saying NO to cheap freight

I have a few questions for those of you who have your own shippers.

Will most shippers deal with single truck operations? I see a lot of brokered freight near my house on load boards.

Is there a typical contract length you would be expected to sign?

 

Some shippers will deal with single truck operations. Many of the larger shippers have gone to third party logistics companies or brokers so that they don't have to do the work of finding trucks. They can send an email out to a couple of brokers and get loads covered when before they might need to make 20 or 30 calls to cover their loads. Smaller shippers are more likely to be willing to deal with a single truck operations, but you never know. The only way to find out for sure is to start knocking on doors. You might be surprised. I have met some shippers who don't like to deal with brokers or third party logistics companies. If they had enough trucks they might not be doing business with them.

 

capitalism has turned into corporate greed and with corporate greed we have no reedom

 

Capitalism is freedom. It's a lack of capitalism that's caused this country's headaches. Crony capitalism/facism "banks to big to fail" etc is a world away from trucking.

 

Best way to get direct freight without having to worry about covering loads when you are not in the area is to watch the load boards for loads in your area being posted by several different brokers. Start calling the brokers as if you want to book the load. Gather as much information as you can about the product without sounding like you are doing what your are doing. Withing a couple calls you should have a good idea what the product is. Do a search for that product in the town the load was posted. Call, ask for shipping and tell them you are a local carrier and was wondering if they sent emails out when loads are available and what you would have to do to get on the list.

Some times they will have a target rate. You respond with rate you will cover it for and they will accept, counter or decline.

 

You're supposed to charge for that information, Bill. Geez, before ya know it you'll have every one truck outfit taking food out of broker's baby's mouth.

 

Can anyone explain what a 3PL company is suppose to do? I know they launder errrr funnel, I mean handle billions of dollars per year, but have yet to figure out why they are needed?

I haul cars & the locators mentioned earlier are a 3PL co.
I do not know the details, but Manheim auctions hooked up with UPS Logistics a year or two ago. Just seems to complicate things as well as creating another smoke screen keeping money out of the truck owners hands.

& for what it is worth, street price(tax included) of diesel is now over $4 in Indiana. Think w/o tax for trucks to pay later is near $3.80.

 

Most of the shippers I have had ask to cover their loads also need more than I as a single Pony Op can give them....
Most want a "Single-source Provider"....That is....One phone call....As many trucks as they need.....

I could get many accounts....But then I would have to become a broker myself.......Then y'all would be talking sheyat about me as well....

 

Not to worry, we talk sheyat about you now.

 

In some cases a 3ppl is nothing more than a fancy word for a broker. A true 3pl may provide warehousing, cross docking, repacking and a number of other services that the shipper may need, but not want to do themselves. It is like a one stop shopping. They make a single phone call and let the 3pl do the rest.

In your case, the 3pl may offer facilities to store cars for s ahort time until they can be picked up. They may also offer detailing or other services. As you know, auction cars have a window in which they must be picked up. A 3pl might have a facility where the cars could be moved where they can be secure until arrangements can be made for them to be picked up by a carrier.

In many cases, these 3pl's will use the title so that they can broker the loads to other brokers and it doesn't give the appearance that they are double brokering. For instance, Menlo Logistics is a part of Conway. They have been trying to take over all of the military freight across the country. They will often broker these loads to other brokers which is the reason military freight rates have dropped so much since they became involved. It is also a reason why they have been finding it difficult to move many military loads.

It is just another finger in the pie that skims more money off the top. Shippers like them because they can make a single phone call and get everything that they need from a single truck to warehousing and repacking, etc.,

It does further complicate the business and they do take a piece of the pie for themselves. Sometimes, it is too large of a piece. I know some agents with Landstar and some other brokerage firms that regularly do business with 3pl's. They have no direct freight themselves and rely solely on the 3pl to secure freight form themselves. A 3pl actually competes with other brokers for the same business.