How to Avoid Double Brokering

April 23, 2025

How to Avoid Double Brokering: Tips for Freight Brokers

Double brokering is a serious and potentially costly issue within the freight industry. Beyond mere inconvenience, it can lead to significant financial losses, legal troubles, shipment disruptions, and lasting damage to your company’s reputation.

In this article, we’ll cover five essential strategies freight brokers can use to avoid double brokering. We’ll also look at what you can do if you have been double brokered and the impact of this illegal practice on freight brokerages.

5 Tips to Avoid Double Brokering

Here are five straightforward ways to stop double brokering before it starts, keeping your business secure.

1. Verify carrier authority and credentials

Before assigning a shipment, confirm that the carrier has a valid operating authority. You can do this by checking the FMCSA’s SAFER system. Also, ensure the carrier’s motor carrier (MC) number, insurance status, and contact details match what they’ve provided.

2. Work with established carriers

Partnering with trusted carriers in the logistics industry significantly reduces your risk, as established companies typically adhere to professional standards and ethical practices. Load boards serve as valuable resources, providing detailed carrier information, performance ratings, and reviews that help you select reliable partners.

To learn more about effectively using load boards, working with new carriers, and other essential freight brokering skills, consider our 90-Day Freight Broker Course.

3. Watch out for red flags

Here are some signs that can help you spot potential double brokering scenarios:

The carrier pushes back when asked for standard documentation such as W-9s (which verify their tax identification number) and insurance forms.
While competitive pricing is key in the trucking industry, sudden rate drops may indicate malicious intent.
The carrier suddenly assigns your load to another party without prior notice or approval.

These inconsistencies can help you spot bad actors and lower the risk of double brokering schemes.

4. Use clear contracts

The broker-carrier agreement must say that the carrier can’t reassign the load without written permission. This clause helps protect all parties involved and ensures that the broker maintains control over the load from start to finish.

5. Keep communication records

Maintain detailed communication records with shippers, carriers, and other stakeholders. This paper trail acts as proof that all parties understood the terms and expectations should disputes arise. It also shows you performed your due diligence, which protects you from legal issues.

What to Do if You’ve Been Double-Brokered

Double brokering can happen to even the most experienced freight brokers. Here are some steps to navigate such incidents and come out stronger.

Stay calm and assess the situation by checking your communication records, contract, and tracking data. Before moving forward, ensure you have solid proof that the cargo was reassigned without your consent.
Contact the original carrier assigned the load to clarify what happened and determine whether they know of the breach.
Immediately notify the shipper and assure them you’re working on a resolution. Keep them in the loop throughout the process to maintain transparency and trust.
Consult a lawyer to learn about your options. This is especially important if you face financial losses or contract variations.
Use this incident as an opportunity to tighten your process and refine your agreements. This will help you avoid future issues.

Effects of Double Brokering on Freight Brokers

Double brokering is a major threat in the transportation sector, affecting between $500 and $700 million of freight annually.

Here are some ways this practice can affect freight brokers:

Higher shipping costs: Double brokering scams can cause surprise fees and payment disputes. The shipper typically pays the freight broker to arrange transportation. However, you might have to pay extra costs if you send money to the wrong party while the real carrier who delivered the load still demands payment.
Damaged relationships and reputation: Shippers rely on brokers to manage their goods responsibly. When an unauthorized party hauls a shipment, clients may lose trust in your company and choose to work with new brokers in the future.
Leads to load phishing: Load phishing is when fake carriers impersonate legitimate trucking companies to steal shipments. It occurs when double brokers share cargo details with unvetted parties. Scammers can then use this opening to act as real carriers and vanish after pickup.
Legal and compliance risks: Double brokering breaks FMCSA rules and most broker-carrier contracts. Brokers in these schemes risk penalties, lawsuits, or losing their broker authority.

FAQs

1. What is double brokering?

Double brokering occurs when a freight broker or carrier takes a load from a shipper and then rebrokers it to someone else. This is done without the actual broker’s consent or knowledge and without updating the proper documents or agreements.

2. Can you go to prison for double brokering?

Yes, double brokering can lead to jail time. However, the exact legal ramifications will depend on the extent of the fraud and the relevant state or federal laws.

3. Where can I report double brokering scams?

If you fall victim to double brokering, report the incident to the FMCSA or TIA Watchdog. If needed, notify local law enforcement and consult legal counsel.

4. What is the difference between double brokering and co-brokering?

Co-brokering is a legal agreement in which two licensed brokers collaborate to move a shipment. In this case, both brokers are transparent with the shipper, and the arrangement is documented clearly. Conversely, double brokered loads are a fraudulent practice where one broker or carrier passes the load to another without the shipper’s knowledge.

Final Thoughts

Double brokering continues to be a serious threat in the transportation industry. However, by verifying a carrier’s operating authority, sticking with trustworthy carriers, watching out for red flags, and implementing clear contracts and documentation, you can safeguard your brokerage from fraudulent companies.

For more tips on protecting your business and avoiding costly mistakes in the freight industry, check out the 90-Day Freight Broker course. It dives deeper into carrier vetting, legal best practices, and tech tools that help you stay safe.

Sign up for the waitlist to get started.

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