Double Broker

D

Deisel1

Active Member
Aug 21, 2019
398
238
43
Etobicoke, ON
15
Hello all,

I wanted to post this to get everyone's opinion in this matter:

This happened about 2 weeks ago. I booked a carrier on a Full Truck Load in OH. The carrier, who I have used on a regular basis, called my customer to get the exact skid count, the shipper not thinking twice, told the carrier, it was 8 pallets. Well, if anyone knows this shipper, they would know the skids are very large skid, and given the dimension, clearly comes up to 52 FT of trailer. Carrier A decides to double broker the freight to Carrier B for 30FT of trailer (No idea, how they came up with that calculation) for X amount of dollars.
Well surprise surprise, when Carrier B arrives, they had empty racks on their trailer with only room with 30FT of trailer, and can only load 5 out of the 8 skids. As I spoke to Carrier A, they explained he has room for 52FT as the empty racks take less than 2FT, doesn't make sense, but OK, let's play the game. They continue to explain, all they need to do is unload and re-load and the skids properly, and it would fit perfectly. Finally, after an hour of back and forth with the shipper, only 5 out of the 8 skids would fit. Carrier A decides to take the 5 skids, and he will find a solution for the remaining 3. Which in fairness, Carrier A did go back the next day to grab the remaining 3 skids and delivered. Not sure if it was his truck or not to be honest.
Our customer was obvious very upset that they had to receive their booked FTL in 2 separate trucks.

I received a call from Carrier B, insisting that his company did the load, and Carrier A only booked 30FT of trailer; not a FTL. Carrier A has decided to only pay Carrier B 16% of the agreed rate. Carrier B, up to this point, has been able to provide email correspondence between Carrier A and B, original Load confirmation, and revised Load Confirmation, as well as POD for the 1st 5 skids delivery and PARS and custom clearance.

Earlier today, I received the invoice and 2 POD's from Carrier A.

If you are in my position, how would go about handling this situation?
 
Pay Carrier B for 5 skids that they did - percentage of the whole so if say $8000 they get $5000 and find out who did the other 3 skids and pay them that...if it was Carrier A - deduct $$$$ for not providing a dedicated FTL when that was the deal - maybe $250
 
I would love to know who Carrier A is. Not only did they double broker, they attempted then screw over Carrier B further by deducting the rate, which I imagine was to cover the costs of picking up the 3 skids the next day. But that's a different conversation.

Pay Carrier B what he is owed for moving the 5 pallets. Seems like he has all the proof needed and unfortunately caught in a bad spot.
Keep the rest until Carrier A proves he picked up the 3 skids on his own assets or wait until Carrier C comes calling.
 
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Very much appreciate everyone.
I am actually very surprised with this carrier. I've been doing business with Carrier A on the regular for many years and the lack of moral is astonishing reading the threads. Definitely on our DNU list.
 
Although, you did not disclose any information of your communication with your client, but going with what you've told us - it's purely your screw up as you knew all the details and still allowed the shipper to split the TL and get Carrier B to move the partial. You have to take the hit for this.

Renegotiate a fair rate with Carrier B and pay for 5 skids. Find out who is the carrier to 3 other skids and negotiate and pay the fair rate with them. And, if you are out of money to compensate both carriers who moved the goods, well pay it out of your own pocket.
 
So Economy, you are fine with completely ignoring the fact that the carrier Diesel1 contracted with, decided on his own and without consultation, to re sell the load to some unknown entity? Had the double brokering not occurred in the first place, the load would not have been split and this whole discussion would be moot. The only thing Diesel1 is guilty of here, is choosing Carrier A in the first place. I am all for paying the party that does the work, but I do not like to reward behaviour that we all know is unethical.
 
loaders said:
So Economy, you are fine with completely ignoring the fact that the carrier Diesel1 contracted with, decided on his own and without consultation, to re sell the load to some unknown entity? Had the double brokering not occurred in the first place, the load would not have been split and this whole discussion would be moot. The only thing Diesel1 is guilty of here, is choosing Carrier A in the first place. I am all for paying the party that does the work, but I do not like to reward behaviour that we all know is unethical.
Click to expand...

To add to this, I think it's safe to assume the Diesel1 had no idea Carrier A was double brokering the freight
 
It is not too often that one knows their freight is being double brokered, until crap like this appears, or worse. Double brokering......the plague of our industry!
 
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Of course I did not know my freight was being tendered to another carrier.
But to respond to Economy; the shipper, receiver and myself had a conversation, and because the product was needed for fulfillment on Friday and for the weekend, we all agreed some of the freight was better than none.

I have spoken to Carrier A and told the "President" all you need to do is provide proof, either a custom invoice with the company PARS and we can workout a fair compensation for the work completed. The company has been unable to provide such documents.

Going back to Carrier B, he was sent proof Via Load Confirmation from Carrier A that he had to overpay Carrier C, and that was the reason why he was shorting his freight bill almost 75%, which works out to be less than a TONU. Luckily, carrier B kept it and forward it to me. And my intuition was correct, Carrier A decided to pay Carrier C 75% to haul back the remaining goods. Both shipments were double brokered.

Now, I called Carrier C, and they noting, they did not do the shipment at all. The pot thickens.

I am going to pay Carrier B, the amount he negotiated with Carrier A, payment has been processed.
I sent an email out to Carrier A, that payment for the remaining balance will be "put on hold" until reasonable evidence can be provide that he hauled the load.

I am hoping Carrier C reaches out to me, as I have no issue paying them for the work completed, even if it has to come out of my pocket.
 
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Surely your previous opinion of Carrier A has suffered irreparable damage by now! If only Carrier A had been honest and forthcoming, and said to you, “geez, sorry but we’re going to have to give this load back to you, we just can’t make it happen”. Simple and to the point, no harm done, their reputation remains intact and you get the load covered elsewhere.
 
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I too would like to know what carrier handled a simple TL out of OH in this manner. Sounds like a LOT of work for little to no profit for them, unless they were planning on not paying BOTH transporting carriers.

Keep well, keep safe, been golfing way too much lately... Ah semi-retirement...
Mike
 
I reluctantly did not want to broadcast the carrier name in hopes a reasonable resolution of fair compensation would be agreed upon, but after my last conversation and email correspondences with the "President" of this company it seems we have reached an impasse.

The carrier is Y7E- Ellie is the person I have been corresponding with.

I was forward some information that this company lost many of their drivers and currently just operating as a broker. Maybe if anyone has any further info they can share.
 
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Deisel1 said:
I reluctantly did not want to broadcast the carrier name in hopes a reasonable resolution of fair compensation would be agreed upon, but after my last conversation and email correspondences with the "President" of this company it seems we have reached an impasse.

The carrier is Y7E- Ellie is the person I have been corresponding with.

I was forward some information that this company lost many of their drivers and currently just operating as a broker. Maybe if anyone has any further info they can share.
Click to expand...
I used to work with Ellie at Y7E a lot, but recently their service dropped over the past year. I am not surprised to see this issue happen with them.
 
loaders said:
So Economy, you are fine with completely ignoring the fact that the carrier Diesel1 contracted with, decided on his own and without consultation, to re sell the load to some unknown entity? Had the double brokering not occurred in the first place, the load would not have been split and this whole discussion would be moot. The only thing Diesel1 is guilty of here, is choosing Carrier A in the first place. I am all for paying the party that does the work, but I do not like to reward behaviour that we all know is unethical.
Click to expand...

I ignored nothing, diesel1 as a broker knew it all from the moment shipper advised that the truck arrived is
not empty.

Deisel1 said:
Of course I did not know my freight was being tendered to another carrier.
Click to expand...

Yes you did, the ID of the carrier is on both sides of the truck and visible to the shipper upon arrival.
Further you disclosed that shipper, receiver and yourself came up to a decision to proceed with splitting the cargo. Well, find out who the actual carriers are and pay them the fair rate. What is wrong with that?

As a broker, you bare the responsibility before your client to find them the requested equipment and a carrier with proper authorities and insurance. Well, it did not happen! Diesel1 had hired Carrier A who acted as a broker rather than carrier (SUCH ACTIONS ARE PARASITES OF THIS INDUSTRY). I know it happens allover. Whatever happens after hiring Carrier A is the fault of a broker who engaged in dealing with non reputable to him/her party. @loaders, Had the double brokering not occurred in the first place, THIS IS NOTHING BUT EXCUSE. Why would a broker get a decent earning/commission, is it only for posting the load on the Link and answer the call form the carrier? There should be more to it, isn't that so?
 
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