Landstar, in a response to JOC.com, said it met map-21 and referred to a letter from Geoff Turner, CEO of Choptank Transport, published in the Transport Topics sector publication in response to a previous letter from Dwinell in 2013. „Co-brokerage is a common practice in the freight brokerage industry and is often carried out under a written co-brokerage contract between the two licensed real estate agents,“ he wrote. „The intention of this language in MAP-21 was to clarify that air carriers need a separate brokerage authority and the ensuing obligation of commitment to ensure the legal transmission of cargo. Our industry is plagued by fraudulent practices that put our businesses at risk through double illegal investments, creating huge problems of negligence in hiring liability. „With Landstar, they blur any distinction between holders and brokers and violate the definition of a broker in every charge,“ Dwinell added. „That`s why Landstar calls my broker address and tells me that they will carry my cargo as a forwarder, but can`t guarantee that a licensed and insured landstar truck will actually appear for my cargo. They deliberately scramble any liability when they [word created by MAP-21] without the knowledge or authorization of the sender [shipper] to another „re-broker“ broker or transitaire. Landstar said JOC.com that, in most cases, its independent agents are trying to offer shippers and brokers a capacity solution that meets their expectations, whether with a BCO or an independent carrier. Some truckers are unhappy because often re-brokering by mile of spot market payments with each broker charging a commission. With rising transportation costs, freight brokers with narrower margins may be more vulnerable to using the practice to quickly make money, according to logistics officials.
This practice exposes the shipper to several potential anti-personnel mines, including delays, cargo losses, payment problems and legal problems. There are hundreds, perhaps more, involved in this practice, although the Jacksonville, Florida-based Landstar has attracted attention after being tagged several times in the Rate Per Mile Masters Forum, a Facebook group of more than 20,000 members. Landstar, however, is not the company`s only booking operation through co-brokerage agreements. There are several recommended tips that shippers can use to allow co-brokerage when it helps unlock limited truck capacity, while minimizing their risks. The difference between legal co-brokerage and illegal double brokerage comes on commissions and communication.