Bypassing the Brokers

Drinking kool aid, no.. This is business not war. I don't see brokers as me versus them. We all make money so everyone is happy. I value the service cause I don't have the time to make the calls,have the meetings, etc, etc. I'm not one of these guys that thinks brokers only have the cost of a fax line. I tend to think most of the ones with the us versus them viewpoint can't get a rate so it's obvious someone else's fault. None of the customers I haul for deal with solo truck operations. There are customers like that. They do pay a premium and they have zero problems getting trucks they just don't have the time to deal with one truck here and there. I'm sure there are some businesses that do. What difference does it make when you set the rate you move for by accepting a load?

 

Look, I've tried not to make this about 'you'. I've tried to talk in generalities about brokers, but since you insist on inserting your ego at every turn, fine, let's go there then.

Let's say there is a medium sized fab shop near where I live. And there are many of them, I actually used to work in fabrication myself. Now let's say they have a special new account open. It's kind of odd sized and shaped stuff, got a load or two per month going to Houston, TX. Pal, you might think you are the biggest hotshot the transportation industry has ever seen, but as a broker you simply can't match my service on this type of shipment. I can insure them a perfectly secured load and rainproof tarp job every time. You're team of 6 dimwits making $7k/yr answering phones got nothing to offer this guy. You may be able to bid it a little cheaper, but even that I doubt.

In the end, somebody has to haul the load. I already meet Landstar's standards, and so do 95% of other owner-operator's out there. My standards are higher than yours, not lower. Sure there are instances when a shipper may have needs I can't meet that you can, that's fine. I haven't argued against that. But you and rollin' are really getting on my bad side here when you insist it's the brokers who are the REAL professionals, and we need them to hold our hands like a lawyer in court, O/O's can only screw things up, blah, blah, blah. It's absolutely absurd, every load I haul is my number one priority. You simply can't match the level of service I offer a customer, you likely rarely if ever even see a load.

 

Settle down Sally. No one ever said brokers were the real professionals or that I hold O/O's hands. Get your super trucker feelings off your sleeve. There's no need for your name calling and unprofessional demeanor. And yes, I can handle them just fine, because I'm not incompetent and take pride in doing the job right. Good try though.

 

:smt068:smt065



All that is missing is a beer and this is better than watching some action movie in 3D at the house.


Hey Danny, I heard OZR say you smelled funny. :smt064

 

Like manure he did.

 

Let's use your example, and now let's say they have 5 loads a week going, you, as an O/O can't handle that, so now what?

 

And after page 3 as usual this turns into a pissing match between an agent and a carrier. It's simple really. Understand that no matter WHAT everyone is gonna get sued if you run into a school bus loaded with kids. and guess what?! They are gonna hit the organization with the most amount of money. There is always a chance that something like this could happen. LSAgent or whatever your name is, your always promoting Lanstar and how great they are. Guess what? Your rates SUCK, at least the ones listed for us free roaming carriers. So quit acting like your stuff don't stink. Hauling direct is NOT always the way to go. A lot of times I can get a better rate out of a broker than you can a direct shipper. Wanna know why? Because the shipper thinks you are gonna run for free!!! Or next to it. Guys think that just because they deal direct that they are gonna cut out the middle man and make an extra 30-40%. Don't you think the shipper's know this? So they will cut the rate and put more in their pocket. DUH!!!!!

 

Oh yeah. And BTW. Most farms have their own brokerage. So even if you cut the middle man out of the load. Your still gonna get hit with the brokerage fee. So odds are that broker was only maybe gonna get 50-100 bucks off the load to begin with. So to think your gonna put 30% more in your pocket is just ridiculous.

 

To move freight or in your case, produce, you need 2 things, a truck and someone to drive them. Brokers do not have either. What you need to do is the same thing brokers do. Look for trucks and drivers. I am guessing you need reefer vans. So start looking for them. Start by driving around in your area and when you see one, make a note of the compay and give them a call. If you make enough calls, you will find companies that need loads. Not all companies go to all places. Usually each has some place that they want or need to go to. Take the best from each company you can find and leave the rest. You are better off paying the company driver or O/O the same price that you would have paid the broker and guess what, you will have super service and at no additional cost. You might even save some money down the line, but it takes time to develop a carrier base. Just start looking. By posting here, you have already started the process. Good luck. I am a shipper also.

 

My example was 1 or 2 loads per month. IF they wind up with more shipments I have several options.

The first being to continue to haul my 2 loads per month as spelled out in my contract and do nothing about the other loads.

Secondly, I can recommend them to other carriers who I have a good working relationship to handle the increased capacity. I'm talking about carriers I have worked for or with in the past who I can personally vouch for.

Thirdly, I could add a truck or two and drivers. I have two drivers right now who would be excellent if I thought the time was right to expand.

Lastly, I could become a broker myself. I don't like this option because in the end a carrier has 100% control of the trucks they own, a broker may claim to have a large pool of carriers to draw from, but how much control do they really have ? If I'm a broker and I wind up with excess shipments what choice do I have but to post it on a loadboard and hope someone comes through ? What kind of service is that ?

You guys seem to think that once a broker steps in all shipments are covered and everything is hunky-dory. It doesn't work that way, and you are selling yourselves short as carriers by buying into this logic.

Look, in a good broker/carrier situation. Like, say I have a broker who can consistently get me loads paying above average from Laredo - Oklahoma City. This guy really knows his customer, he gives me all the info I need to get this done. Well, for someone like that, sure I will give them "some" control of my truck. I will make an effort to be there as often as possible to haul their loads and I might even haul a few crappy loads for them as a favor, etc... But even in that situation, which is rare, that broker only has a little actual control of my truck.

In a situation where a broker is offering subpar rates, well, they actually have 0 control of any trucks.

You really can't compare having 100% control of 1 truck to having 5% control of 100 trucks. And the O/O always holds the trump card of being able to become a broker fairly quickly and easily. Much easier than it is for a broker to start up a trucking company.