What constitutes "double brokerage"?

Igor Galanter

Well-Known Member
20
Question?
If a carrier has a year contract for a broker to move freight
The pricing of freight drops way low so then the carrier would make more money giving to other carrier and not move their own assests
Is this double brokering?

Look around people carriers are doing it daily
Bingo!
Low rates= more money...
Stop smoking that cheap stuff, wesward....))
 

loaders

Site Supporter
30
If I found out that the carrier I had selected and entered into a contract with was re-selling my freight as opposed to hauling it himself, there would be hell to pay. Any contract between a broker and a carrier would (or should) have a clause prohibiting re-selling the freight.
 

Ruler

Member
5
Everyone needs to read the broker tender and follow it
but must have in writing is re- brokering is allowed on certain instances
 

loaders

Site Supporter
30
If I hire a carrier to service one of my customers, I expect them to make a profit hauling that freight. I don’t expect them to make a profit re-selling it. If a situation arises where they are unable to haul it themselves, and they have a line on another carrier who can do it, they should put that carrier in touch with me so we can complete the transaction. There should be no financial reward simply because they were unable to do what they said they would do. Honesty, transparency, and full disclosure is the only way to maintain a profitable business relationship.
 

Rob

Site Supporter
30
I cannot believe this is going on this long. Sheesh if you do not know what double brokering is should you really be in the industry but alas I still get calls for tri axle loads to southern states and when I tell them it is not allowed I still hear I do it all the time. Really tri axle dryvans to southern US you do all the time huh. With who and how is my question..
 

ONMARST

Member
5
If I as a broker, determine that you are the best qualified carrier to service the requirement of my customer on a particular load, and then you sell that load to another carrier without my knowledge or consent.......that is double brokering and it is unethical. I am the entity who determines which carrier hauls my customers goods, no one else. As mentioned before, double brokering causes untold headaches with proper communication, trustworthy service and last but not least, payment to the party who hauled the load. Subletting, co-brokering, without authorization from the original broker is not right and should be frowned upon. If you cannot honour your commitment to me, let me know and I can make the decision as to what to do.
well said sir, I had so many discussion with you at initial phase when i started as a new carrier in in late 2018.first 6 month i was approaching brokers but no one respond b/c every one asking 6 moths to 01 year .DOT. I found myself every carrier 3 trucks to 40 trucks they posted the load on link cover up there loads through small carriers under there PAPS/PARS. and trust me that happening in the market.
To sustain in the market i was paying from own pocket but how long i will pay.
I did best reliable customer service to few brokers even at below cost, even right now is same situation please advise me what we needs to do.
 

shayne

Active Member
10
well said sir, I had so many discussion with you at initial phase when i started as a new carrier in in late 2018.first 6 month i was approaching brokers but no one respond b/c every one asking 6 moths to 01 year .DOT. I found myself every carrier 3 trucks to 40 trucks they posted the load on link cover up there loads through small carriers under there PAPS/PARS. and trust me that happening in the market.
To sustain in the market i was paying from own pocket but how long i will pay.
I did best reliable customer service to few brokers even at below cost, even right now is same situation please advise me what we needs to do.
Double brokerage is ok in Quebec, as long as all parties involved get payed. people stay away from it because they are sacred of the consequences and insurance liability.

in Quebec, we are able to do "co-brokerage " agreements legally, under the law - to protect our clients from being stolen by other brokers.

I often get requested from other brokers or international agents brokers/freight forwarders for local work of shipments starting or ending in Montreal.
 

ONMARST

Member
5
But sir I got a loads from carriers and issued them COI and got paid. even then its double brokerage.
as far as services is concerned i have been providing with all reliability and commitment.
 

shayne

Active Member
10
But sir I got a loads from carriers and issued them COI and got paid. even then its double brokerage.
as far as services is concerned i have been providing with all reliability and commitment.

I agreed with you, but some people dont. As long as every one involved is aware.

An example of this should be as follow:

Carrier: Mr. broker, all my drivers are refusing this load. I have a cousin who wants this load. He is owner op. This is his mc number and copy of his coi with me as his holder. i am giving him the load, his truck number is 69 and his trailer number is R102456. His eta to pickup is withing 3hrs.
 

ONMARST

Member
5
I agreed with you, but some people dont. As long as every one involved is aware.

An example of this should be as follow:

Carrier: Mr. broker, all my drivers are refusing this load. I have a cousin who wants this load. He is owner op. This is his mc number and copy of his coi with me as his holder. i am giving him the load, his truck number is 69 and his trailer number is R102456. His eta to pickup is withing 3hrs.
to the best of my knowledge nobody does that. bc they dont want to bother broker to keep them happy and sustain in the market.
as far as professionalism and ethics is concerned unfortunately trucking industry is far away.
 

shayne

Active Member
10
to the best of my knowledge nobody does that. bc they dont want to bother broker to keep them happy and sustain in the market.
as far as professionalism and ethics is concerned unfortunately trucking industry is far away.
:(
 

loaders

Site Supporter
30
Shayne, you left out some key information in the scenario you described above. For instance, who will be doing the invoicing for the load, you or your cousin? When payment is due, am I paying you or your cousin? If I am paying you, are you making a mark-up for your “work”? Also, who will the broker call to check on the progress of the load, you or your cousin?
If I already know your cousin and his operation, perhaps I might deal direct with him and of course, thank you for recommending his services. However, if you want to maintain a position in the transaction between me and your cousin......no thanks.....that is double brokering.
 
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