STOP RUNNING CHEAP FREIGHT!!

Just wondering if there are any up dates on this?..

Last week while being stuck in Winnipeg, MB biding on loads even trying to get a few LTL loads. I began to realize that the smaller freight brokages lately are trying to work with Carriers. Allegedly, (Note disclaimer: I want to give the benefit of the doubt that small Brokers especially with LTL will state that their going to call the customer regarding the bid rate placed and see if the shipper agrees) however, it could all be a scheme scenario as the illusion front occurs and they want to simply lowball the bid. Regardless, Shippers have to take some accountability for wanting the commodities shipped next for nothing.

I had chance to obtain a direct customer who only wanted to Invoice 30 days out. As much as everything seemed good. My intuition told me to run a Google, search and investigation because basically this guy didn't want to work on a contract agreement just a word of mouth agreement. An Extreme Redflag waving high! Found out from his multiple Google comment rating score of less then 1/5 stars his business is run off of a whim. A few carriers have pending lawsuits with this shipper for 30 day non paid shipments. Some just absorbed the lost. He wouldn't stop calling me so I told him unless he paid 50% upfront I'm not moving anything plus I screen shot the comment listing. Ironically, the calls stopped immediately. Strangely enough, his business were under various other company name listing's. Obviously, 'Shell companies' 2nd redflag.

Unfortunately, Factoring doesn't search shippers out only Brokers so carriers have to beware of the fraudulent Shippers who haven't a credit scores rating available. It's terrible that some of these carriers lost anywhere from $25k to $30k. And in these times of a Freight Recession that can bankruptcy the majority.

The number #1 redflag is a Desperate Shipper who speaks broken English not wanting to sign a contractual agreement. Only wants you to haul on a verbal only agreement. A serious moron Shipper if you ask me involved in bad business practices.

 

When a broker tells you he needs to run it by his customer he's just politely telling you he's rate shopping. You will only hear back from him if you're the cheapest truck in the area most of the time.

It's also common for brokers to post loads on certain lanes even if they don't actually have a load. They often do this to get a solid feel for what they can get it moved for.

You can also play the same game. Post your truck on lanes you want to run. When the phone rings high ball the rate and see where it takes you. Keep going higher and higher until your success rate plummets.

People bad mouth brokers but at least you can file a claim on their bond to get paid if they break the Agreement. The same cannnot be said about direct customers. You have to get the courts involved if they don't pay. It's much more of a hassle.

It's not fair to automatically assume that a potential customer is shady simply because they won't enter into a contract with a small carrier either.

Frankly, you do not bring much value as a one truck Chuck. If he gets locked in with you and you don't live up to your end of the bargain he's stuck with lots of red tape to deal with. Also, many small carriers are pretty unreliable in general as well.

Just a few things for you to consider.

 

Agreed, a one truck chuck isn't worth it for an Shipping customer. However, you over looked the valid points posted about a dozen others he didn't pay, some other One Truck Chucks are out $20k plus they've lawyered up in for the legality matter for the courts. Also, he called me down multiple times after I refused numerous times. Please, I'm begging you to 'Make it Make sense without cherry picking a complete different narrative from the point of him running me down. Thanks in advance!

 

I thought this one died a couple months back?

We need a new 'no cheap freight' thread if it's been 2 months. Heck, we're way overdue actually.

 

I'm not cherry picking narratives. He could be trying to rip you off but maybe those other carriers were trash. It can go both ways.

The reality is your services are practically worthless. Blaming brokers and customers because you bring nothing to the table is not looking at your position from a wider perspective. I've read a few of your posts complaining about the market. You dont seem to fully grasp your lack of importance in the industry.

You're basically a penny. With enough of them you might be able to use them to buy something but in small quantities you can through them in the trash and never notice.

*Hint; your services are the penny.

 

Ok. So, by him calling me down 40 times .. basically ringing down my phone after telling him 'NO thanks, I'm good' I don't want to haul his freight loads basically begging me on the last set of phone calls for my one penny service. Take note, HE reached out to me not the other way around. So, it's obvious.

Plus dozens of others blatantly saying he never paid them he is in the right? Great to know thanks for that quality advice. Its greatly appreciated. Keys points highlighted.

 

You’re overlooking the value that most brokers provide to their customers. If you owned a business and shipped a pile of loads every month what you rather do? Would you prefer to deal with one company (the brokerage) and cut 4 checks a month for the freight, all while having a handle on your transportation costs because you’re in a contract? Or deal with 500 truckers who will all be wanting to negotiate on the rate for every load and also have to employ people in your office to vet the carriers and also have an increased accounting department to handle all the accounts payable stuff?

There would be more of a benefit to this industry if factoring companies went away more than there would be if brokers went away. Doing away with factoring would lower the number of available trucks way faster than having every truck in the country deal direct with shippers for their loads.

 

TLDR

Big shippers use 3PL’s who sub 12 brokers or carriers or both

also, if shippers were just using carriers that could cover the whole lot for their capacity; every one chuck #### would be #### out of luck.
No back hauls unless you had your own customers on each end etc




I feel like a lot of these convos devolve into a new crop of people that don’t know half of what they think they know attempting to convince somewhat more knowledgeable people how they're wrong.