There’s no shortage of chatter around double brokering in the freight world, and for good reason. While it’s not illegal, Amazon doesn’t allow double brokering because it can lead to payment and safety issues.
Keep reading to learn more about what double brokering is and when it becomes a problem.
What’s double brokering?
Double brokering (which is sometimes called “re-brokering”) occurs when a shipper gives freight to a company–let’s call them Trucking Company A–with whom they have a written agreement that says they can broker the load to another company to haul. So, Trucking Company A brokers the load to Trucking Company B. When the load is complete, the shipper pays Trucking Company A. Trucking Company A takes a cut, then pays Trucking Company B the agreed upon rate for hauling the load.
When is double brokering lawful?
All brokers must have FMCSA property broker authority, which requires, among other things, the broker to 1) meet certain safety standards and 2) have a bond in place that protects payment to the carrier. The double brokering example above is lawful as long as Trucking Company A has FMCSA property broker authority.
But if Trucking Company A doesn’t have FMCSA brokering authority and still tenders the freight to Trucking Company B, then Company A is engaging in unlawful brokering. Also, even if Trucking Company A has FMCSA brokering authority, they may not have authorization from the shipper to double broker.
Long story short, nothing about double brokering is inherently illegal if done right. But brokering a load without FMCSA brokering authority, or brokering a load without written agreement with a shipper can lead to legal action.
What’s Amazon’s take on double brokering?
We don’t allow it. Only businesses with express, written authorization directly from Amazon are allowed to broker Amazon loads, and there are only a select few companies that have it.
We directly tender all of our loads to Relay carriers on the Relay portal only. First, we want to make sure that the carriers hauling our loads meet our safety standards, and unauthorized double brokering cuts us out of the vetting process and can lead to safety issues on the road.
And second, double brokering, especially when it’s unlawful or just unauthorized, can leave the hauling carrier high and dry. Sometimes, bad actors posing as carriers book loads from shippers then tender them to other carriers. Once the load is delivered, the fraudster cuts off communication with the hauling carrier and they never get paid for their work. We want to make sure carriers that haul Amazon loads get paid, and the only way to do that is to be a Relay carrier that books directly on the Relay portal.
How do I avoid booking loads that are being unlawfully double brokered?
Book directly with the shipper. But if you want to use a third-party load board, the Federal Motor Carrier Safety Administration recommends:
- Confirming brokers’ and carriers’ phone numbers using SAFER
- Closely examining all documents, including insurance documents and bills of lading for signs they may be fraudulent
- Looking for other red flags, including carriers operating with P.O. box address, carriers with recently activated authority, and carriers who refuse to give driver cell phone or tracking ability
- Stopping the transaction if:
- Your broker asks you to present yourself as a carrier with different name, or asks your driver to lie about who they work for
- You question the destination of the load and are told it’s a “blind load”
- The broker is quick to agree to paying you more, or
- The rate far exceeds the current market rate
So how do I book Amazon loads?
First, your company has to apply to become a Relay carrier. Only approved and onboarded Relay carriers are allowed to book and haul Amazon freight. Ready to join us? Start your application here. You can also download the Relay app on iOS or Android to get started and track your application’s progress on the go.
Disclaimer: Amazon does not tender loads through any third-party load boards. Any Amazon loads posted on third-party load boards will only be tendered directly to approved and onboarded carriers via the Relay web portal or Relay mobile app. If you are interested in hauling loads for Amazon, sign up and book directly on relay.amazon.com.
