5 Ways To Minimize Double Brokering

With so much double brokering going on it seems to be legal. People are not willing to put the work in to build relationships and establish real value. They're in it to make fast money and circumvent the opportunity for a sustained business model.

Double brokering can lead to fines and even jail time for receiving money and falsifying documents.

Definition: Double brokering refers to the unethical practice in the freight industry where a broker accepts a shipment from a client and then subcontracts it to another broker without the client's knowledge.

To prevent double brokering, here are five measures you can take:

1. Thoroughly vet logistics companies: Before engaging with a broker, conduct thorough research on their reputation and track record. Look for reviews, testimonials, and references from reliable sources to ensure their reliability and professionalism.
2. Establish direct relationships: Whenever possible, establish direct relationships with brokers and have your broker visit as often as possible.
3. Use reputable and established brokers: Work with well-known and reputable brokers who have been in the industry for a significant period. Established brokers are more likely to have a reliable network of carriers and not post loads to a load board.
4. Obtain written agreements: Clearly document your agreements with brokers in written contracts or agreements. Include clauses that explicitly state that sub-contracting or double brokering is strictly prohibited without your prior consent.
5. Monitor shipments closely: Keep a close eye on your shipments throughout the transportation process. Track their progress and maintain regular communication with the broker to ensure transparency and avoid any unauthorized subcontracting.

Establishing relationships with brokers that are local to you can help keep your company safe and profitable. You can also build a relationship with a few brokers versus sending an email to 50 brokers to bid for the lowest rate.