Should double brokering be made illegal?

So would you say forwarders who give truckloads to brokers should not exist? That is my feeling. Should schneider broker's give loads to ch or another broker? Should echo give loads to coyote? I know it is legal but I do not like it.

 

My feelings on it are irrelevant- co-broker agreements are wholly legal. What I'm referring to is when someone misrepresents themselves as a carrier, and then turns around and puts the load out to someone else to run the freight.

 

By keeping a database of the "carriers" that broker B is using to tender freight from broker A. Watching load boards for your loads to be posted. And Freight Guarding anyone they catch doing it to disseminate information to other brokers and carriers as to what is going on. There are some very notorious companies in CA that are doing this right now. It might be the biggest scam in history of logistics. Ive talked to 3 different ones today alone.

 

So any laws there are concerning double brokering are only there to protect brokers from each other?
No where in this does it look like the carrier's interests are even remotely of concern.

 

Well, that's not strictly speaking true. If Broker A is tendering a load for $2000 dollars to what he believes is Carrier X, but is instead Broker B, who turns around and tenders the load to Carrier Y, who tenders the load for $1500...

So the ability for Broker A to have a legal leg to stand on, and tender the actual load for the rate that he intended to pay an actual carrier to do the job does in fact look out for the carrier's interests. Does that make sense?

 

But isnt this exactly what is going to happen with the legal co brokered load?

 

Not necessarily, no. Co-brokered loads are generally handled at fair market rates.

Example A: Broker A knows Broker B has knowledge of a specific market space that they don't, and are relying on Broker B to make the movement happen. They're paying Broker B a premium on top of what the market is currently paying to get the job done.

Example B: Broker A is contracted by company X to handle their freight and logistics. They hire Broker B to handle a portion of that freight. This is like when XPO or similar is the 'logistics' department for a major retailer/manufacturer.