Tight capacity in the spot market and economic hardships have led to double brokering schemes rising rapidly.

In this article, we discuss double brokering and why carriers should be vigilant in vetting brokers.

What is Double Brokering?

Double brokering occurs when a shipper hands off their freight expecting a broker to pass it on to a valid carrier. Instead, the broker hands the shipment to a secondary broker unknown to the shipper, which is then given to the carrier. The carrier is also unaware that the shipment has been re-brokered.

Another form of double brokering is when a carrier gives a load to another carrier.

How Can You Spot Double Brokering?

Below are a few ways that you can spot out double brokering:

  • The broker asks the carrier to check in at the shipper under another name than the carrier’s name.
  • The BOL has another carrier’s name on it and/or a completely different broker’s name.
  • Verify that the broker’s information (address, phone number, email domain) on the rate con matches the information for the broker’s company found on Safer, FMCSA, or even a simple Google search. You want to ensure it’s the real broker instead of someone posing as them. Make sure your BOL matches the details on your rate con.
  • The load has an unusually high rate for a basic load. If it seems too good to be true, it probably is.

Is Double Brokering Illegal in The US?

This practice is against the FMCA legislation and is illegal.

What Repercussions Come From Double Brokering?

There are a few repercussions that can occur as a result of double brokering. These include:

  • The biggest repercussion is that the carrier is not paid for their work.
  • The load can be uninsured, and any damages will not be covered.
  • Legal repercussions cost all parties money and time.

What Can the Carrier Do if They Unknowingly Hauled a Double-brokered Load?

Contact the shipper and/or receiver as soon as they find out. Usually, the party paying the freight bill is normally unaware of the issue. If the persons paying the bill have not paid the fraudulent party, they can, and most of the time will pay the carrier directly with proper documents. This will also alert the shipper that they are working with a fraudulent company and that the shipments given to them will stop.

Porter Freight Can Help With Double Brokering Issues

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