To effectively combat double brokering in the trucking industry, transportation companies must adopt proactive and rigorous prevention measures. Here are several recommended steps to ensure the security and integrity of transportation transactions:
INVESTIGATE AND VERIFY CREDIT SCORES
Conduct thorough research, including a comprehensive background check, on the broker you are dealing with to ensure their legitimacy. Additionally, verifying a company’s credit score can provide valuable insights into the broker’s reputation.
Ensure that you verify the contact information of the broker or carrier you are working with. Many identity thieves are eager to deceive individuals into parting with their hard-earned money, and fraud schemes are becoming increasingly sophisticated by the day.
MAINTAIN GOOD RELATIONSHIPS WITH BROKERS
After each successful transaction, make sure to strengthen the relationship and save the contact details of the individual. This way, you’ll have a reliable person to reach out to if other opportunities for collaboration arise.
Before this, ensure you do your research and only work with brokers who have a good reputation and a solid track record. Check their references, reviews, and accreditations to ensure they are trustworthy and reliable.
REVIEW RATES
If a load rate seems too attractive, it could be a sign that you’re dealing with an illegitimate broker who has no intention of paying. They might also offer a high rate to lure carriers.
Another indication of double brokering is if the rate confirmation requires you to identify yourself as someone other than the actual carrier who booked the shipment. In some cases, a broker may insist that the proof of delivery is sent to a random email address immediately after delivery.
COMMUNICATE CLEARLY AND PROMPTLY
While communication is crucial in every transaction, creating open lines of communication with all involved parties is essential to avoid double brokering. Maintaining clear communication also helps you track your loads throughout the transportation process, allowing you to quickly identify any potential issues and take corrective action if necessary.
When your broker or carrier does not respond promptly to your inquiries, starts providing vague or incomplete information, or becomes generally difficult to contact, consider it a sign that it’s time to find new brokers or carriers.
For a successful shipment, all parties involved in the transaction must set clear expectations and be responsive throughout the different phases of the transportation process. By adopting these preventative measures and remaining vigilant, transportation companies in Canada can better protect themselves against the risks and consequences of double brokering, ensuring the safety and efficiency of their logistics operations.
Read more :
- Impacts of Double Brokering on Transportation Companies
- Double Brokering: Consequences for Owner-Operators
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