Advice on a double brokered situation
- Thread starter drob
- Start date
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I would not do anything until the load has been delivered. You don't want to rock the boat just yet. Once the load has delivered and you are absolutely sure that it has been double-brokered, contact the original carrier and tell him you are aware of what has taken place and see if there is any reasonable excuse. If there isn't a good reason, let him know that you will not be paying his invoice to you, until he provides proof that the carrier who actually hauled the freight has been paid. If that is unacceptable to him, tell him that you will contact and pay the "real" carrier directly. If the original carrier had a problem with the load and didn't think he could get it done, he should have called you to discuss it. It wasn't his freight to deal away to any Tom, Dick or Harry in the first place.
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I would try contacting the carrier who's pap's number you have and find out from them who they got the load from and confirm everything you're suspecting. If you can confirm it, cut out the double brokering bas**rd and pay the actual carrier the same rate as you agreed on with the original carrier. Speaking as a carrier, there is no excuse for it, unless it was clear from the begining that the load could be re-brokered. Nobody wins from this, except the poor grunt who is actually doing the work, which is the way it should be.
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We would only pay the carrier that made the actual delivery there is no reason good enough for it to be double brokered without first asking allowing you to make the decision on the other carrier. Make sure the load is delivered (very important) and then contact the delivering carrier and tell him you will pay him what you paid they guy double brokering. You will make him happy because he is getting more or you will find out that he was promised more than you where paying (fraud).
How to handle a double broker
I agree with loaders as to allowing the actual carrier to deliver the load. Perhaps you can speak with the consignee's receiver and ask him/her to identify the delivering carrier, as well as fax you a copy of the B/L.
I would allow the original carrier the opportunity to provide a compelling reason for double brokering my load, as well as not informing me beforehand, in writing via e-mail, fax, or letter. In absence of a compelling and logical reason, I would then contact the delivering carrier, inform them of my knowledge in this matter. After receiving their documentation that substantiates them as a legitimate, properly licensed, and insured carrier, ask them for the POD and their invoice, the amount to be the same as I originally booked the load for. Then I would inform the original carrier of my decision, and terminate my relationship with them.
By doing this and not making any additional profit or windfall, my hands stay clean.
I hope this helps, and please let us know how you make out.
I agree with loaders as to allowing the actual carrier to deliver the load. Perhaps you can speak with the consignee's receiver and ask him/her to identify the delivering carrier, as well as fax you a copy of the B/L.
I would allow the original carrier the opportunity to provide a compelling reason for double brokering my load, as well as not informing me beforehand, in writing via e-mail, fax, or letter. In absence of a compelling and logical reason, I would then contact the delivering carrier, inform them of my knowledge in this matter. After receiving their documentation that substantiates them as a legitimate, properly licensed, and insured carrier, ask them for the POD and their invoice, the amount to be the same as I originally booked the load for. Then I would inform the original carrier of my decision, and terminate my relationship with them.
By doing this and not making any additional profit or windfall, my hands stay clean.
I hope this helps, and please let us know how you make out.
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Thanks for the responses. If I go directly to the actual carrier once I know the load has been delivered and do not pay the carrier I originally booked with does it open any doors for them to chase after us to collect money we refused to pay them due to double brokering. On our dispatch sheet it clearly states No double brokering of loads. Will this protect us?
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Again, be sure the load delivers before you start any action. The last thing you need is a "load held hostage" incident. As Activet said, check to see if there was any reason why the original carrier re-booked your load with someone else. Even if there was, surely there was ample time for him to advise you of it and allow you to make the decision to carry-on with the "new" carrier or not. If it appears that it was simply a matter of one carrier trying to make a few bucks off the work of another carrier, ask him if he operates a trust account as a broker operating in Ontario. Ask him for his Property Brokers licence if the load originated in the US and the insurance company that holds his US surety bond. If he has none of these, then you shouldn't pay him a cent as he is operating contrary to the law and you don't want to be a party to anything like that. If your load confirmation sheet states there shall be no double brokering of your freight, you should be free of any hassles. Please let us know the outcome of this. There is no place in our industry for double brokering regardless of who does it, carriers or brokers.
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If you know the end carrier, you can call them and tell them that you found out what happened. They'll probably appreciate it.
If you don't, then wait till it's delivered ... there may be a good explanation for it, even though it seems fishy.
If you don't, then wait till it's delivered ... there may be a good explanation for it, even though it seems fishy.