Insurance and Double Brokering

[brokcanadian]

Please somebody explain this to a Canadian.

I work for as an owner operator for a large company in Canada and pay my own liability insurance (they cover cargo)

Why do I hear that the company you are leased to is supposed to provide liability and cargo? In Canada those that do obviously have a lock on your exclusivity to the carrier. Mine permits me to find my own loads if I choose

Now double brokering; if it's ok with the company where the freight originated, and each company involved has a certificate of insurance, what's the issue? Why do I hear its illegal? I could see a situation where a company, say, had a vehicle breakdown on the way to a pickup...is it not better to find someone else to take that delivery rather than have a "service failure" ?

Trying to wrap my head around what's true and what's just rumor stateside

 

[Treadmill]

Please somebody explain this to a Canadian.

I work for as an owner operator for a large company in Canada and pay my own liability insurance (they cover cargo)

Why do I hear that the company you are leased to is supposed to provide liability and cargo? In Canada those that do obviously have a lock on your exclusivity to the carrier. Mine permits me to find my own loads if I choose

Now double brokering; if it's ok with the company where the freight originated, and each company involved has a certificate of insurance, what's the issue? Why do I hear its illegal? I could see a situation where a company, say, had a vehicle breakdown on the way to a pickup...is it not better to find someone else to take that delivery rather than have a "service failure" ?

Trying to wrap my head around what's true and what's just rumor stateside

I don’t think it’s illegal to double broker but more so a unwritten rule. I know if a customer is paying for exclusive use then they expect no other freight should be on the truck. I know with todays rates the driver does not get paid anything extra for exclusive use thus the need to double broker. Btw when i was with another carrier I had 6 shipments on my van at one time and was paid full tilt for each load. Had plenty of time to get them all off. Hope this helps out.

 

[brokcanadian]

Me too but it was same customer so it at least was exclusive to them. You touched on another thing I forgot, the "exclusive use" to carrier

Double brokering as I understand it...freight taken by carrier, carrier then sells it to another and takes a cut

You can tell when u pick up, if you have to check in with the shipper under another carrier name

 

[brokcanadian]

Best article I've found. Covers all the things I've seen and heard about

US Trucking: More double-brokering ups threat to US truck shippers

Now on to researching my other question...

 

[brokcanadian]

And the second question

...In 1956, though, Congress amended the law to prevent trucking companies from hiding behind this dishonest tactic; since then, the law has stated that any trucking company leasing a truck must have “exclusive possession, control, and use of the [trucking] equipment for the duration of the lease . . . and assume complete responsibility for the operation of the equipment” (Federal Motor Carrier Safety Regulations, 49 C.F.R. § 376.12(c) (1)).

I don't know if anything similar exists in Canada, if it does I haven't heard of it