A recent survey conducted by FreightWaves and TriumphPay unveiled the extensive ramifications of the unethical practice of double brokering, shedding light on the dire need for stricter regulatory measures to curb its prevalence. In the second quarter of the fiscal year, the transportation and logistics industry was hit hard by the pervasive issue of double brokering, leading to disruptions and financial losses for numerous brokers and carriers.
Of those that participated in the survey, 85% of brokers and carriers were affected by double brokering, leading to financial losses ranging from $50,000 to over $500,000. Common red flags included communication issues and unusual payment requests.
Combatting double brokering includes implementing a “verify-then-trust” approach, with companies like TriumphPay and Highway collaborating to enhance fraud detection capabilities.
