1000+ trucks heading into NYC tonight to protest cheap rates

adhesion contract

 

I think they are wasting their time and money on fuel and tolls.

 

Sounds like you need to convince them all to do away with their contracts with brokers then, and let the truckers compete on the rate at the shipper level. They would probably be thrilled at all the money they could save as truckers compete for work with no middle man.

Of course the flip side of this is when the spot rates are considerably higher than contract rates and the brokers are contracted to move the loads but end up paying spot rates to cover loads and maintain their end of the contract. When there are long term contracts for $2 or $3 something a mile plus fuel surcharge I doubt most would want to ride that spot market wave with the truckers when rates surge to $4 or $5 something a mile.

 

I’m surprised how quickly things went from “stick it to the brokers and take all you can get” to protesting low, unfair rates and complaints about brokers again. Didn’t even take 3 full years to complete the cycle from protesting to getting rich to protesting again. It’s funny how the same guy is leading the charge again this time except now he runs a dispatch service instead of being a carrier. There’s some irony there, someone who has their hand in the pocket of carriers complaining about someone else having their hand in the pocket of carriers.

 

You must be really green or wear a huge pair of blinders to think that the government stepping in and offering up more regulations will benefit the single truck owner operator.

News flash IT WON'T!!!!

If you have one of these emission trucks, that should be a HUGE reminder. All those fancy sensors, that outrageously priced one box, that $4.25/gal DEF...

Who did that for ya????

What about that stupid E-log?

And coming this year Speed limiters...

Still want the governments help?

C'Mon Man!!!!

 

How does one negotiate with a computer ? Thru a bidding system im guessing? How does a carrier ever get leverage in a negotiation, if you are using a bidding system ? That just becomes a game of who can be the biggest cheapskate...

 

Some of these guys cant see 2 inches past their nose... Imagine going into business for yourself and then when times are tough, you ask the government to help you out... That is a welfare mentality, not a businsss mentality..... Imagine thinking that relying on an organization that is over 20 trillion dollars in debt, are going to know anything about how to run a profitable business... Since america is just a business in the grand scheme of the world...it seems like to me and anybody with half a brain, those are probably the wrong people to ask for business advice.

Its insane how some peoples jusitify their bad choices. Instead of taking resposibility for themselves, its always someone elses fault...

I know if I fail at this and go broke, i will look in the mirror and say this is all your fault nobody elses. Because that's who fault it is for making the choice to go into business for myself.

 

A shipper posts a load and a rate - a carrier accepts it or places a bid for it. Shippers can accept a bid or wait until their rate is accepted or buy their own equipment, or whatever else they want to do.

A carrier can place 100s of bids for different loads available by different shippers. If the shipper thinks the rate is too high, they can counter the bid with another rate. That's how you negotiate with a computer. There are scores of these freight marketplaces available right now.

There's a bunch of different companies working with AI right now and as soon as they get it figured out (like Amazon) freight will move much easier and hopefully the rates will stabilize. Brokers are going away, eventually (hopefully, and in my opinion).

 

Im not sure why any carrier would want to work on that system... Its a game of who can undercut someone else more... I dont go into business for myself to play that game...

 

What’s still being ignored in that scenario is that brokers can offer the stability of long term contracts. Their customers can easily estimate their shipping costs over a multi-year period. Their customers aren’t at the mercy of supply and demand. Their customers don’t have to worry about the cost to move their goods nearly doubling because of market conditions.

As far as adhesion contracts where one party has all the power, why was that never brought up last year during the time of record rates on the spot market? Or is that something that only matters when it’s perceived that brokers hold the power and are “forcing” carriers to go broke?