Double Brokering Overview
In recent years, the transportation industry has faced the increasing challenge of double brokering – the illegal act of a broker or carrier transferring a load to another trucking company without notifying the shipper. It is estimated double brokering affects between $500 million and $700 million in freight annually. At LYNC, we take these issues very seriously and want to do our part to ensure our customers are equipped with the knowledge they need to avoid becoming victims.
Impact of Double Brokering:
Double brokering is seen to increase during down markets such as the one currently impacting the logistics industry. The practice of double brokering has outpaced the ability for regulation to match enforcement for it over the past several years. Falling prey to a double brokering scheme can unleash a nightmare scenario for all parties involved. The repercussions can be profound, tarnishing the reputations of those implicated and eroding trust within the freight and transportation industry. Payment to carriers might be delayed or non-existent. Moreover, the more individuals involved in the transportation process, the higher the risk of miscommunication, discrepancies, and oversights. Loads could end up lost, delayed, or damaged. Significant challenges exist in finding remedies through the justice system for these crimes. That is why it is important to work with an expert broker who knows how to protect your load from the threat of double brokering.
How LYNC is Combatting Double Brokering:
Our LYNC team is closely monitoring every part of the logistics process to ensure your load gets from point A to B and beyond safely. Here’s a breakdown of some of the steps we’ve taken to provide our customers with peace of mind:
- Reliable Carriers — We have a network of over 25,000 reliable carriers and only use those who have up-to-date inspections and a valid Department of Transportation number. We also avoid using carriers that have been in business for less than six months. To be considered reliable, a carrier must have a proven track record and positive reputation within the freight industry, according to our standards. It takes time for new carriers to develop a reliable reputation.
- Secure Payment Options — At LYNC, we removed the option for quick pay. Criminals often like to get paid quickly and run. Our carriers are paid within 30 days of our brokers receiving proof of delivery. Carriers must also submit a signed rate confirmation, bill of lading, and copy of the insurance certificate.
- Constant Communication — LYNC brokers remain in constant communication with carriers to ensure no delays or issues with loads. In addition, we keep track of and verify carrier locations continuously throughout the process.
- Report Suspicious Activity — If anything seems out of the ordinary, we immediately report it to the Federal Motor Carrier Safety Administration, Transportation Intermediaries Association, and local law enforcement.
No Brokers, Just Fixers
At LYNC, we are committed to making the logistics process as seamless and stress-free as possible. We know how concerning it is to hear that double brokering rates are continuing to rise. Trust our team to stay up to date and employ the latest measures to prevent double brokering. Contact our LYNC specialists for more information.
Join the Lync Logistics family today – where every shipment counts, and every solution is tailored to ensure your success.