Looking for perspective in regards to making contract addendums, specifically on rate confirmations, from the broker's side of the table.
A standard ratecon (rc) is pretty cut and dried. Point a at this time, point b at that time, here's what we'll pay you.
When all goes well, the rc is fine. However, we all know that things happen.
When i receive an rc, i see plenty of carrier musts and fines to the carrier. What I don't see is a list of fines to the shipper and receiver.
From the broker's perspective, would you be offended by a carrier that had a stamp on the rc listing fees and fines? For instance, detention pay after 2 hours, layover fees, extra weight/stops, etc.
I look at it as a clearly defined cya list for both sides. Would you brokers feel the same way? What would you recommend for clear coverage of the mishaps that do happen. I realize neither of us are responsible for the actions of the shipper/receiver, so how do we work together to cover the contingencies in a manner that reduces headache for both of us?
Contract addendums
Discussion in 'Freight Broker Forum' started by Michael H, Nov 25, 2017.
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Your suggestion implies that the playing field is even between shipper/receiver, broker and carrier. It isn't. As long as carriers are disposable, the power to negotiate will always rest with the broker/customer. Until then it is "offensive" to attempt to do so.
TallJoe Thanks this. -
I'm over the b.s. on rc's. I try to do the same loads as much as possible. The brokers that want me to do their trash loads get a quote that makes them pay the detention up front. The last b.s. load I took from coyote had $450 of detention priced in.
Carriers are starting to have some power. You want my truck we play and pay by my rules.whoopNride, nightgunner and freightwipper Thank this. -
Never take a brokers word that a customer pays detention. Get it spelled out on the RC. If the customer DOES pay detention the broker won't have a problem putting it on the RC (I wouldn't on my big building materials account). If the broker won't put it on the rate confirmation give an all in price that is high enough that you can live with it even with delays.
There IS a reason why produce loads pay what they pay. It's because they have a well deserved reputation for taking a long time to load/unload and they don't pay detention. It's unethical for a truck to take a substantially above market rate that comes with the 'no detention' tag and then threaten to bail on the load at 4pm when he's been waiting 5 hours if he doesn't get detention. In that situation I'm probably paying you the money... And never giving you another load again. You only get to screw me once. But you're losing your load at 4pm for your stupid bluff if I or the customer have an extra truck.
The above situation happens once a week during produce season. This year they mostly got away with it. In 2015/2016 they mostly got told to leave before the customer called the cops. How hard trucks are to come by is a huge part of it for sure. Let's be clear I'm not talking about people who asked for detention (if I fired all of them I'd be down a lot of trucks) but people who get a lot more aggressive and start making threats.TallJoe Thanks this. -
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jbatmick, BoostedTeg, nightgunner and 1 other person Thank this.
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tlalokay and whoopNride Thank this.
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PPDCT and BoostedTeg Thank this.
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If I find one worthwhile I will be more than happy to sing their praises. -
You really don't have anyone you're working with who just usually has decent freight in your lanes that you take all the time?
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