Double-brokering is when a carrier (or someone posing as a carrier) books a load through a broker, and then brokers it again to a different carrier. It’s also illegal.
Double-brokering can happen in a variety of ways. In some instances, the carrier is hauling freight that paid so low that two parties were both able to take a cut before paying them. It can also happen when a carrier accepts a load from a broker and then gives it to another carrier that doesn’t have the proper authority or insurance. There are also fraudulent companies that book the load from the first broker with no intention of ever paying the carrier, instead sending their own invoice to the broker and then disappearing.
It’s the sort of thing that could easily put a financial strain on a small carrier, and maybe even put some out of business. It also isn’t always easy to spot. Brokers DO occasionally post the same loads for totally legit reasons. These are sometimes called “can-get” loads, where the shipper has agreed to give the load to the first broker that can find them a truck.
So we want to know, how do you protect your trucking company against fraud? Vote in our reader poll to let us know which tips and tricks have worked best for your business when avoiding double-brokered loads.
Article provided by: http://www.truckersedge.net/trucking-blog/post/How-Do-You-Avoid-Double-Brokering
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