BEWARE OF THE ILLEGAL SCAM - AGS TRUCKING - AMERICAN SERVICE GROUP AND L&S TRUCK SERVICE

Well my friend it's been going on for over the 24 years I have been out here and guess what it is going to stop any time soon

 

What's going to make it stop? You, personally?

 

Carriers bring in hired help all the time when they cannot handle the volume. That is exactly the gig that I have going. Too many of your lease operators are nothing more than employees carrying the risk. It has to do with their agreement with the shipper.

My gig, I call and find out which load to take. After that it's all me until I drop the trailer.

 

I know you are PO'd about the situation but you are wrong. I have my own company, I broker loads for my trucks and others and I move freight in a 100 ways you have never thought of, all legal. You are basing your argument without knowing the ins and outs of the law. Personally I have no beef with you, do I think you have reason to be irate, sure. Neither you or I are qualified to argue the law "in any shape or form" and I don't intend to pay my lawyers a penny more to prove a point.

 

Wait until he find out about LTL interline work.
Where say, UPS is hired to pick or drop a load. They don't service that area (either pick or drop), so they sell that load to another carrier.
Who might themselves, not service an area. But have a third company that they work with who eventually picks or drops a load.
I do this everyday. It can be very confusing, but it works. Most times, quite well. And its very legal.

 

They are no good I learned my lesson...but is ok as soon as everyone gets a piece of the pie and finds out that the company ant no good that would be it for them it would only last for a little while..

 

I don't think double brokering is illegal,I know some brokerage companies make you sign an agreement saying you won't do it.There are several trucking companies that do what your saying,Several companies also have a logistics company that owned by them and ran separate that they run loads thru the logistics side then the company gets it then you.So if your working on % pay the load might pay &3 mile then the logistics company gives it to the trucking side for $2 a mile then you get the % of $2 a mile.

 

Well the bad thing is, if they disclose it and the original company-broker on the next broker-company have a agreement to allow said broker to it then it is not illegal, look at swift transportation now look at swift logistic that is the loop hole right there because swift logistic take in the load broker it to Swift transportation totally legal, now that is what test of them do

 

It is not illegal for brokers to swap freight amongst themselves. Double brokering by the legal definition is when a carrier books a load from a shipper or broker, and does not have a brokers license, then in turn puts it on another carriers truck (his buddy that has a crappy reputation, or does not have the insurance). The problem with this is that the originating carrier is assuming all the liability for the second carrier.

Now the trucker's definition of double brokering is: Anytime there are more than one broker involved in selling me the freight. It really would not matter how many brokers were involved if they all divided their little piece of the pie amongst themselves, but we all know that is not how it works.

Examples:

How it is now
Load from shipper pays $2000.00 for 800 miles, $2.50 per mile to truck

Broker A takes $400.00 leaving $1600.00, $2.00 per mile to truck

Broker B takes $240.00 additional leaving $1360.00, $1.70 per mile to truck

Broker C takes $204.00 additional leaving $1156.00, $1.44 per mile to truck


How it used to be done
Load from shipper pays $2000.00 for 800 miles, $2.50 per mile to truck

Broker A takes $200.00 leaving $1800.00, $2.25 per mile to truck

Broker A then agrees to let broker B split the $200.00 with them
Broker A takes $100.00
Broker B takes $100.00 leaving $1800.00, $2.25 per mile to truck

Broker B then agrees to let broker C split their $100.00 with them
Broker B takes $50.00
Broker C takes $50.00 leaving $1800.00, $2.25 per mile to truck

As you can see done properly all parties still make a small part of the pie while giving the truck the lion's share for their risk.

Hope that helps to clear it up for you.