hey brokers, has elogs changed business/rates etc?

Yes, contract rates are a two-edged sword, for sure. The guy I used to work for depends on annual contract rates on the lane he runs.

He has 150 trucks on his fleet and it gives him peace of mind knowing that (at least for that year) he's going to be able to have some measure of stability, etc.

The only out he really has to cover increases are in fuel, he uses the national fsc average. If the average goes up a certain percentage, the rate increases accordingly.

Half of his fleet is comprised of lease operators. Those are the guys I feel kind of bad for because they are stuck getting the same percentage of that contract rate, when I'm averaging at least $1,500 (sometimes more) per the same lane round-trip right now.

Even when the rates were more stable, I was still getting more on the spot market than they get on the contract rate. However, that's a whole different subject.

 

[/QUOTE]
It's because for most of them (not all) their loyalty is to the shipper/customer paying for the load.

This is why, warranted or not, brokers have such a sleazy reputation among owner operators.

 

I know of a couple of these young super trucker kids in their 20's with customized tricked out rides that run 5000 miles a week alone, They have to to maintain their "lifestyles"...what with a $5,000.00/month truck and trailer payment, insurance, a new $80k dollar F-350 that they don't get to drive, a camper, boat....so on and so on. Go ahead...do it while ya can son. See where that gets you.

 

It's because for most of them (not all) their loyalty is to the shipper/customer paying for the load.

[/QUOTE]This is why, warranted or not, brokers have such a sleazy reputation among owner operators.[/QUOTE]






You're just speaking what isn't already known brother.

 

Speaking of FSC, have you guys noticed that most brokers don't include the % of FSC in the rate confirmation? They just include it as part of the flat rate.

Fuel can go up significantly in a given market (think California) and yet the flat rate offer from these guys will remain the same.

 

This is why, warranted or not, brokers have such a sleazy reputation among owner operators.[/QUOTE]
You're just speaking what isn't already known brother.[/QUOTE]

I was also involved in real estate sales as a builder/broker for years. Do you know that in real estate contract law, if the broker/agent is representing both the seller & the buyer, the broker/agent(s) first obligation of representation is to the seller?

Not only that, the broker/agent must disclose that in writing with acknowledgement signatures from both the seller & buyer.

 

I most certainly HAVE noticed that point Scooter Jones, and I brought that up to this new brokerage that I am "testing out" so to speak in the dry van/freight world for the winter season. Her answer to my very same question; "oh honey, the FSC is built into the rate, that's why it pays so much..." I've had small in-mouth vomit incidents a few times since I hooked up with these jokers a month ago over their come backs. They must have a more expensive crystal ball than I do evidently to know that.

 

You're just speaking what isn't already known brother.[/QUOTE]

I was also involved in real estate sales as a builder/broker for years. Do you know that in real estate contract law, if the broker/agent is representing both the seller & the buyer, the broker/agent(s) first obligation of representation is to the seller?

Not only that, the broker/agent must disclose that in writing with acknowledgement signatures from both the seller & buyer.[/QUOTE]






I did know that, yes. I sold my own home 3 years ago and had 2 realtors trying to win my trust to let them have the listing, but I refused and sold it myself and saved a ton in commissions. And I use that same rule of law in my thoughts about what you just said...the arrangement between seller (shipper) and buyer (broker) and it makes me shake my head.

 

It's disgusting. I receive a weekly email offering from a lumber (mostly) brokerage house. I live in Oregon and trucking companies have been subsidizing the lumber industry forever around here with these so-called "back-haul" rates to CA/AZ, etc.

I want to puke when I see some of these rate offerings. I won't do it. I've found ways around having to take it. However, the guys (companies) that do take it piss me off just as much as the brokers/buyers/sellers to be honest with you.

Their rates are just the same as they have been for years. Yet, the costs of operations have soared in so many areas.

 

Guys, there is no fuel surcharge per se paid on brokered freight. No-one is screwing you on anything. The rate is all inclusive. If fuel has spiked or gotten cheaper the rates you're negotiating should be taking that into account. They're ad hoc excess loads. You agree on the spot with the price. Your fuel surcharge is in that quote. Think about it., Spot freight, random versus contract. Which needs the protection of a fuel surcharge and which already has that protection built in on the spot?