Brokers. What is the biggest problem you have to deal with?

I can give you my opinion based on what I have seen. Last year I opened my own brokerage alongside my trucks for several but obvious reasons. One thing my agents have been dealing with is trying to get the shipper/receiver to be more punctual and it is tough when thousands of other brokerages open and know nothing of the legal system the carriers have to contend with and promise customers unattainable goals and then cry that the carrier is horrible because they are late. I have lost count to the number of times I have taken loads, pulled in to get loaded then find out product is missing or not ready, then hours later they get the truck loaded and now we can't make delivery due to HOS being eaten up and they are typically clueless. I have also lost count to the number of times I have had brokers try to get my drivers to move when they are on break etc. with no regard to the new rules of the law.

I am a huge supporter of a higher bond for starters, I would like to see it be $250,000.00 to get rid of the people who know nothing of the business and just looking for an easy pay day from home. Last year we saw over 10,000 brokers file bankruptcy (according to a recent market analysis) and we also lost just as many carriers with the loss of equipment a multiple of that. It is the brokers responsibility to under sell and over produce with their customer and build time to a load so a carrier can do it legally however their is no law enforcement or guidelines to force this change. Brokers, Shippers and Recievers can complain all they want about carrier failures but they fail to realize they are the root cause of a lot of those failures by not being made accountable for offering items up that are impossible to do legally. For example, I was looking for a load in BFE and had a broker trying to get a solo driver to carry a load that had 31 hours of transit and deliver it 42 hours from loading appointment. It can be done and very tight on time with a team but they did not want to deal with a team. The worst part is the "outlaw" O/O who will take that load and then cry when he gets poor SMS ratings as well as OOS tickets and then wonder why my brokerage will not load them or better brokers like Landstar etc. Our industry is in for a huge upset when it comes to rates later this summer, I have spoke with produce guys and they are already planning for $4.50 a mile and more if needed to secure what trucks are available. My agents have shared this info with our non-produce customers and we have done our job to prepare them for what is coming. It's not rocket science but we all need to work together and get rates where they need as well as educate your customer base about the hardships the carriers have to deal with, if they don't it will become painfully evident as when all of the small carriers are gone, there will be no need for small brokers as well... Just food for thought.

 

Excellent thread gentlemen (and ladies!). Alot of spot-on points covered from lousy customer service to out-right lying. And some great points mentioned as well. I have some opinions myself but I'm pressed for time right now (should've been working making calls instead of reading this thread) and will have to try to remember to chime in later.

 

That's it, raise the bond so "only educated people will be brokers" Are you new or serious ? Then the only people able to afford the bond will be the mega carriers and brokers who have screwed this up in the first place.

 

Flyer, apparently this has struck a nerve with you but I am guessing you are the one who is new or better yet probably knows very little about a truck other than they carry freight and you make 10%... What you need to do is some real research and fact checking before you throw out blatant inconsistencies in regards to why our industry is like it is. The first issue with the bond is this, when the bond amount was at 10K If you had decent credit you could get a bond for one year at a cost of about $500.00 and be in business. The bond is meant to protect the carrier from being stiffed if a broker goes out of business. Now if your credit was poor then you would have to pay more or even front the 10K yourself to be granted a license. Now when I opened my brokerage a year ago I had vary little income to start but within a few months I had freight out with carriers in the tens of thousands and if I were to go under only a small fraction would actually get to collect. A much higher bond is not unreasonable at all and is to afford a carrier assurances that they will get paid one way or the other. Being I also own several trucks I have been shafted by a few brokers who just up and disappeared and I got nothing as 10K doesn't last long at all. If you are worried about affording a bond of a higher magnitude then either (A) you have very poor personal credit (red flag for potential carriers) or (B) you have nothing of value (again another red flag) and are unwilling or unable to put a horse in the race in which you make money off of. This is nothing personal but more of a guarantee for carriers that they will get paid and it will work to deter those brokers who go in and out of business under new names like clockwork scamming the very carriers out of funds and some even their business because you would not be willing or able to fund a higher bond requirement. I for one am sick and tired of dealing with brokers who know very little of what it is like to be a trucker and them flame them because the rates are too low, or those of us who support much higher means of a guarantee for payment etc.

By the way, my education did not come from a school that gives me a piece of paper to hang on the wall, it comes from the school of hard knocks and I would much rather hire a thousand people who learned things by actually doing them over those who got their so called experience from a book.

Now to your comment about our industries state of affairs, you couldn't be more wrong as to lay blame to large carriers or brokers than you are with regards to prices etc. It falls squarely on the shoulders of those who bid things cheap to win the bid but it does not pay enough for the carrier to cover his costs to get the job done. Rates have been cheap simply due to supply and demand and if the brokers that have low rates are still offering those rates that means they are finding carriers willing to run at a loss and that is the root of the problem. I have no problem being a gentlemen when I get a rate quote that is too cheap to cover my expenses and being kind about it. There are carriers who are very rude and that is not the way this should be working, if the price is off and the broker does not want to negotiate simply say thank you and part ways, do not ridicule them over it as that gets you no where. Equally there are brokers who are just as rude because you tell them the rate is too cheap for you to run. I have made it a point not to move my trucks for anything under $2.00 a mile and have had no problem finding freight. Sure it may take some phone calls and lots of sorry's but then I always find that load with what I need to move it and am doing quite well. If everyone else would step up and say no to cheap freight, the shippers and receivers would have no choice but to increase their freight numbers or their product can sit on their docks. It still works off of supply and demand and now we are seeing a steady rise in product to move and it is exceeding the available equipment to movie it with. Our industry has hit rock bottom and now there is only one way to go and that is up.

 

Thank you, Dryver! I loved your post! I'm an owner/op & I'm in that 20% you mentioned. I love my job! I'm preparing to go to the next phase & become a broker. Your post has greatly encouraged me. Thanks again!