Double Brokering Scams

Double Brokering Scams on the Rise in the Freight Industry

The freight industry is a complex and ever-changing landscape, and with that comes new opportunities for fraud. One of the most common scams in the industry is double brokering.

Double brokering is when a broker contracts with a carrier to move a load, but then brokers the load to another carrier for a higher rate. The first carrier is then left out of pocket, and the shipper may not receive their goods on time.

There are a number of reasons why double brokering is on the rise. One reason is that the freight market is very competitive, and brokers are under pressure to find loads at the lowest possible rate. Another reason is that it can be difficult for shippers to track the movement of their goods, making it easier for brokers to double broker loads without being caught.

If you are a shipper, there are a number of things you can do to protect yourself from double brokering scams. First, make sure you only work with reputable brokers. You can do this by checking with the Transportation Intermediaries Association (TIA) to see if the broker is a member. Second, get everything in writing. This includes the rate, the terms of the contract, and the estimated delivery date. Finally, be sure to track the movement of your goods. This can be done by using a freight tracking system or by contacting the broker directly.

If you think you may have been a victim of double brokering, there are a number of things you can do. First, contact the broker and demand payment. If the broker refuses to pay, you can file a complaint with the TIA. You can also file a lawsuit against the broker.

Double brokering is a serious problem, but it is one that can be avoided. By taking the necessary precautions, you can protect yourself from this type of fraud.

Here are some additional tips for avoiding double brokering scams:

  • Get multiple quotes from different brokers. This will help you ensure that you are getting the best possible rate.
  • Ask the broker about their experience and qualifications. Make sure they are licensed and insured.
  • Read the contract carefully before signing it. Make sure you understand all of the terms and conditions.
  • Track the shipment closely. This will help you ensure that it is moving as expected.

If you think you have been a victim of double brokering, contact the broker immediately. If the broker does not resolve the issue to your satisfaction, you may need to file a complaint with the TIA or the Federal Motor Carrier Safety Administration (FMCSA).

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