I am a Freight Broker at TQL - looking for conversation and dialogue

This is actually something I'm very familiar with. Short answer: that's exactly what happens. I take every load we have and quote it to three 3PL's, depending upon whether they specialize in TL, LTL, so on, and then I pick which 3PL I'm going with. Typically this process begins at around 10am and is done by 3pm, but occasionally it runs a little longer to cover areas like Texas, where it's miserable finding rates anywhere near our desired freight spend %. Often times, I end up holding shipments longer to consolidate for TL's, which seems to make everyone happier. Also, if it's a grocery warehouse/difficult customer, I will often times already know who I'm using and just use my other quotes as a figure to then leverage a negotiation on the carrier I want.

Often times, I do find that some 3PL's come back with high rates and say their drivers won't budge, but the ones worth keeping are firm and say, "I'm not going to ask my driver to take that price. You go with the other guy, and let me know if you need to me to save your ###."

 

And how often do you find that a higher price = higher quality carrier?

And about the saving up to consolidate into one truckload, do you find that to be more cost effective and easier to move than trying to ship out a bunch of partials? If you ship a lot of partials going to customers relatively close to one another, you might think about calling an LTL carrier like Old Dominion or R&L Carriers. But I'm not sure if you can ship reefer loads with those guys.

Thanks for the reply!

 

Not always, but I find that certain difficult customers end up costing me less when I pay more upfront. There's a number of lanes that don't need that sort of attention, but if it's a customer that I know will require an after-hour delivery or hold them for a long time, I'd rather work with the driver directly than an LTL. Also, in the summer, when humidity is high, i'll pay a little extra to ensure that something is being loaded once and unloaded for delivery, rather than bumped around terminals. It's just not worth it with the structural integrity of the boxes already jeopardized by the weather.

On the other hand, there are those 3PL's that give me outrageously high prices and are never worth the money. I won't name any names, but many on these forums already have named them.

 

Let me guess...the same ones who have a hard time finding carriers because they pay them so cheaply. And then make excuses why they can't find a truck and so they need more money...or had a carrier pull off the load, so now they need more money to cover it again quickly.

 

Actually, they give me a high price and typically stick to it. While I know that it's not cheap to run a TL from Los Angeles to Algona, WA, a quote of $3500 for 13 Pallets... not a great price. Or a quote from Los Angeles to Spokane Valley, WA for $4000 for 3 pallets, which is absurd.... but the 3PL was just going to have us hire a second TL rather than consolidate the two.

 

That's because that 3PL isn't really a 3PL. They are a brokerage. A 3PL is customer oriented and works with your needs in mind first and foremost. A brokerage is there to make as much as they can off of you.

If those 13 pallets or 3 pallets don't need to absolutely be there in 2-3 days, then find other options. It's not hard for a carrier to take a couple of partials up there but the extra time involved needs to make up for that in price. But there's no reason for your "3PL" to make $1,000-$1,500 commission on 3 pallets.

 

Couldn't agree with you more. I currently have a serious 3PL analyzing my freight spend to find a good arrangement for LTL, but for the time being, they're brutal. Actually, at this moment, I'm having a carrier quote out some TL for me to Florida that is coming at $3k for 13 pallets from VA... everyone just wants a quick payday.

 

Yeah...more and more often carriers are looking for "the desperate load". That's where they make their money.

It's also difficult to find a good reliable carrier to have ongoing relations with. For shippers as well as brokers/3PLs alike. Might send out an email to 100 carriers and might get a couple of call backs if they aren't booked already.

I wish carriers knew the potential value in partials. I know there are a couple of members on this site who do advocate the value in partials. But the average driver wants 1 pick, 1 drop. It just makes the job that much easier.

And yeah Florida is so cheap right now that you almost have to go in at $4/mi+ because freight coming out of there doesn't pay much more than $1/mi, if that.

I am under the assumption that you are a shipper, correct?

 

That is correct. I handle all freight for my company, so I'm managing everything from our small parcel accounts to our freight bill audit.

As far as Florida, I think may be stuck paying the high price, because I'd rather a happy customer and a happy driver. Hopefully, the savings elsewhere can somehow cancel it out.

 

Ha I'm a broker and this is hilarious. Good for you brother