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Freight Group
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Aug 9 in
Another Double Brokered Load
We have been getting hit hard with double brokering but, with the help of loading and receiving warehouses, we have been able to stop it. Thought we had all strategic processes in place until last week. Before Carrier A was loaded, we confirmed MC/DOT on the truck matched up. Sometime after pickup, our cargo was offloaded and loaded on to Carrier B who in turn delivered our freight. Although Carrier A's factoring company sent us an invoice, they advised we legally do not have to pay them as dispatch never submitted the load to them. Carrier A expressed frustration that I reached out to their factoring company. To find out, he had no intention of submitting this load to them and only did so after the Factoring Co called to find out what was going on. Carrier A & Carrier B have separate DOT/MC #'s, addresses, etc. Although separate, Carrier A is trying to justify his actions in passing on our load saying both carriers are owned by the same person. I did obtain the carrier packet from Carrier B and sure enough the W9 is signed by the same person who signed Carrier B's W9. If owner in fact owns both entities, this still does not provide a loophole to double broker and do not want to get caught in games when it comes to payment as both physically had a part in the load. Carrier B has yet to reach out requesting payment. Has anyone run into this type of scenario and if so, how did you handle resolution?
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New comment Aug 21
1 like • Aug 15
@Jeff Dickinson Yes, we set expectations with the warehouses involved that nothing gets loaded and/or unloaded until info is verified, photos taken. I am definitely going to add add'l info to our transportation agreement requirements including penalties, so thank you! In the last several months, I have reported to the FMCSA 4 double brokering attemps or actual acts. Out of those 4, only one rep reached out and took action. Reporting to Carrier 411 and add'l sites is imperative but, still need assistance to legally hold these individuals accountable. I won't give up until action is taken by the FMCSA as now the FMCSA needs to be help accountable for turning a cheek. Although this won't change the industry wide issue, I am hopeful that everyone's continuous persistence in actions taken will help make change.
1 like • Aug 16
Hi Sydnie, both are carriers, not brokers. Further research leads to speculation that they are subsidiary companies. I have been corresponding to both entities together and reiterated double brokering is the illegal act of a broker OR carrier transferring a load to another trucking company without notifying the shipper. Carriers must notify all parties involved and gain proper authorization from the shipper to transfer loads onto another trucking company to avoid the illegal act of double brokering, which they failed to do and putting our clients load at risk for loss in the event of a needed insurance claim. After that statement, their unethical tactics came out ten fold claiming I did authorize the transfer, etc. I advised that I will not proceed with payment until a written signed statement was received from the President that Carrier B will relinquish any and all financial gains from this load. They both agreed but have yet to receive a statement.
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