Double Brokering??

Call the trucking company that has a lot of loads out of grand forks.

Double brokering only exist because some drivers are willing to take the crumbs leftover after the load is brokered twice. It's happened to me when I've needed a load in a pinch, or was trying to make a certain lane work. You can tell it's double brokered just by looking at the paperwork. In the end, loads that are double brokered just don't pay enough to make a lane work. I have worked with several brokerages on this load board over the past 9 or so months and have narrowed down just a couple that are worth running loads for.

What do you haul them in hopper or belt trailer? How much can you get on a load?

From my perspective as a broker of nearly 29 years. I don't know of anyone that would willfully give their load to another broker to cover. I get contacted daily from "carriers" that are looking to cover my loads. When I check some carriers in my system they are part of a double brokering scam. There are hundreds if not thousands of companies that do that. They take the load and then turn it over to another "branch" and re broker out. Some Landstar Agents are nothing but double brokering agents. We no longer work with Landstar and many other "carriers" that act the same way. If they screw the carriers, we're going to be possibly liable to pay twice on the loads. Everyone please do your due dilligence on anyone that is offering you freight.

"Why is it acceptable and tolerated for one broker takes a load from another broker and stil takes 10% or more???"

I think the simple answer is, the trucks allow it to happen, or don't know any better. Either way, it sucks, and helps keep the rates down for everyone else....

Respectfully, I disagree. The shippers awareness is moot. When they hire a broker there is no law that says they have to be aware of who all is involved in the transport. All they have to know is the broker they hired is getting it moved, presumably legally. "Double Brokering", legally speaking, is specifically when a Carrier, with only a carrier authority, performs the duties of a broker by passing a load tendered to them to another carrier. A load can not be "Double Brokered" between two brokering authorities.

For example, as a carrier I took a load from Lizzy’s World, a brokerage. They got the load from a carrier who received it directly from another broker who had the customer. Lizzy's World then refused to pay me for it. I won my claim against their bond, but the lawyers were clear that Lizzy's World wasn't guilty or liable for the double brokering part, only the carrier who accepted the shipment from another broker was liable because they "brokered" the load to another entity without having a brokering authority to legally do so.

On another load of which I was the broker, I didn't have a truck in a very specific lane. A broker from TQL did. I booked the load with him and he booked his truck. We "Co-Brokered" that load. My customer had no idea how I got their shipment delivered, only that I did. Legally, I have the ability to book loads with carriers or other brokers. The industry frowns on double brokering because it increases the risk for the broker with the truck. That broker is on the hook for paying the truck regardless of receiving payment from me. If I didn't pay them, it becomes a big legal battle and can quickly become a hot mess. Ultimately, I would end up paying TQL in the end. The rule of thumb for brokers is to NOT Co-Broker just to avoid that potential trouble and headaches.

I think the crap is getting a bit deep here. If you are an O/O working for a forklift operators wage than you have only yourself to blame.

If a load pays $7 a mile on a 500 mile run but it's double brokered would you care?.... probably not.

I totally agree, I'm a firm believer that we are our own worst enemy. As for the $7.00 a mile double brokered load goes, you're right, as long as I get my number, I don't care. The problem is, they never pay $7.00, it's more like $2.50, which is where the the bad feelings come from. In my opinion, if the only way a broker can find a truck is to double broker the load, they aren't trying too hard to cover it. Maybe mankind would be better served, if they can't cover the load, give it to someone that can rather than try to make a few quick bucks off of it at the trucks expense. Every time someone takes a cut, the truck gets squeezed. The problem is, many truck owners don't know the difference, think the rates are just low, and take it. This brings me right back to, we are our own worst enemy.

The way this should work, the party that can't perform and has to reach out for help comes away with nothing. Or loses money. I have no proof but I think it's possible that brokers come and go as fast as truck drivers.

It depends; in this HYPOTHETICAL situation, does it occur on a Tuesday or Thursday after the noon hour or before? I personally don't like hypotherical or "what if" questions because they can be posed to get the desired answer, and are not real situations, hence hypothetical. If this is a real question dealing in specifics regarding your business, I'll be happy to take a stab at it.

Just like Dave said, If, you own the product, and, you're also a registered broker with FMCSA, you're good to go. Go crazy. Hopefully you aren't paying your carriers $2.00 a mile. Now, in the hypothetical scenario, you're a carrier with brokerage authority, and you hire TQL to move the loads and you take your minimal single digit percentage, and TQL also takes a cut, THEN you are a double brokerer..

I'll refrain from all the government stuff, Dave covered it, except for the E-log debacle.

Dave, the trucking de-toxing isn't going so well. You fell off the wagon again. :)

Contracted loads. Aka not paid when picked up and giving them to other o/o is double brokering. If you own the load you can have anyone haul it

phone conversation with the rule makers say this

Who would the rule makers be?

So I have looked into the brokering license thing in the past and the way that I understand it is you get a specification from FMCSA and you get a bond that is based upon your yearly freight earnings. Then you have to pay a bond "premium" and therefore making you take a bigger percentage from the carrier and the gov't gets to stick their fingers in it too. Have I missed anything? If all the bond is doing is giving the carrier piece mind about me paying them then why not do it the way I said; I pay the carrier before I get paid and then everybody is happy. I'm sorry if I might seem dense about this subject but enlighten me if you can...

Hey Ryan,

The cost of the bond is determined by the volume your brokreage does in a year not the carrier portion of you operation. The bond should cost somewhere in the $1,400.00 per year range until your volume goes beyond a certain threshold. They are not too expensive. Check out Bondsdirect.com. I use them for my overweight bonds in a few of the states I run in, and have forun them to be very easy to work with. In your scenario, you would need to be a broker in order to do it correctly, however I am in no way telling you how to run your business.