In the world of trucking and transportation, double brokering is a fraudulent practice that involves the re-assignment of a load from one original party to a secondary party, all without permission or knowledge from the shipper (and sometimes broker). It’s important to note that there is a difference between co-brokering and double brokering. Co-brokering allows the re-brokering of loads with permission from the shipper and keeps them informed of these changes. Double brokering occurs when:
- A shipper assigns a load to a broker, who (without permission and unknown to the shipper) re-assigns that load to another brokerage to dispatch out.
- The broker dispatches the load to one of their carriers, who also without permission, re-assigns the load to another carrier to haul.
In both examples above, the common theme is that there is a lack of visibility among the parties involved regarding who is handling the load, creating substantial issues (we’ll touch on this later). It’s important to distinguish that the name “double brokering” can be somewhat misleading because it’s not limited to the broker.