CHR sued for 1billion

Discussion in 'Ask An Owner Operator' started by Old Man, Feb 9, 2020.

  1. spyder7723

    spyder7723 Road Train Member

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    I get what you are saying and would generally agree. But not in this specific instance. Being down here in a major produce farming area im rather familiar with the broker/grower relationship. It isn't like trucking where you agree to run a load for x dollars. Its commission based. For ease of math call it 10% of the sale price goes to the produce broker. But in this case chr is not only the produce broker but also the truck broker. Say Walmart agrees to pay 10k$ for a truck load of melons delivered to a DC in Ohio, plus 2k dollars for trucking. The produce broker would get 1k brokerage fee. But ch is writing the contract up for 8k$ for the melons and an artificially high 4k for the trucking, then keeping the other 2k since market trucking rates are still only the original 2k. Ch now made 2800 per load while the grower's money went from 9k to 7200. It gets even worse cause ch also owns the packing company that's picking the melons, boxing them up, and loading them on the trucks.
    Practices such as these games with the produce sale contracts is why every single grower I know won't do business with them. They will use smaller independent parking companies, and smaller produce brokers that don't also have a trucking brokerage.
     
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  3. jamespmack

    jamespmack Road Train Member

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    In all seriousness maybe you understood it better than me. I do not haul groceries or produce. But my understanding is that CH paid farmers for the produce. Then sold produce with the agreement to back pay any profit from sale or "report". To which they then cooked the books and had a process of not reporting a difference back to farmer purposely. Keeping money not owed to themselves?
     
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  4. jamespmack

    jamespmack Road Train Member

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    Idk, they were directly bribing goverment employees for freight. Still only like 4.4mil.
     
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  5. 6wheeler

    6wheeler Road Train Member

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    I'd like the read the court filing when I get a chance. There must be some merit to the case though for seeking the amount of money of 1 billion.
    Just goes to show the gross profits some of the big 3pl make and if they do it to the farmers you know they do it to truckers. I hope other attorneys will start looking at TQL and other large brokers. Lawyers might come to understand that maybe the money isn't after going for truck accidents with that million dollar policy. The real money is with the brokers, maybe billions
     
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  6. clausland

    clausland Road Train Member

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    Just what do you know about farming, other than what's in the fake news? It might be different maybe where you are, I don't know, but I do know this.

    We farm. We've never taken a G handout, repeat never, and have been solely dependent on our own efforts, along with being at the mercy of the weather. We farm organic, no sprays. I can't tell you how many times we've had our crops wiped out due to hail, or how may times we've had to scramble to irrigate due to drought, or how frustrating it is to deal with insects, particularly the CO potato beetle or army worms, which can wipe out your potato & hay crop, almost over night, or very late frosts that arrive just in time to destroy the blossoms on our fruit trees, or from varmints that take out 50 meat birds over night, just as they're ready to process and sell. I could go on, but you get the picture. Now, I'm not complaining, that's just the way farming is.

    The one thing that we have learned over the years is to diversify, never depend on just one or two things to solely make your living. If something doesn't profitably work out, move on, and try something else that does. I realize that brokers are sometimes a necessary evil, but we've always tried, if possible, to work independently of "middle" men. I mean why give away your hard earned money if you don't have too.

    The same concept goes with trucking, try to develop as many DH contracts as possible, both ways if possible, market your self. Do as much G paperwork & filings yourself, why pay others big money to do what you can do yourself. Diversify, find a niche that's needed, and one that others can't, haven't, or won't do, specialized and heavy hauling come to mind. Yes, it takes time & effort and for a single O/O it can be extremely difficult no doubt.
    We've been blessed here with a somewhat large family, so the work was divided up, each pulling their weight from an early age. All our kids are now grown and gone, but still help out on the farm when needed too, that's what family does. We still farm; however, we've scaled it back considerably.

    Sorry for the looong post, but when one bashes farming, it gets my dander up, truck on...…..
     
  7. Deere hunter

    Deere hunter Road Train Member

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    Without trucks America stops without farmers we all starve to death ,you are very vital to everything that this country is made up of ,thank you so much for your hard work and God bless!
     
  8. Mike250rs

    Mike250rs Heavy Load Member

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    This can get sporty...
     
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  9. Idahojoel

    Idahojoel Light Load Member

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    Your misinformed.
    Do some research before you make a broad reaching statement that’s untrue also recognize a massive amount of freight is directly related to these same farmers you obviously have so much disdain for
     
  10. feldsforever

    feldsforever Road Train Member

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    I just dont like chr attitudes.
     
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  11. Long FLD

    Long FLD Road Train Member

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    Deere hunter and bzinger Thank this.
  12. x1Heavy

    x1Heavy Road Train Member

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    They just sunk the oil. Its still at the seafloor, several feet thick in places. When those chemicals wear off Gulfwide in some future day it's coming back up.

    Deepwater Horizon was a daring oil rig product to drill DEEP Russian Style. If we had gotten that thing online it would have totally positioned the USA for war in the middle east and allowed us to have all the oil from it enough to replace the entire lost middle eastern export.

    Someone screwed up and blew it. Don't worry, that oil is still there. On the bottom of the gulf waiting to come back up someday.

    If it was me, I would have just let the oil fill the entire gulf and stick a couple of big pipes into it instead of all that oil rig business.
     
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