OpenRoad’s approach delivered measurable operational and financial outcomes for the customer. By combining reliable capacity, proactive execution, and vetted carrier partnerships, the customer was able to maintain production flow, uphold food safety standards, and control costs throughout peak season and beyond. These results reflect the impact of treating freight as a strategic part of the supply chain rather than a transactional service.

• Zero Major Service Disruptions: Maintained consistent execution and reliable coverage during critical shipping windows.
• Strict Cold-Chain & Food Safety Compliance: Ensured product integrity through temperature-controlled transportation and careful handling.
• High-Volume Execution at Scale: Successfully moved hundreds of loads to support daily production and fulfillment needs.
• 8-12% Below Market Pricing: Offered extremely competitive rates while maintaining uninterrupted service and on-time delivery.

Interested in Logistics That Work as Hard as You Do?

If your business is looking for a logistics partner that blends strategic insight with hands-on execution, OpenRoad Global can help. Whether you’re managing imports, multi-location distribution, or complex inventory moves, we specialize in bringing order to complexity—with results that speak for themselves.

The post Delivering Cold-Chain Reliability and 8–12% Below-Market Freight Rates appeared first on OpenRoad Global.

The acquisition expands OpenRoad’s Intermodal capabilities by adding established IMC relationships and enhanced rail access, allowing the company to deliver greater flexibility, improved rates, and more integrated transportation solutions. By investing in expanded Intermodal infrastructure, OpenRoad is strengthening its ability to help customers build more resilient, efficient, and scalable supply chains.

Co-founded by Tim Miller, Beaver Freight Services has built a respected business over more than two decades and is widely recognized throughout the Pacific Northwest as a reliable Intermodal provider. In addition to Intermodal expertise, the company also supports Truckload and LTL services and maintains long-standing relationships across the rail and logistics ecosystem. Tim and his entire sales and operations team are joining OpenRoad, bringing decades of experience and deep industry knowledge.

Miller shared that the decision was guided by alignment in values, people, and long-term vision:

This acquisition builds upon the strong foundation already established by OpenRoad’s Intermodal team, allowing the company to continue growing this capability with greater scale and expertise while creating new opportunities across service lines.

Together, OpenRoad and Beaver Freight share a common vision for the future of the business, centered on delivering world-class service, continuously improving, and operating with integrity. Both organizations bring a strong commitment to building lasting relationships and doing business the right way, with people and trust at the core.

As Beaver Freight joins OpenRoad, customers can expect the same excellence service, consistent communication, and an expanded ability to support complex transportation needs across Intermodal, Truckload, and LTL. The combined teams will continue working closely with customers and partners to ensure a smooth transition and continued operational excellence.

To learn more about OpenRoad’s Intermodal services or how this expanded team can support your freight needs, please reach out to your OpenRoad representative or inquire at [email protected].

The post OpenRoad Acquires Beaver Freight Services, Expanding Intermodal Capabilities appeared first on OpenRoad Global.

Transportation execution played a critical role in keeping this complex, multi-year project on track. By managing international, drayage, and domestic freight under a coordinated logistics strategy, OpenRoad helped reduce uncertainty across each phase of construction. Consistent communication, dependable delivery timelines, and end-to-end shipment visibility gave the customer greater confidence in planning equipment installs, coordinating crews, and meeting time-sensitive milestones tied to funding and investment requirements.

• Reliable Delivery Schedules: Coordinated international, drayage, and domestic freight movements to establish predictable timelines for complex equipment deliveries across multiple phases of construction.
• Simplified Transportation Management: Centralized logistics under a single provider, reducing handoffs and helping teams stay aligned across modes, regions, and timelines.
• Improved Planning Visibility: Enabled real-time shipment tracking and accurate delivery projections, supporting more informed planning for construction crews and equipment suppliers.
• Risk Mitigation for Time-Sensitive Milestones: Supported construction progress tied to grant funding and major capital investment requirements, helping keep the project moving forward as planned.

Interested in Logistics That Work as Hard as You Do?

If your business is looking for a logistics partner that blends strategic insight with hands-on execution, OpenRoad Global can help. Whether you’re managing imports, multi-location distribution, or complex inventory moves, we specialize in bringing order to complexity—with results that speak for themselves.

The post Coordinating Global, Oversized Freight for a First-of-Its-Kind Bioenergy Project in California appeared first on OpenRoad Global.

• Seamless Operations: All shipments arrived on schedule, allowing uninterrupted plant construction and keeping project timelines aligned.

• Shipment Protection & Risk Mitigation: Oversized and critical equipment was carefully handled, safeguarded, and delivered without damage or customs complications.

• Cost Savings: Optimized routing and planning helped avoid unnecessary expenses, generating estimated savings of $30,000–$50,000.

• Peace of Mind: Transparent communication and proactive oversight ensured the customer felt confident every stage of the shipment was managed carefully.

Interested in Logistics That Work as Hard as You Do?

If your business is looking for a logistics partner that blends strategic insight with hands-on execution, OpenRoad Global can help. Whether you’re managing imports, multi-location distribution, or complex inventory moves, we specialize in bringing order to complexity—with results that speak for themselves.

The post Delivering Oversized Industrial Equipment from Oregon to Tasmania appeared first on OpenRoad Global.

The Changing Landscape of Customs Enforcement

“Reasonable care” and “shared responsibility” are no longer optional—they’re essential.

In today’s high-stakes trade environment, defined by record tariffs, advanced government detection tools, and strict penalties, robust customs compliance is critical.

The Customs Modernization Act of 1993 (Mod Act) shifted import responsibility to importers themselves, introducing the concept of reasonable care and the model of shared responsibility between importers and Customs and Border Protection (CBP).

Key takeaway: Effective compliance depends on cultivating a culture of diligence, transparency, and accountability.

Core Objectives of Customs Compliance

Transforming compliance from a box-checking exercise into a strategic advantage requires focus in these five areas:

1. Mitigate Enforcement Risks

Protect the company from unprecedented enforcement risks, financial exposure, and potential criminal liability for executives. The costs of compliance pale in comparison to the potential financial and reputational damage from violations.

2. Ensure Legal Adherence & Smooth Operations

Adhere strictly to all regulations and requirements set forth by customs authorities. This prevents legal liabilities, fines, operational disruptions, shipment delays, and even the seizure of goods.

3. Establish “Reasonable Care”

Meet CBP’s expectations by regularly reviewing and applying standards outlined in their Informed Compliance Publications. Their “Reasonable Care” guide is a must-read for every importer.

4. Enhance Trust and Credibility

Foster trust and credibility with stakeholders by demonstrating a commitment to ethical practices and responsible governance.

5. Promote Accountability and Transparency

Foster an internal culture that values accurate data, proactive risk management, and informed decision-making across departments.

 Fundamental Requirements for Compliance

Customs compliance in the clearance process involves adhering to all regulations and requirements when importing or exporting goods, ensuring accurate documentation and payment of duties.

Proactive Compliance Approach

Building a culture of compliance means adapting continuously—every process, every shipment, every time.

Here’s how importers can stay ahead:

1. Implement or Strengthen a Customs Compliance Program

Develop a manual tailored to your company’s products, risk areas, and import origins.

2. Conduct a Classification and Valuation Review

Regularly validate HTS classifications and ensure valuation includes all off-invoice costs.

3. Confirm a Customs Transfer Pricing Study

For related-party imports, confirm valuation aligns with CBP—not just IRS—requirements.

4. Review Antidumping & Countervailing Duties (AD/CVD)

Identify all AD/CVD orders relevant to your products and confirm accurate country of origin.

5. Evaluate Free Trade Agreement (FTA) Claims

Verify that all FTA and duty preference program claims are accurate and fully documented.

Furthermore, importers should integrate these strategies for smoother clearance:

In summary, building a robust customs compliance culture is no longer optional but a critical business imperative driven by heightened enforcement and severe penalties. This transition requires companies to move beyond traditional methods and adopt a proactive approach based on the principle of “reasonable care”. The path to achieving this involves implementing a detailed compliance program; regularly reviewing HTS classification and product valuation (especially for related-party transactions); and integrating continuous strategies like reconciliation, error correction, and robust record-keeping. Ultimately, prioritizing and investing in custom compliance safeguards the business against legal repercussions, strengthens its reputation, and ensures seamless, lawful international trade operations.

Written By:

John L., Director of Global Strategy, OpenRoad Global, Inc.

The post Building a Culture of Customs Compliance: appeared first on OpenRoad Global.

Dallas, OR – October 1, 2025 | OpenRoad Global is honored to announce its debut on Armstrong & Associates’ prestigious list of the Top 100 Domestic Transportation Management (DTM) 3PLs, securing the #82 position. This recognition underscores the company’s commitment to excellence in logistics and supply chain solutions.

Armstrong & Associates, a leading supply chain and market research consulting firm, annually ranks third-party logistics providers based on their gross domestic transportation management revenue. Inclusion in this list signifies a company’s substantial impact and leadership in the logistics industry.

This accolade marks a significant milestone in OpenRoad Global’s growth trajectory, highlighting its ability to deliver innovative and reliable logistics solutions across North America. The company’s inclusion in this esteemed list is a testament to its strategic vision, operational excellence, and unwavering commitment to customer satisfaction.

For more information about this recognition and to view the full Top 100 list, please visit Armstrong & Associates’ official page: Top 100 Domestic Transportation Management (DTM) 3PLs List

About Armstrong & Associates

Armstrong & Associates, Inc. is a leading supply chain and market research consulting firm based in Milwaukee, Wisconsin. The firm specializes in providing strategic insights and data-driven analysis to logistics providers, helping them navigate the complexities of the global supply chain landscape. Through its annual rankings and industry events, Armstrong & Associates plays a pivotal role in shaping the future of logistics and transportation management.

The post OpenRoad Global Achieves Milestone Recognition as #82 on Armstrong & Associates’ Top 100 Domestic Transportation Management 3PLs List appeared first on OpenRoad Global.

This enforcement environment has triggered the most aggressive customs fraud crackdown in modern history. From January 20 to August 8, 2025, U.S. Customs and Border Protection (CBP) uncovered more than $400 million in unpaid import duties through enforcement investigations, identifying 89 cases with reasonable suspicion of duty evasion in that period alone. The Department of Justice has explicitly identified “trade and customs fraud, including tariff evasion” as a high-impact priority area, reorganizing resources into a specialized Market, Government, and Consumer Fraud Unit and expanding whistleblower incentive programs to cover customs violations.

Four primary illegal schemes dominate the enforcement landscape: 1) undervaluation of goods, 2) misclassification of products, 3) country of origin deception, and 4) transshipment. Each carries severe criminal and civil penalties under multiple federal statutes, including the False Claims Act (FCA) (with treble damages), criminal customs violations (with potential imprisonment), and the new 40% transshipment penalty tariff that cannot be mitigated or remitted.

Scheme 1: Undervaluation of Goods

Undervaluation represents the most prevalent form of customs fraud, exploiting the ad valorem nature of tariffs calculated as percentages of declared value. By artificially reducing declared values, importers proportionally reduce their tariff obligations—a particularly attractive option when facing tariffs of 25% to 245%.

Common Undervaluation Methods

1. Invoice Manipulation and Double Invoicing Systems The most direct approach involves creating false invoices showing artificially low prices. Recent DOJ enforcement reveals companies systematically maintaining dual invoicing systems: one set showing actual transaction values for internal purposes and another showing reduced values for customs declarations. In a recent FCA prosecution, the government alleged that importer Barco Uniforms used “cost sheets” proposing underpayment of duties and maintained two sets of invoices—one with real prices and another with artificially low prices designed to cause false submissions to CBP.

2. Related Party Transaction Manipulation Companies exploit relationships with affiliated entities to create artificial pricing structures bearing no relationship to fair market value. These arrangements involve routing transactions through subsidiaries or shell companies, allowing importers to claim artificially low transfer prices while maintaining actual commercial arrangements at market rates.

3. Payment Timing and Consideration Splitting Sophisticated schemes involve manipulating payment timing or splitting actual consideration across multiple periods. Companies may delay payments, provide post-importation rebates, or structure transactions to declare only partial values at importation while deferring additional consideration through side agreements.

Scale and Detection

Recent enforcement actions reveal systematic undervaluation by 70% or more. The magnitude of these discrepancies demonstrates deliberate fraud rather than inadvertent compliance errors. CBP increasingly employs sophisticated data analytics to identify statistical anomalies and pricing patterns suggesting fraudulent activity, making detection more likely through algorithmic monitoring of import valuations against industry benchmarks.

Case Studies and Penalties

The $22.8 million settlement in 2023 with a vitamin importer demonstrates the scope of undervaluation enforcement. The company allegedly misclassified imported vitamins and supplements to avoid customs duties, then failed to pay back duties after correcting misclassifications. Similarly, a California wood flooring importer paid a $8.1 million settlement in March 2025 to resolve allegations of knowingly evading customs duties through undervaluation schemes.

Scheme 2: Misclassification of Products

Classification System and Vulnerabilities

The Harmonized Tariff Schedule of the US (HTSUS) contains thousands of classification codes with varying duty rates. Misclassification schemes exploit this complexity by declaring goods under incorrect codes carrying lower tariff rates. With country-specific tariffs now ranging from 10% to over 40%, plus underlying HTSUS rates, classification manipulation can produce substantial duty savings.

Common Misclassification Strategies

1. Product Description Manipulation Importers alter product descriptions to fit lower-duty classifications while maintaining actual product functionality. This involves exploiting technical classification criteria or regulatory definitions to claim products fall under preferential categories.

2. Component vs. Finished Product Classifications Sophisticated schemes involve importing finished products as “components” or “parts” subject to lower duties, then assembling or repacking domestically. CBP scrutinizes these arrangements under “substantial transformation” analysis to determine proper classification.

3. Dual-Use Product Exploitation Products with multiple potential uses may qualify for different HTSUS classifications with varying duty rates. Importers may misrepresent intended use to claim lower-duty classifications while actually employing products for higher-duty applications.

Enforcement and Detection

CBP’s analytical capabilities increasingly identify classification anomalies through pattern recognition. Unusual spikes in imports under specific HTSUS codes, particularly lower-duty classifications, trigger investigation. The agency also conducts physical inspections to verify that imported products match declared classifications.

Scheme 3: Country of Origin Deception

Legal Framework for Origin Determination

U.S. law determines country of origin based on the location of “substantial transformation”—the last place where goods underwent significant manufacturing processes changing their nature, name, or use. Simple assembly, packaging, or minimal processing does not confer new origin status, making many attempted origin manipulations legally invalid.

Common Origin Deception Methods

1. False Documentation and Certificates The most direct approach involves forged certificates of origin, mislabeled packaging, or cooperation with overseas suppliers to misidentify production locations. Recent CBP investigations revealed xanthan gum cases where Indian and Indonesian suppliers provided false origin paperwork for Chinese-manufactured products, despite neither country having xanthan gum production capacity.

2. Shell Company Operations Complex schemes involve establishing shell companies in low-tariff countries that purchase Chinese goods, perform minimal processing, and re-export with false origin documentation. These operations often involve minimal physical presence or production capability in the claimed origin country.

3. Manufacturing Process Manipulation Importers may attempt to create artificial “substantial transformation” through minimal processing in intermediate countries. However, enforcement actions demonstrate that courts require genuine, substantial manufacturing changes rather than superficial modifications designed solely for tariff avoidance.

Recent Enforcement Actions

CBP’s largest investigation under the Enforce and Protect Act (EAPA) involved 23 U.S. importers and Chinese shell companies funneling goods through Indonesia, South Korea, and Vietnam, resulting in over $250 million in unpaid duties. Every importer investigated was found in violation, with the revenue figure expected to increase as investigations expand.

The Toyo Ink settlement demonstrates origin deception consequences. The Japanese company paid $45 million to resolve allegations that finishing work in Japan and Mexico was “insufficient to constitute substantial transformation” for Chinese and Indian pigments, making origin declarations false.

Scheme 4: Transshipment

Definition and Scope

Transshipment involves routing goods through third-country intermediate ports or facilities to disguise true country of origin and circumvent duties. This scheme has become increasingly sophisticated as Chinese manufacturers implement “China Plus One” strategies, with Chinese foreign direct investment into ASEAN nations growing from $7.1 billion to $19.3 billion from 2020 to 2024.

Transshipment Methods and Networks

1. Third-Country Routing Networks Systematic transshipment involves establishing networks through Vietnam, Malaysia, Thailand, Cambodia, and Indonesia. Chinese exporters ship products to these countries, perform minimal processing or repackaging, then export to the U.S. with false origin documentation. CBP investigations reveal these networks often involve multiple shell companies and sophisticated document manipulation.

2. Production Integration Schemes More sophisticated transshipment involves partial production integration, where Chinese manufacturers establish legitimate production facilities in intermediate countries but maintain Chinese sourcing for major components. These arrangements exploit “substantial transformation” rules by claiming that assembly or finishing work confers new origin status.

3. Document and Labeling Manipulation Transshipment schemes require extensive document falsification, including bills of lading, commercial invoices, packing lists, and certificates of origin. Products may be repackaged, relabeled, or provided with false marking to support origin claims.

The New 40% Transshipment Penalty

President Trump’s July 31, 2025 Executive Order established a revolutionary 40% penalty tariff for goods determined to be transshipped, representing the most aggressive anti-transshipment measure in U.S. history. Key provisions include:

Enforcement Realities and Detection

CBP conducts on-the-ground verifications in transshipment hub countries, analyzing production capabilities against export volumes. The agency’s honey transshipment investigation revealed Chinese honey routed through Russia, India, Indonesia, Malaysia, Mongolia, the Philippines, South Korea, Taiwan, and Thailand—leading to numerous indictments and arrests.

Recent operations demonstrate enforcement scope: CBP detected Chinese citric acid transshipment resulting in $17 million in unpaid duties, while steel wire garment hanger investigations through Vietnam, Korea, and Mexico concluded with $13.1 million in assessments and arrests.

Southeast Asia Impact and Compliance Challenges

The transshipment crackdown creates particular challenges for Southeast Asian economies integrated with Chinese supply chains. A strict interpretation could devastate countries like Vietnam, Indonesia, Cambodia, and Malaysia if goods containing any significant Chinese input face penalty tariffs. Companies utilizing “China Plus One” strategies now face fundamental reassessment of their supply chain models.

Conclusion

The current tariff environment has created unprecedented enforcement risks for U.S. importers and their global supply chain partners. The combination of record-high tariffs, sophisticated government detection capabilities, enhanced whistleblower incentives, and severe penalty structures makes customs compliance not merely a legal obligation but a business imperative critical to corporate survival.

The four primary evasion schemes—undervaluation, misclassification, origin deception, and transshipment—each carry potential penalties that can exceed the value of affected merchandise. With False Claims Act treble damages, criminal liability exposure, and the new 40% transshipment penalty, total exposure can reach levels that threaten corporate viability.

Companies must recognize that traditional compliance approaches are insufficient in this enforcement environment. The government’s deployment of specialized prosecution units, advanced analytical tools, and international cooperation networks means that systematic evasion will likely be detected and prosecuted. The costs of implementing comprehensive compliance programs pale in comparison to the potential financial and reputational damage from customs fraud violations.

The consolidation of DOJ enforcement resources, CBP’s record penalty levels, and the elimination of mitigation options for transshipment violations signal that customs fraud enforcement will remain a high government priority. Companies that fail to adapt their compliance programs to this new reality do so at their peril, facing not only substantial financial exposure but potential criminal liability for executives involved in systematic violations.

In this high-stakes environment, proactive compliance investment represents essential risk management rather than optional expense. As enforcement capabilities continue expanding and penalty structures become increasingly severe, the margin for error continues to shrink, making robust compliance programs more critical than ever for companies engaged in international trade.

Written By:

John L., Director of Global Strategy, OpenRoad Global, Inc.

The post Illegal Tariff Strategies: What Companies Risk When Cutting Corners appeared first on OpenRoad Global.

Year-over-year, the results speak for themselves:

• 8–10% reduction in freight costs each year through routing optimization and better carrier management.
• Significant improvements in transit times and fewer delays after transitioning to Tier 1 carriers—without any cost increase.
• 1,727 shipments managed in 2024, averaging 144 shipments per month with full visibility and proactive support.
• Efficient inter-location inventory transfers allowed the company to balance stock, reduce unnecessary shipments, and cut operational waste.
• Custom tools and routing standards improved vendor compliance and made location-level planning more predictable.

Interested in Logistics That Work as Hard as You Do?

If your business is looking for a logistics partner that blends strategic insight with hands-on execution, OpenRoad Global can help. Whether you’re managing imports, multi-location distribution, or complex inventory moves, we specialize in bringing order to complexity—with results that speak for themselves.

The post How OpenRoad Helped a Beloved Entertainment Brand Transform Their Logistics Operations with Managed Transportation Solutions appeared first on OpenRoad Global.

This isn’t a single tactic — it’s a spectrum of calculated approaches designed to exploit weaknesses in verification, trust, and communication.

What is Strategic Cargo Theft?

Strategic cargo theft refers to non-violent methods of stealing freight using tactics like impersonation, documentation fraud, or digital manipulation. The bad actors behind these schemes are professional, patient, and often part of organized crime networks. Their goal? To gain legitimate access to freight without raising alarms — until it’s too late.

Unlike traditional cargo theft, which typically targets unattended goods, strategic cargo theft relies on deception to make legitimate transaction appear routine — tricking shippers and brokers into handing over their own freight.

— Travelers

Types of Strategic Cargo Theft

Each of these methods may seem small on its own, but together they represent a serious threat to today’s supply chains. Here’s a breakdown of the most common tactics seen in strategic theft today:

• ID Theft – Stolen MC/insurance details used to impersonate a carrier or broker
• Fictitious Pick-Up – A fake driver uses real or doctored credentials to pick up a real load
• Double Brokering – A load is moved through an unauthorized middleman, often with no intention of delivery
• Phishing – Fake emails or links designed to capture sensitive login or business information
• Hook and Go – Criminals plan trailer theft by accessing load details and GPS data

These tactics don’t just cause financial damage — they erode trust across the supply chain, making every transaction feel like a potential risk.

The Cost of Complacency

Theft isn’t just a line item — it’s a compounding threat that impacts operations, relationships, and reputation. When strategic theft goes unchecked, the consequences stack up quickly:

• Financial Loss – Stolen freight, increased insurance premiums, claims disputes
• Customer Fallout – Late or missing deliveries damage client trust
• Operational Disruption – Investigations, rerouting, and claim resolution steal time and resources
• Reputational Risk – Once your name is associated with theft, it’s hard to rebuild confidence
• Legal Exposure – Mishandled claims and insurance issues can open the door to liability

It is a key first step that companies develop risk management policies and procedures, but they also need to make sure they are implemented and complied with.

— Freightwaves

It’s not enough to hope it won’t happen to you. Vigilance, education, and policy enforcement are non-negotiables in today’s freight environment.

What You Can Do

Mitigating strategic theft starts with awareness — but it doesn’t stop there. Every company in the supply chain must take responsibility for prevention. That means tightening up processes, staying informed, and building relationships with trustworthy partners.

Start by strengthening verification procedures: Always confirm carrier and driver credentials through reliable sources, not just email or phone. Educate your team about phishing and impersonation red flags. Invest in systems that flag suspicious behavior or detect duplicate credentials. And don’t ignore the human element — communication across departments and with external partners must be clear and consistent.

Security isn’t a one-and-done effort. It’s an ongoing commitment that requires attention to detail and proactive follow-through.

OpenRoad: Your Trusted Fraud Prevention Partner

At OpenRoad, strategic fraud prevention isn’t an afterthought — it’s built into how we move freight.

Carrier vetting tools like RMIS and FreightCheck for real-time fraud detection

Secure document handling to reduce exposure of rate cons and BOLs

Proactive compliance checks on MC numbers, certificates, and insurance

Track-and-trace capabilities that provide constant visibility to prevent hook-and-go attempts

Operations team training on fraud tactics and escalation processes

Let’s move smart, not scared.

If you’re concerned about cargo theft, let’s talk. OpenRoad is here to help you stay protected.

Quote Sources:

• Strategic Cargo Theft | Travelers Insurance
• 2025 Second Quarter Supply Chain Risk Trends Analysis | CargoNet
• Rising cargo theft and fraud necessitate proactive shipping risk management – FreightWaves

The post Fraud in Freight, Part 3: Strategic Cargo Theft – Evolving Tactics, Rising Threats appeared first on OpenRoad Global.

What is Double Brokering?

Double brokering occurs when a freight broker tenders a load to a carrier—but instead of hauling it, that carrier turns around and re-brokers the load to another carrier without the broker’s or shipper’s knowledge or permission.

While the original carrier may present themselves as fully qualified and ready to move the freight, in reality, someone else is doing the work—often without proper vetting or insurance in place. In many cases, neither the original broker nor the shipper has visibility into who is actually hauling the load, putting the shipment, timeline, and payment at risk.

Important distinction: Double brokering is not the same as co-brokering—though it’s often confused.

Legitimate co-brokering involves a transparent, contractual agreement between two licensed brokers to move freight together. In these rare cases, both parties should have written contracts, active lease agreements (when applicable), and up-to-date cargo insurance coverage in place.

What makes co-brokering legitimate is transparency: all parties involved—especially the shipper—are fully informed and in agreement from the start. Without that level of visibility and documentation, it’s not co-brokering—it’s likely unauthorized and potentially fraudulent activity.

Double brokering impacts every part of the supply chain—from shippers and brokers to carriers and factoring partners. No one wins. Even those attempting to double broker often lose, facing legal issues, payment holds, or permanent bans from load boards and freight networks.

Why Double Brokering is a Problem

Double brokering creates serious financial and operational risk across the supply chain—and when it happens, it’s usually the shipper or broker left holding the loss. In some cases, it’s the third-party carrier who unknowingly hauls the load and ends up unpaid or exposed to liability.

Without visibility into who is actually hauling the freight, liability increases, especially if the substituted carrier lacks proper insurance or qualifications. Loads may be delayed, lost, or involved in payment disputes, and the original contract terms are often violated. Even when fraud is discovered, recovery is rare, making prevention through strong vetting, real-time tracking, and clear agreements the best defense.

In the rush to spotlight stolen loads, we’ve overlooked the bigger problem: bad carriers hiding in plain sight. These aren’t one-time thieves… they’re repeat offenders who built fraud into their business model. …Freight fraud is a system built on distinct, traceable, and often preventable tactics.

— Danielle Chaffin, Freightwaves

Red Flags to Watch Out For

While double brokering schemes can be sophisticated, there are often warning signs. Some common red flags include:

• Limited Operating History: Carriers with little to no safety data, inspection history, or recent authority activation.
• Suspicious Communication: Use of generic email domains (like @gmail.com), inconsistent or misspelled contact info, VOIPs or VPNs , or a reluctance to provide clear communication.
• Unusual Payment Requests: Requests to change payment terms, reroute payments, or pay through unfamiliar channels.
• Load Visibility Issues: Carriers reposting your load on public boards, refusing to share driver/truck details, or making last-minute changes to pickup information.
• Tracking Gaps: Lack of GPS tracking or signs of manipulated location data on platforms like MacroPoint or 4Kites.

How OpenRoad Helps Protect You from Double Brokering

At OpenRoad, we take freight security seriously. Preventing double brokering starts with proactive, layered safeguards—and we’ve built our processes with that in mind. Here’s how we help protect your freight and your peace of mind:

• Thorough Carrier Vetting: We carefully vet every carrier we work with using trusted databases to verify authority, insurance, safety history, and performance records—and we don’t stop there. Our team continuously monitors carrier compliance to ensure standards are met on every load.
• Verified Contact Information: We never rely on what’s listed in an email or load board alone. Our team uses official sources to confirm legitimate contact and operating details.
• Clear Carrier Agreements: All of our carriers sign agreements that explicitly prohibit unauthorized re-brokering. If we work with co-brokers (rarely), it’s always transparent and fully documented.
• Rate and Activity Monitoring: We keep a close eye on unusual activity, including rate discrepancies and suspicious patterns that may indicate fraudulent behavior.
• Real-Time Visibility: Through tracking platforms and direct communication with drivers, we ensure you know who is picking up your freight—before it leaves the dock. Our operations team is actively involved in every shipment, calling and confirming each step of the journey.
• Pickup Verification Support: We coach our customers to verify carrier identity at pickup and ensure the correct information is documented on the BOL. If anything feels off, we’re just a call away.

Double brokering can have serious financial and operational consequences—but the good news is that with the right safeguards, much of it can be prevented. By staying vigilant, educating your team, and investing in vetting and visibility, you can significantly reduce your exposure to this type of fraud.

OpenRoad: Your Trusted Fraud Prevention Partner

At OpenRoad, we’re committed to being a proactive, transparent partner in that process. If you ever have questions about a carrier, notice something unusual, or just want a second opinion—reach out.

Let’s work together to protect your freight, your reputation, and your peace of mind.

The post Fraud in Freight, Part 2: Double Brokering, the Hidden Risk in Plain Sight appeared first on OpenRoad Global.