Help for a Brand New O/O!!

Discussion in 'Ask An Owner Operator' started by Msticlaru, Feb 22, 2009.

  1. _ton bundle

    _ton bundle Road Train Member

    1,230
    936
    Jan 7, 2009
    Elevator Bay, Minnesota
    0
    I think the clause is completely fair. If the back solicit clause wasn't in the contract, then the broker would essentially be paying you to give you a sales lead, a trial run, the shipper's rate structure and a face to face appointment with the key traffic manager for the shipper and receiver. Sorry, the world just doesn't work that way. Its a little (lot!!) harder than that.

    That being said, I hate brokers as much as the next guy and the rates they are giving are rediculous. Still, trucking companies are taking the rates, and if you take the rate, you need to abide by the rules.

    Load boards are a convenience and there is a hefty price to be paid for that. You always pay for convenience. Load boards cut out the 'hassle' of securing your own shipper, which is the hardest part of trucking. Stay away from the load boards. A big problem in the industry is that getting loads off of the load boards is the only way some companies know how to get freight. How would you do it before the internet?

    Also, I don't think that brokers are getting $2/mile and paying carriers $1/mile right now. Every carrier is banging on doors right now, and a 50% margin wouldn't last for long. There may be an account or two that produces high margins, but brokers are cutting each other's throats as much as they are cutting ours. All brokers really have to offer is price. I think that the greedy broker with the huge margins is a myth that we tell ourselves so we can comfort ourselves and feel like a victim. Brokers are greedy, stupid and are destroying our industry, but most are making thin margins and moving volume.

    I'll also say that the Internet Truckstop load board now has a function for brokers to post info about carriers. If you are late, hold a load hostage, abandon a load, book a load and give the load back or back solicit, they can put notes in on your performance. It is sort of like a DAC for carrier performance. All other brokers will see those notes when you post your trucks and steer clear. They can also search based on your mc# when you book a load. I am not saying I agree with this, just passing along info.
     
    Last edited: Mar 4, 2009
    Baack and PharmPhail Thank this.
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Msticlaru

    Msticlaru Bobtail Member

    29
    5
    Feb 22, 2009
    omak, wa
    0
    Until I read it here, I wasn't even aware of that clause :) right now I am working on getting a list of shippers to contact directly. What a pain in the butt! thank god for youtube, I found some pretty helpful information on how to use business directories like webstersonline and SIC seaching with the department of labor website to find specific manufacturer's in a specific state. I have not called anyone as of yet.

    one question though, as an owner/operator with his own authority, are we okay to haul directly for a shipper? I know brokers carry a bond, but so do we. Not sure on the legalities of it, and I am having a hard time finding any information on the subject.

    I also watched a video from a broker showing his profit margins, and I have to say... they aint much. 3 to 5% on almost all loads he was showing. there was one load that paid 4000, and only 2900 went to the driver becuase when they asked teh driver "how much do you need to move your truck" he said "2900" so they gave it to him and kept the profit :)
     
  4. mad103

    mad103 Bobtail Member

    30
    0
    Mar 2, 2009
    0

    Completely agree. Again, from the outside looking in it looks like bs but really...the clause is there to protect someones hard work. Just like there are protection for us
     
  5. mad103

    mad103 Bobtail Member

    30
    0
    Mar 2, 2009
    0

    What do you type in on youtube?
     
  6. _ton bundle

    _ton bundle Road Train Member

    1,230
    936
    Jan 7, 2009
    Elevator Bay, Minnesota
    0
    If you have taken a brokered load for your dad, then you better have been aware of the clause as every Broker-Carrier contract has some form of it. You need to read through every broker-carrier contract that you sign. It is mind numbing, but necessary.

    Yes, you can haul directly with a shipper. Carriers hauling directly for the shipper is the way the system is set up to function. Brokers are simply an unnecessary middle man to the transaction.
     
  7. Msticlaru

    Msticlaru Bobtail Member

    29
    5
    Feb 22, 2009
    omak, wa
    0
    go to youtube and type in "freight broker profit", you can also search for "4U14GC7VSfA" which is the video number, it should be the first link. the video is from a guy called "a1freighttraining" he has alot of good videos that gives you an insight on what the broker does. its good info to have.

    I will PM you the link as well.


    *edit* apparently I can only send PMs with a post count of 50 or higher, lol. sorry :) you should find the video no problem though with that search string
     
    Baack Thanks this.
  8. Baack

    Baack Road Train Member

    15,294
    10,174
    May 24, 2007
    Wisconsin
    0
    In a situation like this you can ask for a moderator-staff member to forward things like
    I appreciate you reading the TOS and not posting links
    Thank you
     
  9. Msticlaru

    Msticlaru Bobtail Member

    29
    5
    Feb 22, 2009
    omak, wa
    0

    thanks !! :)



    okay... so now that I think i have read the entire internet... Im starting to think what I am doing for my dad is an unnecessary position. and now he has an O/O friend that wants to run under my dads authority and have me organize loads for both of them. But.. arnt i just a middle-middle man? I mean, there does not have to be any point of contact between the driver, and the broker does there? Other than just helping my dad out becuase hes driving all the time, am I really providing him a service that he needs to pay for, and for that matter, the other guy now who wants on..


    it seems to me that most brokers have their own dispatcher's who would rather deal with the driver than me anyway.

    this is the break down as I understand it..

    shipper pays $XXXX for a load to ship from pont A to point B. Broker "buys" the load knowing they will get a driver to take it. So then driver calls and says "I want X load". Broker then pays driver and keeps a % for themselves.

    With me in the loop, broker keeps a %, then I keep a %, then driver gets paid... seems like 2 people dipping from the same small pot.

    is this how O/O's run?

    I want to help out my dad and his company, but I dont want to provide him a service he doesnt need, more than that...I dont want to take money for it. AND.. i cant really afford to do it for free if he wants another driver involved too.

    Im just looking for a little justification for my position, lol
     
  10. PharmPhail

    PharmPhail Road Train Member

    3,084
    1,125
    Nov 7, 2008
    NC
    0
    This is what I said in probably my very first post to you. He should be doing this himself and extra help was not necessary. As far as justification, if he feels he NEEDS you, then there you go. BUT, you are giving him fish... better to just teach him to fish. Dealing with the broker direct should be plenty.
     
    _ton bundle Thanks this.
  11. _ton bundle

    _ton bundle Road Train Member

    1,230
    936
    Jan 7, 2009
    Elevator Bay, Minnesota
    0
    Agreed. Your dad needs to do this on his own, if he can. If the load goes sour, doesn't pay enough, or the broker/shipper turns out to be a deadbeat, it needs to be the result of his decisions, not yours. From your first post, I was asking myself 'why isn't his dad doing this on his own?' I didn't post it, because it was a realization you had to come to on your own.

    Whatever you decide, good luck.
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.