Transparency

The issue is, it's not covered by the carrier that booked the load and this could be a nightmare if there's a claim because the broker and carrier that actually hauled this load don't have an agreement on the load. The carrier who booked the load with the broker will usually try to get out of a claim, saying "well, one of our trucks didn't pull this load so....". This is why it's not allowed. If you had a car shipped and it was damaged in transit, wouldn't you expect to file a claim and get paid for the damage costs?

 

To answer everyone's recent questions, here are the 2 carriers that this happened with:

Alliance Trucking - MC# 1442073
YDF Speedy Corp - MC# 1401390

At the time of booking them, I didn't see anything wrong with their companies. Their scores were acceptable and the 1 Freight Guard Alliance had, I was willing to give them a try (it was not for double-brokering or anything major). I've been asking the carriers to send pictures of the trucks before they get the paperwork but this doesn't ensure it's the same truck that shows up to pick up. Alliance sent me a picture of a truck with their decal on it but the truck that hooked it to and delivered had a company name that doesn't even have an active authority and NO INSURANCE. The carrier swore up and down that the driver just forgot to put the new decals on but it's very concerning - if the driver was pulled over, he would have been arrested and the trailer impounded. I don't think carriers are considering the risk they're putting themselves in to make an extra buck.

As for filing reports on Carrier 411, the main office has authority over that and they don't file them unless there's an issue. While double-brokering is the issue here, they don't usually file reports unless there was a damage or a claim. Since everything delivered on time and in good shape, they don't. I let my customers know when I have these experiences though so they can make an informed decision if/when the time comes. The carriers are also blacklisted from working with our other agents now.

 

I'm a broker. The carriers called me to book the loads. They do not get paid if they cannot provide an agreement between them and the delivering carrier. I contact the delivering carrier to make payment arrangements. If I cannot get a hold of them (which happens most of the time), the customer is not billed for the carrier's pay.

If there is a claim, it's a nightmare. I have to rely on the carrier that booked the load with me to cooperate and facilitate payment for damages. Their insurance company will not pay a claim when the insured's name is not on an accident/police report. I have yet to see a "leased-on truck" be covered on the carrier's policy because most of the time in my experience, they're not really leased-on.

One of the trucks I know for sure did not have insurance (which means it did not have a valid registration) and an inactive authority so yes, this was absolutely an illegal truck.

 

It could be like that but it depends on what goes on behind the scenes. If the USPS has a written contract with Amazon (which I'm sure they do), the packages should be covered under USPS's insurance (unless Amazon covers it for a fee). With companies that big, they very likely cross all their Ts and dot all their Is.