How many of you guys with your own authority actually read the broker / carrier contacts that you sign? If you're not reading all the way through - ESPECIALLY the "Indemnification" clause and sections stating that "Carrier waives all rights to liens on ...". Wait a minute, why should I waive all my rights? What rights is the broker agreeing to waive? I can guarantee you - NOTHING! They have some fancy, overpaid attorney with manicured and polished fingernails and the expensive suits, house and boats and other toys that the working truckers helped him get by agreeing to their stupid contracts that these brokers think we're all stupid enough to sign.
Y'all better start reading them and if you don't understand them, get a good transportation attorney to guide you through what to look for. I've done that over the years and heard horror stories from my attorney of how guys like me (not tooting my horn here) avoid the major mistakes that carriers get into because they didn't realize what they were signing. When a problem happens, they're screwed.
Broker/Carrier Contracts - Watch out! Read carefully!
Discussion in 'Freight Broker Forum' started by true blue, May 9, 2016.
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Great post true blue...
Just ANOTHER reason to Wake up the ignorance in these drivers and go secure your own customers.....
I've been preaching this cancerous monstrocity about these brokers for years now....
There are 2 things in this world that are the Devil..
1.Freight Brokers
2. Bungee strapstrue blue Thanks this. -
Take for example, a recent contract that I was reviewing from Werner Enterprises. It basically stated that everyone (shippers, consignees, customers, contractors and everyone involved in any way" would be fully indemnified if they cause any damage, injury or death while involved in loading or unloading the carrier's equipment. Well, nothing like looking out for their carrier partner's interest, huh?
Nope. They don't care about us. Only their own customers' #####. It also said "Carrier waives all rights to liens..." Not me, buster. I told the broker I can't sign it and he went on to tout all of who Werner was "We've been in business for...years, have ... trucks and trailers..." I said, "I know all about who Werner is, I've been trucking since 1979. That's got nothing to do with how horrible this contract is. I can't sign it" And we parted ways and I left their load for someone else. It's not that I don't trust the company to pay, but if a problem arises, I'm SOL for signing all my rights away.W900AOwner Thanks this. -
Keep in mind the broker bond ($75K) doesn't mean squat. I was the first to file on one broker's bond for not paying me for 3 loads. Two were government loads so my attorney couldn't put a lien on the property (job site) and the third one he did put a lien on and we got our money from the contractor. But also, if you are running exempt freight (produce, newspaper circulars, lumber, logs, etc - look up the list) or if you are running intrastate, you cannot file on the bond. They legally are not bound by that bond anyway. It pretty much sucks.
I filed on the bond, but the bonding company - Pacific Financial - said they had to wait until the "required" 90 days were up to give them time to pay me, but when all was said and done, they didn't pay mine because "we had to pay all the other carrier's filings on the bond from loads older than yours." WOW. that was an easy out for them. No accountability, either! I asked for a list of those carriers who were supposedly paid and they said that was private. For all I know they didn't pay anybody, just kept the money themselves. I will never haul for a broker with them as a bonding co. And there are many more that do it the same way. So the bond doesn't mean sh**. -
BTW, the way you take care of this problem, is
- Read the contract thoroughly.
- Cross out everything that you don't agree to.
- Initial right next to your changes
- insert your own phrases, like, where they say, "under no circumstances will carrier solicit customers for payment of freight charges..." you put your own comma in there and print, "unless broker does not pay within 30 days." That gives you the right you already have under FMCSA regulations to do that. They have no right to take that right away from you. Some crooked broker who stiffs the carrier walks away with your money and you can't go after the customer? BS!
- Check with a good transportation attorney (Like Hank Seaton) who can give good, legal advice to a carrier.
- Read up on lawsuits that carriers get caught up in and why they get screwed.
Chada, truckthatpassesyouby and stayinback Thank this. -
Last week had a broker i hadn't used before out of Utah request that they be added on the insurance. Not just a certificate but as the name insured on my equipment. He said they required it on every load and has never been questioned about it. Thought is was strange and found a load elswhere.
true blue Thanks this. -
Folks, Listen to true blue here..This is Great Advice. And much Needed advice to such an important issue that goes far to silent.
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true blue Thanks this.
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We all have to realize that the broker / carrier contract is an agreement to do business between TWO companies. All the dictates of the business agreement should not be solely decided by just ONE entity. I am a businessman, too, and I should be given the same amount of consideration and respect afforded to any businessman who seeks to engage in a business venture with another entity. It should be a win-win situation - not a "I got you over a barrel and you can't do anything about it if a problem arises" type situation. It shouldn't be a "WE decide all the tenets of our agreement - you don't have any say in this"! ESPECIALLY, when the carrier (and the contract pretty much even spells this out) is liable for EVERYTHING, is on the hook for anything that happens to the freight, the general public while en route, knowing and obeying all the myriad of laws and regulations, tolls, fuel, scale tickets, labor, spoilage (water damage, improper temp fluctuation, etc.), proper load securement, etc., etc,. The broker is responsible for lining us up to do all the hard work and they think they have the right to dictate all the details of how we are going to do business! Think about that! The broker shouldn't be the one holding the whole deck of cards, doing all the dealing and holding all the chips (money) - AND making the rules for the game! Stick up for yourself! Get educated on contracts.
W900AOwner and stayinback Thank this.
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