Freight Fraud and Double Brokering Pose Significant Threats to Supply Chain Integrity
Each year, the freight transportation industry suffers losses ranging from $500 million to $1 billion due to freight fraud, double brokering, and shipment diversion. The digitization of the industry has made it easier for criminals to exploit vulnerabilities and engage in fraudulent activities. Efforts to combat these issues, including the establishment of a fraud task force by the Transportation Intermediaries Association (TIA) and the release of educational courses, are underway. Still, there is a need for more robust legislative and regulatory measures to address the growing problem. The recent final guidance by the federal government on broker definitions and bona fide agents provides some clarity but falls short of effectively tackling the issue.
Flexport has launched The Convoy Platform, a technology solution aimed at providing small carriers with access to freight while offering real-time competitive rates, shipment visibility, and on-time performance to shippers and brokers.