Need some advice here. Just starting out on my own, on my first load today.
Picked up a load, got it through a broker, and when I got to the shipper we got to talking about how many loads are going out and what next week looks like. Shipper told me the broker I am getting this load from only handles his freight that goes to 2 customers. He said he has another customer in another state that he finds his own trucks for.
Question: If he hired me directly, could broker say anything? If the shipper calls me and wants to hire me directly, does that violate their terms and essentially put me on a black list for this broker?
Note: Broker I am talking about also has loads (steady) for me through the winter. The pay is good even through the broker (2.81 per mile on 690 total miles). If the broker calls me up and asks what I am doing, should I just flat out lie? How would he ever find out even if shipper hired me direct?
Is there a way to keep everyone happy?
Need some advice from experienced independent owner ops. Thank you
Going behind broker's back?
Discussion in 'Freight Broker Forum' started by gokiddogo, Aug 25, 2012.
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i had a lumber company last year tell me if i'm ever in the neighborhood. to call them. they wanted to get rid of the broker.
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Read the broker agreement that you signed, along with the rate confirmation that you signed. Either or both will (or should) have a clause that will answer your question. You DID read those contracts, right?
LSAgentOZR Thanks this. -
The thing is I do not want to start off on the wrong foot with this broker. They will be one of my go-to brokers come November when the winter time starts. The shipper made it quite obvious that he was unhappy with the service the broker was providing. Apparently they were sending people who can't speak english to come pick up the loads, showing up with dirty inside reefer, and arriving at delivery late. He was angry with them to put it lightly. He was also glad to see me show up in a professional manner, and turns out the place is only 35 miles or so from the house. How does broker ever find out to accuse you of back-soliciting anyway? Appreciate the input.
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Well if you will read very closely the agreement you signed with your broker.
I am almost sure you will see A No Competition Clause in the agreement that says.
After signing this agreement you agree not to do business with said shipper without them.
In most agreements,
first you have to cancel with your broker.
and then you still can,t do business with them for up to and including 3 or could be up to 5 years or more after you cancel.
or he is allowed by the agreement to sue you for damages or lost revenue.
Now personally I have never heard or read about a case where a broker ever did this.
They would have to spend a lot of money to pursue a case like that
and you would have to be big enough to have someting to sue for or would not be worth the money or time.
I had the same thing happen to me once when i was a dispatcher with a company in my younger years,
and i decided to continue to use the broker so I would not risk breaching the contract.
However i did use the information from the shipper to gain a better rate from my broker cause I had inside info on the rates and loads and there is nothing they can do about that. Just don't tell them what you know or how you got it. and I don't think there's any thing wrong with that..They are still getting paid and so are you.gokiddogo and keepntruckin Thank this. -
***The following is according to the shipper***
1. He told me this broker finds trucks to haul the loads to 2 receivers in NJ. For their other freight, in MD, he finds his own trucks.
2. If I say ok, I will haul your NJ loads through broker, and get your MD from you direct, would I still be liable for them to come after me for the 8%? Shipper also said to me he has another local trucking outfit that comes in to do his MD loads. -
If he is going to be your go-to broker, it might be worth it to bring this up to him, and tell him, hey look, the shipper came to me and we started talking, he brought this this and this up, I am interested in working with him, but I don't want to go behind your back as I value your business as well, how do you want to handle this?
Give it back to him, frame it as a problem that you both have, and how you both can be part of the solution, essentially, the broker can make the customer happy by having you be the primary carrier of record, he keeps the business, you get your rate that you are happy with, and you keep the broker happy so he can help you out when you get to bad areas or other areas of the country...gokiddogo, NavigatorWife, jbatmick and 3 others Thank this. -
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Here's another question:
If in the future the shipper fires the broker, does that mean I can go direct? I think next season this shipper will be re-evaluating who he hires to haul the loads.
I should add that I have no interest at this point in being in the broker business. I am a one truck show, and will perhaps size up my situation when this operation gets running along smoothly over the next 2-3 years. See how it goes.
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