Thoughts on Co-brokering

G

GSTRUCKS

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Jun 10, 2010
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A few posts between Rob and G Roch have inspired my question:

What are peoples thoughts on Co-Brokering? Does it add value? Is there repercussions? Does it exist? Can we confirm with G Roch if this is actualy the case with some of his business?

Dont take this the wrong way, I just figured it was about time we get something official on this? More curiousity than anything now at this point for me, based on posts in the past on the subject on here
 
I do not agree with it, but in GROCH defense they do pay their bills on time. The issue I have with CO-Brokering is the liabilty and risk, but GROCH does handle their business.
 
Everyone we do business with knows EXACTLY who we are.

MC185717 - we are a broker.

We DO help other brokers move their freight often, but it isn't our ONLY business, just a part of it, we build relationships and even have people who refer back to us so they don't have to deal with a carrier direct.

As for liability and risk, it is all taken care of in a co-broker agreement, if no contract is in place we never leave anyone hanging.

We have a good rep. We pay our bills, and pretty quickly. And we have been in this business since 1978, almost 35 years.
 
Now here is another potential "hot topic" for discussion.

As per my previous posting under the "check calls" header - any replies must stay on topic.

Refrain from attacking other members and/or the companies they work for. Simply answer the question - provide your experience and 2 cents...and kindly move on...

Don't ruin this topic for others also. I will check back on this thread later - any irrelevant information will be deleted and infractions given.

Thank you all for following forum rules.
 
Here's how I feel. Whether people pay their bills is not the questions. Is double brokering ethical, maybe, depends how you look at it. We do not double broker at all here. Now, if a broker in the US agrees to use a Canadian broker exclusively to move their cross border freight and vice versa than it might be beneficial. If you are taking from one board and posting on another than you are what is wrong with the business. It is hard enough to make money directly. Having 2 or 3 people trying to eat from the same piece of pie doesn't make sense to me.
 
I agree Michael K. Maybe it's just me, but double/co-brokering doesn't pass the smell test. Either someone thinks their dealing with a carrier when there're not or, the original broker shouldn't be in the business of locating trucks for their client. It all sounds innocent enough, but there are just too many things that can go wrong and come back to bite you.
How many carriers would accept a load if the the person offering said,
"oh, by the way, this freight doesn't really belong to me, I'm working with another broker who you don't know". Hmmmmmm?
 
I've already said we work with other brokers, but I obviously I won't tell you who.

We feel co-brokering adds quality to the broker that needs it to move some freight. If they didn't have another broker helping them close the door to competitors they might be losing the freight to someone else who can move every load.

When done correctly like we do, it is a seemless operation, freight is loaded and delivered without any problems!
 
Our #1 Term and Condition includes that we do not tolerate double brokering and that if it is discovered that someone has double brokered our freight we will compensate the transporting carrier.

I (thankfully) only have to refer to this term and condition about twice per year lately (thanks to this site - I see a donation coming on, and yes all of my donations are out of pocket, I do not expense them)...

I do agree however that if all parties agree to a transaction the transaction 'should be' ok. i.e. if the shipper, consignee, importer, both brokers, carrier, etc... all know that each other exists (some participants anonymous) and consent to conducting business this way all the power to em'!

I wouldn't however do business this way. These days - there's already enough 'finger pointing' when there is any minor diversion from strict guidelines in order to determine accountability and of course who will 'assist' the wronged party for their neglect... Adding an extra candle in the wreath simply makes it much messier if there is any issue at all, never mind an actual claim, etc...

Have a great weekend,

Mike
 
I've seen co-brokering freight that is obviously from another load broker or "logistics" company first hand at a broker that represented themselves as a carrier and can "cover" freight. Mind you, there are some brokers that simply do not care when you tell them they are dealing with another broker. They say they're happy that the freight is covered for a decent rate and those unwitting souls are U.S. brokers. So there's an argument for service on the one hand and some brokers do not care as long as freight is picked up and delivered without exceptions.

On the other hand, misrepresenting a broker as a carrier that has physical capacity when they do not is clearly fraudulent unless they are transparent with the client (i.e., the broker with the order) that they are going to contract out the pickup and/or delivery. So what's the litmus test? Well, what if a carrier contracts out another carrier to do the pickup or delivery? Is that co-brokering? If it's local cartage and the broker is made aware of it in advance, no. If the whole move doesn't ride on the carrier's linehaul equipment, yes. It's prior notice that makes the difference.
 
So anyway, I've been in the freight business since 1991 and early on when I was in the industry co-brokering and double brokering were almost necessary sometimes, because access to information was not quite what it is today. When I started brokering freight in 1998, I always wanted customers directly but there were times I would be told by the customer to go to 'such and such broker' to get the business from them and sometimes I would oblige. But what I found was that when I did it was totally price driven, and I weaned myself off so by 2003-2004 I was no longer doing that. With Transcore being so well connected within North America where you can have Link/DAT/GetLoaded all in one shot basically, why there is a need for the extra channel .... I don't believe there is. The only time where I have a relationship with a 3rd party to move freight nowadays is when it's a customer directed thing to go through their 3PL provider, whether it's CH's mytmc (which is different from CH itself), Ryder, Transplace etc.

I think that sometimes what happens is that people are so comfortable with something they've been doing for a long time, they just keep doing it until they're called out on it or they retire or something. Heck, that's the reason car brands like Oldsmobile, Plymouth and Mercury don't exist anymore. At some point, it's nothing to do with quality and value but just loyalty, but it only goes so far.

The co-brokering thing is something that is fading away into the sunset. With all due respect to Shawn, hopefully they realize it. That whole part of the industry was dirtied by players in the industry who have and some who still do misrepresent themselves in the industry as something they're not.

This industry has changed so much over the time I've been in it. Sometimes we do better, sometimes worse ... and we all have to constantly adapt.

Over the past few years, I have chosen to align myself with players that have something to offer on both sides of the fence because ultimately to give the best value to customers, you need it. Brokers need some sort of asset base to handle freight that isn't effectively brokered, and trucking companies with mass need brokerage divisions so that they are able to capitalize better on the opportunities salespeople bring in.

But in short: co-brokering=dead.
 
ralphthetrucker said:
I'm interested in "your" interpretation of the word "quality: G Roch.
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getting the freight loaded & delivered on time!

Canadian Bacon said:
No misunderstanding This was not the first time we encountered this If co brokering was ok why the need to publish a different point of pu and delivery and why was the US broker surprized that G Rock was rebrokering it and not picking it up with their own truck
Click to expand...

G. Roch runs MC185717, brokerage only, no trucks... this is the only MC that takes freight, the name is clearly stated every time we do a load for anyone.

theman said:
But in short: co-brokering=dead.
Click to expand...

you'd be surprised at how many people really appreciate the help we bring!

some people either don't have enough resources to get it done or simply don't want to bother with the freight/carriers having to do with Canada.

either way, let's stay on topic and not start discussing who is doing what, etc.
 
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As per my request late Friday afternoon - I had asked members to refrain from personal comments. Keep to the topic at hand and provide something of "value" to other members.

Unfortunately my request was not followed by a couple members - therefore posts have been deleted.

I logged in this morning to find many private messages from other members - who simply are getting tired of what they are reading here as of late. And they want it to change.

I will be sending the parties involved private messages regarding this constant negative banter. Let's get back to what this forum is all about...the sooner the better....
 
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