Double Brokering: What It Is and How Spot Protects Your Business 

June 9, 2023

Embracing Integrity. Reshaping Logistics. Together, We Eradicate Double-Brokering

Double brokering is a fraudulent practice in the logistics industry where a freight broker contracts with a carrier to move a load, but then re-brokers the load to another carrier without the knowledge or consent of the original shipper. This can put shippers at risk of financial loss, delays, and damage to their cargo. Carrier411 recently reported that they estimate these double-brokering scams, including fraudulent fuel advances, cost the transportation industry more than $100 million per year. 

Here are some things that shippers can do to protect themselves from double brokering: 

  • Work with a reputable freight broker. Do your research and choose a broker with a good reputation and a history of ethical business practices. 
  • Get everything in writing. When you contract with a freight broker, make sure to get everything in writing, including the terms of the contract, the rates, and the responsibilities of both parties. 
  • Be aware of the signs of double brokering. If a freight broker is asking you to pay more than the published rates, or if they are reluctant to provide you with the contact information for the carrier that will be moving your cargo, these could be signs of double brokering. 

In addition to the steps listed above, there are a number of additional security procedures that shippers can implement to protect their cargo from double brokering. These include: 

  • Requiring seal integrity. Shippers can require that all product packaging have seals intact before it is loaded onto a truck. 
  • Using tandem parking. Tandem parking is a security measure where two trailers are parked back-to-back. This makes it more difficult for thieves to access the cargo. 
  • Requiring constant custody. Shippers can require the driver transporting the cargo to stay with the truck and trailer at all times. This helps to ensure that the cargo is not tampered with while it is in transit. 

By implementing these security procedures, shippers can help to protect their cargo from double brokering and other forms of fraud. 

Spot’s Vigilance 

Spot is committed to protecting shippers from double brokering. We have implemented a number of proactive measures to combat this fraudulent practice, including: 

  • Comprehensive carrier screening. Before booking a carrier, we comprehensively review critical operational metrics using Carrier411. This includes assessing authority type, location consistency, equipment details, and more, ensuring we partner only with reputable carriers. 
  • Reference checks. We do not work with carriers whose authority is active for less than 90 days. Our team contacts three references to ensure their legitimacy, guaranteeing that your shipments are handled safely, efficiently, and at a fair price. 
  • Identity validation. Our Identity Validation feature raises red flag alerts, enabling additional verification when new users are added to the booking portal. Email validation restricts portal access to users with email addresses matching the FMCSA profile, guaranteeing authenticity. 
  • Seamless communication. We foster a seamless and secure transportation process by establishing effective lines of communication and ensuring all parties understand their roles and responsibilities. 
  • Reliable carrier network. Spot’s reliable carrier network ensures that your shipments are handled by experienced professionals who adhere to the highest industry standards. 
  • Comprehensive training. Spot provides comprehensive training to brokers and carriers, ensuring they are well-versed in our policies and procedures. Regular audits help us identify potential risk areas and promptly implement necessary changes to prevent double brokering. 

Protect your business from double brokering with Spot. 

We are constantly evaluating the state of the industry and are continuously implementing new safety procedures to account for an ever-changing freight market landscape. Contact us today to learn more about how we can help you protect your business from this growing risk. 

Click here to learn more and become a partner to stop double brokering with Spot.