I wont try...
If Carriers are all in to stop DB's "they" can apply pressure for Loadlink to change business model which in worst case scenario wouldn't not lead to loss of revenue for them.
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How to Stop Double Brokerage
- Thread starter frtbrkr
- Start date
If Carriers are all in to stop DB's "they" can apply pressure for Loadlink to change business model which in worst case scenario wouldn't not lead to loss of revenue for them.
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That is an incredibly interesting question. Let's examine it in more detail.
First and foremost, if it's on my trailer, it's my freight. It's not yours, and never was. It's not your customer's. I picked it up. I issued the bill of lading, or caused it to be issued. I (by extension of my driver) signed the bill of lading. It's my freight. I'm responsible for it.
Second, if it is operationally better for me to interline the freight, it is my right to do so. By virtue of the bill of lading, it is my freight. My only obligation is to deliver the freight with "due dispatch". Nothing more. Nothing less.
@Michael Ludwig though you glazed over the one part, i think you left out the "I would of course have a discussion to put all at ease and ensure transparency, but at the end of the day by letter of the law...."
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damn it .... you should have let me know before I delivered that stupid Amazon load ... was almost planninga tailgate sale from the back of my trailer lol
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Dumbass ... ROFLMFAO
Just kidding, but this is going to make your hair stand on end ... A carrier's only legal obligation, once the bill of lading is signed, is to deliver the freight with due dispatch. Everything outside of that statement is a cargo claim, and cargo claims are a whole other transaction.
You don't have to deliver it at any particular time, or in time for any particular market. Potential claim as it is solely dependent on the contract.
You don't have to deliver it in good condition. Definite claim.
In Canada, if you are claimed for the load, your [carrier's] obligation to the owner of the goods is to pay only the manufactured cost. Not the sale price, and definitely not the profit margin.
Technically speaking, and only within the bounds of the Truck Transportation Act, you could pick up a load, not deliver it to the receiver, sell it off the back of the truck, pay the claim, and keep the profit.
However, outside the bounds of the TTA there is a whole crap load of criminal charges you could/would be hit with. Conspiracy, racketeering, fraud, immediately come to mind.
It probably wasn't very responsible of me to post that. No doubt some clown will read it, and try it ... LOL
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That sums up the carriers responsibility very neatly. If a shipper wants anything more from the carrier than that, they should enter those specific instructions on the Bill of Lading, clearly and legibly and have the driver (the agent of the carrier) sign his acknowledgment. For example, heat or temperature protection, If there are specific delivery instructions, call ahead, etc. Do not stack or do not top load, are two other requests that a carrier can disregard and dismiss out of hand if they are not noted on the contract of carriage. Be specific and be clear so that if there is a problem, no one can say….”uhhhh, nobody told me”.
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I would like to input my views regarding double brokerage.
TWO FACTORS
Serve freight brokers in all lanes to get a dedicated lane and increase revenue
When I started as a new carrier with 3 trucks no broker was giving me the load bc of new authority forget about direct contact with the shipper there is too much under the table.
most of the brokers including Canadian don"t entertain new carriers bc of their company policy some brokers ask for an inspection, and some asked for authority should be at least one year. Ch Robinson was giving me a load after 6 months but sometimes was not enough, I was struggling and losing my cash flow,
in the meanwhile I found a few carriers who started giving me loads, there were no issues with the payment but later i found issues in invoices. let's suppose they booked the load of 2000 and tell you the broker offered 1600 on top of that they deducted a further 12% dispatch.
later on, when i figured out its double brokerage and contacted brokers and informed them about these issues, they never took any action but close their eyes.
. how to stop d brokerage
simple way when you assigned carriers any load
asks them to provide a COPY OF ACE/ACI after crossing the border.
you will see shipment control number should match with SCAC/CCC.
have a wonderful happy holidays
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There is legislation for Driver Inc. but still doesn't stop - need enforcement of laws - most imp. carriers unwilling to move the loads ...
Have a friend who is owed 50K by Candid / YK / Marvel - why did he let it get to 50K? - easy loads???
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I'm guessing 50K spread over 5 to 10 companies before they realized it was actually 1.
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The only way to stop double brokering is for brokers to be extra vigilant when hiring new carriers and ensure that they are indeed, actual, bond fide carriers and that their trucks are performing the work. In addition, carriers should exercise caution when accepting freight from brokers they are not familiar with. Are they a carrier with a licensed brokerage division, if they are a broker, are they really legitimate? The onus is on all of us to ask lots of questions and be extra cautious. As others have said, government regulations are only as effective as the level of enforcement that goes with it, and usually it is extremely limited.
We just took a load from a carrier, when we received the paperwork we could see that there was a freight brokers name all over the paperwork. We called the freight broker ( who we have taken freight from in the past) asked them if this was their load. It ended up being there load and it was going to be double brokered. The broker cancelled the load with the carrier and we did it directly for them. We have asked our staff to take a good look at the customs paperwork so we can try and catch it if a load has been double brokered. I know we got lucky with this one but if the staff wasnt trained to look for other names on the paperwork then we would have been at risk for non payment. After we caught this I searched the carriers name and seems like we avoided a potential scammer.
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Who is it? Putting the name out is the best way to know who is doing it. That being said some brokers could care less as long as it is covered. Had that happen a couple weeks ago. Traffix load and the broker did not give a crap as long as the load was done.
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I think that starting to avoid taking loads from carriers you know nothing about might be a good step, as well as training your employees to spot potential double brokerage scams. It's a tough world out there but you have to maximize your results in the fewest procedures. Remember that if they don't have a website or they do but there is no mention of the fact they broker.... it does not look good.
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You have hope that it can be stopped. Just like Driver Inc., it can't be stopped. Ever.
As long as someone is willing to take a load, and not ask questions, (or ask the questions, and ignore the answers) then there will be double brokering scammers, and there are a whole lot of "someone's" out there.
If you want proof that I am right ... just look up the number of people still falling for the CRA scam.
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Having had some time to think this through a little further, I made the conscious decision to mess with some peoples minds a bit. Here goes ...
What the vast majority of the trucking industry, whether you are a carrier or a broker, does not understand is that the Bill of Lading is King. Every essence of the transaction(s) revolve around the Bill of Lading.
Why is that you might ask; because the Bill of Lading is a CONTRACT !!!!!
Let's look at a load example, involving a load broker, that happens quite often.
I book a load through a load broker from Point A to Point B. The load broker sends me the load confirmation, and in that load confirmation is all kinds of good information. Everything from where to pick it up and deliver it to, to where, when, and how I send my invoice to the load broker, to how long I can expect to wait to get paid. There's even a spot where I have to sign it and send it back ... which I do.
I send a driver to pick up the load of 1,000 cases of porcelain widgets, which are stacked on pallets, and shrink wrapped for protection. When loading is complete, the shipper hands three (3) documents to my driver. The first is a customs invoice for crossing into the U.S. The second is a certificate of origin, also used for crossing into the U.S. The third is a single sheet of paper that has a single line at the top of the document that says "Bill of Lading" and denotes the contents of the shipment, where the shipment comes from, and where it goes to. At the shipper's request, my driver signs a copy of the "Bill of Lading" and hands it back to the shipper. We are now free to go.
At the end of the day the load delivers just fine, and the broker pays me on time for my efforts.
But, there are loopholes. Big loopholes. Here are a couple ...
1. Technically there is no contract between the load broker and myself. I don't have a countersigned copy of the load tender. There is no witness to my signature. Hell, I don't even have authority to bind the corporation. I could go directly to the shipper and invoice them for the load without fear of recourse or recrimination from the load broker.
Yes I know there are lots of clauses in numerous load broker confirmations and contracts that say "if you take loads from this customer, you owe me ... yada yada yada". Ya ... See you in court.
2. Technically there is no contract between myself and the shipper. The Bill of Lading, also known by its proper title "The Contract of Carriage" has a couple of faults that render it inadequate;
a) It is not a properly configured bill of lading. Just because it says "Bill of Lading" at the top, does not mean it qualifies as a proper bill of lading.
b) There is no countersigning shipper's signature on my copy of the bill of lading.
What does all that mean?
Well, I could steal the load. Technically I don't have it.
The shipper could decide not to pay me, or the load broker. Technically I don't have the load.
I could charge the load broker ten times what was quoted. After all, we have nothing that is legally binding.
Load broker could decide to pay me half what was quoted. After all, we have nothing that is legally binding.
So, I'm left with a few questions ...
Why is everyone so concerned about dealing with loads that are, in the scammer sense, "double brokered"? First of all, what do you owe these scammers, and why, after you have discovered they are scammers, are you trying to be upstanding, honest, law-abiding citizens? Drop the gloves and meet 'em at center ice
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great explanation thank youHaving had some time to think this through a little further, I made the conscious decision to mess with some peoples minds a bit. Here goes ...
What the vast majority of the trucking industry, whether you are a carrier or a broker, does not understand is that the Bill of Lading is King. Every essence of the transaction(s) revolve around the Bill of Lading.
Why is that you might ask; because the Bill of Lading is a CONTRACT !!!!!
Let's look at a load example, involving a load broker, that happens quite often.
I book a load through a load broker from Point A to Point B. The load broker sends me the load confirmation, and in that load confirmation is all kinds of good information. Everything from where to pick it up and deliver it to, to where, when, and how I send my invoice to the load broker, to how long I can expect to wait to get paid. There's even a spot where I have to sign it and send it back ... which I do.
I send a driver to pick up the load of 1,000 cases of porcelain widgets, which are stacked on pallets, and shrink wrapped for protection. When loading is complete, the shipper hands three (3) documents to my driver. The first is a customs invoice for crossing into the U.S. The second is a certificate of origin, also used for crossing into the U.S. The third is a single sheet of paper that has a single line at the top of the document that says "Bill of Lading" and denotes the contents of the shipment, where the shipment comes from, and where it goes to. At the shipper's request, my driver signs a copy of the "Bill of Lading" and hands it back to the shipper. We are now free to go.
At the end of the day the load delivers just fine, and the broker pays me on time for my efforts.
But, there are loopholes. Big loopholes. Here are a couple ...
1. Technically there is no contract between the load broker and myself. I don't have a countersigned copy of the load tender. There is no witness to my signature. Hell, I don't even have authority to bind the corporation. I could go directly to the shipper and invoice them for the load without fear of recourse or recrimination from the load broker.
Yes I know there are lots of clauses in numerous load broker confirmations and contracts that say "if you take loads from this customer, you owe me ... yada yada yada". Ya ... See you in court.
2. Technically there is no contract between myself and the shipper. The Bill of Lading, also known by its proper title "The Contract of Carriage" has a couple of faults that render it inadequate;
a) It is not a properly configured bill of lading. Just because it says "Bill of Lading" at the top, does not mean it qualifies as a proper bill of lading.
b) There is no countersigning shipper's signature on my copy of the bill of lading.
What does all that mean?
Well, I could steal the load. Technically I don't have it.
The shipper could decide not to pay me, or the load broker. Technically I don't have the load.
I could charge the load broker ten times what was quoted. After all, we have nothing that is legally binding.
Load broker could decide to pay me half what was quoted. After all, we have nothing that is legally binding.
So, I'm left with a few questions ...
Why is everyone so concerned about dealing with loads that are, in the scammer sense, "double brokered"? First of all, what do you owe these scammers, and why, after you have discovered they are scammers, are you trying to be upstanding, honest, law-abiding citizens? Drop the gloves and meet 'em at center ice