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  • Writer's pictureLaura McDaniel

Can double brokering be avoided? We think so.

As the logistics industry continues to evolve, so do the challenges that freight brokers face. One of the biggest challenges that brokers face today is the increasing prevalence of double brokering. Double brokering occurs when a broker accepts a load from a shipper and then subcontracts that load to another broker or carrier without the shipper’s knowledge or consent. While it has always existed, it is becoming more and more common in the industry, and it has serious consequences for all parties involved.

One of the main reasons why double brokering is on the rise is the proliferation of technology platforms that make it easier than ever for brokers to find carriers and for carriers to find loads. While these platforms have undoubtedly made it easier for brokers to do their jobs, they have also created an environment in which double brokering can thrive. In fact, based on internal reviews at TriumphPay, the amount of freight that would be “by-the-letter double brokering” is about $500 million to $700 million per year.

The dangers of double brokering are numerous. For shippers, it can lead to issues with accountability and communication, as they may not know who is ultimately responsible for their freight. For carriers, it can lead to issues with payment, as they may not be paid in full or on time, or even at all, for the services they provide. For brokers, it can lead to issues with reputation, as they may lose the trust of their customers and carriers.

Fortunately, there are several ways that brokers can avoid double brokering and protect themselves and their customers from its consequences. Here are five of the most effective strategies:

Work with trusted carriers

One of the most effective ways to avoid double brokering is to work exclusively with carriers that you know and trust. By building strong relationships with reliable carriers, you can ensure that your loads are being handled by reputable partners who will prioritize your business.

Use load boards carefully (if at all)

While load boards can be a useful tool for finding carriers, they can also be a breeding ground for double brokering. To minimize this risk, be selective about the load boards you use and vet carriers carefully before working with them. At the same time, use a platform like FreightFriend to focus on strengthening your existing relationships and creating more value for your trusted carrier partners.

Be transparent with shippers

One of the easiest ways to avoid double brokering is to be transparent with your shippers about how you are handling their loads. Make sure they understand your process and know exactly who will be handling their freight at every stage of the journey.

Use technology to your advantage

There are several technology tools available that can help you avoid double brokering. For example, freight tracking software can help you keep tabs on your loads and ensure that they are being handled by the right carriers. Carrier management platforms can also help you manage your carrier relationships more effectively. Truckstop released the results of a recent survey that emphasizes the time lost when avoiding these platforms while continuing to use load boards. The poll showed that 78% of the respondents said they had lost time resolving fraud-related issues; 65% lost time resolving fraud-related issues; and 24% needed to deal with the legal implications of fraud.

Use a platform like FreightFriend

Finally, using a platform like FreightFriend can be an effective way to avoid double brokering and strengthen your relationships with existing carriers. FreightFriend is a comprehensive platform that provides brokers with a range of tools to manage their business more effectively, including carrier management, a carrier wizard, and ranked list of loads for individuals in your carrier network. By using FreightFriend, brokers can streamline their operations and build stronger relationships with their carriers, reducing the risk of double brokering.

Overall, double brokering is a serious issue in the logistics industry, but it’s not insurmountable. By taking a proactive approach to carrier relationships, being transparent with shippers, and leveraging technology tools like FreightFriend, brokers can minimize the risk of double brokering and protect their reputation and their customers’ freight.

Ready to see how FreightFriend can help you deepen existing relationships and avoid double brokering? Sign up here.


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