Giving loads to other carriers

This discussion is not about double brokering. Cluck is an independent with his own customers. He has been offered more loads than he can cover, and is wondering about his options for using another independent to cover them. Totally different than what you are talking about.

 

Cluck, before the new broker bond deal, yes as a motor carrier you could sell your excess freight without a broker MC and bond. Today, however, you'd need a broker MC and bond.

 

Don't know a whole lot about this but couldn't something be setup where Cluck could lease on the other driver for just one trip or something along those lines? Again I don't know jack about this just wondering if and how that would work

 

I stand corrected. A carrier can no longer broker excess freight. Looked it up on the FMCSA web site. It was updated 4/2014.

 

Set it up as cost plus with your customer (we will use 10% in this example).

Carrier bills ABC customer c/o Cluck Cluck Logistics to your PO Box. You create an invoice from Cluck Cluck Logistics with XYZ cost plus 10% (or whatever % you want to do). ABC customer pays Cluck Cluck Logistics the full amount you pay XYZ carrier the difference.

Your customer should not care because they are getting paying out the same amount.

 

Cluck would be acting as a broker and would need a bond in your scenario. Cluck just needs to get his brokerage authority or buy more trucks.

 

Not if his carrier is billing the customer directly and he is auditing the freight invoices for his customer as part of his fee and is involved with payment to the carriers for his customer. Of course you need to explain all this to your customer and it is a little more complex than that but just saying there is a way.

 

you could look at trip leasing, I'd explain it to you but I got a headache trying to figure it out.

Maybe cloning yourself would be easier.

 

If cluck is paying the carrier, as was in your original post, I can't see how that isn't brokering.

 

More or less like what a true 3pl is in definition