[GMAN]

This is what the Federal regulations state about your question.



§371.2 Definitions.

(a) Broker — means a person who, for compensation, arranges, or offers to arrange the transportation of property by an authorized motor carrier. Motor carriers, or persons who are employees or bona fide agents of carriers, are not brokers within the meaning of this section when they arrange or offer to arrange the transportation of shipments which they are authorized to transport and which they have accepted and legally bound themselves to transport.

(b) Bona fide agents — are persons who are part of the normal organization of a motor carrier and perform duties under the carrier’s directions pursuant to a preexisting agreement which provides for a continuing relationship, precluding the exercise of discretion on the part of the agent in allocating traffic between the carrier and others.

(c) Brokerage or brokerage service — is the arranging of transportation or the physical movement of a motor vehicle or of property. It can be performed on behalf of a motor carrier, consignor, or consignee.

(d) Non–brokerage service — is all other service performed by a broker on behalf of a motor carrier, consignor, or consignee.

[Mandilon]

Check this web site regarding double brokering and trip leasing.
http://www.carrier411.com/doublebrokered.cfm

"What protection does a broker have against being held liable for negligent hiring of a trucker when the carrier selected by the broker double brokered or gave the load to a different trucker, without the broker's knowledge or consent, and the hired trucker caused an accident?"

If the broker diligently checked the motor carrier's FMCSA safety record, safety rating, registration and insurance filings before hiring it, the broker probably would be protected. A plaintiff's attorney, however, would probably allege that the broker failed to be assured that the carrier would not substitute a different carrier with an unknown safety record.

How long does it take to check-out a carrier's credentials and safety record? Of course we wouldn't just commission anyone out of the sky for such an important and delicate job.

We're not the risk takers of younger years. We'd rather go at least 90% by-the-book.

With the following link I can clearly see the potential problems with this scenario: http://www.inboundlogistics.com/arti...heck0705.shtml

[GMAN]

You can check out a carrier in a few minutes by going to the safer system. You can check to see if they have authority, insurance, safety record, length of time in business, etc., Most brokers will have the insurance company to fax current policy information directly to them to insure that they have current information. Some load boards have rating systems available for both brokers and carriers. I recently hauled a load from a new broker who called because of my rating.

[slacker]

Every contract I've signed so far says "no subcontracting".

I don't know how you could use another carrier to move that load without them being a "subcontractor". You could however, move it with another truck and an "employee", which would be operating under your authority and insurance.

The problem with subcontactors is, the broker hasn't verified their authority and insurances. I don't blame them for disallowing it.

If there was a loss, it would be more complicated with three parties involved. You know how that old blame someone else thing goes.

jonboy

[Mandilon]

You could however, move it with another truck and an "employee", which would be operating under your authority and insurance.

Seems like the above OR having an 'in-house' broker (which we eventually will) double brokering would be the way to go.

Having idle equipment and standby drivers would seem pretty inefficient and inefficiency is what we're trying to keep away from.

We need to figure this one out since there are enough loads heading to the aformentioned region from California but not enough loads from any one or two of our mentioned points going to California.

THX guys