Buggers finally got me, double broker scam.
Discussion in 'Freight Broker Forum' started by PPLC, Jul 25, 2023.
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During transit you have real bold for inspections.
Show blind bol to receiver. -
I believe because in the case of a third party drop shipment, the consignor is the party paying the freight. IE: If you're working with a wholesaler, they've purchased the good from the shipper, and they're consigning it to their end customer.
49 USC is dense as all get out, and I'm not a lawyer and haven't had a chance to dig through all the applicable case law either. -
So I take it there's no legit way anymore for a carrier to "trip lease" his/her load to another carrier? Say you booked a load under your MC, started hauling and broke down 3 miles before your destination. Now you sit there with the load and a local shop tells you would take 3 weeks to fix your truck. And you know another carrier who agrees to take your trailer and complete delivery of your load - but under their numbers. So how would you arrange this the right way?
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"Under federal regulations, trip leasing of equipment between Carrier B and Carrier A is allowed, but carefully regulated. Consequently, shippers, brokers, and motor carriers have to evaluate the evidence to determine whether the trip lease defense will hold up. In order to qualify as a trip lease, there must be a written lease between the lessor (Carrier B) and lessee (Carrier A) of the equipment. See 49 CFR 376.11(b)(1). The leased equipment must also be marked by the lessee carrier as required by 49 CFR 390.21(b)-(d). Finally, a copy of the lease must be kept with the vehicle at all times during the lease. See 49 CFR 376.11(c)(2)."PPLC Thanks this.
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it also wouldn’t hurt to let the broker know if vehicle is broken down with proof so that later on your not accused of double brokering and being black listed.PPLC Thanks this.
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Thanks wichris and loneranger.
So I guess it makes sense carrying a blank lease agreement with you at all times. In case you break down with the load, you're the lessee (carrier A). You quickly execute the lease, give the copy to Carrier B to put in his truck and he can hook up your trailer and deliver your load.. But what about insurance, would they accept such arrangements? -
That should go without saying.
Have had a few loads we brokered that the carrier broke down. They already had someone they knew that would finish it. We just set them up as a carrier with us and sent a RC.Ruthless, LoneRanger and Siinman Thank this. -
never been in that situation, but would your insurance take responsibility if the setup was done last moment? Or don’t they have to have drivers info in file?
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