Double brokered or O/O scenario

Discussion in 'Ask An Owner Operator' started by pbrownnn, Oct 9, 2020.

  1. Oct 9, 2020 #1
    pbrownnn

    pbrownnn Bobtail Member

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    My company pulls our own freight and direct customer loads so I'm not familiar with this scenario, so I figured I would ask you guys.

    A fiend asked me this.. he got approached for an opportunity to run some contract freight for another carrier as an owner operator, he would be running under his own authority with his own insurance, truck etc. The contract is between a broker and the carrier, he would be having the carrier give out a brokered lane to him since the carrier doesn't have capacity to fill it. Assuming the carrier is making $$ on top for the lane.

    Would this fall under double brokering, co brokering, or is this normal in the free market with O/O's?

    Thanks!
     
    pbrownnn, Oct 9, 2020
    pbrownnn, Oct 9, 2020
    #1
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  3. Oct 9, 2020 #2
    062

    062 Road Train Member

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    If the carrier is the one paying him, then legally the carrier needs broker authority and if the original broker knows about it,then it’s co-brokering.
    @PPDCT @JimmyTwoTimes
     
    062, Oct 9, 2020
    062, Oct 9, 2020
    #2
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  4. Oct 9, 2020 #3
    JimmyTwoTimes

    JimmyTwoTimes Medium Load Member

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    @062 nailed it.
     
    JimmyTwoTimes, Oct 9, 2020
    JimmyTwoTimes, Oct 9, 2020
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    062 Thanks this.
  5. Oct 9, 2020 #4
    Midwest Trucker

    Midwest Trucker Road Train Member

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    Double brokering. Most brokers say this is a no no in their contract and rate con. Considered shady unless you have special agreements setup with the broker tendering the load.
     
    Midwest Trucker, Oct 9, 2020
    Midwest Trucker, Oct 9, 2020
    #4
  7. Oct 9, 2020 #5
    Ridgeline

    Ridgeline Road Train Member

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    This is NOT double brokering.
     
    Ridgeline, Oct 9, 2020
    Ridgeline, Oct 9, 2020
    #5
  8. Oct 9, 2020 #6
    Midwest Trucker

    Midwest Trucker Road Train Member

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    So if my trucking company books a load through a brokerage, and then I use my brokerage to put a power only with their own authority, who’s pulling my trailer on the load, that’s not a double broker?
     
    Midwest Trucker, Oct 9, 2020
    Midwest Trucker, Oct 9, 2020
    #6
  9. Oct 9, 2020 #7
    iceman32

    iceman32 Medium Load Member

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    A carrier hires another carrier to haul a load for a broker. If the 2nd carrier is power only then I think this is double brokering. First Carrier gets a cut, broker gets a cut, second carrier will take 60%-40% of the load which is highway robbery.

    If you temporary lease yourself to the carrier and run under their authority and insurance, then this is legal. But since they want you to have your own authority and insurance, then it ain’t right.

    The money trail leads back to the shipper. A dispatcher or planner from the shipper is getting paid under the table by the 1st carrier or broker. I’ve seen this happen, it saves them a lot of money. In the end of the day, the second carrier who is hauling freight for the first carrier is getting screwed over.
     
    iceman32, Oct 9, 2020
    iceman32, Oct 9, 2020
    #7
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