Home > Forum > It’S Time For Massive Load Board Players To Take Responsibility For Fraud

It’s time for massive load board players to take responsibility for fraud

May 22, 2023 at 03:03 PM CST
+ 23
https://www.freightwaves.com/news/its-time-for-massive-load-board-players-to-take-responsibility-for-fraud. Wondering everyone's thoughts on this article are?
Replied on Tue, May 23, 2023 at 07:47 AM CST
- 1

We are an asset based carrier and also broker some freight as well - here are my thoughts. There is literaly no one enforcing this law, worse than that THERE IS NO ONE TO REPORT THESE PEOPLE TO. I got involved with a double broker situation and I tried reporting it, there is no one to report it to, bet I spend a day+ trying to figure this out, even emailed my representative with my frustrations on this practice. He (or the person replying) had no idea what I was talking about and really didn't care.

I posted a few loads on bulkloads the other day, there is now a box you have to checkmark before posting a load saying that me (the broker) legally owns the load and if bulkloads finds out I don't I will be removed from bulkloads and reported to FMCSA. I kinda laughed because I've tried to do this, it seems it can't be done.

No matter who you haul for it takes literally 30 seconds to check the brokers credentials on safer. Get the bond info, everything is public knowledge.

Replied on Tue, May 23, 2023 at 12:21 PM CST
Quote: "We are an asset based carrier and also broker some freight as well - here are my thoughts. There is literaly no one enforcing this law, worse than that THERE IS NO ONE TO REPORT THESE PEOPLE TO. I got involved with a double broker situation and I tried reporting it, there is no one to report it to, bet I spend a day+ trying to figure this out, even emailed my representative with my frustrations on this practice. He (or the person replying) had no idea what I was talking about and really didn't care. I posted a few loads on bulkloads the other day, there is now a box you have to checkmark before posting a load saying that me (the broker) legally owns the load and if bulkloads finds out I don't I will be removed from bulkloads and reported to FMCSA. I kinda laughed because I've tried to do this, it seems it can't be done. No matter who you haul for it takes literally 30 seconds to check the brokers credentials on safer. Get the bond info, everything is public knowledge. "

Exact same experience I've had as well - the double brokers (specifically the Glendale CA guys) are absolutely out of control. I've reported to the FMCSA without even receiving a response. I have that particular guy dead to rights with the hauling carrier's paperwork to back up and everything. Not even an email saying the received the report. It's an absolute joke. Makes me wonder why I'm spending all this money on compliance, bond, insurance when it obviously doesn't matter. Carrier 411 is the only decent resource to fight back on these guys and it's obviously not enough because they continue to thrive.

Replied on Fri, May 26, 2023 at 09:35 AM CST

We brokers MUST insist that shippers check DOT# and Carrier Name that we put on the BOL - we put both and make them initial - and we ask for pictures to be texted to us - and if the trucker has done some silly thing like a have it written on a piece of paper than we want to see Driver's Licence and a copy of the Insurance that the DRIVER has on him -

Btw, we are seeing this fraud spread from the initial Glendale gang to ALL over - so people be suspicious!

The Load Boards themselves should get MUCH more serious or they are going to lose their entire business model - it is already failing let's face it - when 70% of incoming calls on a posted load are from fraudsters let's face it the spot trucking market is on the brink of failure.

Replied on Fri, May 26, 2023 at 12:03 PM CST

imo everyone in this industry that does NOT own assets should licenced and bonded. even the sellers of the commodity shy away or do not deal with buyers that are not licenced or bonded. even internally, look what happened to commodity services, obviously unless said otherwise no licence or bonding as it was reported as a theft. this and insurance tells the carriers you are reputable and they can actually check your standing.

Replied on Sat, May 27, 2023 at 07:20 PM CST
+ 2
Quote deleted

Just so you are completely informed.. The term "double broker" in the article is defined by brokers, and the TIA (Transportation Intermediaries Association) which is a broker trade association like OOIDA, and is not a defined term by the FMCSA. So, if you believe they are the sole entity who is given the authority to define anything, use that definition. I submit, if they have the right to define a term so does anybody else. They are not a regulatory body, and clearly need a definition that benefits them. My definition is based on common sense, 1 broker plus 1 broker = 2 brokers, or Double Broker. I'm not saying it's in any way illegal, however you can decide for yourself if it benefits anyone other than brokers. I challenge anyone, to find in the transportation code or the FMCSA regs where double broker is defined. The FMCSA defines Brokers, and Carriers. They define what each can and cannot do. The term "double broker" is not there. You are either authorized to broker freight, or you are not authorized to broker freight. A carrier without brkerage authority who assigns a load to another carrier is guilty of unauthorized brokering, not double brokering. Again, the brokerage association defined the term to benefit them. If you have any doubt, listen to the Bulk--Loads--Podcast, where the president of the TIA states in the first 5 minutes of the podcast that "double brokering" is an industry term they use to define a carrier brokering a load to another carrier.

To all the brokers who get their knickers in a bunch over my comment, go have a couple Bud Lights and breathe, it's a holiday weekend. I'll go ahead and give myself a few dislikes in advance on your behalf, thank you!

Replied on Tue, May 30, 2023 at 10:12 AM CST
+ 1

For such regulated industry, it's focus is on the trucker not the supporting industries. Brokerage is just one those. I have ran several different companies in the finacial industry and have helped small businesses grow. From the time I entered into logistics, I have noticed the following:

price gouging

Double brokering

No checks and balances

total disregard for your customer

fraudulent activity

and more...

and none of this from the truckers. It is all from the support industries.

it's shameful conduct like this which weighs the industry down and causes more problems.

be fair and honest and show some care.

Replied on Tue, May 30, 2023 at 03:50 PM CST
+ 1 - 1
Quote: "For such regulated industry, it's focus is on the trucker not the supporting industries. Brokerage is just one those. I have ran several different companies in the finacial industry and have helped small businesses grow. From the time I entered into logistics, I have noticed the following: price gouging Double brokering No checks and balances total disregard for your customer fraudulent activity and more... and none of this from the truckers. It is all from the support industries. it's shameful conduct like this which weighs the industry down and causes more problems. be fair and honest and show some care. "

I totally agree, it's bewildering how such a pure and simple form of business can be turned into a complete 💩show. While the support industries have a great deal to do due with it, there are certainly bad trucking companies as well. I think one of the biggest problems with this industry is the low bar to entry. It doesn't take much to obtain a truck, start a brokerage, or a dispatch service and jump in. People jump in without sufficient industry knowledge, experience, or adequate capitalization. They make a complete mess, and jump right back out when they don't make it. While the industry is highly regulated, there are way more rules than people to enforce them. Rules without enforcement, or lack of consequences for not following them, leads to... well, just look around, it seems to be the way of the world these days.. a complete 💩show..

'I'll go ahead and give myself some dislikes so those of you that would rather give an anonymous dislike than make a comment are easily represented😉

Replied on Wed, May 31, 2023 at 06:53 AM CST
Quote: "I totally agree, it's bewildering how such a pure and simple form of business can be turned into a complete 💩show. While the support industries have a great deal to do due with it, there are certainly bad trucking companies as well. I think one of the biggest problems with this industry is the low bar to entry. It doesn't take much to obtain a truck, start a brokerage, or a dispatch service and jump in. People jump in without sufficient industry knowledge, experience, or adequate capitalization. They make a complete mess, and jump right back out when they don't make it. While the industry is highly regulated, there are way more rules than people to enforce them. Rules without enforcement, or lack of consequences for not following them, leads to... well, just look around, it seems to be the way of the world these days.. a complete 💩show.. 'I'll go ahead and give myself some dislikes so those of you that would rather give an anonymous dislike than make a comment are easily represented😉"

No "dislike" from me. I'd say you nailed it. What do you do about it? Live and learn I guess. It's possible I may have been part of the problem in my early days. I do very little with brokers, but I am well aware. I agree with the "low bar". Been like that for a L O N G time.