I'd like your thoughts on the pros and cons of what I think is called "double booking." Say you're in Chicago looking at a loadboard and you see 2 partial loads going to Detroit. You go to one shipper and get 5 skids, got the other shipper and get 10 skids, then go to Detroit and make the deliveries. I searched this forum for "double booking" and found nothing, but a couple threads mentioned "double brokering." What is that?
I could be wrong, but from what I read on these forums I think double booking is when a broker gives a load to two different trucks in case one of em' doesn't show up or to try to get the load delivered at the cheapest price between those two trucks??
Double brokering is very common practice for crooked brokers/carriers. A Broker or carrier books a load and then resells it cheaper to the next broker/carrier, thus pocketing some cash and never touching the load. This is a basic definition, it can get a lot more convoluted than this.
Double booking or double brokering? I am not sure what double booking is but it suggests that someone books more than one load at the same time. When you take more than one load on the trailer, you do that to increase revenue. 'Not a full truck' load is called a partial load and there is nothing wrong with collecting freight from multiple pick ups and deliver to one or multiple receivers. It takes an extra planning skill, effort and above all, time . Therefore, for a solo owner operator, it may not always calculate as a worthwhile practice. What is bad and deplorable is a double brokering practice when one person books a load and then resells it to another person, trying to make a profit without any work. .
Double brokering has been answered. It's also illegal. Broker A gives the load to Broker B, who he thinks is the actual carrier. But Broker B actually re-brokers the load to a carrier. Now Broker A doesn't know who hauled the actual load, and the carrier doesn't know who actually brokered it from the shipper. So there becomes a disconnect when there's issues with pay, communication, damaged load, incorrect carrier name on BOL, etc. Not to be confused with "co-brokering" which is kind of like double brokering, except all parties are aware of what is going on. @PPDCT
It may not always be the case that double brokering is illegal. I am sure that it is most of the time. But it depends on the contract and if the person reselling has a brokerage authority too. Perhaps, there are situations when a broker needs help to cover loads and being unable to find trucks himself, he wants help from other brokers. Even bigger brokers may do this. For instance, I have seen Coyote loads being double brokered by Convoy or C.H. Robinson loads being dealt by Coyotes.
Double brokering has been illegal since December of 2013. The scenario you're describing sounds like Co-brokering. Here's one of the most important parts of the law: "Something that is completely new, “Specification of Authority” (49 USC 13901) requires written notice to buyers of transportation, specifying under which authority the future transportation services will occur. The only objective obtained in this separation cure in the law is to prevent double brokering, thus creating transparency in the chain of responsibility in the event of a loss." Here's where I'm getting the info, so if I'm interpreting it wrong, you guys that are better at this can explain it properly.
Courser here is referring to doing the partial game. Perfectly normal and legal. Double Brokering is as you guys have described, and is a general no-go. Even if it wasn't illegal (which it is, but getting anything done about it....) it's super shady.
Something to be aware of with partials and brokers. The shipper will book a truck load, the broker looks at the dimensions and will put it on load board as a partial. You put other partials with it the shipper wants you to deliver it by a specific date and you tell them that ain't going to happen because you ain't going to run halfway across the country then come back and do the other stops, so ain't nobody happy.
