If an owner / operator breaks down during shipping and the broker has to route another own /op to make the delivery, is the first own / op owed and compensation? What is the normal course of action during this scenario?
Breakdowns
Discussion in 'Freight Broker Forum' started by swhisenhunt, May 12, 2013.
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It depends on a few different matters.
If you are contracted with a company that should be listed in your contract with the company and should be addressed prior to contracting with a company. If you are contract with a company you have a contract to haul for that company not the brokers.
There are some companies that you are not contracted to haul there loads rather you are contracted the use of their ICC/DOT authority and some times even to use their authorized brokers. The largest of these types of companies is Landstar. When this happens you being the o/o then make direct express contracts with brokers on a load by load bases. Some loads you may have pay someone else to finish a load and/or even lose any money already paid to you. Heck some JIT load you may even have to pay for lose of production time for whole factory or for spoilage of materials. it all depends on what is agreed upon with the broker.
Then there is the third kind of o/o or as they prefer to be call the independent or I/o for short. The receive a higher % on loads because they have their own authority and they can fall into the same pitfalls as listed above. The main difference is they normally are more likely to receive long term contracts with brokers and most even apply for own broker license. -
What if I am the broker, how does this scenario work out?
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Never happened to me but if it did I would expect to be at the mercy of the broker. Broker will have to pay the other truck and I *might* get anything that's left over. I might get something if I managed to get the load almost there. That's what I would expect and I would have to accept it. I was hired to do a job and I didn't do it so it is what it is.swhisenhunt Thanks this.
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