May 22, 2025
Double Brokering: Stop Unethical Practices!
Trust and transparency are everything when it comes to logistics services. At Last Mile Logistics, as an experienced non-asset-based carrier, we have built our reputation on doing things the right way: no shortcuts, no gray areas. That’s why we are here to speak up about a growing issue in our industry: double brokering.
Whether you are new to the freight world or a seasoned logistics pro, it is crucial to understand what double brokering is, why it is such a problem, and how we can collectively stop these unethical practices that threaten the integrity of our supply chains.
What Is Double Brokering?
Let’s break it down.
Double brokering occurs when a freight broker accepts a load from a shipper and then passes that load to a second broker instead of directly to a carrier. This second broker then finds a carrier to haul the freight. In many cases, the original shipper has no idea this chain of handoffs has happened.
At first glance, this might seem like a harmless case of “passing the baton,” but the reality is far more dangerous.
Why Double Brokering Freight Is a Problem
The issue with double brokering freight is not merely about miscommunication but about risk, liability, and transparency. Here is what can (and often does) go wrong:
Loss of freight visibility – The shipper no longer knows who actually has the freight. That can be a nightmare in case of delays, damage, or theft.
Payment problems – The real carrier might not get paid, or two brokers may claim to owe or be owed money for the same load.
Insurance gaps – Insurance coverage might not apply if an incident occurs because the co-broker agreement transportation was not authorized.
Fraud risk – In the worst cases, illegal information brokering leads to cargo theft or false identity carriers taking freight and disappearing.
In short, double brokering loads creates chaos. And for shippers and carriers who rely on consistency and reliability, that chaos can lead to serious financial losses.
Double Brokering Is Often Illegal
You might be surprised to learn that double brokering freight is illegal in most cases. The Federal Motor Carrier Safety Administration (FMCSA) requires that brokers and carriers follow clear procedures and rules.
Only co-broking freight is acceptable when done with an explicit, signed co-broker agreement, transportation, and complete knowledge and consent from the shipper. That is a big difference from double brokering, where the client does not know who’s hauling the freight until it is too late.
Unfortunately, some players in the industry intentionally blur the lines between co-brokering and illegal double brokering. They might claim they have the capacity, take the load, then turn around and give it to someone else without transparency. That is not co-brokering. That is fraud.
Why This Matters to Us
We have seen the ugly side of double brokering. It damages relationships, costs people money, and gives the entire logistics industry a bad name.
As a non-asset-based carrier, we work with a carefully vetted network of approved transportation partners, and we operate with full transparency. Our team’s 130+ years of combined experience have taught us that long-term trust is more valuable than any short-term gain.
We have also built an excellent record on loss prevention and on-time performance because we do not tolerate double brokering in any form.
When you work with us, you get exactly what you signed up for: ethical practices, strong communication, and consistent follow-through.
How to Spot and Avoid Double Brokering
The best way to combat unethical practices is through education and vigilance. Here are some red flags that may signal double brokering is happening:
- 1A carrier name does not match the one on the rate confirmation.
- 2The broker can not provide up-to-date tracking or load information.
- 3Communication is inconsistent, and paperwork is vague or incomplete.
- 4You are told a “partner” or “affiliate” will handle the shipment, but you are not given any details.
If any of these signs appear, hit pause and ask questions. Always make sure your broker has an explicit agreement and does not just hand off your load behind your back.
Why You Should Demand Ethical Freight Handling
Double brokering loads is unethical and a threat to your business. When your freight goes missing, arrives late, or gets damaged, you don’t want to hear that it was passed around like a hot potato by people you never agreed to work with.
That’s why working with a trustworthy, experienced non-asset-based carrier is so critical. When we commit to a load, we follow through with:
- Detailed carrier vetting
- Real-time visibility
- Transparent communication
- Proper paperwork and agreements
- Full compliance with FMCSA regulations
Let’s Be Clear: Co-Brokering Is Not the Enemy
We want to clarify something: co-brokering freight is not the same as double brokering, and it can be completely legitimate, if done right.
With a proper co-broker agreement in transportation, both parties (brokers and shippers) understand the terms. Everyone signs off on responsibilities, payment, and carrier expectations. It is organized, ethical, and fully traceable.
The key difference is consent and clarity. Shippers know a co-broker is involved. The carrier is verified. There is no mystery or misdirection. If your broker is hiding the fact that someone else is hauling your freight, that is not co-brokering; it is deception.
Trust Matters More Than Ever
Of course, it is tempting for some players to cut corners. But shortcuts often lead to long-term damage.
As a non-asset-based carrier, we have seen firsthand how focusing on ethical practices, smart vetting, and solid communication pays off. Our clients stay with us because we don’t just say we are trustworthy; we prove it on every load.
If you have ever been burned by double brokering or are concerned about illegal information brokering, talk to a carrier who puts honesty first. You deserve peace of mind and a logistics partner who plays by the rules.
Stop Double Brokering in Its Tracks
Double brokering is unethical, risky, and often illegal. Period. It puts freight, finances, and reputations on the line. The best defense is a good offense: know what it looks like, ask the right questions, and work with experienced, honest partners.
At Last Mile Logistics, we are proud to be one of those partners. With our 130+ years of combined expertise, an excellent record on loss prevention, and a commitment to transparency and consistency, we are here to move your freight the right way, every time.
If you are ready to say goodbye to shady dealings and hello to dependable, professional service, reach out to Arnie today. Let’s keep our industry clean and moving forward: no double brokering allowed.
