The hardest part about finding your own frieght directly from a shipper as an OO would be finding a ahipper that can keep you busy AND be willimg to work with you...
Why wouldnt they want to work with you???
Look at it like this shipper XYZ has 50 loads to ship every week.... Carrier MNO has 500 trucks and drivers... OO ABC has 1 truck and driver.
From the shippers point of view it is easier. And usually cheaper to work with carrier MNO because that carrier can handle ALL 50 LOADS EVERY WEEK. That means the shipper knows exactly what his shipping costs will be every week, that the loads will be covered, and he only has to write 1 check to pay for all 50 loads.
If the shipper works with OO ABC, that still leaves 49 more loads that he has to find trucks for... And if the shipping distance is long enough OO ABC may not be able to cover a load EVERY WEEK. Additionally by having to find multiple companies to handle hus loads it creates more work, paperwork, headache, accounting, and stress for the shipper.
Therefore shippers generally prefer to negotiate deals with large carriers to cover all or a large percentage of thier loads. AND/OR brokers negotiate for large percentages or all of the shippers loads.
By going with large carriers and/or brokers the shipper simply cuts a check or 2 every month for the same, or nearly the same, amount every month to said carriers and brokers... Then all the logistical work is not his problem and his job becomes much easier.
And keep in mind that in my example the shipper is only shipping 50 loads a week... Many large shippers ship 500+ loads a week... Can you imagine trying to find enough Tom, Dick, and Harry's to cover 500+ loads a week???
If you were a shipper what would you do???
Do I believe the news or you all?
Discussion in 'Expediter and Hot Shot Trucking Forum' started by fuccillo111, Oct 24, 2019.
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That make sense. So o.o are at the mercy of brokers, as most loads go through them. They want maximum profit just like anyone, as they're handling the paperwork, logistics, headache from the shipper etc as stated above. Then you have "bottom feeders" taking cheap loads, undercutting the guys who NEED 2.00 loads to make it. See this is where I feel due diligence pays off in making a decision on becoming o.o in hotshot. The guys taking 1.20 loads, that's great for them, perhaps they didnt buy that 80k 2020 ram platinum. They're just taking loads that they know cover expenses, unfortunately it affects the guys with more overhead. So they guy with less overhead has more options and more wiggle room. I hear a lot of folks are paying 300-400/week for a truck! That's insane to me! I get it's the biggest part of the business but it's also the biggest factor of depreciation. ###### if you do ###### if you don't.
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The bottom feeder problem runs much deeper.
Some take loads so cheap just to keep revenue coming in, they are not even meeting operating cost, let alone turning a profit. Their equipment then goes unmaintained, they begin bypassing the scales, insurance may lapse & they'll eventually go under. Even worse there seems to be somebody else ready & willing to take their place. And the cycle of crap rates continues..
They hurt the industry before they flunked out because they drove the rates down, & were running unsafe junk down the highway. The DOT man now looks harder at every rig passing by because he can't even believe the junk he has seen out here..
Then there are bottom feeded brokers as well. Some of them are not on the up & up as well. They don't pay you after the load, 9r are very slow to pay. They under bid to get customers, so now they only have garbage rates they can offer. They double broker loads to try & stay alive.
I'm only scratching the surface by the way. It's a jungle out here.
I do applaud you for researching. Just diving in causes many to fail, & damage the industry in the process.. Keep reading & researching. It's not all bad either..Quest4ADV, FlaSwampRat, Lite bug and 5 others Thank this. -
The problem is there doesn't seem to be one avenue everyone can take. Every single driver has a different situation. So what doesnt work for one guy works well for the other guy, so the first guy complains. I think if they required cdl for all hauling for profit things would improve. Seems like you could weed out the folks not too serious about the job. Less completion, more money, potentially.
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The folks who buy a 30' camper don't need a cdl as it's they own property for leisure or whatever. Once someone pays you for hauling, profit or not, it's a legal transaction, right? The govt wants it's piece of the pie. So if the shipper/brokers are required to confirm the driver is cdl holder before the transaction the driver would have to obtain a cdl. This would force better paying loads as I would assume many folks would say hell with getting a cdl I'll do somthing else. This is for hotshots only obviously. I'm pro business and anti regulations but at some point you have to say enough is enough. I believe if your on the highway towing for $$ you need cdl
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I think there was a car failure in Ohio not long ago resulting in a demise of a motor carrier.
If you had 10 drivers sitting in the break room at the moment ready to go, 2 are lazy, 3 are too tired 3 will be the first you give or offer a load to and the other two go about their work without much notice.
Usually in that group is one driver they keep in a glass case for dispatch to break on emergencies. They know which ones are those kinds of people to lean on in difficult times.
Across Carrier MNO with 500 trucks you will find 50 good drivers. The rest will just poke around gathering up whatever falls from the trees else where.Cattleman84 Thanks this. -
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He thought he'd do this long term and he already told me next year he's selling his truck and getting out. Said he's tired of not being home.. Broke of with his GF ect from being away all the time.
This industry is very hard on the family life so even if you make good money it's not worth it for most.
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