What Is Double Brokering Freight?
Double brokering might sound harmless, but it can wreck your credibility, drain your wallet, and even get your authority revoked. It’s one of the fastest ways to lose trust in the freight industry, and it’s more common than you’d think.
Many new brokers fall into it unknowingly, especially when they’re scrambling to cover a load. Ignorance doesn’t protect you from the consequences in the transportation industry, however. That’s why the best freight brokerage companies constantly take measures to prevent double brokering.
But what is double brokering in freight, really? And why is it illegal in most cases?
What Is Double Brokering?
Double brokering happens when a load gets passed down the chain without the shipper’s knowledge or consent. Here’s how it typically plays out:
- A shipper gives a load to Broker A.
- Broker A assigns the load to Carrier B.
- Instead of hauling it, Carrier B assigns it again to a secondary broker, Carrier C, without anyone else knowing.
At this point, the shipper thinks Carrier B is hauling the load. Broker A may think so too – but the load is actually with Carrier C, and no one upstream has control or visibility.
Why is double brokering illegal
- The real carrier isn’t vetted or insured properly.
- The driver may not get paid.
- The freight is at risk of damage, delay, or theft.
- There’s no clear liability if something goes wrong.
In most cases, double brokering violates FMCSA rules and the original carrier–broker contract. It’s not a loophole; it’s a risk.
Double Brokering vs. Co-Brokering
Let’s clear up common confusion. Working with multiple brokers doesn’t necessarily mean double brokering. Co-brokering is not the same as double brokering.
| Shipper Approval | No | Yes, written consent |
| Visibility | Hidden carrier handoff | All parties informed |
| Contracts | Usually violates original terms | Legal agreement in place |
| Risk Level | High – legal and financial exposure | Managed, structured collaboration |
| FMCSA Compliance | Not allowed | Allowed if properly documented |
Double brokering is usually hidden and unauthorized.
Co-brokering is legal when done transparently and with proper contracts.
The Impact of Double Brokering
Double brokering isn’t just a technicality, it creates a cascade of problems for every party involved.
Legal risk
It violates FMCSA regulations and broker-carrier agreements. If something goes wrong during transit, the insurance may not cover the claim. That puts the original broker and shipper on the hook.
Financial risk
- The real carrier may not get paid.
- The freight may be delayed or lost, costing the shipper time and money.
- Chargebacks, bond claims, or legal fees could fall on you as the broker.
Reputation damage
If you’re linked to a double-brokered load:
- Shippers stop trusting you.
- Carriers blacklist you.
- You could be banned from load boards like DAT or Truckstop.
- Your surety bond could be at risk if claims are filed.
How to Spot and Prevent Double Brokering
Here are common red flags that suggest a carrier may be double brokering your load:
- The rate is suspiciously low.
- The carrier’s MC number is brand new.
- The dispatcher changes mid-conversation.
- The driver info doesn’t match the paperwork.
- The carrier dodges tracking updates or can’t verify pickup details.
How to protect yourself:
- Vet every carrier with FMCSA, SaferWatch, Carrier411, or RMIS.
- Confirm insurance coverage matches the MC.
- Get signed carrier agreements.
- Avoid accepting loads from carriers you haven’t verified thoroughly.
If anything feels off, pause. It’s better to delay a load than walk into a mess.
What to Do if You Suspect Double Brokering
If you think a load has been double-brokered:
- Contact the shipper immediately: Be transparent and ask how they want to proceed.
- Reach out to FMCSA or your surety bond provider: File a complaint if needed and report double brokering.
- Verify who has the freight: Get driver details, photos, and proof of pickup.
- Decide if legal help is needed: Especially if there’s a loss, damage, or payment issue.
Document everything. The clearer your records, the faster you can fix the situation – or protect yourself if it escalates.
FAQs
1. What’s the penalty for double brokering?
It can lead to FMCSA enforcement, civil lawsuits, insurance denials, and surety bond claims. It also destroys your credibility in the industry.
2. Can you co-broker legally?
Yes, as long as it’s disclosed to the shipper, and both brokers have a written co-broker agreement.
3. Is there a list of blacklisted double brokers?
Not officially, but load boards like DAT and Truckstop often flag bad actors, and many brokers share info in forums and carrier vetting tools like Carrier411.
Final Thoughts
Avoiding double brokering is part of becoming a reliable freight broker in the logistics industry. That starts with knowing how to vet carriers, write proper contracts, and protect yourself legally and financially.
Our 90-Day Freight Broker Course walks you through everything, step by step. From setting up your authority to managing your first loads, you’ll learn the right way to build a brokerage that shippers and carriers trust.