't mean 3, 4, 5, or 6 unknowns.
 

htcollections

Suspended Member
#6
Funny you mention that. When i tracked the shipment that had been brokered 6 times. Some of these guys were making as little as 25.00 one even lost 100..00 and he wasn't the guy that created the problem...he actually paid. Doubt he is still in business, unless he was simply trying to save a client .
 

loaders

Site Supporter
#7
If a carrier, or any other party to a transaction involving so many players, is worried about getting paid for his services, then maybe he should take a second look at his participation. Based on your last post, why would anyone want to move freight for $25.00, or worse, loose $100.00. I think you just hit the nail on the head about why re-brokering freight is not a good business model.
 

htcollections

Suspended Member
#8
Thats an argument for many of the members. many of us do it. I am not normally privy to the details i provided in a previous post, i was forced to follow the shipment through. that must be a case that occurs rarely. But I've certainly personally witnessed it, carriers can always avoid Link or other load matching sites. They can also choose to hire their own sales force. neither of these options always work out, hence the reason we try to work together, but with the right carriers and brokers, not the crummy ones.
 

htcollections

Suspended Member
#9
I see a ton of CH Robinson freight. They always pay. They even advance some carriers i believe. their QP terms are in deed Quick, and the discount is low. And when they say 30 days to pay, it rarely exceeds 30 days.
 

loaders

Site Supporter
#10
Hmmm....the only thing I can't see in any of the posts regarding this matter, is a reference to servicing the customer. You know, the one who actually pays for the privilege of having their freight moved by numerous unknown companies. Double, triple brokering doesn't become unsavoury just because one of the parties doesn't get paid. That is only one of the many things that make it a questionable practice. Like most of the other brokers on this site, we find our own customers and source our own carriers. We use load boards only when necessary and yes, provide quick pay when requested. We do not and will not knowingly participate in re-brokering freight. If I am missing out on some business, so be it.
 
#11
Actually, my point was that, as long as everyone is being paid, brokering should not be an issue.....We can all work together. Now that you have stated you are not a carrier, but a broker, i guess you'll have to agree that you provide something that a carrier needs, a sale. And as long as you keep paying him, and he services you, everyone should be happy. You have to rely on their updates and you have less control in some ways. But its working for you, and thats great.
 

Freight Broker

Well-Known Member
#12
The fun starts when things go sideways.. what happens when there's a claim? Which double broker and whose insurance will take responsibility? In the end only one party owns the truck and only one party owns the relationship with the customer. All the other third parties would have no vested interest beyond their $25.00 cut and would quickly wash their hands of it and walk away.
 
#13
From my experience, insurance is paid by the actual carrier who damaged the product, if a claim exists. The same can be said for a broker giving a load to a carrier. I have no issue giving shipments to brokers for carriers i know, that i trust. And i cut the bad ones out. i think my point was that carriers need other carriers at times, carriers need brokers at times, and vice versa. As for an interline, or any term that is currently being used lately, as long as they get the deliveries done on time and all parties are paid, I'm happy...... Im being honest about it while i see at times other people I've met, that are on this site, suggesting they never broker a load...I simply know thats not true sometimes.
 

loaders

Site Supporter
#14
Less control?????? I deal with one carrier, I make one phone call to the party that has my freight on their truck and they tell me where their driver is. How in heavens name could that be "less control"? Yes, I have a sale that is awarded to the company that hauls my freight. You are right, I have to rely on the updates given to me by the company that is actually transporting my freight, not a series of other co-brokers, or carriers I have never heard of. Brokering isn't the issue, re-brokering is.
 
#15
Yes, a broker has less control. Its not on your truck. you rely on the carrier and their customer service people. Carriers have the most control, its in their truck, they can get true updates, not some of the updates some carriers give at times. You don't agree that the carrier who has the load has more control? I respectfully disagree... Good nite!
 

loaders

Site Supporter
#16
Oh and regarding insurance. The ONE carrier I have contracted to move my freight will be responsible in the event of a claim. I won't have to unwind a spider web of companies to see who is ultimately responsible.
 
#17
Responsible provided he actually moved the shipment himself...otherwise his insurance will quickly take aim at the true carrier.. Do you agree? We see many carriers re brokering freight...Many brokers also. Im sure you must see it all the time, i sure do.
 

loaders

Site Supporter
#18
OK. I give up. You are right. If I deal with other brokers or carriers who give my freight to carriers they know, but I don't, and I can't check to see if they are reputable, I will get much better information about where my load is from them. And to think that all this time I thought it was better to deal with just one party!
Of course the carrier has control.....I gave him that control. But I only gave it to one carrier, not a revolving door of suppliers. I need some help here freightbroker, and some of the other old fashioned non- double brokers on this site. Am I not explaining this properly?
 
#19
All my point was , the word Broker is not a bad word. We carriers need them and they need us. And as long as everyone gets paid and the load delivers on time without issue, I'm happy. Im not pretending as some do, that the party we trust to deliver the load is actually always that party. they can break down, some people pass off loads no matter what . bit as long as th e loads off on time and everyone gets paid, personally, I'm fine with that. there are numerous carrier/ brokers on this site that do both. I give loads to galaxy often, i know for sure that sombre on their trucks and some are not. but they stay on top of it and they follow through with what seems to be a tight carrier system. And i know they pay their bills also. thats just one carrier/ broker. many companies have carrier and broker divisions. I wish you the best!
 

loaders

Site Supporter
#20
"You must see it all the time too". Not under my roof! We check all customs docs to ensure that the carrier we gave the load to is the carrier that crossed the border. If it isn't, no one gets paid. We only pay the party who actually hauled our freight. Now that's control isn't i?
 

Stats

Members online
0
Guests online
36
Total visitors
36