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Should double brokering be made illegal?

Discussion in 'Freight Broker Forum' started by ttnae, Aug 14, 2020.

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  1. Aug 17, 2020 #11
    ttnae

    ttnae Light Load Member

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    Broker "A" has to be diligent in making sure that they are dealing with the end carrier. In the case where broker b has presented themselves as a carrier and they are not, allow that broker A can bypass broker B in the payment. Make broker A liable for the payment but do not let broker B out of the liability train. Doing this would greatly discourage the behavior which will help all of trucking.
     
    ttnae, Aug 17, 2020
    ttnae, Aug 17, 2020
    #11
    alds and Long FLD Thank this.
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  3. Aug 17, 2020 #11
    ttnae

    ttnae Light Load Member

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    Duplicate. Removed.
     
    ttnae, Aug 17, 2020
    ttnae, Aug 17, 2020
    #11
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  5. Aug 17, 2020 #12
    ttnae

    ttnae Light Load Member

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    I like your thinking but that is not always true. Sometimes, carriers have well established relationships with their customers and the customer will have a large project or spike in production. They will trust their reliable carrier to find additional trucks.
     
    ttnae, Aug 17, 2020
    ttnae, Aug 17, 2020
    #12
  6. Aug 17, 2020 #13
    wichris

    wichris Road Train Member

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    That may be true, was termed interlining, but has not been legal since MAP-21
     
    wichris, Aug 17, 2020
    wichris, Aug 17, 2020
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    PPDCT Thanks this.
  7. Aug 17, 2020 #14
    PPDCT

    PPDCT Road Train Member

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    Saved me the post I was just typing.
     
    PPDCT, Aug 17, 2020
    PPDCT, Aug 17, 2020
    #14
  9. Aug 17, 2020 #15
    wichris

    wichris Road Train Member

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    Speed it up a bit. LOL
     
    wichris, Aug 17, 2020
    wichris, Aug 17, 2020
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  10. Aug 17, 2020 #16
    wichris

    wichris Road Train Member

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    371.7 (b)
     
    wichris, Aug 17, 2020
    wichris, Aug 17, 2020
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  11. Aug 17, 2020 #17
    PPDCT

    PPDCT Road Train Member

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    Haha, I was chatting with the new hire we have. My bad.

    Thanks- didn't have a chance to really dig too deep into it over the weekend. Was a busy one.

    Edit to add:

    Here's the link to the applicable CFR that Chris is talking about:

    49 CFR § 371.7 - Misrepresentation.
     
    Last edited: Aug 17, 2020
    PPDCT, Aug 17, 2020
    PPDCT, Aug 17, 2020
    #17
  12. Aug 19, 2020 #18
    ttnae

    ttnae Light Load Member

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    I've been searching: This article explains a little better than I understood.
    Double Brokering IS illegal, though done.
    Since MAP-21 the term Co-Brokering has popped up BUT with co-brokering, Broker A is to cut 2 payments, one to the co broker and one to the carrier. When this is NOT done, then it is definitely double brokering. The FMCSA or whomever is the watchdog agency, needs to start auditing these folks for a change.
    Double Brokering
     
    ttnae, Aug 19, 2020
    ttnae, Aug 19, 2020
    #18
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  13. Aug 19, 2020 #19
    wichris

    wichris Road Train Member

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    Co brokering has been around long before MAP-21. No where in the CFR's does it state that "Broker A"has to make two payments like you state. No where in the CFR's does it state that a broker must give the load to a carrier. Double broker is when the original broker has no idea that the load is being brokered a second time. Co brokered is when there is an agreement between them. Far better to get your info from the CFR's than from a news article.
     
    wichris, Aug 19, 2020
    wichris, Aug 19, 2020
    #19
    Rideandrepair and p608 Thank this.
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