How to tell a double brokered load.

Any way to tell if a broker has double brokered a shipment?

 

I think ITS has this feature in their $155 package

 

It is not illegal for brokers to swap freight amongst themselves. Double brokering by the legal definition is when a carrier books a load from a shipper or broker, and does not have a brokers license, then in turn puts it on another carriers truck (his buddy that has a crappy reputation, or does not have the insurance). The problem with this is that the originating carrier is assuming all the liability for the second carrier.

Now the trucker's definition of double brokering is: Anytime there are more than one broker involved in selling me the freight. It really would not matter how many brokers were involved if they all divided their little piece of the pie amongst themselves, but we all know that is not how it works.

Examples:

How it is now
Load from shipper pays $2000.00 for 800 miles, $2.50 per mile to truck

Broker A takes $400.00 leaving $1600.00, $2.00 per mile to truck

Broker B takes $240.00 additional leaving $1360.00, $1.70 per mile to truck

Broker C takes $204.00 additional leaving $1156.00, $1.44 per mile to truck


How it used to be done
Load from shipper pays $2000.00 for 800 miles, $2.50 per mile to truck

Broker A takes $200.00 leaving $1800.00, $2.25 per mile to truck

Broker A then agrees to let broker B split the $200.00 with them
Broker A takes $100.00
Broker B takes $100.00 leaving $1800.00, $2.25 per mile to truck

Broker B then agrees to let broker C split their $100.00 with them
Broker B takes $50.00
Broker C takes $50.00 leaving $1800.00, $2.25 per mile to truck

As you can see done properly all parties still make a small part of the pie while giving the truck the lion's share for their risk.

Hope that helps to clear it up for you.

 

How is it that when it is double brokered and the carrier booked the load gives it to a different broker, at time of pickup the shipper does not check truck number or what is on the side of the truck?
I usually give my MC number truck and trailer number..

 

How to properly rate a double brokered load. If it paid $2,000 rate it at $2,500. If the freight is worth anything at all to the customer to be moved and carrier/broker A has broker B, C, D and E searching for a truck then obviously somebody is (or ought to be) willing to pay a premium. In this case broker D tells broker A thar he has a truck available for $2,750. Broker A goes to the customer and says $3,000. Or, if it's a cheap customer they have some broker suckered in at a rate and broker A will eat the overage. Maybe to them that doesn't matter so much if they make a million bucks a year off the account. Point here being this could go a myriad of ways. If the offer is $2,000 that's basically just a fantasy number same as my $2,500. Either, or may or may not book a truck. If it's cheap there's ALWAYS another option even in a "dead area".

 

Shipper does not care, they just want the cheapest truck possible. Remember they (i use that loosely) are the ones that pushed for deregulation in the first place. The shipper is assuming that the broker did their job and vetted the carrier for them. A sure sign that you are pulling multiple brokered freight is when the broker you get it from says to you tell them you are picking up for so and so.

 

Yep, that's another way it goes as well. Pretty sure most days that is what is going on, when I get the "let me call the customer, can you wait a minute" from the broker. They then come back and say the customer said he would agree to your price. If I am only on hold for 1 - 2 min. the load is most likely not double brokered. If I am on the phone over 10 min. I can almost gurantee that load is multiple brokered. I don't care as long as they are paying the price that I wanted in the first place. Who cares how many times they want to divide their 10% share of the pie, as long as my piece is 90% of the pie. Just don't expect our company to divide up our 90% with the brokers, screw that.

 

It does get aggravating and adds unnecessary levels of complication and chance for miscommunication. I understand some customers pay brokers to "just deal with it" but you have to wonder sometimes how difficult could it really be to find a carrier and cut out a lot of dead weight in the ordeal.

 

Most shippers prefer the added layer of legal protection that using a broker offers them. I hear it all the time from shippers, so I hook them up with one of my preferred brokers. They are happy, my broker is happy, my trucks are happy.

Happy, Happy, Happy clap your hands if your happy. LOL

 

When too many voice's are involved, unhappy results show up. Clap your hands if its fairly smooth sailing with speedy and profitable results.