Does it seem like more companies are skimming

Tomtom

Active Expediter
Small, percentage based carriers seemed to be the ones doing this in the past but it is feeling like the norm across the board these days.

And worse, drivers just accept it. "It's wrong but technically legal. And they treat me well."

???

That is what a driver told a couple of us last night when he learned his carrier had a 3PL that brokered loads to his company. I know this happens but what got me was how people accept being cheated as normal course of business.

Question: Would you stay with a carrier that hides a brokerage/3PL that brokers loads to the carrier?
 

ontheflyjay

Active Expediter
I think almost all of them are doing it.

I may be wrong but I think they all work together by doing this.

They make money doing almost nothing and the more it gets past down the less the driver makes.

I think I'm not sure so don't hold me to it..... LOL
 

OntarioVanMan

Retired Expediter
Owner/Operator
What I really hate is bidding on a load they have no intention of covering it... Only to resell it and skim a little off the top.... That to me is double brokering... Who's watching the children?
 

tknight

Veteran Expediter
Unfortunately it happens in almost every business where the "client"is too lazy to shop around and is willing to pass the buck on to someone else to do there job for them!
 

LDB

Veteran Expediter
Retired Expediter
Bottom line, what matters is the bottom line. What happens before that doesn't matter much one way or the other.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Bottom line, what matters is the bottom line. What happens before that doesn't matter much one way or the other.

But but Leo... double brokering is supposed to be illegal.... By not enforcing the rules these load boards sylectus/ alliance are facilitating a criminal act
 

BigBadBill

Active Expediter
But but Leo... double brokering is supposed to be illegal.... By not enforcing the rules these load boards sylectus/ alliance are facilitating a criminal act

I have asked this before and never got a response.

Please show me the regulation that says double brokering is illegal. In many cases it may go against the terms of a contracts but that is a far cry from being illegal.
 

runrunner

Veteran Expediter
Every carrier is a business they want to load as many trucks as they can. That is how they make money. If you don't like the offered rate you can say no thanks. It would be great if most load's paid top dollar but those day's are long gone,to many trucks and companies out here.
 

LDB

Veteran Expediter
Retired Expediter
But, but Ken... I'm not talking legality or anything else, just dollars and how many wind up on my bottom line.
 

OntarioVanMan

Retired Expediter
Owner/Operator
But but Leo. These carriers play this double triple brokering game and the only one it costs money to is us little guys it does affect how many dollars in your bottom line
 

jelliott

Veteran Expediter
Motor Carrier Executive
US Army
Double brokering is not illegal...... But with that being said it may be illegal if contract with customer states that it is not permitted. That would be the big difference.
 

Murraycroexp

Veteran Expediter
Slow down!! Double brokering, if illegal, is only illegal without a written agreement allowing it I think. I'm betting there are LOTS of agreements out there. I used to have a DB agreement with a broker in Houston. And that agreement made us $1M if the $2M we made off them the 18 months we had their contract. The rest we ran with our trucks. So if you're in a semi and did a load from La Vergne to Hebron.,,,,Thank you!!!!
 

letzrockexpress

Veteran Expediter
What I really hate is bidding on a load they have no intention of covering it... Only to resell it and skim a little off the top.... That to me is double brokering... Who's watching the children?

Simply one of the fruits of free enterprise my friend... American Capitalism. It is no different than if a Mom and Pop store buys a widget from a supplier and then sells it for a profit. Nothing wrong with it. Profit is the name of the game.
 

jelliott

Veteran Expediter
Motor Carrier Executive
US Army
We have arrangements with a number of companies for this. Often times they may need the support of another carrier/broker that covers areas of specialty. Expedite, air freight, air charter, over dimensional are common examples. They partner by contract with companies that have these capabilities to better serve their customers.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Simply one of the fruits of free enterprise my friend... American Capitalism. It is no different than if a Mom and Pop store buys a widget from a supplier and then sells it for a profit. Nothing wrong with it. Profit is the name of the game.

While you and I get screwed.... With less money being in the pot
 

letzrockexpress

Veteran Expediter
It should be from the little guys point of view

Should be? That is not in any way a valid argument! :rolleyes: You have ( theoretically anyhow) the opportunity to be a broker or a carrier yourself. You could theoretically do the same thing. We either use others to achieve our objectives or we are used by someone else to achieve theirs. not much middle ground.
 
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