Question about double brokering

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Packrule

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Nov 2, 2009
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Ok so I've been ont he 3pl side for many decades now. It gets more and more convoluted with these new carrier base in our country and their desire to take every load and then use a sister or friend only to then suggest it's their own company in some way. I just want to confirm with folks their thoughts on this.

I hired company Blackrock from regina to haul a load for me from GTA to Regina. Truck shows up with Dentro on the side. We know them and load them knowing the game likely was being played but it was late in the day and hard to make changes and new they were in Regina so figured out load would get there.
So after delivery questioned the carrier Blackrock about the hire. They claim that Dentro has OO's there and if they hire them as OO's they are effectively their truck. I mean i know exactly what this is it's double brokering plain and simple. But i get email after email explaining it away like i'm crazy and don't understand. So please folks just want the usual consensus here am i crazy or was this merely a double broker like i believe it to be.

Part of the explanation I got.

think you’re misunderstanding the situation.
Double brokering occurs when a broker re-brokers a load to another broker or carrier without the shipper’s or customer’s authorization while remaining undisclosed.
That is not what happened here.
Dentro is not a random “friend carrier” that we handed your load to. They are owner-operators working with us and operating under our authority. The truck that moved the load was associated with our company.
You may disagree with our operating model, but that does not make it double brokering.
You hired BlackRock, and BlackRock assigned the load to their OO. We did not re-broker or trade your load to another Carrier . The load was covered by owner-operators working with our company.
 
AgentSmith said:
Can you provide some details on BlackRock like the phone number and address?

Since you know Dentro, ask them if they were given the load by BlackRock
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they are both in Regina and know each other well if I contact Dentro i'll get the same story. I know the answer and this is a two fold point to post this. To ensure I'm not crazy and to also share the information as we are seeing this almost weekly again these days.

Email info@blackrocklogistics.ca
Office 3267 Valley Green way, Regina, SK S4V 3R1
 
Well, it's possible. It may have DENTRO in big letters but below it in small it could say operated under Blackrock. Not saying that it's 100% the case but it could be.

I know Highlight and Charger have multiple operating corporations - Highlight trucks have the HL logo on them but the operating company appears below. Charger trailers would show Charger while the trucks may actually show their operating companies. Challenger use to run some trucks under Elgin Motor Freight among other companies too ...
 
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There is nothing on this company, no google results from searching the phone number from the website, 306-912-2220, same with the phone number from Load Link, 306-351-3055, address is a house, domain registered in Dec 2025

The only thing I can find is from the The Saskatchewan Gazette, Struck Off The Register Pursuant To Section 290 lists 102082558 Saskatchewan Ltd. with the same address, 3267 Valley Green Way, Regina, SK S4V 3R1 that you provided

The website has broker vibes. BlackRock is playing word games but I think there is more to the story on the relationship between BlackRock and Dentro

To answer your question: Not crazy
 
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The real question should be,
If you give them the load, who do you make the cheque out to? Yes, they may be related, and work together, yada yada yada, but if there is a challenge regarding money, who will the courts side with? Will you and your customer have to pay twice or thrice? Who do you call when the load goes missing and will that person actually fix it? What happens if there is an insurance claim?
Everything may go all tickety-boo for a while, but when it goes sideways it is always a mess.
 
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Packrule said:
Ok so I've been ont he 3pl side for many decades now. It gets more and more convoluted with these new carrier base in our country and their desire to take every load and then use a sister or friend only to then suggest it's their own company in some way. I just want to confirm with folks their thoughts on this.

I hired company Blackrock from regina to haul a load for me from GTA to Regina. Truck shows up with Dentro on the side. We know them and load them knowing the game likely was being played but it was late in the day and hard to make changes and new they were in Regina so figured out load would get there.
So after delivery questioned the carrier Blackrock about the hire. They claim that Dentro has OO's there and if they hire them as OO's they are effectively their truck. I mean i know exactly what this is it's double brokering plain and simple. But i get email after email explaining it away like i'm crazy and don't understand. So please folks just want the usual consensus here am i crazy or was this merely a double broker like i believe it to be.

Part of the explanation I got.

think you’re misunderstanding the situation.
Double brokering occurs when a broker re-brokers a load to another broker or carrier without the shipper’s or customer’s authorization while remaining undisclosed.
That is not what happened here.
Dentro is not a random “friend carrier” that we handed your load to. They are owner-operators working with us and operating under our authority. The truck that moved the load was associated with our company.
You may disagree with our operating model, but that does not make it double brokering.
You hired BlackRock, and BlackRock assigned the load to their OO. We did not re-broker or trade your load to another Carrier . The load was covered by owner-operators working with our company.
Click to expand...
As someone more on the brokerage side, I would consider this double brokering.

I've had the same thing happen to me, late in the day etc. I made the company prove they paid the other company before I released funds to the carrier and then promptly DNU'd them both.

I understand things come up but you are always better off just being honest, tell me my sister company or whatever term you wanna use has a driver. I'll set them up and pay them directly.


*edit - IF by some miracle Dentro/Blackrock have a legal relationship, man is that towing the grey zone and I would recommend they make changes, I imagine every legit broker who reads this will make a note of this for future.
 
I wee bit off topic, but how do the rest of my brokerage colleagues deal with “dispatch services”.? It is my belief that as long as you are paying the actual carrier who performed the work, it is a legitimate transaction . If that carrier wants to pay a finders fee, or a service commission, that’s between them. If you are paying the “dispatch service” directly however, it would be, or should be, considered double brokering.
 
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loaders said:
I wee bit off topic, but how do the rest of my brokerage colleagues deal with “dispatch services”.? It is my belief that as long as you are paying the actual carrier who performed the work, it is a legitimate transaction . If that carrier wants to pay a finders fee, or a service commission, that’s between them. If you are paying the “dispatch service” directly however, it would be, or should be, considered double brokering.
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I only deal with it in the states and is seems to work as follows.

Dispatch service contacts us about a load. States they are a dispatch service etc.

We agree to rate.

Dispatch service facilitates the set up of the MC number, the owner op is involved in the process since the links all get sent to his email. Insurance comes directly from the broker.

Almost always they factor with JD/OTR and we end up paying them.

We will only deal with them for 1 or 2 truck MC's. Any large carrier using a dispatch service will not be set up.
 
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Jim L said:
The real question should be,
If you give them the load, who do you make the cheque out to? Yes, they may be related, and work together, yada yada yada, but if there is a challenge regarding money, who will the courts side with? Will you and your customer have to pay twice or thrice? Who do you call when the load goes missing and will that person actually fix it? What happens if there is an insurance claim?
Everything may go all tickety-boo for a while, but when it goes sideways it is always a mess.
Click to expand...
100% agree with this.

When money get's tight at Blackrock and they delay payment to Dentro and Dentro goes after your shipper for payment... guess who your customer is going to look at.... You.

The long & short of it is... you hired an MC to do this move and a different MC picked up... they did not tell you they were going to Co - Broker, Re - Broker or Double Broker your shipment before they arranged it.

Had they done so... you could've made the choice to go ahead or find another carrier.

Like Jim said... you'd better contact the MC that actually moved the freight and pay them in order to avert potential issues later.
 
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