Share what you know about dealing with brokers

As I have stated previously, I think it would be best to have brokers work directly for the carrier, much like a manufacturers rep. He could work for more than a single carrier, but all the paperwork goes through the carrier. It would force those with marginal resources or credit to find a company job or deal direct with shippers themselves. It would solve some problems and compound others. It could eliminate most of the unscrupulous brokers, but would likely find many unscrupulous carriers. Most contracts do specify that the broker is a representative of the carrier, but limits that to the collection of revenue only.

 

What do you do when they all gangup on you. For example today deisel price is $4/gal that means approx $.80 just for fuel and then add all your insurance and maintenance costs on top of it. You come out close to $1.53/mile. Today Sunteck(Mat) calles and tells me that he can pay $1/mile for any of his listed loads from the port of New Orleans(he also added that you have to have TWIC card). Conway said prety much the same thing. D & L some thing similar. See attached (Contract rate for last week shows $2.41/mile Tdays spot Market rate shows a bit $.35 more)

 

When you are offered a price for less than it costs for expenses and a reasonable profit, you walk away. Don't be afraid to deadhead to a better area. If you can't do that then you need to start charging more go to those cheap freight areas or find another route. The only way this will change is one owner at a time. A friend of mine just deadheaded from California to Tennessee due to being offered $1/mile. I did the same thing several years ago. Find some brokers or go direct to shippers to get a better rate. Consider putting LTL's together. I can usually get more than $1/mile for a LTL.

 

That's 11.1% of the total. About in line with the 10% you usually see them take.

They're going to try and take as much as they can just as you are. Sure, they don't have the expenses we do, but they're still going to do it. You were happy with the $800 rate. Otherwise, you wouldn't have agreed to haul it.

 

I had an interesting experience yesterday. I spoke with a Landstar agent and booked a couple of loads. One was going to Memphis, TX. Before the ink was dry on the rate confirmations, he called and said that it was supposed to be Memphis, TN instead of TX. The only reason that I took the second load was because of the one going to Memphis, TX. He wanted me to give him a price. Since the miles were a little more my price reflected the difference. He said that he would call in 5 minutes. He never called back. However, I did call him back. I figured that someone took the load for less. I was right. Someone took the load for $500 less. This is the real problem in this industry. It isn't the brokers. Unless you place a value on your service it isn't worth anything.

 

Glad we could help you out.

 

That is interesting. and brings up a valid question.
What the trucker makes is none of my business.
What the broker makes is none of my business.
What I pay is my business.

A 300-lb. pallet can be shipped from an electronics parts company to the local yard, whichever one, for $250. Seems fair enough. I go pick it up, or, for $50 a truck with a lift gate will bring it to my residence and drop it in the street. OK.

When I want to do that shipment, not from a parts company but an individual-to-individual shipment, Oh My Gosh the quote is inflated to $700-900 from a variety of companies and brokers. Same cities. Plus it's Yard to yard, no local straight truck expenses included in that.

I won't pay it, no way. I drove the pickup truck to the friend's location, put my own goods in the bed, and drove back. It cost a little more than $250 because of the motel but I didn't get overcharged.

For what reason is the price inflated to private persons?
Wrong brokers?
Wrong freight companies?
I'm doin it wrong? (calling by phone)
Greed?
One-time business is not worth the effort?
Something else?

I work with electrical/electronic machinery as a hobby. 100-400 LB items come and go.
I tried getting palletized equipment or parts shipped several times, always ended up having to go get it myself because of too-high quotes, even in one case trying to use the same freight co. as the commercial shipment from the surplus place the month before because I knew what that cost was (they didn't want to hear it, only wanted to talk about $750).

Never have figured this one out. I believe there is a good answer. Surely I should be able to send my friend an electric motor on a pallet for the same price as the electronic surplus company can send me a similar one. I want to ship a teletype machine to Indiana IIRC. On a pallet.. but not for a huge cost, or the guy might have to come here to Texas and get it.. More than $250 yes I imagine. But it is not 2x the distance of the other job.

 

Yes.

It's because you don't ship frequent LTL, it's going to a residential location, and requires lift gate an pallet jack. Because you don't do frequent shipments, you get no "discounts."

 

G/MAN are you un american being honest and keeping your word is a terrible way to operate in 2012 How dare you. Only kidding I applaud your post and ethics,Keep up the good work