“Double brokering is where a freight broker accepts a shipment from a shipper and then tenders the load to a carrier. The carrier then dispatches the same shipment to another broker without the knowledge or consent of the shipper. The second broker tenders the load to another carrier. This practice is unethical and illegal.
Double brokered loads cause a lack of communication. Also we lose accountability in case of damages or delays in shipment.”Dale Prax, President and CEO, Direct Expedite.
Read below, Dale’s interview with Paul at Freight Caviar
Signal Hill: A Trucking Wonderland?
Prax highlights how the small town of Signal Hill, with a population of just 11,563 residents, is home to 629 active motor carrier companies. “So this means that one in eighteen men, women, and children in Signal Hill, CA own a trucking company!” he writes.
But wait, there’s more. A single 2,000-square-foot building in the town is home to an astonishing 421 active motor carriers. 361 of these companies share the same phone number and email address, with the cheeky email “WTFFMCSA@aol.com” registered with the FMCSA.
Government Inaction: FMCSA’s Approach
While Dale Prax humorously highlights the absurdities of the trucking industry in Signal Hill, his sarcasm underscores the FMCSA’s apparent inability to detect and regulate double brokers.
With 21,418 pending applications for Motor Carrier Authority sitting on FMCSA’s desks, 99% of the 129 new carriers approved and headed to Signal Hill share the same phone number and equally amusing email.
Private Sector to the Rescue?
As the FMCSA fumbles, companies like Highway, CarrierAssure, and Carrier411 have stepped up to combat double brokering where the government falls short.
However, Prax says that it isn’t enough. He is leading a crusade that includes brokers, carriers, shippers, load boards, and TMS companies to collaborate to stop the bad actors in the industry. “By thinking outside the box and working together, the trucking community can overcome the FMCSA’s shortcomings and create a better, more reliable industry,” Prax said
An interview with Dale Prax for Overdrive Magazine will offer further insight on this topic. We’ll publish a link and form when it’s available. If you’re looking for an expedited service with integrity and transparency, contact your Direct Expedite representative.