Double brokering red flags
Double brokering usually means a carrier accepts a load and then re-brokers it to another carrier without the shipper's or broker's knowledge, often without broker authority. Federal law requires anyone arranging transportation for compensation to be registered as a broker (49 U.S.C. 13901 and 13904), and 49 U.S.C. 14916 makes a person who knowingly brokers without authority liable for civil penalties of up to $10,000 per violation and for damages to injured parties.
Red flags before the load
- Contact email on a free webmail domain, or a domain that does not match the company on the FMCSA record.
- The phone number on the FMCSA record does not reach the person you are dealing with.
- Very new authority, or contact details (phone, email, address) that changed recently.
- Pressure to move fast, or a rate well below what the lane usually takes.
- Requests to change payment details or to pay a factoring company you have not verified.
Red flags during the load
- The truck, MC or USDOT number on the rate confirmation does not match the one that shows up.
- The driver says they were dispatched by a different company.
- Tracking is refused or goes dark.
Practical checks
Verify carrier authority (not just broker authority) in L&I, call the FMCSA phone of record, confirm insurance with the agent, and confirm the truck and driver at pickup. FMCSA's 2023 guidance on the definitions of broker and bona fide agent explains who must hold broker authority.
CarrierVet flags new authority and recent or shared phone, email and address changes as REVIEW reasons so they surface before tender.
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Sources
- 49 U.S.C. 13901 — Requirement for registration
- 49 U.S.C. 14916 — Unlawful brokerage activities
- FMCSA: Definitions of Broker and Bona Fide Agents (final guidance, 2023)
- FMCSA Licensing & Insurance (L&I) public search
- FMCSA National Consumer Complaint Database
Related
Informational, not legal advice. Carrier data is derived from records maintained by the Federal Motor Carrier Safety Administration (FMCSA). It is provided as-is, may be delayed or incomplete, and is not a consumer report under the Fair Credit Reporting Act. Do not use it to evaluate a natural person for credit, insurance, employment, or any other purpose covered by the FCRA.