How to Stop Double Brokerage
- Thread starter frtbrkr
- Start date
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Unfortunately the majority of double brokering occurs when a carrier accepts a load from a freight broker and then decides, for whatever reason, to resell it to another carrier. Sure there are some unscrupulous brokers who scour the load boards for freight to re-broker to unsuspecting carriers but from what we see on this site, it is mostly carriers reselling the freight they accepted from a broker to other carriers.
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You must not get the Landstar calls on every load you post, Between them and all the overseas call centers calling on just about every posting I post. They all want to help me move my freight.
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I tell my shipper who I'm sending in. And a couple of my shippers require me to tell them name and US DOT number (if applicable) of carrier I send...if my info doesn't match what's on the truck coming in to get the load then I get a call and the truck doesn't get loaded.
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Why did you reach out? Are you not getting paid, or is it just because it was a double brokered load?
Not getting paid. Company who gave us the load has disappeared. The owner of the freight acknowledged the fact it was double brokered and told me its my problem not his LOL
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Then it is now time to engage the services of an experienced, transportation para legal. Try contacting Scam Chaser who is a member of this site, he is good at his job. Realistically, the owner of the freight does have a point. It was you who willingly entered into a contract with the double broker and by doing so, accepted the chance that you might not get paid. It happens every time you extend credit to someone, the chance exists that they may not pay you. Still, contact a para legal and listen to their advice. It might be a lengthy process, but you could very well get what is owing to you.
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@loaders - absolutely! we took a chance and got burned. I was surprised that no one cared that their shipment was double brokered. The people I got it from run a bit outfit so it came mostly as a surprise when it happened. I will reach out to Scam Chaser. Thank you for your input.
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We learned the hard way - a big box broker/trucking company sold us a load - truck broke down and we kept them informed (they misrepresented the timeline to their customer) - we rescued the laod and delivered with no issues- receievr received it and signed the POD - no damage. The big box broker threatened us with a deduction for being late - and didn't let the customer know they were not the carrier. When I contacted the customer - they didn't care and called me unethical !!!! anyway @SCAM CHASER gave us excellent advice .... we did get paid - but now I have learnt that the shipper only cares about the load - not that it is being sold to someone else ... sad but true
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Don't get me wrong because I am not trying to be an ass here, but why would anyone care? As long as the shipper's freight got delivered at a price he could live with, then he has no reason to care if it's double brokered. Double brokering is not illegal. Some may think it's immoral, but it's definitely not illegal.
Double brokering is not illegal?
Since when?
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Since ever. Double, triple, quadruple, sorry but not illegal. Which is exactly why it is so very important to know who you’re dealing with. If you are going to extend credit, do some due diligence and check out exactly who it is you are working for.
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I had an inkling in the back of my mind that there may be quite a few carriers out there, especially newer carriers, that were under the impression that double brokering was illegal. It is most certainly not. If it were, there would be no such thing as commodity sales. Things like grains, produce, lumber, paper, steel, and petroleum products are all commodities that typically go from manufacturer/supplier to sales broker, to sales broker, to sales broker (any number of times) before they actually land at the end consumer.
In trucking, suppose I acquire a load from a customer that pays me $1,000.00. I don't want to go where this load is going, but I remember you told me you would go there for $800.00 because you have return loads from there. Day before you are supposed to pick my load up, your return cancels. You remember loaders' has a truck that will go there for $600.00, so you give the load to him. What's the problem with that set of transactions? I made a couple hundred bucks. You got paid what you wanted, and made a couple hundred bucks. loaders got a load for his truck at a price he was happy with.
I am assuming you looked only at the first entry on Google which was published by Avalon Risk? It's a great headline, but it's also wrong, and you should read the entire article. There is no law currently on the books in either Canada, or the United States, that makes double brokering illegal.
There are however, lots of laws on the books around the world that deal with people not paying other people for work produced. Personally, I could probably be persuaded to side with the Sharia law folks on this one ... LOL
Don't take my word, or loaders word, or anyone else's word for it. Do the research yourself.
This is wild. Guess we have to stick with our direct customers.
Now I start to question LL.
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That's not necessarily true. The key is to establish your own circle of reliable brokers that you can buy from, and carriers that you can trust to fairly trade with.
It's always the unknown that will bite you in the ass.
Very well explained. Appreciate all the input and knowledge.
Even after 20 years in the industry, you learn something new.
