Ethics in Double brokering

#1
Good morning,

I have encountered an issue which have led to our company shutting down account with this firm. One dispatch was caught double brokering our freight and we have enforced a policy in which if you do this, we will not pay the double broker but rather the real trucking company. The owner called and yelled with frustrations that we are scumbags and so on so on. My pretentions is that out of 50 legit freight brokerage company, 49 would probably have done the same. These truckers are the first one blaming the freight brokers for lowering prices, taking loads from other brokers, threatening to call your customer if you do not pay (while they got the load from someone else) and i am sick and tired of this. They extinct a lot of owner operators, treating them like shit, and then blame everybody else for it. As freight brokers, what is your position and would you enforce your policy against any company, small or big?
 

Freight Broker

Well-Known Member
#3
Ironically double brokering is more likely to happen to good paying freight.. if your rate is "competitive" enough no one will look at it as a candidate for double brokerage. Going back a few years now, I had Rockman double broker some of my loads.. I paid Rockman and put a procedure in place to prevent double brokering in the future. I tell my shippers what carrier I'm sending in to pickup the freight, name and ( if applicable) the USDOT. I also tell my carriers up front that if they send in anyone other than their truck (operating under their authority and with their info on the door) the truck will be refused by the shipper. That way no unauthorized carrier slips through and the revenue pie isn't sliced too thin..
 
#5
Moreover they have used the good old i'll call your customers because no business relationtions anymore so we are good to go and contact all your customers. You know we had refrained our sales representative from contacting your customers but this will change now. As freight brokers, also, it shows you the amount of respect people pay you. We quick on the trigger and they try to look like the ones being abused. Offense is the best defense is th motto they are using I guess.
 
#8
theman your point is excellent. My question was: would you push it to enforce your policy of paying the real trucking company and cancel on the double broker if it means you'll lose a top 20 carrier for your firm?
 

allfreight

Site Supporter
#9
Would you lose them as a carrier, I don't think so unless you want to? They are in the wrong by double brokering I usually pay the carrier that moves the freight. I have also had the carrier that moved the freight sign a release that we will pay the original carrier and that they will never come back on us, the shipper, the customer or the receiver for the specific order. That way I hope to protect ourselves and let all parties know I am aware and it is not acceptable. I have used this method with a number of Quebec carriers who have their O/O run under their own authority and Insurance and seem to think it is ok.
 
#11
Would you lose them as a carrier, I don't think so unless you want to? They are in the wrong by double brokering I usually pay the carrier that moves the freight. I have also had the carrier that moved the freight sign a release that we will pay the original carrier and that they will never come back on us, the shipper, the customer or the receiver for the specific order. That way I hope to protect ourselves and let all parties know I am aware and it is not acceptable. I have used this method with a number of Quebec carriers who have their O/O run under their own authority and Insurance and seem to think it is ok.
Funniest thing is that the owner himself went on the offensive and decided we were not treating them with enough dignity and try to justify their actions. He decided to close out account. Well, he lost 200$ that we gave to the real carrier, therefore, not making a dollar on the situation but rather pay the actual carrier and he lost a yearly account of 700 k. Transport never cease to amaze me!
 

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