Risks of double brokering

Discussion in 'Freight Broker Forum' started by Ben Grinev, Dec 22, 2017.

  1. W900AOwner

    W900AOwner Medium Load Member

    Jul 2, 2014

    Sounds like yer slowly learnin' Matt, LOL....
    Mattflat362 Thanks this.
  2. boredsocial

    boredsocial Road Train Member

    Apr 13, 2014
    Louisville, KY
    E-logs really aren't much of an issue unless you were running substantially illegal (you had two logbooks and you know who you are) or your customers are bad at loading and unloading trucks.

    The biggest effect E logs are going to have is on the behavior of shippers and receivers. Since the dawn of trucking there has been an acceptance of delays by trucking companies because their drivers work 14+ hour days and have to sleep sometime so it might as well be at a consignee.

    There has been relatively little financial cost to this because most of the negative externalities have been born by drivers in the form of sleep disruption. I'm not minimizing sleep disruption, it has serious long term health implications before you get into what being exhausted your whole life does the quality of that life.

    I don't work with any shippers that regularly take a long time to load. I say this as a guy who does a ton of produce out of the great state of GA 2-3 weeks of the year. The unloading side is a much bigger question mark for 2018... I think we all know that grocery store warehouses have a lot of room for improvement.

    If they don't improve and the shippers get squeezed to hard they will be forced to pass the cost on to the grocery stores... And 2017 has already stretched them to the breaking point. The bids for all sorts of commodities grocery stores buy in bulk are being done right now as I type this all over the industry. I suspect the 'cost sharing' is about to begin and then suddenly the grocery store warehouses are going to react like a dog to an electric fence. Those grocery store executives are cost focused people.
  3. ChicagoJohn

    ChicagoJohn Road Train Member

    Jan 14, 2016
    I can give you a couple of companies that were effected by the E-logs on the tanking side. Guys were used to turning 2 Joliet - salt lake city turns a week. (6 days) no longer. I know a guy who left a company not on E-logs and now works for a company on Qualcomm and absolutely loves it. Except when I ran out of hours 45 mins from home.
    mudflap77 Thanks this.
  4. W900AOwner

    W900AOwner Medium Load Member

    Jul 2, 2014
    If this isn't a typo, I'd be all over this Wi to Ma load like flies on you-know-what, lol...

    This is a sample of what my buddy (a reefer hauler,) sent me via text message last night. He's loaded and headed to Washington state out of Maine for 2k dollars more than he was doing in 2017, and got a 9k dollar return load from Washington state back to Ma.
    These are what we used to see back in the 80's for rates...good stuff. Reason? Can't seem to find available trucks at the moment. What happened....people become afraid of a little work maybe? lol.

  5. king Q

    king Q Road Train Member

    Jul 26, 2010
    Johannesburg sa
    About 15 years ago I had a hotshot load given to me that I told the carrier calling me I could not cover but knew someone who could. I in writing stated I am not insuring and got an order as such. It was a single pallet of about 2000lbs is all I knew regarding the freight. As bad luck would have it the straight truck that collected it rolled that night. Driver slightly injured but aircraft engine worth millions written off. Turns out the guy I gave the job to brokered it out again. That's not the worst as it now comes to light I was no 3 in the line already. I only got to know this after a call by the insurance officer from DHL who were contracted by the owner of the cargo. Sent them all my paperwork and never herd about it again. That is 6 in line ,owner to DHL(1) to carrier(2) to carrier(3) to me (4)to carrier(5) to carrier(6). Thing is I turned the load away initially but it came back and I was asked to make a plan this is urgent and no one can cover it. I put 20% on the price. I bet there was someone not too happy somewhere. Also odd is that I often work directly for DHL . I have even brokered out loads from DHL back to other divisions of DHL after putting a margin on. I have pointed this out to them and they have explained the reasoning to me. Red tape in huge companies ???
    W900AOwner Thanks this.
  6. Ben Grinev

    Ben Grinev Light Load Member

    Feb 8, 2016
    I see this kind of stuff all the time, they post that rate as a dedicated run. That's probably how much you will make for the year.
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