Will O/Os work direct with big company shippers?

OK, this is something I could be interested in the future. I already have a bunch of dedicated contracts setup with major companies and dedicated crews running the trucks for those customers.

My first question is who are you? put a company behind the post.

And part of that question is this - what is a big shipper?

Second you do know that even though you want to cut out the middle man, as part of negotiations with you will require a disclosure of your present AP to these brokers. This is normal, there is a need to gauge your needs to build an offer to ship your product, NO ONE should ever go by just telling them you need this shipped here or there, but by what business your doing with the brokers.

Third and more importantly is even if you want to cut out the middle man, the rates you will pay to me won't be a huge difference but they will be stable within the life of the contract. And there is a variable involved to cover fuel expenses in the form of FSC, which a lot of logistics people seem to "forget" when they are soliciting for solution providers. They act shocked when you hand them the FSC chart.

Fourth is remember that you are dealing with small fleets/O-O, and they have to be flexible. You can't contract with them and expect them to sit and wait for downtime issues to be solved. Brokers tap into a pool of many carriers to get the job done, where as the small fleet owners and O/O can't be that flexible and/or absorb the costs of downtime. If you expect your product to move at X and the O/O has to pay the bills and can't make X, then that's an issue for you, not them. A broker who has a carrier that can't get to pick up your product at X, he/she can always find another who can.

 

Brokers make at least 20%. So, if you are up front about the rate you are looking for, you can save 10% working directly with a carrier. It would depend on the City pair you are looking to serve. How many loads per week?

 

I am a OO and I have about 5 direct shippers.
Large shipping companies that use large fleets like Western Express, JB Hunt. Are use to getting bottom dollar freight prices from drivers that are paid 44 cents per mile.

Large production of products most of the time has poor freight rates. Lumber, shingles, bags on pallets(mulch), OO don't want shippers like that.

I work with small to medium size businesses that pay me $4.00-$7.00 per mile. Understand now diesel is over $3.00 plus per gallon