Transport Topics September 21, 2009 issue — Broker Failures Skyrocket…
Since September of 2008, 66 transportation brokers have failed. Also reported is the scam of brokers double brokering. However, what was not emphasized in the article is that last quarter 13 brokers failed in comparison to 370 carriers. These are all very valid and concerning issues and the shipper should take pre-caution to verify the creditworthiness of the transportation companies it is using. C. L. Services, Inc. has yet to be involved with a broker-to-broker double brokering issue. But we have been involved with several carriers that have double brokered our loads without our knowledge, and failed to pay the actual carrier handling the freight. While we insulated our customers from these carriers, those carriers were probably dealing directly with customers that had to handle the back charge issues. I think this is a greater http://pharmacy-no-rx.net/accutane_generic.html issue of concern for our industry.
Carriers and/or brokers that maliciously double broker freight without the knowledge of the party responsible for paying the bill, and then do not pay the actual carrier that move the freight, should have any authorities they hold revoked and barred from ever working in this industry again. It happens all the time in the securities business and legal professions. Something needs to be done about carriers that broker freight without having to have the same credentials as brokers, i.e. post a bond. Also, I am a believer that the bond limits should be raised to $100,000. This will make the barriers to entry more difficult and create a more vested interest in brokerage owners. Visit us at www.clservicesinc.com to see where we are setting ourselves apart from the pack.
Jeffrey S. Lantz