E109: Hot Topics in Freight Brokerage with the CEO of TIA

This episode of The FreightCaviar Podcast is Brought to You By WARP. WARP Provides Shippers with Peace of Mind. Visit WeAreWarp.com to learn more. On this week’s FreightCaviar Podcast, we discussed some of the hottest topics in the freight brokerage world with Anne Reinke, President and CEO of the Transportation Intermediaries Association (TIA). In this episode, we covered a bunch of topics, including the contentious issue of double brokering. With Anne's industry expertise, we'll be exploring why double brokering is such a pressing issue and what the government can do to eliminate it once and for all. What is TIA? TIA is a professional association for third-party logistics companies and freight brokers in the transportation industry. It offers education and training programs, industry research and market analysis, legal and regulatory advocacy, and networking opportunities. TIA Membership TIA members have an ethical obligation to practice their business fairly, transparently, and to treat people well. Members who violate this ethical obligation could face serious consequences, including termination of their membership. What about double brokering? The freight industry has been seeing an increase in double brokering, a fraudulent practice that hurts everyone involved, from brokers to shippers to end users. Anne explains that the problem has been exacerbated by the increase in registered brokers during the pandemic. "There was so much freight coming and I'm sure there were new carriers owner-operators who were starting they bought a truck, they bought five trucks, what have you there has just been so much freight coming at you," she says. Now we have an environment of inexperienced professionals during a downturn in the market. It’s an environment ripe for fraud. But why isn’t more being done to stop double brokering? Anne explains that the crime is "too perfect" because there are no consequences. The Federal Motor Carrier Safety Administration (FMCSA) does not have the resources to investigate all of the complaints they receive, and they believe they are limited to safety, not commercial disputes. Even when complaints are filed in the National Consumer complaint database, they are not investigated. One member of TIA, a financial institution, has reported seeing hundreds of millions of dollars that they believe is related to fraudulent or double brokering practices. They are working with TIA to figure out how to discern patterns and combat the problem. They hope to turn the results over to the FBI and assist in pushing for change. To hear more from Anne on the poor performance of US ports and whether or not ChatGPT will play a large role in the brokerage industry, be sure to catch the full interview on the FreightCaviar Spotify or Youtube channel. #freight #freightbroker #freightbrokertraining