Brokers are Making A Killing on these loads! (screen shots)

Discussion in 'Ask An Owner Operator' started by ProfessionalNoticer, Sep 21, 2022.

  1. ProfessionalNoticer

    ProfessionalNoticer Road Train Member

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    All depends on the exact verbiage in the Agreement. In the hundreds of Agreements I've read over the years they all specify that the Carrier can't solicit their customer. None have specified anything about what happens when it's the customer who solicits the Carrier directly.

    Sometimes the Shipper isn't even the Broker's customer. It's often the Receiver who's paying the freight bill. Also, lot's of times the broker you got the load from isn't even direct with the customer at all because they got it from a 3PL or straight up double brokered it!

    I haven't hauled a brokered load yet that I even remotely wanted to be direct with so the odds of me backdooring a broker is very low in the first place.

    I routinely haul for a particular Shipper that requests me personally. He told the broker a couple years ago that he wants me personally to handle a specific run for him and I've been doing it ever since.

    We keep everything on the up and up and said broker also sends me tons of other work via word of mouth to other agents at his brokerage. I'm as honest and fair as can be and all these guys know it.
     
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  3. ProfessionalNoticer

    ProfessionalNoticer Road Train Member

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    I agree. I'm no lawyer either but I can read. I can also consult and retain lawyers just as easily.
     
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  4. ProfessionalNoticer

    ProfessionalNoticer Road Train Member

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  5. TallJoe

    TallJoe Road Train Member

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    Intuitively, those back solicitation preclusions always seemed to me as un-American and anti-free market, thus very artificial legal creations.
    If I see a trucking company that shows an exemplary regard for the product and their operators instill confidence, I'd sure welcome them to approach me to discuss business. It should be my call and risk to decide where I get service from, and the decision should never be hindered by some legal tool killing the spirit of competition.
     
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  6. TallJoe

    TallJoe Road Train Member

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    Brokers indeed may work hard to aquire customers but it is not like they create them for their own exclusive use, as if they never existed. In other words, their work does not have the same inventive element of great brains who worked on their projects for years, and therefore should be protected by patent laws.

    In my 20 mile home radius area, I will find warehouses that I never took a load from but they might be very likely customers of the brokers with whom I signed broker - carrier agreements.
    Acquiring someone elses customers is not unethical in the realm of a free market business - it adheres to the very principle of providing the best quality product or service to the customer at the best price. The realm in which ONLY the customers ought to be the ultimate Gods deciding who would serve their needs.
     
  7. gekko1323

    gekko1323 Road Train Member

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    That's why I suspect that those clauses violate antitrust and unfair competition laws. Another thing to think about...A broker has a customer for a certain period of time or certain number of loads. If the contract between the broker and the shipper has terminated, does the broker still have dibs on the shipper? I for one am going to contact shippers as soon as I buy my trailer. I have a trip sheet I created for every load I've taken since I started. I must have hundreds of trip sheets and bols. And as for the shippers that I've been to as an owner-op these past 4 months, they're fair game too.
     
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  8. MartinFromBC

    MartinFromBC Road Train Member

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    It's no different than almost all contracts, they are not forever, they have an end date. Once that contract expires, free market they are.
    I have a contract with a logging company right now, as soon as their equipment is moved, it expires. Doesn't matter that I've been moving their equipment for about 2 decades now. I have no say in who they use spring 2023 to move this equipment out of there. Some people seem to think that brokers are mystical, and have some special powers, and rights.
    They do not, they are simply a middle man, with no special powers. Skipping the middle man if possible is good for the other two.
    Brokers may try to make someone believe that they are almighty powerful. But remember, in reality they are they unnecessary person in this three some.
    The people who are at each end are the important ones, they are the truckers customers. The truckers need to worry about doing a great job for them, the broker is like a thief, stealing a lot of money, while doing absolutely nothing of value. They don't make anything, they don't haul anything, and they don't own the stores that sell to consumers or make something larger out of the product hauled.
    The sooner people stop treating these blood sucking leaches like they are mystical, and remember they are leaches, the better.
     
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  9. ProfessionalNoticer

    ProfessionalNoticer Road Train Member

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    I agree with this statement as a whole. However, I do believe some brokers do offer a service to Carriers and there is some sort of value... occasionally.

    You want to haul out of any larger manufacturers? You're stuck with brokers because those large companies won't deal with a single truck outfit. They're just too small to handle the volume those places produce.

    There's also the surety bond. Plenty of Shippers will slow pay you badly. Some will stiff you completely. Then you only have collection avenues to use or the legal system. With a broker, I can easily file a claim on their bond and get paid as long as it hasn't been exhausted before my attempts began.

    Also, with a broker you can come and go as you please. If you're hauling routinely for a customer they come to rely on you so keeping their business means being available for them at all costs.
     
  10. TallJoe

    TallJoe Road Train Member

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    I would not go to the extreme of defining them as leeches. They provide a package of transport arrangements to someone who is willing to pay for it. But the willingness to pay for it should not be obstructed by their legal measures to prevent others from marketing their business. Just like they don't want their profits to be capped, they should not prevent carriers and shippers from discussing business.
    I just don't believe that their acquisition of customers deserves a special protection because the acquisition itself is not any different from the one of a carrier trying to convince someone to use their services. Their merely contacting the customer first should not earn them exclusive rights.
    If a house cleaning service starts charging too much and an individual lady from that service crew tells me that she could do the cleaning herself for half the price, it should be up to me to decide if I want her or not. I should be able to say, screw the cleaning service...
     
  11. ProfessionalNoticer

    ProfessionalNoticer Road Train Member

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    The most ironic fact here is that many of the brokers that are paying the Carrier to haul for them aren't even direct with the customer at all. A very high percentage of them actually get the freight from another broker. Usually a much larger brokerage that's more like a 3PL. So technically it's not even their customer anyway.
     
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