Some use the term co-brokerage, which is legal, while others say it is a double brokerage that is illegal. Whatever the terminology, it is the act of one broker that gives the charge of a charger to another broker instead of a motor van. In the most controversial form, a broker can, without knowing it, hand over a cargo to a second broker who thinks he is booking a carrier. For many years, the transportation market has confused “double brokerage” and “co-brokerage” to imply the same thing. As a result, both received an adverse reaction. It is important to recognize the difference between dual agent and co-brokerage, as it can be beneficial for your brokerage organization. At the same time, the other is a definite risk. “With Landstar, they blur any distinction between carrier and broker and undermine the definition of a broker in every cargo,” Dwinell added. “Therefore, Landstar calls my broker and tells me that they will transport my cargo as a carrier, but cannot guarantee that a truck authorized and insured by Landstar will actually appear for my cargo. They deliberately disclaimer of any liability when they “exchange” to another broker or freight forwarder [word created by MAP-21] without knowing or authorizing the sender. Before doing business with another freight agent, you need to perform a complete due diligence in order to research and know the company you are considering.
This inspection is an important step not to be overlooked. There are agreements that have been created specifically for co-brokerage and that detail what each participant in the agreement can expect from the various others. Some brokers who have a direct relationship with the shipper launching the cargo are concerned that Landstar promises one of its trucks, but actually reserves them for a third party who might not be reliable. If things go wrong, the relationship with the sender can be compromised. One of the strongest advantages of co-brokerage is the care of your clients. It verifies that your broker has the resources available to process all his requests. Gilles began his career in the transport sector in 1966 as a driver. In 1975, he became owner-operator and owned and later operated his own fleet of trucks. In 1978, he began his brokerage and, over the years, sold his shares in the active part of his businesses, preferring to focus on his brokerage activities.
Emahiser says landstar once tried to pass on one of his charges without warning him, so he posed as a porter and called the agent….