In recent years, the logistics industry has only gotten more complex and competitive, with over 350,000 carriers and 26,000 brokers registered in the U.S. alone. Unfortunately, not all of these companies are reliable, and some even engage in fraudulent activities that can negatively impact firms that are shipping cargo.
One of these fraudulent activities is double brokering. This occurs when a carrier or broker reassigns a shipment to another party without the original shipper’s knowledge or consent. This illegal practice has been on the rise—increasing by up to 400% by some estimates—and is estimated to cost the industry between $500 and $700 million annually.
In this article, we are going to dive into the dangers of double brokering, why it’s a problem for shippers, and how you can protect your cargo from falling into the wrong hands.
What Is Double Brokering & Why Is It a Problem?
Double brokering is an illegal practice that occurs when a freight broker or carrier assigns a shipment to another broker or carrier without the shipper’s approval. Essentially, a shipper’s cargo is handed off without their knowledge, putting them at risk of delays, damaged cargo, and cargo theft.
There are various reasons why double brokering occurs. While not all of them are malicious in intent, each can cause issues for shippers. Here are some common scenarios:
- Profit-Motivated Double Brokering: In some cases, a carrier may broker a load to another carrier simply to make a profit. They pocket the difference between what they were paid by the shipper or broker and what they pay the second carrier. This practice is illegal because it creates additional risk for shippers since the cargo is handled by someone they didn’t authorize.
- Fraudulent Freight Brokering: A rogue carrier may obtain a load from a broker with the intent to reassign it to another carrier. The rogue carrier collects payment from the shipper or broker but never pays the carrier that actually hauled the load
- Cargo Theft: Some fraudulent firms use double brokering as a means to steal cargo. They broker the load to a second carrier and then instruct that carrier to deliver the goods to a different destination than the one intended by the shipper, thus stealing the cargo. Often, this is done by load phishing, where a fraudulent carrier poses as a legitimate trucking company to secure the load.
Why Shippers Should Care About Double Brokering
Double brokering can lead to delays, financial losses, and negative impacts on a shipper’s business reputation. For example, shippers may lose insurance policies on cargo that’s double-brokered, as many insurance policies will not cover cargo that’s been passed to an unauthorized carrier.
On top of this, double brokering can lead to a breakdown in tracking between the shipper and the cargo. This increases the possibility of delayed shipments and cargo getting lost in transit.
And of course, as we already mentioned above, double brokering can be used for cargo theft. When unauthorized parties are involved, the risk of stolen shipments increases.
How to Protect Yourself From Double Brokering
Although double brokering is illegal, there is limited enforcement by U.S. agencies that are charged with policing this illegal activity. With incidents increasing, this puts the responsibility on shippers, freight brokers, and carriers to take proactive measures to protect themselves.
Fortunately, there are several steps you can take to safeguard your business.
Build a Quality Network with Strong Partnerships
Perhaps the most important step you can take to protect yourself from double brokering is building a strong network of trusted partners in the logistics industry. This can be difficult for smaller companies, though, in that it takes time and resources to develop such a network. For many shippers, it’s likely a better option to partner with a reputable company that has spent years building a large and reliable network.
VinWorld has been in the global logistics business for 35+ years. Over that time, our company has developed a strong network of carriers that are thoroughly vetted and trustworthy. By partnering with us, you gain access to that network and avoid double brokering, in addition to other benefits.
Work With a Carrier Network That Has Been Vetted
Another critical step in preventing double brokering fraud is working with a carrier network that has been vetted. Many brokers will work with carriers without checks when it comes to crunch time or to make more profit. Therefore, it ultimately comes down to the carrier compliance objectives your broker follows. For example, VinWorld has a rigorous 18-point carrier administration process, which eliminates at-risk carriers from our network, guaranteeing reliability and safety in all our transport solutions.
Create Clear Contracts & Expectations
To minimize the risk of double brokering, ensure that your contracts with freight brokers and carriers are clear, detailed, and include specific terms regarding how shipments will be handled. A solid contract helps prevent unauthorized reassignment of your cargo and sets clear expectations for both parties, reducing the potential for miscommunication or fraudulent activity.
Consistent Communication & Real-Time Tracking
Maintaining open lines of communication with your freight broker or carrier is another way to protect against double brokering. Regular updates allow you to monitor the status of your shipment and quickly detect any suspicious activity. Working with brokers or carriers that offer real-time tracking provides additional peace of mind, as you can follow your cargo’s progress in real time, ensuring it stays on track and reducing the likelihood of surprises.
Take These Steps Today
By incorporating the steps above, shippers can significantly decrease the chances of falling victim to double brokering fraud. Again, one of the best ways you can protect yourself is by working with a reputable and experienced logistics provider like VinWorld.
With a decades-long track record of on-time shipments, you can trust VinWorld to deliver seamless global logistics solutions that keep your cargo moving toward its destination. Our strong network of carriers allows us to provide solutions that can adapt to unexpected circumstances and are tailored to your specific needs. We provide 24/7 support, real-time tracking, and transparent, consistent communication to give you the confidence that your cargo will get where it needs to go, when it needs to get there.
To learn more, check out our services or request a quote today.

January 30, 2025
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