Bypassing the Brokers

Hauled liquor before and to be honest any alcohol transport rules is for packaging and receiver or distributor, the transporter regulations are the same as for lumber.

 

Where are you located?

 

Where are you located?

 

Bypassing the broker is easier said than done. If the customer is smaller company that ships less than 10 to 15 loads a week, then it would be financially viable for them to bypass the broker. However, if you have a shipper that ships say....300 loads a week, it is financially viable for them to call 5 or six brokers that have thousands of carriers in their databases that they can select from. Many larger shippers are requiring drop trailers at their locations so they are able to load trailers when it suits them. How many small trucking companies are able to do this? Not many. I have tried to arrange situations like this for a few of my clients and I found it to be quite difficult with outside carriers. A lot of large shippers use large trucking companies (Schneider, Swift, JB Hunt, etc.) to ship their product because, for one; they are cheaper (because they operate on volume rather than one time load rates) and the larger trucking companies have a lower cost of operating because of large volume fleet purchases such as fuel, tires. etc. Mom and pop trucking companies require a larger operating revenue due to their higher operating costs. This not only hurts the small trucking companies, it also hurts the broker. The larger trucking companies are the main reason that the rates are the way they are. Blaming just the broker for cheap rates is not only incorrect, it is naive. Whenever I submit a bid for a prospective new customer, I conduct market research out of that specific area into the prospective area that the freight is going to. I contact trusted carriers that I have used in the past and ask them their opinion also (I rarely use large carriers. I believe in keeping the small O/O in business and those are the ones I call). Then the broker (me) has to compete with many other brokers bidding on the same freight lanes. A bidding war starts and the result, many times, ends up going to the cheapest bidder (I won't mention names out of professional courtesy). Large brokering outfits can afford to operate on a low profit percentage because of the volume of freight. Many Landstar agents, such as myself, are independent business men and some of us have to make a little more than say...a brokerage company that pays their people a salary. I find that in today's market it is becoming almost impossible to compete with the TQL's, CH Robinsons, and UTI's in this industry. I want to give my carriers what they need to turn a profit, but they must understand, than more times than not, it is out of my hands. I can't tell you how many times that I have broken even or lost money just to get the load moved.

 

I have used Landstar in the past and my experience is not good. I have much better results using small trucking companies. They give me personal service and preform the best. I stay away from large trucking companies. They are not reliable. I use the KISS theory.

 

I completely understand where you are coming from. Landstar has so many agents (I think around 1300) that personalized service has a tendency to get left by the wayside. I do my best to tender my loads to small trucking companies and I price my freight based on what my carriers tell me they need, and of course, I add 10% on top of that for my profit. I think that this industry has become so competitive, and the fact that brokers have so much on their plate, it has become too business like and personal service does suffer. I have very few clients (I like it that way) so I can direct my focus on just a few rather that 30 customers. Things get crazy and it becomes easier to get confused and screw something up. Everyone suffers when this happens, especially the carrier. One thing I can say about Landstar from the many years I have been with them, they pay their bills. Most of the agents that I know do pay good rates; however, there are many that still try to move the freight for dirt cheap. Wish you luck rhazel.

 

thanks and best to you also.

 

Excellent post Mike. Couldn't have said it better myself. You hit many highlights that the drivers don't think about when they're complaining about how we all rip them off. I couldn't agree more that there is scum out there. We deal with it every day and you and I have had many long conversations about it. But what people need to understand, is we're not all bad. We're not all out to become millionaires overnight by taking advantage of someone else.

All due respect, I've bid some stuff for you and have been off at times by $15-50 and still lost the opportunity. You may have worked with another agency, but you haven't given ours the shot to prove ourselves or not prove ourselves. I'm sure your freight isn't the easiest to move, but remember, all 8,500 of our guys are hazmat certified and for the right money will provide you a level of service that will put your other carriers to shame. I'd encourage you to start a dialog with Mike in our Idaho office. I believe you would find him to be very professional and always willing to go the extra mile.

 

I have contacts company direct produce and have got better rates from a England broker. He's dealing with the reciever where i was with the shipper. All brokers are not bad... they provide a service and should get paid for it. Know your operating cost and be firm but respectful with your realistic rates and you would be suprised how often you get it... my .02 cents

 

I was talking to a shipper a few months ago and they were very unhappy with the broker, pretty PO'ed to be polite about it. 5 weeks later and they have kicked the broker to the curb and we have 9 trucks running daily out of the place where the broker screwed them over.