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Is this double brokering?

Discussion in 'Freight Broker Forum' started by Chinchilla, May 27, 2019.

Page 2 of 5
  1. May 28, 2019 #11
    Sisbro

    Sisbro Bobtail Member

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    Ok, so can anyone give an example of what double-brokering actually is? Maybe it's not illegal but many contracts seem to forbid it in contract language.
     
    Sisbro, May 28, 2019
    Sisbro, May 28, 2019
    #11
    Lite bug and Rideandrepair Thank this.
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  3. May 28, 2019 #12
    Chinchilla

    Chinchilla Bobtail Member

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    So if Broker A gives it to carrier A who has no brokerage authority and they pass it on to Broker B who gives it to Carrier B. That's called sub-contracting and not double brokering? I thought Carrier B would still need a brokerage side to their DOT to be able to just pass the load off to another broker?
     
    Chinchilla, May 28, 2019
    Chinchilla, May 28, 2019
    #12
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  4. May 28, 2019 #13
    Ridgeline

    Ridgeline Road Train Member

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    That happens when

    1- a broker scrapes a load off a load board, books it as a carrier and then repost the load on the load board for cheaper or puts it up for bid.

    2 - a broker ties up a load from another broker and posts it on a load board with little information about it.
     
    Ridgeline, May 28, 2019
    Ridgeline, May 28, 2019
    #13
  5. May 28, 2019 #14
    DUNE-T

    DUNE-T Road Train Member

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    There is no such a thing as a legal subcontracting as far as I know, you need a brokerage to do that
     
    DUNE-T, May 28, 2019
    DUNE-T, May 28, 2019
    #14
  7. May 28, 2019 #15
    Chinchilla

    Chinchilla Bobtail Member

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    But let's pretend that Broker A gives Carrier A a load and Carrier A has no brokerage authority. They give it to a new brokerage which gives it to new carrier. Is this legal?
     
    Chinchilla, May 28, 2019
    Chinchilla, May 28, 2019
    #15
  8. May 28, 2019 #16
    PPDCT

    PPDCT Road Train Member

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    How much does Broker A know about what's going on, and who's paying who in this scenario, up and down chain?
     
    PPDCT, May 28, 2019
    PPDCT, May 28, 2019
    #16
  9. May 28, 2019 #17
    Chinchilla

    Chinchilla Bobtail Member

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    Broker A is paying Carrier A then Carrier A pays Broker B full amount that original broker paid Carrier A but the freight is not moving on original carrier A.
     
    Chinchilla, May 28, 2019
    Chinchilla, May 28, 2019
    #17
  10. May 28, 2019 #18
    PPDCT

    PPDCT Road Train Member

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    Okay. so Carrier A isn't taking a cut? And Broker A does not know that Broker B is doing the work?
     
    PPDCT, May 28, 2019
    PPDCT, May 28, 2019
    #18
  11. May 28, 2019 #19
    AaronP

    AaronP Bobtail Member

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    There's nothing illegal about double-brokering, but there could a civil complaint based on contractual language. My brokerage has a "sister fleet" and we are asked to repower fleet loads that fall out of schedule all the time, but those are all direct-customer/3PL loads that they agree to with the fleet. We don't rebroker a brokered load and won't broker to a broker - too much liability hassle and rates are crap
     
    AaronP, May 28, 2019
    AaronP, May 28, 2019
    #19
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  12. May 28, 2019 #20
    Chinchilla

    Chinchilla Bobtail Member

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    Exactly. Carrier A is not taking a cut but Carrier A also does not have any brokerage authority. Let's say Broker A does know that Carrier A is subcontracting the load, are they legally allowed to give the load to a new Broker or would they still need some type of brokerage/freight forwarding authority to do so?
     
    Chinchilla, May 28, 2019
    Chinchilla, May 28, 2019
    #20
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