1000+ trucks heading into NYC tonight to protest cheap rates

I think it is already happening with the big brokers already. CHR is moving away from letting the brokers even bid loads out more than 4 days unless bidding online. See TQL has changed the set up here recently as well even though I hardly use them it looks similar to that idea.

 

Look at all these people celebrating the market right now and badmouthing those that are being hurt by it. Y'all have something wrong with you.

 

They must have joined the occupy Vince Lombardi rest area movement.

 

What's more important to a shipper?

A broker? A carrier? Technology that supports the shippers unique transport needs and can arrange the carriers interested in pulling that lane?

Why is anyone arguing that a broker can help the shipper with multi-year contracts?? That entire way of thinking is what created the spot market - because NOBODY can predict the volume of carriers available at any given moment. So, by creating a contract with the shipper, the broker places themselves in-between and can charge whatever they want - brokers do NOT calculate what a carrier's actual costs are - this is part of the problem...it's just a sales job to them. Long term contracts created the huge swings we see in the spot market because all involved are just trying to get all they can, while they can...what about the consumers paying the price? Do they matter to the shipper? Do consumers want to pay the extra cost to the product as a result of brokers creating a contract from 2 years ago that isn't relevant today??

Some have said that carriers won't get paid anymore than if they were working for the brokers. OK! Good! I'd rather the shipper save the money IF I'm not making more. That's less cost to pass on to the consumer. I guess yall don't see the bigger picture, just your bank account.

We all take part in this system. While some just want others to fail so they will do better, there are those that just want everyone to enjoy a piece of the pie - some of the greedy fools want the pie all to themselves and what's ironic is that they don't see themselves as part of the actual problem.

Brokers are a necessary evil...for now.

 

Why?
The period time of record spot rates is always miniscule compared to the times of 2 dol per mile. In the last 6 years: I'd roughly estimate that workable rates vs. unsustainable rates has been 1:3.

The reason is two fold: structural - that is easy access to market and how new authorities are granted.
social / behavioral - the moments of record high rates are emphasized, often overstated and propagated more than the "normal" times which resemble times we see today. This results in high influx of new authorities and quick expansion of existing ones. The longer term capacity increase is not commensurate to the increase in freight volume.
I don't know if it is the government's duty to fix it but if it is, they should limit the way the carrier authorities are granted and leave it to the existing carriers how the manage their capacity. I think that only owners of more then a certain number of trucks (at least 10?) should be granted authority.

I see it in practice this way, an owner operator expands his fleet of trucks within a carrier he is leased on (Landstar, Fedex etc) or partners with another owner so that the total number of registered units meet the criteria and only then they can acquire their own MC number. Also, additional criteria may be required such as business plan and prospect of finding freight.

 

That’s basically how it all works. Brokers get set up ( approved) with Shippers. They then get access to the Shippers Load List. They either take a load and bank on being able to move it, or post it at a profit, and see if it’s still available when they find a Truck. If they accept a load, and can’t get it covered. They have to give it back. That also lose credibility with the Shipper. A Carrier can also do the same, get set up with the Shipper. Usually but not necessarily as a Broker. Then they can take Loads for themselves or post and flip them. The key is being able to meet their criteria for access. The Shipper only needs enough qualified Brokers/Carriers to insure competition. They don’t want to be dealing with a hundred or a thousand Independents. They rely on the Brokers to use reliable Operators. But like everything else, it’s done online for convenience. The Automotive Manufacturers use a Company specifically for expediting. Approved Carriers bid on Loads, usually within a 15-30 minute window. A Computer decides who gets the Load. Based first on Price, then Service, and lastly Safety rating. The office consists of a few huge boards, and a few Techs on hand watching for glitches. But the human negotiations are non existent. It’s the extreme of what we already have going on. Before computers and cheap load boards, you had to know who to call, know who you were dealing with, build a relationship, check they’re credit using a huge red book published every year, Lol. It wasn’t easy. Now it easy peasy. Anyone with a cell phone can compete with each other. Sure anyone can go Direct to the Shipper. Finding one that’ll deal with a one Truck OO is hard to do. I’ve found a few, They’re hardly worth the aggravation.

 

Set the brakes first...

 

I say the same thing every time something like this occurs.

 

I heard about a protest in NYC. Wait for me, guys. I'll be there as soon as I'm done pooping.

 

I agree with you that getting authority should be somewhere between how it used to be and how it is now. But the problem lies in what to do with the single truck owners who currently have their authority if something happens like you mentioned. Does everyone that has authority now just get grandfathered in? That seems the most logical but then everyone wanting new authority would be bent out of shape.

In my opinion it seems like they were trying to use the cost of insurance as a barrier for new entrants but when rates were sky high the insurance was barely a speed bump.

I guess I don’t know what the best solution would be. My main issue with the protests and such is that the mouthpieces that organize them act like they speak for the industry. They don’t speak for me. The people with issues that feel the need to protest are one segment of the industry. Yes it’s their right to be able to go into business for themselves, but they’re the ones that also chose their business model.