04/11/2023
In Q4 2022 and Q1 2023, Truckstop, a load board provider,
saw a 400% increase in double-brokering complaints, said Brent Hutto, its chief relationship officer
“Complaints reflect what is going on in the marketplace,” he said. “This is a constant in our market and sometimes it is worse than others.”
Today, about 30% of freight is moved in the spot market. “The sheer volume going through the spot market is much higher than it has ever been and is only predicted to increase,” Hutto said, adding that double-brokering tends to increase in a down market.
“I don’t know why that is other than, anecdotally, the marketplace is more desperate to get freight at a profitable level.”
“Brokers and shippers do not know who is actually in the custody of the goods,” she said. “If something goes wrong, there is often no cargo insurance. Even worse, there is a higher risk of theft.”
Looking for Solutions :
Those in the industry said a lack of enforcement is encouraging fraud. “Right now, it is the perfect crime,” Reinke said.
“There is no actor who is trying to stop it other than the broker community and, to some extent, the owner-operator community"
There needs to be more state and federal agency involvement. “There are so many government agencies turning a blind eye to it, but they know it is going on, The problem is that DOT is handing out MC numbers like candy at Halloween. There is virtually no vetting.”
STAYING AHEAD OF THE GAME
The Motor Carrier Safety Selection Standard Act, introduced in February, would implement an interim motor carrier selection standard that requires entities like shippers and brokers to verify certain trucking registration requirements before selecting them.
“It would provide a greater sense of comfort
over who you’re choosing.
Smartway-EGW has instituted securities and protocols to minimize the risk of hiring a double-broker carrier along with a number of other preventative measures to minmize risk.
Smartway-EGW has implemented procedures to fight fraud.
We won't elaborate at this point because ... We don’t want to show the easy way to rob the bank,but it bothers us a lot — to the point we’re willing to dedicate valuble time and resources to help protect our customer.”
Stay tuned for more on this subject