Double brokering

Discussion in 'Ask An Owner Operator' started by Twisted Steel33, Dec 8, 2023.

  1. Twisted Steel33

    Twisted Steel33 Bobtail Member

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    So I’m fairly new to the trucking industry. I have some trucks leased on with company ‘A’. Well the last 5 months company A’s work has gotten pretty slow. So company A, that I’m leased too, goes to company B to get help with freight.

    Company B dispatches my guys directly, takes their 10% dispatch fee and sends their pay sheet to company A, now company A takes out their dispatch fee, again 10%. And sends me a payment sheet not showing or indicating that company B has taken any more out of is even in the equation on paper.

    is this legal? Standard? Should I go after this to get my money back?
     
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  3. wichris

    wichris Road Train Member

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    Is "B" a dispatch company or broker? It's legit, but why would anyone put up with it?
     
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  4. Twisted Steel33

    Twisted Steel33 Bobtail Member

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    We are not, I’m moving on for this reason and others. But B is another trucking company
     
  5. Judge

    Judge Road Train Member

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    Do y’all have a lease agreement, since hauling B’s freight?
    Is B just a Carrier, or do they have broker authority?

    Can you not just… pull lease with A, lease to B, go for -10% vs -20-% ?
     
  6. Twisted Steel33

    Twisted Steel33 Bobtail Member

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    We only have lease agreement with ‘A’, B is only throwing ‘A’ a bone. But at this point we are breaking ties with A. Both are only carries that get loads from relationships/load boards.
     
  7. Ridgeline

    Ridgeline Road Train Member

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    OK first what does your lawyer say?

    If you don't have one, and you have more than one truck, go get one.

    It isn't a good thing not to have legal advisors to look at different contracts and contract disputes.

    So on with the show.
    OK got that, company a is too lazy to find work.


    OK here is the rub, company B is offering work to company A which is not soliciting the work. B is taking their cut from their customer to cover expenses. Company A is acting as if the work is aquired by normal means - WHICH IT IS - and takes a contractual fee for "dispatching" out of your settlement for the truck.

    Now you can legally ask for the actual bill to company B for services rendered, it is FMCSA regs that they have to provide the actual charges to you, and if you do, and everything is right, than thats it.

    Yes.
    Yes
    OK here is something you and a lot of others have to remember, it isn't YOUR money, it is theirs until they pay you. What is contracted for, which I assume is clear, your trucks are working for A and not B, your trucks are offered work from A and not B so what is negotiated between the two - EVEN IF B is calling and negotiating with your trucks representing A (at that point), the money still has to pass through A from B as billed by A and what you get contractually is what you get.

    oh, and double brokering is when a broker has scraped off a load from a load board or tied one up from another broker then posted it on other load boards or offered it to a carrier without disclosing the initiating broker.
     
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  8. TripleSix

    TripleSix God of Roads

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    You are leased to A. A is pulling freight for B. B takes their cut and pays A. A takes their cut and pays you. You are thinking that A is doing something wrong. Your lease agreement is with A, and you are running under A’s authority and rocking their DOT numbers, correct? You have to pay them as per your agreement.

    Double brokering in your case would be if A was the parent company and owned B,C and D. A has contracted freight for $10/mile, puts it on the load board and bounces all of their loads through B,C and D, each one taking a chunk off and it gets back to A’s driver, you, for $1.25/mile.
     
    Last edited: Dec 8, 2023
  9. wichris

    wichris Road Train Member

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    It sounds to me that "B" is operating as a dispatch company, taking their 10% for finding the load and then "A" taking their 10%
     
  10. wis bang

    wis bang Road Train Member

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    If all the numbers total to the actual freight payment, you are getting your share in Company A's mind.

    On the other hand, carriers have been shaving things for years.

    My first trucking job was when operating rights still governed truck movment at a small NJ petroleum hauler with one set of interstate rights.

    No PUC in NJ so we could operate intrastate but we ran interstate on other carrier's rights either direct lease or trip leasing.

    The carrier took 10% of the top.

    Then my boss took another 10% telling the lease operators that was the rate then bragging he was paying 64.5% [of an actual 80%] instead of 62% to them.

    That's cheatin'
     
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