Double Brokering by definition is when the original intermediary that has been tendered a
shipment turns and tenders the shipment to a trucking company that they think is going to haul
the load on their equipment. Without knowledge of the original provider or the customer they in
turn tender that shipment to another trucking company who will ultimately move the load.
Transparency is the key component here, because it is the lack of transparency that makes it
double brokering versus co brokering. It is estimated that approximately $100 million dollars a
year of the estimated $700 billion trucking industry is subject to Double Brokering.
Communication
This is pretty straight forward in the brokering world, but I strongly believe an open line of
communication is the key to preventing double brokering issues. A strong line of
communication and a good relationship with the carrier you contracted the load with is
extremely important. A couple ways to prevent double brokering is by sending that extra email
to the carrier about correct driver information or asking for the BOL after they get loaded. Also
communication with the customers and or shipping locations about who is checking in and
delivering the freight is another length you can go to prevent potential double brokering.
Investigate the Carrier
Carrier compliance websites such as Carrier411 and Truckstop.com are two examples of
websites where you can vet the carrier and see a quick background on any specific carrier. You
can look at some key factors such as insurance (do they have the right levels?), freight guard
reports (any unethical practices reported?), and time they have been in service as a carrier (less
than a year?) These are just a few key signs that can make a company stand out as a potential
threat for double brokering or any unethical procedures. Unfortunately, even asset based
carriers who have brokerage authority are worth double checking on as well. If you do run into
a double broker situation make sure you report it on carrier community sites such as Carrier 411
or the FMCSA compliance database to help others in their fight against fraudulent activity.
Set up Process
Having a proper checklist that every carrier must pass to be able to haul shipments for your
company will provide the first line of defense for double brokering a load. As previously
mentioned, correct insurance levels, unethical reports, and a certain amount of inspections are
just a few of the checks we perform to ensure every carrier passes before contracting a load
with them. These are just a few key indicators that can help prevent any potential issues. This is
not a bullet proof plan as fraudulent companies are getting more and more sophisticated , but
these are the actions I recommend to help you separate the bad seeds out there.
Utilizing these tips will help you be more prepared and better aware of potential fraudulent
companies. Being proactive and following this advice at a minimum will keep your brokerage
and customers out of compromising situations. Solid communication, thoroughly investigating
the carriers, and having a solid and repeatable setup process are three steps that will ensure
your company will lower your chances of double brokering a load.
This blog was written by Tim Weyer. Tim is a six year industry veteran, and is a Driver Engagement Representative at Sleek.
