Dispatch vs. Brokerage: Do you rely solely on brokers to keep you loaded?

Gman, why are you saying that they are doing what a shipper should be doing? Why does it matter if a shipping manager is employed by XYZ Corp or Mega 3PL? If done right, that shipping manager that is employed by the 3PL is going t have significantly more resources at their disposal.

It seems that we are talking about two different beasts. You sound like you are describing a broker that has sold a shipper a bill of goods. And I have seen and know exactly the type companies you are talking about.

When the industry looks at 3PL's, they are thinking about companies that are providing services that are far reaching. Most of the 3PL's we work with we are billing the shipper direct. If I book it for $10, I bill $10. The shipper is writing a check separately for the work that the 3PL is performing. And if they didn't right the check to the 3PL they would be cutting a check for payroll to an employee(s) and vendors.

Guess one of the reason I like the 3PL model that I work with is that I would need 3-4 additional sales people to bid on the volume of freight that we are seeing. And 90% is going to be direct. If they have a finger in the pie then more power to them. Because we are seeing better rates than almost all broker freight and it is on par or above industry contract rates.

 

I run the same lane. I deal with 2 brokers, and that's if I deal with them at all. I run direct for a buyer/shipper. I've used sub haulers at times to help them out, and take $50 off the load for paperwork reasons/hassle. I have a good network of guys in my lane that we all have each others back, and help one another when needed. The lane coming out of the Northwest back into California is a tough one to get into. It's kinda ran by O/O. Brokers try and post loads onto loadboards, but by the time they rip 30% of the top, it's not worth running. The brokers I deal with mostly move freight north, but not south because they can't give O/O a good rate, what shows there one of the few good ones. But freight moving into California has always been cheap for the most part, but will change if the CARB regs are enforced after 2013.

 

I think some who call themselves a 3PL have sold shippers a bill of goods. That isn't to say that there are some who do provide additional services to a shipper that they find beneficial. I have spoken to some 3PLs who have cheaper rates that brokers. There are some shippers who may need additional warehousing or other services that 3PLs may provide. Whether the shipper can provide the same level of services for themselves as a 3PL can do, is debatable. I imagine that if the shipper didn't see value in the relationship that they would change the way that they do business.

We have several local warehouses that are run by 3PLs. They appear to be growing. Apparently, some shippers find value in their services. My point is that I don't think that dealing with a 3PL is necessarily in the best interests of the trucking companies. I do understand what you are saying about more easily having access to more loads over having additional salespeople. There are some 3PLs that do offer better rates than some brokers, but that isn't a guarantee. Some 3PLs would rather deal with brokers than carriers.

 

I am going to prosper or go broke. I deal with everyone when needed. I have had to hold loads for payment. Company dispatch takes care of that. I Never deliver before I clear payment first. O/O 101.

 

???? Are you saying you extend no credit?

 

ive never been paid before delivery!! how to you pull this off.

 

Only a super trucker can do it

 

perfect!!!