How to Stop Double Brokerage

is the carrier to blamed when not being paid by the Double Broker?

  • YES

    Votes: 9 29.0%

  • NO

    Votes: 22 71.0%
  • Total voters
    31
Kzdab said:
Very well explained. Appreciate all the input and knowledge.
Even after 20 years in the industry, you learn something new.
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20 years! Hell, you have just learned the difference between a fifth wheel and a steering wheel at this point! Lol, The next 20 are where you will learn the really good stuff! Never stop asking questions and never, ever stop learning, it will always make you a better operator and business person.
 
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The question that we are being asked to vote on is misleading. It could just as easily ask, Who is at fault if the carrier isn’t being paid by a single broker, or by another carrier who gave him the load, or by his own direct customer for that matter? There is no excuse for not paying a legitimate invoice, so the type of entity that is withholding the funds really doesn’t matter. As for assigning “fault”, the old Scottish saying “fool me once shame on you, fool me twice, shame on me” might apply. In other words, research the party you are extending credit to so you don’t get burned, and certainly not more than once!
 
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frtbrkr said:
Hi Carriers

I use to have a let of empathy for carriers who didn't got paid by the "Double Brokers". At the end of the day, it's their truck, their driver, their fuel and insurance which hauled the freight, they deserved to get paid.

I recently - however - lost that empathy, i would like to ask carriers to help me get it back.

It's my understanding, that the carriers know when they P/U the freight, that it's given to them by another carrier, they know their customer isn't honest to the shipper/receiver or to the real "load broker". The temptation for money leads them to look sideways and enable the "Double Broker" to continue with their shady business model.

In most cases, the carrier which hauls the freight knows that something isn't right. Most of the times, the "Double Broker" is telling them the Driver needs to ID himself as [Name of the Double Broker company], no real broker will ever ask for it, quite the opposite, most real honest Load Brokers will notify the shipper in advance as to which Carrier was hired for P/U. In others cases, the Double Broker will be the one issuing the PARS/PAPS # to avoid getting caught. There are other ways where the hauling carrier knows or senses that something is not straight, but chooses to look away. Once they are on the receiving-end of these crooks, it's then they are crying for help from the shipper/receiver or the real honest Load Broker.

You cant have the cake and eat it too, you are either operating with principal, value and honor or you don't!

Carriers, please help me change my view on this.
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As a legitimate broker, I can tell you that we get screwed too.

We have had our loads double brokered more times than I care to remember.

Even when our name and reference numbers are on the Bol and the carrier receiving the double brokered load has done previous identical loads for us at higher rates.

At the same time, we always notify the shipper who is coming in for us but shippers don't take the time to tell us if someone other than who we hired comes in for the load.

At the end of the day, shippers don't seem to care unless someone comes after them directly.

We now vet new carriers and even re vet existing ones to the extreme which I know must be frustrating for them but there are just way too many thieves out there these days.

Any new ideas on how to curb double brokering that anyone has to share would be appreciated.

Mike Adams.
Adams Freight Forwarding Inc. Rosedale, BC
 
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madams54 said:
As a legitimate broker, I can tell you that we get screwed too.

We have had our loads double brokered more times than I care to remember.

Even when our name and reference numbers are on the Bol and the carrier receiving the double brokered load has done previous identical loads for us at higher rates.

At the same time, we always notify the shipper who is coming in for us but shippers don't take the time to tell us if someone other than who we hired comes in for the load.

At the end of the day, shippers don't seem to care unless someone comes after them directly.

We now vet new carriers and even re vet existing ones to the extreme which I know must be frustrating for them but there are just way too many thieves out there these days.

Any new ideas on how to curb double brokering that anyone has to share would be appreciated.

Mike Adams.
Adams Freight Forwarding Inc. Rosedale, BC
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I have emailed when I see double brokerd loads - and most brokers do not care / infact some called me unethical for going not following 'chain of command' ... one to note was shipper / NTG / us - we were registered with the shipper direct and when we called it in were told to take our chances with NTG
 
madams54 said:
As a legitimate broker, I can tell you that we get screwed too.

We have had our loads double brokered more times than I care to remember.

Even when our name and reference numbers are on the Bol and the carrier receiving the double brokered load has done previous identical loads for us at higher rates.

At the same time, we always notify the shipper who is coming in for us but shippers don't take the time to tell us if someone other than who we hired comes in for the load.

At the end of the day, shippers don't seem to care unless someone comes after them directly.

We now vet new carriers and even re vet existing ones to the extreme which I know must be frustrating for them but there are just way too many thieves out there these days.

Any new ideas on how to curb double brokering that anyone has to share would be appreciated.

Mike Adams.
Adams Freight Forwarding Inc. Rosedale, BC
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Best thing we've found is to educate our shippers and receivers, as you said many don't care unless someone comes after them, so if they are aware of the consequences they will be more likely to protect themselves. Many customers don't really know about the whole double brokerage scam until they fall victim. As a carrier, we are always happy to comply with our broker partners that are trying to curb the issue, it is the least we can do to help stop the issues. almost everyone of our customers except the the few big DC shippers send us photo of the truck or confirm the name of the carrier before they load and we let the carriers know this beforehand too and so far it has worked very well.
 
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Another tool I use to confirm a company before we get rooked is the GST/HST number confirmation. This tool will be able to let you know if the company is registered as an actual company to operate in Canada and if the name matches the number. You can find it here:

Terms and conditions of use - Canada.ca

Welcome page to the Canada Revenue Agency (CRA) GST/HST Registry that has been designed to enable GST/HST registrants to validate the GST/HST account number of a supplier, thereby ensuring legitimate claims for input tax credits are filed.
www.canada.ca www.canada.ca
 
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No one cares about double brokerering.. happens thousands times a day until they deliver the load .. send the pod . Then don’t get paid. It’s not rocket science.,if you fall for it .. your not doing your job…not hard to figure out…….
 
carldur said:
No one cares about double brokerering.. happens thousands times a day until they deliver the load .. send the pod . Then don’t get paid. It’s not rocket science.,if you fall for it .. your not doing your job…not hard to figure out…….
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That's not true. Everyone cares about it, even though it does happen every day.
You are right, it's not rocket science, and for the most part if you get caught by it, you probably weren't doing your due diligence.
Can I ask though, why do you need to send the POD to get paid?
 
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Actually a stupid question..send pod get paid.. .no signature. No b/l no pay.. we’ll end this here… .
 
I have a number of direct customers who do not require the POD/BOL. They only want the invoice. They know if the freight did not get there.

In my opinion, the submission of the POD/BOL is an outdated process that should go by the wayside.
 
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carldur said:
No one cares about double brokering.. happens thousands times a day until they deliver the load .. send the pod . Then don’t get paid. It’s not rocket science.,if you fall for it .. your not doing your job…not hard to figure out…….
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If money is involved...then it's a problem...
 
Jim L said:
I have a number of direct customers who do not require the POD/BOL. They only want the invoice. They know if the freight did not get there.

In my opinion, the submission of the POD/BOL is an outdated process that should go by the wayside.
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The demands seem to be getting more and more frequent too.
 
Jim L said:
I have a number of direct customers who do not require the POD/BOL. They only want the invoice. They know if the freight did not get there.

In my opinion, the submission of the POD/BOL is an outdated process that should go by the wayside.
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I'm probably dating myself...yet again....but I don't agree. I think that the BOL and/or POD are part of the process. Especially when there are PO#s...booking#s etc that companies need on their end to be able to process the invoice. A/P will never know what order is what and would get crucified for paying an invoice without any backup?
 
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PackRat said:
I'm probably dating myself...yet again....but I don't agree. I think that the BOL and/or POD are part of the process. Especially when there are PO#s...booking#s etc that companies need on their end to be able to process the invoice. A/P will never know what order is what and would get crucified for paying an invoice without any backup?
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Exactly. As we all know, each of our customers has a different process for paying freight invoices, especially when they buy products from multiple suppliers. A customer who receives 2 truckloads of widgets every month from the same widget producer may not need a signed B/L for each shipment as they know what they ordered and they know what they received. However a customer who buys infrequently from different suppliers might require individual documentation to account for their purchases. In addition, some customers are just old fashioned and want to see a proof of delivery before they pay a freight invoice, a category that I proudly place my company in!
 
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loaders said:
Exactly. As we all know, each of our customers has a different process for paying freight invoices, especially when they buy products from multiple suppliers. A customer who receives 2 truckloads of widgets every month from the same widget producer may not need a signed B/L for each shipment as they know what they ordered and they know what they received. However a customer who buys infrequently from different suppliers might require individual documentation to account for their purchases. In addition, some customers are just old fashioned and want to see a proof of delivery before they pay a freight invoice, a category that I proudly place my company in!
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Just a question. Do you require it immediately after the carrier says they've completed the delivery or are you happy to wait until it is submitted with the carrier's invoice?
 
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