Direct freight questions

Never used a contract. Didn't want to be committed to anything. If things didn't work I could just walk away from the business.

But make sure that you really analyze if any direct freight is worth it. When I look back at one account that we still haul for in almost every case I took a less than market rate back to get the load or had to DH extra miles. All told making it just a good spot market rate vs. the great loaded rate that it is.

I have found that smaller companies are willing to work with small carriers. Despite what so many that have never made a sales call will say, larger shippers do not have the resources to work with 100's of trucking companies.

 

The main reason to have a contract would be to lock in a rate for the life of the contract. I had one shipper that we never had anything in writing, including any sort of rate confirmation. Everything was done verbally or a handshake. I never had to worry about my money. I was paid as when the loads were delivered.

 

With several direct shippers that I have obtained over the years I typically just use the email that goes back and forth with the agreed upon rate as my "rate confirmation" with them. As BBB said it then means there is no contract to potentially not live up to. Most of them are smaller companies with the exception of one. Most are either referrals or a " friend of a friend " made an introduction and it went from there.

 

Look for loads posted in small towns by small brokers. Then make the cold call on the one or two accounts in that town.

 

I have no contracts with any of my direct shipperes. Its all on a per load basis. Do not want to commit to more than i can handle and most of the shippers i use do not just utilize one o/o or trucking company. I have over 20 direct shippers/recievers i haul for, some very small and some good sized and most of them i found out about by either them posting on load boards or companies i knew about in the areas i run and just called them. Some acually contacted me after i picked up at there yard for other companies. Next time you pick up or del somewhere just ask. Worked for me plenty of times. Contray to what some say alot of big companied will work with single truck o/o's or small compaies because lot of the big trucking outfits do not want to mess with the sorter haul stuff. Two of the shippers i haul for are very large and thats all i do is 300 miles or less loads because the big guys do not want them. But i can not touch the over 500 mile freight becuase that go's to 4 or 5 of the big guys for little money. As far as rates all my direct shipper freight on the inbound is 15% to 25% more and as much as 50% more on the outbound than what brokers are offering.