How to vet a freight broker and avoid double brokering

Why broker checks matter

A broker pays you for the work you do, so a weak broker can cost you far more than a poor rate. Late payment, disputed loads and loads that were never real are the most common problems. A few minutes of checking before you book can save you weeks of chasing money.

Check the broker's authority

• Search the broker's MC or USDOT number on the FMCSA website and confirm the authority is active.
• Make sure the company name, address and phone on the load match what FMCSA shows.
• Confirm the broker has the required financial security on file. FMCSA shows this in the broker's record.

Look at payment history

• Ask about the broker's normal payment time and how they pay: check, ACH or quick pay.
• Read recent reviews and credit information from carrier-focused services and carrier groups.
• Be careful with a broker you cannot find any history on, especially on large loads.

What double brokering is

Double brokering happens when a broker or carrier takes a load and then resells it to another carrier without telling the shipper or the original broker. It can lead to confusion over who pays whom, and sometimes the driver is never paid. It is a serious problem in freight and is illegal in many cases.

Warning signs

• The company name on the rate confirmation does not match the company that called you.
• The broker's email uses a free address or a domain that does not match the company's website.
• The load is posted at a rate far above normal for the lane, with pressure to book right away.
• The paperwork keeps changing, or the shipper contact cannot be confirmed.
• Requests to change payment details at the last minute.

Protect yourself every time

• Get the rate, pickup, delivery and detention terms on a signed rate confirmation, and read it before you sign.
• Call the broker back on a number from their official website, not the one in a message.
• Keep copies of the rate confirmation, bill of lading and proof of delivery.
• Send your invoice promptly and follow up if payment is late.

Let us handle broker setup

Vetting brokers, sending carrier packets and reviewing rate confirmations is part of what a dispatcher does: see what a truck dispatcher does. If you want help, contact Dispatchero.