Giving loads to other carriers

I don't have the regs in front of me, but I am pretty sure that would be considered brokering. This would require broker bond, broker authority, etc. You might be able to get away with this if they billed the customer and gave you a kick back on the side, but I am not sure.

 

I do this all the time but I do all the billing now if a problem ever occurred it would be hard to get a claim settled, your customer would go after you I don't think you could make a claim against his cargo because you never took possession of the freight.

 

You can do it, but it is brokering. If you get caught, it would be a hefty fine. Especially with the new requirements.

 

I think it's freight forwarding but than again I never make a profit.

 

freight forwarding still requires another license.

 

Carriers can legally broker out their own excess freight with no broker or freight forwarder authority. Both parties are however, required to share 100% of the liability for the cargo.

 

I would have to see that in writing before I took that risk.

 

Agree with cpape. I called OOIDA on this. Just as cluck i have exact same scenario. OOIDA: NO you cant book a load in your authoiory and give it to him. The only legal way: if they (your friend with own authority) has the BOL in his name and does the billing.

So thats what we did, I got him in customers system and he just bills them when he hauls loads..they still always call me first so no harm.

 

I'm a freight broker (save the hate please), and at my job we REALLY don't like this. The reality is that we put a significant amount of effort into vetting carriers, and when you hand the cargo off to some random we don't know it could go very badly.

Obviously there are a lot of small mom and pop brokerages that never intend to pay out any claims if anything goes wrong with their freight, but my shop has credit and assets to take. This means we really have to pay attention to our exposure on any given load. If you did this and it went wrong we would absolutely go after you. Also it's our policy to pay the person who hauled the freight directly (the entire amount we agreed to pay on the lane) and completely skip the middle man. Needless to say we blacklist anyone we catch pulling this.