Going behind broker's back?

Business is a cutthroat thing.. Just make sure you are on solid footing before you do anything.. Might want to join ooida and ask them for advice on this.. You might be ok since you didn't solicit him but it is like walking a tight rope..

 

Very well put and would be good idea to adhere to.

 

Found myself in a somewhat similar situation, not exactly but almost. Decided to not touch it with a forty foot pole. If the broker is fair and the rates are good you'd be well advised to do the same thing. Saw some really bad advice given that would likely have the broker seeing red. At most you might mention to him what the customer is doing behind his back, that you value the relationship with him and was not interested In stealing the business. It puts the broker on notice that he better be shaping up cause his customer is shopping. You have to wonder if you even want to do business direct with a customer like that. Likely the safest bet is minding your own business. Don't think for a second you could get away with it. You just never know what sorts of ordinary contacts inside that business feed information to the broker without their boss in the shipping office ever being the wiser.

 

This is a cut throat business and its only getting worse. You said you're hauling for a broker that you were previously hauling for under someone else's authority. Did you talk to them about taking their loads away from them? Yes, relationships are important but don't think for a minute that if a broker thinks he can get dependability out of another carrier and save himself another 5%, you'll be out with yesterday's laundry. This is a commoditized industry. Yes, your word is your bond but not in a business context. Your contract is your bond. And its only as good as one party has the money to defend it.

I would not say a word to the broker. Yes, he might think your a stand up guy but more than likely, he'll think you're an idiot that will sooner or later snake a customer from him. That sets the playing rules in how he'll think of the relationship going forward. Like going to a doctor and saying "hey I've got this friend who...". The doctor won't believe its not you and neither will the broker. He'll just think you're nervous about being caught and said something. If he knows you are new, he'll think once you get some experience under your authority, you'll take his customer. Even if he doesn't, it will forever change your relationship.

You are a free agent and you cannot solicit the customer away from the broker. That's what the non-solicitation clauses are for. If the customer solicits you, that's a different story as the nature of the contract is to protect the relationship of the intermediary (the broker). It cannot however preclude free trade or anti-trust laws that prevent you from being able to conduct business. Most courts will not enforce an agreement that hinders your ability to do business. Again, it boils down to who solicited who and most brokers know that if they pull a customer into court, that's bad for business.

I'm the chief operating officer of a national company. I also own a trucking business. I routinely get calls at the national company from the brokers my trucking company hauls for when we do not have loads and when I tell them we have a dedicated carrier (although I don't tell them I own it), they will look up the MC, tell me what a great record they have and that its one of their carriers too. Then they'll go into their sales pitch and do everything they can to steal away the business. Ya, relationships are important but don't be fooled into thinking their solid. Just remember when you hear it... 'its just business'.

Good luck with your decision. Don't burn any bridges but don't close any doors either.

 

Everyone scared of the broker? You don't work for the broker. You are an independant truck driver and a business man the broker is just in the way of helping them selfs to money you could be getting. CHR burned me and I never hauled anything for them again.

The only thing about hauling direct for a shipper is its kind of like working for them. Your going to be asked when to haul, told what its going to pay, and where it is going.
I guess the nice thing about working for brokers is you can do what you want, when you want, and work the price a little too.
But me if I found a good deal the last thing I would be thinking about is what trouble the broker might have, screw them.

 

I don't think that it is a matter of being afraid of the broker, but getting in a lawsuit. It is a fine line as to who solicited whom when it comes to the shipper pursuing a relationship with a carrier that first was sent to them by a broker. Many shippers would prefer doing business with carriers direct rather than having to deal with a broker. I have been in that situation on a number of occasions. Sometimes, it is a matter of perception. At one time business was conducted with only a handshake. It is a shame that things are no longer that way.

Whether you like dealing with brokers or not, they do provide a service and do deserve compensation for their efforts. If you don't want to deal with brokers then you need to either hire a salesman to find loads for your business or make direct calls yourself. Brokers are salesmen. Salesmen don't work for free. Unless you are a good negotiator you could actually haul at a lower rate dealing direct with a shipper than if you dealt with the broker. Another consideration is the pay. Most brokers offer some sort of quick pay where they pay within a couple of days with a discount on the rate. It is common for many businesses to offer a 1-2% discount for early payment. Normal business terms are 30 days. When you deal direct with most shippers you can expect to wait at least 30-45 days to be paid. A company that I was once involved had receivables that stretched as long as 120 days with one customer. He always paid his bills, but in 120 days. We cut him off due to the long time for collections. You can factor your receivables, but that is also a cost. Some brokers do take a much higher percentage than I would consider ethical, but that is business and often it is a matter of how good of a negotiator you are and how well you value your time and effort.

 

Just my two cents. Don't say a word to the broker. Even if you never take a load from this shipper the broker may be hesistant to give you any new business he gets for fear you're going to go behind his back. Another thing - don't think for one second if the shoe was on the other foot and the broker somehow got wind that you had a sweetheart deal back from NJ to Ont that they wouldn't be all over trying to get that business for themselves. Just saying.

 

Call another broker, make him a deal. Tell him you have a customer (do not tell him you have a no compete). Tell him you will do all the scheduling but need to run checks through him. Tell him he can keep 5% of the pay then send you the other 95%. Get a rate confirmation before you pick up the load specifying that you want to be paid within 72 hours of him getting paid.

 

I believe Rollin Coal stated "don't touch it with a forty-foot pole" he's exactly right! This is your first load with this Broker; and he's your go-to mas for decent freight don't burn that bridge, and get on someones "black-list". Being a Broker myself; I can tell you that there is a NON-COMPETE CLAUSE, in your contract. Or there better be; if the broker is smart.

Also; you stated that the "customer" is having trouble moving his Maryland freight, gee I wonder why? Customer's aren't dumb they fish all the time for drivers..The best advice to give is stay neutral for now, untill the customer cancel's the contract. The work will come back to you eventually. Oh yeah his Maryland freight, no-ones taking it because he want's a contract freight rate, and the East coast rates "Flex" quite a bit..What I telling you, is I bet he doesnt have any money on his Maryland freight(inbound).

In the end it's just Business. However; you reputation is as strong as your carrier rating!