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double brokering

Jul 05, 2021 at 04:40 PM CST
+ 20 - 3

why is this allowed on here commodity service has loads then broker in minnesota calls and offers the same load cheaper and is getting it from commodity got an email pays 150 ton less 8% broker fee based on a 25 ton load he/she gets 300.00 for sitting in an office and no loads offered to haul back ( no backhauls)to get in the same general area brokers are a one way ticket to being out of business

Basic rate should be at least 3.00 loaded mile plus a fuel surcharge

Replied on Wed, Jul 07, 2021 at 09:19 AM CST
+ 1

I don't quiet understand the broker doesn't have a load but one way. that is usually the way it has been for years and years at least the broker got you out of where you where at

Replied on Wed, Jul 14, 2021 at 12:55 PM CST
+ 1

That's not double brokering. That's normal, legal and often necessary. "Double brokering" is when a carrier without brokerage authority accepts a load and hires another carrier to haul it. The "double brokering" name is misleading.

Replied on Wed, Jul 14, 2021 at 12:57 PM CST
Quote: "I don't quiet understand the broker doesn't have a load but one way. that is usually the way it has been for years and years at least the broker got you out of where you where at"

if they don't have a return load close by then they should pay a rate that cobers all miles driven loaded and unloaded plus a fsc. some will do it and some will not. The scavenger brokers that are taking loads from other brokers will definitely not do that. The best bet is to haul directly for the shipper and negoiate the rate based on all miles driven to get the load picked up and then delivered. Especially if there are several loads and you will be traveling back and forth.

Replied on Wed, Jul 14, 2021 at 01:34 PM CST
+ 1

I thought double brokering was when a broker gets a load from another broker and they both want their cut before the trucker gets his pay . I sure wished more shippers would work with the trucker instead of going through a broker. Then truckers would be able to make a better living and not support all these brokers that live high on the hog. I also thought brokers were suppose to have money enough to pay the trucker without having to wait for there money for three or for weeks. If truckers with hoppers were paid right when they unload like livestock haulers were our lives would be beter

Replied on Thu, Jul 15, 2021 at 08:57 AM CST
+ 2
Quote: "I thought double brokering was when a broker gets a load from another broker and they both want their cut before the trucker gets his pay . I sure wished more shippers would work with the trucker instead of going through a broker. Then truckers would be able to make a better living and not support all these brokers that live high on the hog. I also thought brokers were suppose to have money enough to pay the trucker without having to wait for there money for three or for weeks. If truckers with hoppers were paid right when they unload like livestock haulers were our lives would be beter "

What your describing is Co-Brokering which is legal(in most cases unless there is agreement between broker & shipper or customer that is against co-brokering)

Most brokers are between 30k-80k a year as well, hardly a high hog living.....

The invoicing/pay thing is really a industry standard, most brokers offer quickpay(at a % like a factoring company) and also offer their dedicated carriers faster pay. This likely won't change until a tech type company comes along like convoy and offers a disruptive way(flat rate membership type for example)to push change in the factoring arena of the industry.

The reason you don't see shippers or customers going straight to carriers is there are typically multiple loads per day from multiple facilities. It is much easier and cheaper typically for a shipper or customer to contract out their loads then hiring logistics employees from every facility to run their loads for them. Customers and shippers do not want to make dozens of phone calls a day to multiple carriers to figure out where trucks are.

Replied on Fri, Jul 16, 2021 at 10:26 AM CST
One way loads are certainly a problem. I would like to run to Texas a lot but there is nothing coming back and it don't pay to roll back empty. Playing hop scotch with 3 other brokers to get back is too time consuming. I am running empty from OKC to Wichita but that is not so bad.
Replied on Fri, Jul 16, 2021 at 10:26 AM CST

I can't for the life of me decipher what many of you are trying to say, as I guess English is not your first language or else you never made it past the first grade, but I always thought that double brokering was where a broker takes a load (off a load board or wherever not identiifying him/herself as a broker), then re-brokers it w/out the original broker's knowledge AND where a carrier re-brokers it w/out the original broker's knowledge

Replied on Fri, Jul 16, 2021 at 10:26 AM CST
Quote: "What your describing is Co-Brokering which is legal(in most cases unless there is agreement between broker & shipper or customer that is against co-brokering) Most brokers are between 30k-80k a year as well, hardly a high hog living..... The invoicing/pay thing is really a industry standard, most brokers offer quickpay(at a % like a factoring company) and also offer their dedicated carriers faster pay. This likely won't change until a tech type company comes along like convoy and offers a disruptive way(flat rate membership type for example)to push change in the factoring arena of the industry. The reason you don't see shippers or customers going straight to carriers is there are typically multiple loads per day from multiple facilities. It is much easier and cheaper typically for a shipper or customer to contract out their loads then hiring logistics employees from every facility to run their loads for them. Customers and shippers do not want to make dozens of phone calls a day to multiple carriers to figure out where trucks are."

Isn't"co" another way to say two? That's double in my mind. When a broker takes the load or loads from original shipper and then hands it to the next person or trucking firm that's fine. But if that trucking firm hired another truck that isn't leased to that second truck firm, that's where it becomes double is the way I understand it. but I didn't go to law school to learn interpretation so I can be proved wrong by a s kid with Google that was bored and wanted to argue.

Replied on Sat, Jul 17, 2021 at 05:02 PM CST

Here's a litmus test for the brokers... Next time you get a load from another broker, tell the Carrier it's not your load from a shipper. Tell the carrier that the broker that got the load from a shipper is taking his full percentage, and you as the second, or third broker are also taking your full percentage and see how many carriers will jump at that deal..Carriers without brokerage authority shouldn't be brokering in the first place just as dispatch services shouldn't be chasing direct freight without brokerage authority.. Either way, it's the carrier's responsibility to do their homework and don't take low paying freight. Additionally, if, as a carrier, I'm able to get the rate I'm looking for, I don't care how many legitimate brokers are in the loop. I would however have more respect for those who admitted I'm #3 or 4 in line...

Replied on Sat, Jul 17, 2021 at 05:02 PM CST
Quote: "One way loads are certainly a problem. I would like to run to Texas a lot but there is nothing coming back and it don't pay to roll back empty. Playing hop scotch with 3 other brokers to get back is too time consuming. I am running empty from OKC to Wichita but that is not so bad."

If there is freight in the trailer and the wheels are turning, I'm not seeing how that is too time consuming... I call it trucking.

Replied on Sat, Jul 17, 2021 at 05:02 PM CST
Quote: "That's not double brokering. That's normal, legal and often necessary. "Double brokering" is when a carrier without brokerage authority accepts a load and hires another carrier to haul it. The "double brokering" name is misleading."

It could also be two brokers each taking a separate percentage rather than sharing one.

Replied on Sat, Jul 17, 2021 at 06:57 PM CST

I hit post too fast! For the most part, I don't think carriers take issue with a broker making a modest profit from providing the service of a obtaining a load from a shipper and placing it with a carrier. It's a pure and simple form of business that is a benefit to many in this industry.

Where the train jumps the track and carriers bash brokers is when brokers with no customers subscribe to DAT and with no direct shippers attempt to make a living reposting loads on DAT. When I subscribed to DAT it was an every day occurrence to see the exact same load posted numerous times from different brokers and it was comical to see the rate drop every time it was reposted. The problem is the load from the broker who had the direct relationship with the shipper probably was a good paying load but as it changed hands, it became the low paying freight everyone complains about. Furthermore, the brokers in the middle act as if they have the direct freight. That is the dishonest part. If you are getting the load from another broker admit it, if we can al make money great. In my opinion, there are too many people in the industry trying to make a living being the middle person with no skin in the game. Hell, do a little YouTubing, there are people selling training on how to make money from trucking with no customers or equipment...The worst part is, there are carriers hauling this stuff...You can't be mad if you step up and agree to do haul it..

Replied on Fri, Jul 23, 2021 at 03:11 PM CST
I have a broker that gets loads from other brokers. So I pay two brokers. But he pays me in a couple days so I think it is worth taking it from him for less money
Replied on Sat, Jul 24, 2021 at 07:49 AM CST
Here is a history lesson and how roles have changed when I started we had a customers that used Cass in st Louis Sent our bills to Cass they paid us timely on behave of our customer. Cass did this for many clients and there numerous companies that did this around the country now they are gone and truckers pay for factoring when did this switch
Replied on Sat, Jul 24, 2021 at 07:50 AM CST
Quote: "I have a broker that gets loads from other brokers. So I pay two brokers. But he pays me in a couple days so I think it is worth taking it from him for less money"

There you go Dave. This is your competition...🤦‍♂️
Replied on Sat, Jul 24, 2021 at 07:09 PM CST
Each load should require posting the shippers rate then brokers A's %, then brokers B's %...etc. this would solve the majority of the problem. If several brokers take the same load from the same shipper, same formula should be required. I am still baffled at the rapid pace brokers expand with new employees (more brokers) , new offices in different states. And every year the same loads get cheaper.
Replied on Sat, Jul 24, 2021 at 07:09 PM CST
When a broker can sit at home and earn 5K a week dispatching 10 trucks....something is wrong.
Replied on Sat, Jul 24, 2021 at 07:09 PM CST
Been dealing with it for years, that’s why I have no fear of the pro act, AB 5 or the Mandated insurance increase, I wonder how many others can say that?
Replied on Wed, Sep 08, 2021 at 07:50 AM CST
Quote: "It could also be two brokers each taking a separate percentage rather than sharing one."

Incorrect.
Replied on Thu, Sep 09, 2021 at 07:36 AM CST
Quote: "I have a broker that gets loads from other brokers. So I pay two brokers. But he pays me in a couple days so I think it is worth taking it from him for less money"

Then as as long as the SHIPPER is aware that this is happening and does not object, it is CO-Brokering...