Freight broker stories

[rank]

I agree with the part about the shippers having some responsibility for all the low freight prices.

Take for example some machinery that Landstar moves from PA into Canada for $1.70/mile. I never accepted one of these loads (we always go home empty when it gets to that point) so I figure the shipper is fair game. I give the shipper a call to offer my trucks (called him three times actually because he wouldn't return my calls). I tell him we travel in that one particular lane 2-3 times per week and we can do for $2.25/mile. He told me, "I get guys calling me all the time offering $2/mile. You aren't even moving my needle of interest". This guy was a real jerk. Now I won't pull his junk at all.

So not all Landstar guys are getting rich on every account, but it seems some will go in and undercut.

[GMAN]

I understand that factoring costs money, but some brokers use a factor and charge more than what the factor charges.

I run another business, I had 29 employees relying on me to pay them every Friday at one point in time; routinely I have slow payers. I have had to go to the bank to get a short term loan to get my folks paid. That's the cost of doing business.

If a broker says he will pay you at a specific date or upon receipt or whatever, if the broker needs to liquidate his receivables accounts at a loss to pay you, I am sorry, but would have no sympathy for them.

Pay the man or women what they are owed when you said you would (period).
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If you are in business, you do what is necessary to take care of your suppliers or employees. If that means paying them before you get paid, then that is what you must do. It isn't the responsibility of the carrier to be a bank for the broker. It is the broker who commits to pay the carrier within a specified time frame. Remember, if the broker fails to pay you as agreed, then the shipper is fair game. If you signed an agreement to not call on his shipper, then he must keep his part of the agreement. If he fails to pay as agreed, then he breached the contract, not you. If he does, then you can call on the shipper direct because there is no longer a contract in place.

[GMAN]

I agree with the part about the shippers having some responsibility for all the low freight prices.

Take for example some machinery that Landstar moves from PA into Canada for $1.70/mile. I never accepted one of these loads (we always go home empty when it gets to that point) so I figure the shipper is fair game. I give the shipper a call to offer my trucks (called him three times actually because he wouldn't return my calls). I tell him we travel in that one particular lane 2-3 times per week and we can do for $2.25/mile. He told me, "I get guys calling me all the time offering $2/mile. You aren't even moving my needle of interest". This guy was a real jerk. Now I won't pull his junk at all.

So not all Landstar guys are getting rich on every account, but it seems some will go in and undercut.

I always try to be courteous to everyone, whether I do business with them or not. There was no need for him to be rude to you. When things pick up he will likely need to pay more because fewer trucks will be available. I never sell on price. I don't play that game. I provide a service and do it well. I pick up and deliver in a timely manner and get the product to it's destination in one piece. If you provide a better service then you should be compensated for that service.

I hope I am not repeating myself here, but there is an account in Georgia who makes tractors. The rates were not bad. Not great, but not too bad. A Landstar agent went in and cut the rates to about $1.35 including fuel. Now they have a difficult time covering the loads. I have been told that even their BCO's won't haul them, so they broker most of them out to other carriers. They were getting at least $1.65+ fuel before this agent went in and killed the rates. Now, they expect anyone who wants to haul their loads to do it for the same rate as Landstar. She called me a few months ago. I was less than 100 miles from where these picked up. I would not touch it for that rate. I wound up deadheading home rather than taking something that cheap. In fact, this agent is such a poor business person I won't haul ANYTHING for that office. Frankly, I would not haul for that office at $5/mile, just on principle. Some Landstar agents do a good job of getting decent rates. There is no need to undercut the rates so much that no one makes money. If the load sits, the broker will either lose the load or the rate will go up. I opt for letting the cheap loads sit.

[rank]

I have to say that if I was a shipper, I would be amazed at the efficiency with which the trucking business operates. I don't believe there are many industries that are as competetitive as this. It is extremely easy to lose money, but at the same time, for the savvy business person who knows his costs and operates smart, this is opportunity.

So, I didn't want to start a broker bashing session... just wanted to here some stories. Besides, IMO low rate cycles are good for the trucking business....they clear out the high priced carriers, provide affordable expansion opportunities and best of all, encourage manufacturers to send more trucks.

If rates were sky high, shippers woule be more inclined to build more factories to cut shipping costs.

Gotta love low rates. :shock:

[Justruckin]

I have to say that if I was a shipper, I would be amazed at the efficiency with which the trucking business operates. I don't believe there are many industries that are as competetitive as this. It is extremely easy to lose money, but at the same time, for the savvy business person who knows his costs and operates smart, this is opportunity.

So, I didn't want to start a broker bashing session... just wanted to here some stories. Besides, IMO low rate cycles are good for the trucking business....they clear out the high priced carriers, provide affordable expansion opportunities and best of all, encourage manufacturers to send more trucks.

If rates were sky high, shippers woule be more inclined to build more factories to cut shipping costs.

Gotta love low rates. :shock:

No, low rate cycles clear out the "low priced, cheap freight hauling outfits".

The high priced carriers expect this seasonal downturn, and are financially prepared for it. It is the little guy with a truck or small fleet that gets screwed. And that is usually the little guys own fault for not running his truck(s) as a business.

[rank]

By high priced, I meant carriers with high operating expenses. Guess I should have said high cost carriers.