Brokers going broke, filing bonds against 3 in the last 60 days.

What’s up with the freight brokers going broke recently? I’ve had to file 3 claims against bonds this week after 60 days no pay and no contact in 30. I’ve had brokers go rogue when they just don’t have the cash flow to pay, but 3 in a week done and dusted and I’m sure I’m one of 1000 in line to be paid by the surety. A small brokerage, Bluefin Transportation, emailed us a couple of weeks ago that they’d get the check in the mail and found out yesterday they’re toast. Anyone else running into this lately or just a fluke?

 

I’ve been happy with Truckstop Factoring, even though it’s a debatable topic on this site. It’s worked well for me. So I can’t really blame anyone but myself. Took the jobs even though Truckstop warned me that they weren’t factorable and of 5 taken, 2 took 90+ days and 3 no pays and no more phone number. They do have active bonds and it’s a fairly simple process to file, but $75000 disappears quick if they had an F250 on a load “disappear” as the vendor would go after their entire $75k and probably get the $75k, letting the broker try to get their $ back from the carriers cargo insurance. Could be wrong, but otherwise makes no sense for small brokers to go bust as they have the overhead of a laptop, pina colada, lawn chair and $7.99 for the book “Dummy’s book to not paying for services contracted”

 

Ya, I’ve never heard of a broker that will pay 1/2 up front. Seems like a uship thing. The broker get their cut the second they dispatch the truck and the bad ones just want you loaded on at any cost or event to you because that relieves them of any liability from losing their commission. I had a load a month ago that was a partial at 16,000lbs. When I showed up to pick up the shipper let me know it was 31000lbs. Obviously couldn’t reach the broker at 4pm PST when they’re on the east coast. Got the shipper in touch with a local heavy haul as they needed it shipped and in Idaho by the next day. Broker called me the next day screaming at me for referring them to someone that could help out because the broker sent me wrong info. Just weird. My 3 claims are all “in processing”, but the surety bond rep let me know it will be 2-3 months at best if I see anything.