There are many hidden threats in the transportation and logistics industry. Some are so critical that they may cause major damage to your company’s revenue and, even more important, to its reputation. One of the bigger ones is double brokering.
In fact, according to Truckstop’s chief relationship officer, Brent Hutto, in Q4 2022 and Q1 2023, there has been a 400% increase in double-brokering complaints. “Complaints reflect what is going on in the marketplace,” he said. “This is a constant in our market and sometimes it is worse than others.”
What is double brokering?
But first, let’s discuss exactly what double brokering is.
There are many types of double brokering, but the most common type is when a broker or shipper hires a full truckload carrier with a specific MC number, but an entirely different carrier with a different MC number transports the shipment without the customer’s knowledge or approval.
Double Brokering: Three Tell-Tale Signs
Here are three major signs of double brokering.
- A carrier that has ZERO inspections and less than THREE months of authority.
- A carrier that does not provide truck driver contact information like names or phone numbers.
- A carrier that only has ONE truck, and it doesn’t match the VIN you have on file.
How to Avoid Double Brokering?
Here are some actionable tips to effectively avoid double brokering.
- Tell the carrier that upon pick-up, the customer will confirm the MC and DOT information and call the broker or shipper.
- Implement a strict vetting process.
- Ask for contact information and communicate with your partners.
- Check carrier score on Carrierassure.com before tendering.
- If the carrier has a low score (D or F), take additional vetting measures.
- Report carrier who double broker.
These are just a couple signs that your carrier or broker may be double brokering, but there are many more. It’s essential for companies to be attentive to these signs and put into place additional safety measures to provide quality services to their customers.
With Carrier Assure, you’ll be able to avoid double brokering as you have visibility on the information you need to hire carrier with confidence. Make decisions the right way: with data.
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