Definition: Double Brokering
Lets review the definition of double brokering. Double brokering is the practice of having two agents involved on brokering a shipment. The first one gives it to the second one, and the second to an end carrier.
This practice in and of itself is not illegal or unethical, as long as all parties are aware what is going on. Just like normal, there is nothing wrong with honest and ethical business practices.
More often than not though, companies do not allow double brokering. What is done is a carrier takes a shipment under the pretense that it is their own equipment. Then a series of lies occur and the company that booked the load will try to have the company they subbed it out to pick it up.
The reason this is a problem is because freight intermediaries need to have the documentation on the companies that are going to pick up the freight, i.e. the authority and insurance. When a company takes a shipment under the pretense it is their equipment and subs it back out, the freight intermediary has no clue who is holding the insurance liability.
One thing that has popped up left and right, through so many different parts of the country, is companies thinking they have “leased” a driver on. Even though the person who they have “leased” on runs under their own authority, own insurance, and has no other connection with the company other than it is cut a check.
The only way a driver is leased on with a company is if that companies signs and MC # on the door of the truck, and that truck is listed on the insurance policy. If push comes to shove, call the insurance company and ask if that driver is under their policy.
Other than that, you are taking a big risk loading a company that you do not have authority or insurance on. Just be warned.
