Double Brokering??

That is not double brokering that is interlining. Still illegal, although it was a legal practice for decades. Sadly today a motor carrier must also have broker authority to give a load to anyone, including another authorized carrier.

Double brokering would be when one broker takes the load from another broker and reposts it as if it were their own load. This is unethical but not yet illegal.

 

In this situation the 2nd driver needs to call the broker/customer that the load was tendered through and get their company/MC# set up as well to run legally, ethically, and safely. IF there were some sort of accident with the 2nd truck, neither insurance company will cover the damages and this would potentially open up the possibilities of a lawsuit against one or both companies. I know it doesnt seem like a big deal because its just 2 friends helping each other out but i would recommend not doing this and just getting both companies set up to work with the broker/customer who tenders the freight that way everyone is covered.

 

If i am not mistaken, double brokering is actually illegal and a trucking company does need a broker authority to give freight to another carrier. IF i am wrong please elaborate i am all ears and genuinely curious. There is a massive double brokering scam going on right now in CA and alot of the delivering carriers are not getting paid. They then have to take legal action against several entities to recover the money.

 

Here is a scenario i am all too familiar with. An MC# from Glendale, CA (Carrier A) calls in to book a load with me (Broker A). They then post the load up on DAT often times for more money than the originally agreed upon amount between Carrier A and Broker A. Broker B finds Carrier B who then picks and delivers the load, but never gets paid for the move. Carrier A gets the check and then keeps the money, forcing Carrier B to take legal action against the Broker A or Broker As customer to get paid. I could go on at some length as to the complexities of this scheme and who the operators are behind it.

 

There’s one possibility why the 2nd can’t do that. The 2nd trucks safety rating may be in the toilet.

 

If this is the case, then what is going on is unethical and considered deceptive business practices. Other option is 2nd carrier sign a lease agreement with first carrier and run under 1st carrier authority. On top of it, maybe the broker would prefer not to work with a carrier that has conditional safety rating. Either way it is illegal and frowned upon.