Contracts with Shippers vs. Loadboards?

Discussion in 'Ask An Owner Operator' started by trucking.shine, Apr 25, 2018.

  1. Ruthless

    Ruthless Road Train Member

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    Nope. Live loaded myself yesterday, everything is live unload, d&h preloads.....


    I drop n hook a lot I spose, for a solo OO: but it's usually swapping out for a empty wagon to go run something else
    I do 99% open deck so I'm still tying down even if it's a drop trailer. N at my biggest drop trailer customer I live load myself.... unique situation... their yard guy ####ed up one of my brand new units last year so I made the deal that I get keys & access 24/7 to their forklifts n I'll load my own loads rather than them buying me a new deck.
     
    nightgunner Thanks this.
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  3. 8thnote

    8thnote Road Train Member

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    This is the correct answer.

    Right now you can do significantly better on the spot market. Those high rates come with all of the headaches associated with brokers and broker freight though.

    Our direct customers (right now anyway) are paying 15-20% below what we could get from a broker on similar lanes. But those rates, which are lower now, may be looking great in a years time. Also I can pick up the phone and talk directly to the warehouse manager (who knows me by name) if any issues arise with loading or unloading one of my trucks.

    In the long run, the consistency of direct freight will beat the volatility of the spot market every time. That's not to say that I won't run broker freight on my trucks when the market is hot. I just wouldn't want to solely rely on brokers to keep the business in the black.
     
    Last edited: May 3, 2018
  4. Ruthless

    Ruthless Road Train Member

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    I had a manufacturer called me today, that is local to me at one of their branches. I know about them and I have been unimpressed up until recently, when a local fellow showed me the rate sheet, which showed in town flatbed or dryvan at $600 on 10 to 15 mile loads. That did have me thinking for a minute LOL


    They sent me over there carrier set up, and I sent a reply back that I had no interest in hauling anything for them because the options that they offered for payment was full rate at 60 days vs quickpay options @7%. As well as a pathetically low accessorial rates, to the tune of no detention for delivery appointments between 10 AM and 2 PM, and detention is $25 an hour after 2 otherwise, stop pay was similar, tonu is $50 etc

    #### that, so I told them as much. I got a phone call and email immediately from some lady that is a higher up, saying that they would change whatever I needed to have changed as far as payment scheduling and rates. Which shows that they are desperate, but if you start the negotiation with such ######## i'm really not that interested, as well as the fact that I told them my next available day was 10 days out currently.



    Forgot to come to my point-
    Whether brokered or direct, if negotiations begin with one party offering "I don't think you're worthy of a professional relationship" attitude or offered compensation: chances are they will continue on with that method and have any relationship with them cost you in the end.
     
    Last edited: May 3, 2018
  5. trucking.shine

    trucking.shine Light Load Member

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    Yes, I think you're right. In the end, a mix of both is the right way to go to balance the risk. We must keep working on finding some Direct Contracts, and find the best way to Navigate within the Spot Market to maximize the opportunities there.
     
  6. SteveScott

    SteveScott Road Train Member

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    That's the attitude any good salesman MUST have to stay on top of his game. You need to set some ground rules going into any agreement, and if one side starts off low balling you just to see if they can get away with it, you realize pretty fast the type of people you're dealing with. The only thing I would have done differently is to not write them off so quickly after they came back with a counter offer. YOU had the leverage at that point, and it's your turn to see what you can get out of them once they realize you're the best person for the job and you don't dick around.
     
  7. Ruthless

    Ruthless Road Train Member

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    Correct- and if I didn't have more regular work than I can handle that I'm turning down for lack of hours in the day/wheels on the ground, I'd do just that.
    Not a whole lot that I enjoy more than when someone pretends to have the upper hand n I have the time to show them what's what.


    I enjoy doing business with people whose personality's I like, and I enjoy being around and dealing with. People that called me up out of the blue and try to lowball me are not on that list.
     
    gsxrtime, SteveScott and whoopNride Thank this.
  8. ncwtransports

    ncwtransports Bobtail Member

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    I was wondering if you would be able to share this same knowledge with me as well
     
  9. Commander1

    Commander1 Light Load Member

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    That’s foolish thinking. You don’t turn your back on a good direct customer when the grass looks greener on the other side. Once that green grass goes back to being dormant do you really think that customer is going to want to work with you again?
     
    Ruthless Thanks this.
  10. 1nicevette

    1nicevette Medium Load Member

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    Commander1 is correct you have to run for a little less with the direct customer but it will pay off when sport rates nose dive
     
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