Carriers only going through brokers

Discussion in 'Questions To Truckers From The General Public' started by shipper, Oct 20, 2014.

  1. shipper

    shipper Bobtail Member

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    I am a small(er) shipper with probably 40-50 shipments a month. I have been working hard to establish connections with carriers and stop working with brokers so much. If I have a load, I'll always go to my carriers first and see if they'll do it. It has been paying off, as most of my loads are now on carriers I work with directly versus brokered trucks. However, sometimes I'll call up one of my carriers about a lane and they'll say they have no trucks in the area, they don't run that lane, they have no trucks available, or we can't see eye to eye on the price.

    I then call up one of my brokers and they search for a truck. I've had multiple instances where they'll book one of the carriers that has told me they won't do it.

    Example: I had a Tacoma, WA to Los Angeles, CA recently. Given the market at the time, I was willing to pay $1850. I offered it to XYZ Trucking who is based out of L.A. at that price (they had previously done it for $1300 on a backhaul many times, but availability was tight this time). They told me they had no trucks available. I get on the phone with my broker, he calls XYZ Trucking, and books the load at a cost of $1850 to me. XYZ obviously didn't get the full $1850 on that one. What's up with that?

    It's happened to me a few times in the past month. It just seems so backwards to me to be paying a broker when I've already established a relationship with the carrier. These aren't one-and-done-found-em-on-a-load-board carriers either. These guys I have haul my freight at least once a week. It's always weird hearing the carrier name from the broker and knowing it. And I don't think it's the carriers not wanting to work with me - we have a good working relationship and they've been taking loads since then from me.

    Is there a benefit for carriers to work with brokers? Just trying to maintain a relationship with them maybe? Or is working directly with a shipper more complicated than working with a broker? I process my invoices either the day or the day after I receive them. Any tips to make myself more attractive to a carrier?
     
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  3. STexan

    STexan Road Train Member

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    I appreciate you working to develop direct relationships with carriers. And I understand your "WTF?" response and I really don't know how to answer your query. I suspect a carrier has people working to keep trucks loaded and pre-planned, and one who answers customer calls and they have different parameters or have mixed messaging inputs from higher-ups. Or someone was not aware or had bad info on the forecast empties situation. Who knows. Probably a lot of different things came together to create such a situation.

    It could be a broker offers some sort of "rebate" at the end of the month if minimums are met and they were working to maintain the rebate.
     
  4. RGN

    RGN Road Train Member

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    When you get that one figured out, let me know...! Brokers tend to be able to keep trucks loaded all the time with less effort from the carrier, but at a lower rate- a vicious cycle. I've never carried a broker load, I do way less miles (but at a higher rate), and I do a lot of looking for the right shippers. You said you were willing to pay $1850 for this load, but could get it done for $1300 on a "backhaul" (same is true here- $1300 doesn't go to the truck through a broker) that is a pretty big CPM difference for that haul! I'll do the $1850 load, but then I have to find another comparably paying one heading back...or I do the less-than-$1300 load, then another, then another, better call broker(s) to keep the truck loaded or I am going to go broke fast(er).

    To sum up, shippers generally offer only half of the balance sheet for a carrier- I got your product there, now how do I get back?

    Thus "backhaul" off the board...........which looks good to you the shipper............
     
  5. shipper

    shipper Bobtail Member

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    Sep 24, 2014
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    That makes sense about shippers providing half of the balance sheet. I've only had a handful of shipments where I've been able to reload a truck and send it on it's way. I imagine a broker with a good stream of loads would be able to do this more often.
    I'm on your side of the table, I'd rather do less volume at a better margin. But you're completely right - there are plenty of companies that will do more volume and lower margin, especially if someone (broker) is organizing it.

    It's just so counter-intuitive if a carrier has a truck in a city where I have a load, I just don't understand why the carrier would tell me no, and then take the same load from a broker at a reduced rate.

    I guess this is what STexan is saying, that there isn't just one person planning loads with a grand scheme of how they want to move freight... there's probably multiple people doing this with many different ideas of what they can or cannot do. Not to mention the stuff that pops up.
     
  6. Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    Yeah, situations change hourly in trucking. What was going on at 1pm will be different at 145pm. Plus, you might talk to "Joe" at the carrier, who declines your offer, but the broker calls an hour later and talks to "Al" who has a different answer.
     
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  7. shipper

    shipper Bobtail Member

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    I had some more Tacoma freight so I asked the carrier I usually work with if they could cover it. They said no. I said last time you said no I went to the broker who booked your truck, what's up with that?
    They said they didn't want to ask me for more money on the lane and scare me off. We talked a bit and booked it for $1650, which is probably pretty close to what the broker paid last time. I guess there's another reason.
     
  8. 6wheeler

    6wheeler Road Train Member

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    Well working with a broker I can get paid pretty quick after pouring in $300 in fuel and repairs. Move a few loads a week with a shipper that pays at the end of the week or net 20 and watch the bank account go down.

    Also depending on what you have going on with everything, repairs, family, home time, working with some shippers is like being employeed by them and not an independent contractor. I had one pest of a shipper or junk pallets and I mean junk. That would never leave me alone.

     
  9. Studebaker Hawk

    Studebaker Hawk Road Train Member

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    Another possible explaination. You are a very small volumn shipper. If carrier XYZ disappoints you, they lose maybe a load or 2 a month. The broker in question might book 40 loads a month, so the business relationship is put at a higher priority.
    Thats why shippers go to brokers in the first place, they are like a hired gun.
     
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