CO- BROKERING HOW PROFITABLE IS IT.

Is it worth it to co broker a load. If any thing happens to that load which broker bares the blunt of responsibiliy.

Benefits of Co-Brokering
Co-brokering is when a broker works with another broker to service a specific need, with all parties aware of each other's functions and responsibilities. The question at hand is not whether to deal with another broker, but rather to use another broker's resources to your advantage when your resources do not suffice.

The most important benefit of co-brokering is servicing your customer. It proves your brokerage has the available resources to service all their requests.

Beyond that, co-brokering can result in a profit on a transaction that your brokerage might have otherwise refused. After all, you're in business to do business, not refuse business. If you don't service your customer, someone else will.

Some brokers have developed niches that other brokers can use to their advantage in better servicing their customers. Some of the niches include border crossings, bonded freight, working with hazardous materials, oversize equipment and local contracts.

A broker's services are not limited by assets, but rather by its imagination to adapt and adjust to situations. Therefore, its abilities can be enhanced by leveraging the capabilities of other brokers. When brokers work together, it is usually because one has capabilities to complete whatever the other currently lacks. The bottom line is that co-brokering gives brokers the ability to adapt and adjust to unfamiliar situations.

By working together in a co-broker relationship, both brokers benefit, as well as the initial customer. All parties involved should have the satisfaction of a job well done by servicing a customer and maintaining a profit. The alternative would be to leave the money on the table for the competition to take.

An alliance with another broker is simply another opportunity to offer services that your brokerage did not have before the alliance. Once a broker recognizes the benefits of co-brokering (and decides to deal with other brokers), the broker can

In the case of co-brokering both parties are aware of each other and the commissions received. As long as both brokers do not insert liability upon themselves (declaring an interest in the cargo, failure to check MC credentials, and other liable acts), neither party should be liable in the event of a loss. However, a service failure, or failure to pay a MC could result in loss of the original shipping account or a claim against either brokers surety bond. You have to be really sure of who you are dealing with. Co-brokering happens all the time. As stated above, special services may be required. Sometimes other brokers just need help finding a truck.

Co-brokering should no be confused with "double brokering" which is illegal in civil law. I think a lot of people get the two confused
claiming double brokering is legal. It is a civil tort, but yet it happens all the time.

Getting back to the original question. The one who has the shipper account to begin with has the most to lose and would shoulder the most responsibilty.

Co-Brokeringmust only be done when a co-broker contract is in place.