Brokers 101

Would anyone be able to tell me how one could find out about these internet load boards. Where can you find out what the loads pay? Are these "BROKERS" legit. Where can you find legit brokers ? What is the minimim rate per mile that is acceptable. New to this and any info would be useful

 

There are books that rate the various brokers they are the Gold and Red books put out by Compunet Services. DO a search on Google for them.
Do a search on Google for truck load boards and read them, some offer a trial subscription some don't. Most have a rating for the brokers and the trucking companies, which is a service that you pay for. The so called "free load boards" take the loads from the main boards and post them. On any load board you will find brokers that are double, and even triple brokering loads. Each one taking their cut.

Learn how to run and read credit reports.

Min rate is something YOU should know if you are an owner operator or small company no one can set the rate for you. For me it's nothing less than $2.00 per mile.
Since I have my OWN clients I don't have to deal with brokers very often. If I have a truck getting in an area where I don't have a client then I GET one by working hard and making calls, and doing credit reports. No it's not easy nor is it cheap.

NO broker is going to "share there secrets and software" with you as that would be pure stupidity on their part. Why would they give you their paycheck? In fact they will sue you for contacting their clients in hopes of bypassing the broker, it's in the contract that you sign.

If you want to be a broker, try to get on with a reputable company as an agent, and learn from them. You'll have to have something to offer in return like clients and trucks. The good ones don't just "hire" people to come and move loads and get paid. They will train you on how they do business but most will NOT help you get your OWN clients.

It won't be easy, fast or cheap to start your own brokerage, you'll need at least $100,000 up-front in cash to get started and that may not be enough. Most trucking companies will not load with a new broker unless they can advance part of the payment up front, or get paid in full when the load is delivered as they don't know you and you don't know them. Trust takes time to build as does a reputation and clients.

Do your homework, there are endless sources of information on the web that you can read and come to your OWN conclusion on.

 

Hi Board and NightWind............

We are an autohauler new to the business. Unfortunately, we are depending on brokers and load boards until we can build our own customer base. We were mentored into this profession but are now on our own. Were making it (financially) but now have come across the following situation twice and can't get the same answer from two different people on it.

My questions pertaining to brokers......especially regarding accepting shipping orders from them but arriving at the origin location and finding there is no load. Billable?....If so what rate? (we had a driver scheduled for the load, spent fuel money, phone calls, driver lost a day waiting for another load to free up in the area he was in). (#1)Broker basically had us attempt to pick up a load his own company had picked up a week earlier. (#2)Load not ready for pickup(24 hour and 1 hour notice was provided to Broker (also the origin)with no indication from broker that the load wasn't ready).

I'd really like to hear more detail about filing a claim on the bond. I'm no dummy but I can't find any information on the net about filing on a bond or what is claimable on a bond.

Any help would be greatly appreciated cuz these wild goose chases are going unpaid. Should I have billed for a Broker Entertainment Fee?....Seems like they get a good laugh at our expense.

Thanks

 

There isn't a good way to charge this out. Some brokers will pay some won't. If you push it they normally will IF they are a good broker. Don't get greedy because sometimes it's really not their fault. Use common sense in those situations.
Well as to the truck ordered not used. I have always charged two different ways.
If the truck is on top of the load less than 100 miles it's $75.00 per hour, three hour minimum charge.
If they have to travel then it's per PC Miler Practical miles from where the truck unloaded to where the load that got canceled is at. So you figure $2.00 per mile multiplied by the number of miles plus the per hour charge after they get there and have been waiting and then the load is canceled.
If the truck hasn't moved from the spot where it unloaded then you really don't have much choice but to look for another load and chalk it up to just one of those days in trucking.
Some people do a flat rate per day.
If we get some where and there is an issue with getting loaded or unloaded that is going to cause us to sit the entire day and miss a reload then it's $600.00 per day period. It's hard to get but so far we've gotten it from the few brokers we have dealt with.
I send them our fee document when we set up with the broker.
I don't care if they sign it or not they have it and know the fees. It's better if they do just for situations like the ones you mentioned and I'd probably force the issue or get their truck ordered not used policy in writing as well. Once they break the agreement then all bets are off on what it cost. Then we move on to filing on the bond. You have a legal right to collect a reasonable fee when these situations arise and the bonding company will pay it. I've only had to do that once and I had the check in 8 days. Be sure to send an invoice for the truck ordered not used charges to the broker and by law they are required to pay the invoice in 14 business days unless you agreed to different terms.

Filing on the bond.
When you set up with the broker (paperwork exchanged) there are two things you better get, one is a copy of the bond and their insurance, and if you have any doubts call them and make sure they are indeed the bonding company and that the insurance is valid. Not all brokers have insurance but some do.
The second thing is a load conformation from the broker signed by the broker or agent and you. No load conformation or bond documents = NO TRUCK. Never go on a broker or agents word it's about as useful as that load that canceled when you need to get paid.

In order to file on the bond you need to first contact the bonding company, get the agent that handles the account if possible, explain to them the situation. get their fax number and FED EX delivery information DO NOT USE USPS regular mail it's too slow and you need proof that the claim documents got there to that person you talked to on the phone. The tiny $10,000 bond won't last long if there are other claims.
Make copies of every document you have pertaining to the load, the bond, load conformation and any other documents about the load and write a brief statement in regards to what transpired, FED EX it all to the bonding company. DO NOT send the originals in case something happens. The bonding company will pay out the claims in normally less than two weeks IF all the paper work is in order.

If the bond money is gone then you go after the shipper, the law says that he has to pay the shipping fees and is responsible for them no matter what. This opens a whole new can of worms and you have to handle it with care. In this situation I would hire a lawyer unless you can remain calm cool and polite.
Hope this helps and post back if you need more info

 

great info thanks for the reply!

 

I'm new to this forum but I have been in the trucking industry for quite a while and I'll tell you what I learned in all my years, you need to find a company that is both a carrier and a brokerage. I'm with ZHL Trucking Group now as an owner operator and I'm very happy with them, they have there own shippers so I get the loads directly from them and if its a slow day or I'm in an area where they don't have shippers of there own they work with a lot of other brokers and find the load I need. If anyone is interested in having work all year round I suggest you call them I'm sure they are always looking for owner operators **********

 

I’m with ZHL Trucking Group now as an owner operator and I’m very happy with them

So where can we find more info on this company. I live in N Y C and it sounds like a perfect match

 

Nightwind, you had mentioned in your post about the contract or addendum you send to the brokers about if they cancel the loads, they have to do this, this and this....Are there other things you include in that addendum? If so, what are the other things you request of the broker to cover your butt?

You offer great information, keep it coming!

Gods Blessings
Mr Win Big

 

It has the charges for truck ordered not used, damage guidelines, the rules regarding communications. We had a horrible time with brokers calling the lease trucks, trying to get them to load loads with out going through dispatch so we stopped that by not allowing any broker/driver contact.
Payment terms, and collections information. It's kind of a reverse broker contract like they make companies sign. I figured turn about was fair play.

Thanks I just try to make it easier to survive in this business, experience saves money and heartaches.