DRIVER BEWARE OF FREIGHT BROKER SCAMS

Haha the truth

 

I think with this next swing in fuel prices we will see it after this year. I think a lot of people are gonna go under with the price increase coming this winter. It will be pretty tuff for the ones scared of winter to make it.

 

Will you add a little context to your comment about "this next swing in fuel prices..."?

For me, the probability of a short term spike is elevated with this chart being a good representation:


But medium term it's structurally set up to not rise significantly due to the nature of the OPEC+ production cuts.

So for example, if an upward price shock occurs OPEC+ has the spare capacity, due to the previous cuts, to supply the market. And even absent a price shock if it continues to trend up once it reaches the upper bound of their range they increase capacity.

So until we get to a point of that spare capacity being dampened things should be fairly range bound absent extraordinary events.

 

OPEC just made cuts and our president just announced they will not lease out a lot more land. Also LA had a big issue with production facilities that will help bring the storm of high fuel prices. I have barely been able to fine 3.50 a gallon with discounts. It goes up the rest of the year is my best guess from experience in oil field and driving. Just a big hunch based off of experience.

 

Tender rejection is a good indicator. Another one that doesn't require SONAR access (just DAT), is identifying the difference between contract and spot rates, relative to overall rates in the market.

Anyone can calculate this, it's (contract - spot) / ((contract+spot)/2) = indicator

When it's above 10% the market is soft, when it's below 10% the market is tight. If you look at historical data at all you can see that it accurately (to the month) moves along with the ebbs and flows of the freight market the last few years.

 

You’re figuring this wrong buddy.
They offered it at x dollars, you counter offered y dollars to haul it, to which they agreed.
That’s how free markets work.
The broker did nothing wrong by offering it cheaper, they’re trying to make money too.
Obviously they had more money in it available, because you got no pushback on the rate con.
The best negotiations go back and forth a couple times and settle somewhere around the middle.
Both sides give and take to arrive at a mutually beneficial settlement

 

Yeah, this is also a good one that I don't pay as much attention to as I probably should, because I don't pursue contract freight. My operation doesn't really lend itself to it, and with the way the market's been swinging wildly the last few years, I've gotten gunshy on the topic.

 

Because that is only one load. There are several they low ball on, period. And good luck seeing anything the shipper paid them , from them. Oh it isn't just the rates about TQL, its also their harassment on the phone and everything else. Whether you do or don't accept their tracking they still blow the phone up.

 

Because I don't have my own authority. Someday maybe I will, but I don't right now at the moment and don't see that coming any time in the near future either. But when I do, that is the route I will be going. I wish there was a website that just eliminated the broker all together, where shippers post their loads and negotiate directly with the carriers. I am sure though there is either some law against this, or maybe they whole reason they use the broker to begin with is because of the time it takes sometimes answering the same questions and so forth to get a carrier to haul the load and then tracking it, if the shipper even wants it tracked.

 

The shipper is? How does any shipper know where the supply level of trucks is?