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?
Double brokering
Discussion in 'Ask An Owner Operator' started by Twisted Steel33, Dec 8, 2023.
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Is "B" a dispatch company or broker? It's legit, but why would anyone put up with it?
tscottme Thanks this. -
We are not, I’m moving on for this reason and others. But B is another trucking company
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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-% ? -
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.
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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.
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.
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.Twisted Steel33 Thanks this. -
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
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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%
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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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