Double brokering usually means a company accepts a load from a broker as if it will haul it, then passes it to another carrier without permission. You’ve vetted one company, and a different one has your freight.
FMCSA has noted that "double brokering" isn’t a term defined in statute or regulation, and it gets used for several different practices. What’s illegal is arranging freight for pay without broker authority. Passing on a load against your agreement is also a breach of contract.
This is general information, not legal advice. Talk to a transportation attorney about your agreements and any specific incident.
Why it hurts brokers
- You may not know who has the freight or whose insurance applies.
- The real carrier may not get paid and may come to you or your shipper for payment.
- Freight can be held or stolen.
- Your shipper relationship takes the damage either way.
Warning signs before pickup
- A newly active authority combined with a very low rate.
- Contact details that don’t match the FMCSA record.
- Pressure to change payment details or pay somewhere new.
- A dispatcher who can’t name the driver or say where the truck is.
- Reluctance to share the driver’s name, truck number or trailer number.
Warning signs at pickup
- The name on the truck door doesn’t match the carrier you booked.
- The MC or USDOT number on the truck is different.
- The driver has never heard of your carrier, or was given a different company’s name.
Ask the shipper’s dock to confirm the driver and truck before loading. If they don’t match, stop the pickup and call the carrier on the number FMCSA has on file.
How to reduce the risk
- Vet every new carrier, including a call to the number on its FMCSA record.
- Put a clear ban on re-brokering in your broker-carrier agreement and rate confirmation.
- Get the driver’s name, truck and trailer numbers before the pickup.
- Check the bill of lading against the carrier you booked.
- Be careful with any late change to payment details.
If you suspect it
Don’t release payment. Contact the carrier on its FMCSA-listed number, tell your shipper, and keep every message and document. Then speak with your attorney and insurance agent.
Common questions
Is double brokering illegal?
Arranging freight for pay without broker authority is unlawful. Re-brokering against your agreement is also a breach of contract, even if the company holds authority.
Who pays the carrier in a double-brokering case?
It depends on the facts and the contracts, and disputes are common. Don’t pay anyone until you know who actually hauled the load, and get legal advice.
Is co-brokering the same as double brokering?
Co-brokering usually means brokers openly working together with everyone’s agreement. The problem is doing it without permission.