Originally published at: The freight brokerage model broke carrier selection - FreightWaves
The rate is the rating. When the cheapest available carrier becomes the default selection criterion, the safety rating nobody actually checks becomes irrelevant anyway. The Supreme Court will decide by June whether brokers face any liability for that calculus at all.
Brokers no longer operate as brokers. A broker is an intermediary that arranges the freight. Todays brokers require, tracking, drivers personal cell number, Must Speak With And Dispatch the driver (A TQL requirement), restrict equipment use to their load, restrict carrier rights, control insurance claims, treat the rate as a paycheck that they can dock at will. There is MUCH more but you get the point. They are doing everything that they can to control the carrier, this is NOT simply functioning as a “broker”.
How did we get here. Brokers chase cheap carriers then create all of these elements of control in an effort to make the best of the cheap rate carrier. The whole industry suffers as does the motoring public.
SO, If brokers want immunity, it should only be granted to those brokers that follow the rules and regulations and maintain their position as a broker. Hand it off and wait for the delivery.
Control = Accountability
Control the carrier, be held accountable.
Compliance = Legal Protections
Comply with ALL rules and regulations and enjoy the legal protections