How to get direct shippers, cutting out the (Thieves, this is my opinion), brokers

How do I find the rate index to charge shippers?

 

You'll have to pay a website for access to get that information, and it varies from state to state, what state you're shipping to, and in some cases the season. A lot of the rates that show on those sites are the 'cheap' rates anyway. I know this from doing my research for starting my own brokerage, which is still in the planning stages. I felt like I was looking for state secrets trying to find freight rates! You can go through the headache of getting quotes for some of the sites for free, but you'd have to do it state by state. Too much work and hassle as far as I was concerned. I paid, got what I wanted, cancelled the subscription, and added onto the rates I got from the site because they were too low.

 

reviving this old thread.

so what do you do when you find a shipper looking for direct trrucks.

i picked up a load this past week. told me if i'm in the neighborhood they've got wood to haul and to just call them. they prefer to not deal with brokers.

does that mean they haven't paid there bills with the brokers or are they looking to haul cheaper then going through the broker and hopefully the truck actually makes a little more by not having the brokers cut.

you all talked about mom and pop outfits. this is a lumber mill company. don't know how big they are im the midwest or if it's just one company.

the companay i work for just reregistered for 48 states. so this is the first time going farther then colorado.

i'm still company but planning to be o/o. with the possiblity of looking for direct customers.

is there a websight possibly to be used for checking out the companies credit worthiness? or is that a chance you take?

 

When you find a shipper who wants to deal direct you talk with them, discuss their needs and see if there might be a fit for what you have to offer. I am finding more shippers who prefer to deal direct. They have found that some brokers are taking a much larger share of the rate than they feel is fair. They also think that they can get a lower rate by dealing with the carrier direct than going through a broker. There could be some payment issues, but most of it has to do with profitability. If you want to know something about whether the company is a mom and pop or major corporation, the easiest way to find out is to ask them.

You state you want to become an owner operator, but it sounds more like you want to get your own authority. An owner operator usually leases to a carrier. When you have your own authority you are a carrier. Some who have a single truck operation still consider themselves an owner operator, even though they have authority. There are several credit checking services. I don't do business with anyone whom I don't check their credit first. You are asking for problems if you extend credit without checking them out. That is why some whine about not getting paid, but when you dig a little, you find that they didn't do their homework on the broker or shipper before taking the load. It is these whiners who want broker bonds to be raised to $100,000 from $10,000. It is merely a way to eliminate or restrict competition. I would just as soon see broker bonds stop. We don't need them as long as you check credit.

 

Yeah I agree well said. I do not have my own authority & have no plans to go that route. at least at the present time. I do see the experienced broker having an advantage over a 1 man operation. the experienced broker know's all the right things to say, how to sound like YOU ( the shipper need his service) the shipper realizes, hey this guy has access to 20-50 trucks at any given time, ready to go & can get the product moved at a reasonable price. Now if an o/o walks in looking like a stereotypical truck driver, he could just plain give a bad impression, not to mention the fact, the shipper know's depending on 1 person can be risky. truck breaks down, all sorts of reasons why the o/o cannot make the pick up or the delivery on time. no shipper wants their customer to have any problems with the delivery on their product. a broker, if used & sends a truck & that truck does not make it, the broker can immd dispatch another to do the job, but if the o/o fails, then the co has to do it themselves, by calling a broker, which they wished they would of done to begin with. most folks in my area with their own authority got started by leasing on to a co, getting to know the shippers, loaders & making a good impression for several months & then offering to run anything the shipper has, anytime, anywhere.

 

yep, i'm looking to get my own authority.

i picked up this load. they come out and take pics. and just said if i'm in the neighborhood a lot. to call them direct. didn't ask if i owned my truck or worked for the company. just that they don't want to deal with brokers.

like i stated above. this company was strictly 11 western. now we're 49 states. i guess dc is there own state.

 

Just had a broker take 68 days to pay when their own paperwork states 30-45 days. Many phone calls(remained polite, even though they were not) later & check arrived today.

The question I have is how do you find out the credit & background dirt on brokers & those who want to ship direct. I deal with both & usually only find limited info.

 

I would say thats best cased scenario, and your ultimate goal. If theyre happy with your work, and who's to say the broker hasnt lied to them and let them down in the past.

Name your price, and never look back.