Dispatcher, Broker & Double Brokering
Dispatcher and broker are 2 different things, I’ll explain.
Double brokering can happen to dispatchers or brokers.
Dispatchers only work for the driver. They cannot legally represent shippers or manufacturers. They can call brokers and give a driver’s MC# to inquire/book loads. They can also negotiate rates.
Brokers, on the other hand, must have freight broker authority through the FMCSA and surety bond. Brokers should not call other brokers to put Owner Operators with their own authority on loads as that becomes double brokering.
This is when someone books a load under one MC and gives it to someone with a different MC to pick up and then keeps all the money for not doing the load or gives carrier that did do load very little percentage of what load paid. Also known as interlining or co brokering, it is illegal. It puts the broker and shipper at risk for liability, loss and claims due to unqualified carriers.
Be sure you’re giving the correct MC# in the case you are a dispatcher for multiple drivers. The Name/MC# on the rate con has to match the Name/MC# on the truck that pulls up to load. If not, carriers could be turned away. If they aren’t and run the load, when it’s time to get paid the carrier is usually left out the money because no one can get a hold of the broker that booked the load.
So be cautious when booking loads, check references and if something sounds to good to be true it probably is.
By: DispatcHER
Contact- 4kidz4jobz@gmail.com