Bypassing the Brokers

you are correct

but i think a lot of the larger companies started with direct contracts from shippers, whether that was a military or manufacturer or whatever, it was their base for a period of time and allowed them to grow

 

LandstarOZR,

That was a well articulated reply. When I break it down though, I have to agree with Dannythetrucker. I'm not sure if you were promoting Landstar or your agency....probably Landstar's policies I'd guess because I imagine they set the standards for you to follow. Just a guess.

I don't see what an FMCSA download does that a simple check of the MC number won't do.
As far as standards for basics...well that's easy.....pick a number and now there is a corporate standard.
Regarding capacity, if we believe the LS website, there are "thousands of BCO's", but how many is that really? A drop in the bucket compared to what is available by posting on DAT I'd say.

Concerning the issue of LS being a "shield" against litigation...well first, the lawyer will also be suing the shipper for hiring LS and second, in my experience, the first priority of that LS legal team that you mention is to protect LS's #####. I might be wrong on that so I'll withdraw that statement of you post a blank contract for us to look at.

As far as I can tell, the OP is capable of moving his own freight by using the same or better standards that LS uses. He might even treat the truck better than LS does and therefore build a regular and loyal carrier base instead of just auctioning it off to the lowest bidder.

 

Yes we were. I was specifically talking about what he would need to do with those CSA scores and then check them regularly versus just once in a while.

Actually, I was promoting neither. I have no need or interest in doing so here as we are very blessed to be where we are. What I was doing was giving a viewpoint from the broker's side and as I said, I have no experience of working for my competitors so I can only go by what experience I have. If you notice, I didn't mention my company name.... you did. I'm not sure where or why you're hatred of the company started, but it's a regular thing I face here. I can understand some of it, because just like the other big brokerage houses we have our bad apples that give us all a bad name but you seem to have a special affinity for the hatred, as you follow me around all over these forums complaining about us, so evidently you were dealt a bad hand at some point. It's what I've come to deem the "company driver mentality." In response to your post:

1. It's not just the download, it's an entire department of staff who follow it and maintain the database, something most direct shippers don't want to pay for as they are trying to keep their costs low and to have to pay salaries, benefits, and insurance for that staff who focus solely on that and not on loading product or handling anything else would be a waste of their resources.

2. I was referring to just that, but it doesn't stop there, it's about checking them and checking them often. Do think a shipper has the time or care to screw with that when they have other things to be doing?

3a. I don't have a blank contract as I don't deal in contracts... that's at the corporate level. Each one is different based on a customers needs, wants, and wishes.

3b. Even if I did have one, why would you post something like that in an open forum? This forum isn't a 1st grade show and tell.

3c. Again, this had nothing to do with the company I'm contracted with... you named names. All major brokerage firms have a legal team. Common sense would say their first priority is limiting liability to themselves, however as a rep or extension of the customer who provides them the ability to have that legal team, it's in the brokerage firm's best interest to protect their customers and their best interests as well.

4. As of December 1st, 2012 the current BCO count is 8,319 with 14,000 trailers.

5. It may be possible, if he wants to screw with it and be one dimensional instead of focusing on growing his business. It's a full-time job to do what a broker does and do it well, contrary to your "well informed" opinion. OR, he can partner with an experienced brokerage and let them do what they do best, which is logistics and supply chain management while he focuses on keeping his customers happy handling sales of his product. That said, I did pm him a link to a place where he can get bids from carriers and O/O's on shipper direct freight. I don't really care what he does, I simply tried to offer a viewpoint from the opposite end of the spectrum to help him consider all his options and outcomes.

 

Your use of "we" led me to believe you were talking about either Landstar or your agency. And when you started talking about legal staff and FMCSA downloads, I was pretty sure you weren't talking about all brokers in general. Now I understand that you are talking about not all brokers but "major" ones. Thanks for the clarification. Just for the record, I don't have a problem with you advertising for Landstar. I do however, have a problem with misleading statements and half truths, and occasionally I feel the need to ask a question or two.

That statement is unfounded. I have no hatred for LS and nothing in my post even came close to hatred. I would appreciate if you retract that statement.

This again is unfounded. I don't follow you and I think you should retract that statement also. I can remember only one post...a post where I said you were mistreating trucks by dispatching them knowing that their loads may not be ready. I stand by my statement in that thread.

Well because, when you make statements like "we are your shield" implying that the shipper won't be liable in a fatality and LS (or any broker) takes the liability, I would like to see that statement backed up. I would like to see if there is anything in the LS contract with the shipper to protect Landstar and transfer liability to the shipper. If you don't have a contract and if they are done at the corporate level, then how can you make a statement like that? Aren't we really just making more unfounded statements? When it comes to statements like that, I don't see anything wrong with me asking you to put up.

 

IMO, (uninformed though it may be) I think the LS business model does provide an advantage. By having 8,000 BCO's locked into moving only LS freight and not having the freedom to find freight for themselves, loads are likely to get moved cheaper. Whether those savings get passed on to the shipper I can't say.

 

You provide a standard not a shield which is a huge difference and you could get yourself in a lot of trouble with that sales pitch. Now you limit the exposure of the company you moving freight for by having high standards but it not something that any shipper or other broker cannot do.

 

1/2 of this statement is true any brokerage will protect what is in the best interest of the brokerage and they will hang out the customer when it comes down to it especially in an agent systerm like Landstar uses. If you believe landstar or any other brokerage will spend money to protect a customer when it comes down to it then that is being very naive.

I am not knocking Landstar at all but what do they provide for the 40% of profit they take from you on brokerage business.

 

Referring to how things are done where we are is the complete opposite end of the spectrum from promoting my company. If you'll review, I said I only have experience with mine and am unable to tell you how CHR, TQL, or other large firms do theirs.

See above. IF it's not the case, then I apologize. However, as I'm sure you can understand there is no reality, only perception and that's the way I feel.

The "we are your shield" is more of a metaphor. There is no contract anywhere that uses those words. The job of the broker is to go to bat for their customer. Are they (the brokerages) out for their best interests first? Of course, again that's common sense. Any business person would be out for their best interests over someone else.

 

I don't know where you got that percentage.

 

40% ???
Do you mean that a broker's profit is 40% of their gross mark up?
e.g Broker makes 10% on the freight rate and after paying their overheads they are left with 40% of that 10% they made.
This would be 4% profit on the freight rate.