Generally speaking, the practice in question is that two brokers each receive a commission for moving the same cargo with an engine. For example, a large shipper offers freight to a broker for 1,150 $US to arrange a 400-mile transportation. Broker A reserves the cargo on a loading board and reserves the position for 1000 $US with an engine carrier who also has a brokerage authorization. This carrier, on the other hand, hands over the cargo to the subdivision – Broker B – without informing the original shipper or broker. An agent of Broker B finds an independent truck driver willing to accept $875. Despite these unaesthuring stories, Emahiser believes that 90 percent of Landstar`s agents are talented workers and that the vast majority of freight agents as a whole are also hard-working and trustworthy employees. “Due to the scarcity of capacity and the increase in prices, the shipper and/or broker often prefers a Landstar BCO, but appreciates the fact that a Landstar-licensed airline will receive for the agreed rate,” said Landstar`s Beacom. G. Roch Consultant Ltd. based in St-Hubert, Canada, has specialized in the organization of cross-border transportation between Canada, the United States and Mexico since 1978.
Thousands of these transactions were in an alliance with other brokers at a time when co-brokerage was not seen in the best light. “Normally, we do not recommend co-brokerage because it entails unnecessary costs. Our clients rely on technology and information management to minimize their costs and achieve as much transparency as possible in the process. Shippers should look for suppliers that offer such visibility,” said Jon Slangerup, CEO of American Global Logistics, an Atlanta-based 3PL and 4PL. During double brokerage, each broker receives a separate commission by lowering the interest rate twice to the driver to build two margins. In these cases, shippers essentially fund a double commission and could be exposed to financial damages, delays or lawsuits in the event of a problem. Photo credit: Shutterstock.com. There are hundreds, perhaps more, who participate in this practice, although Landstar, based in Jacksonville, Florida, was put to the test after being repeatedly tagged on the Per Mile Masters forum, a Facebook group of more than 20,000 members.
However, Landstar is not the only company to book through co-brokerage agreements. During double brokerage, each broker receives a separate commission by lowering the interest rate twice to the driver to build two margins. Often, transparency between the two brokers is lacking and communication between brokers and the sender is virtually non-existent.. . . .