What to do when running brokered loads off load boards?
I'm guessing you need to be careful because you deal with so many and there is no telling who are good and bad.
If you are running brokered loads off load boards what do you look for in the contract to make sure the broker is not going to rip you off? Can the contract be changed with brokers or is it just take it or leave it? I've read people say don't move until you have signed rate confirmation. Do you guys accept loads that have high penalties for late delivery? |
Re: What to do when running brokered loads off load boards?
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When a broker decides it's time to get out of the game they rack up as much money as possible and don't pay the carriers and there's nothing you can do about it so it's pretty much a crap shoot. Make sure you have the credit option with your load board. Look up the broker and make sure the return phone number matches the load boards one. If not, call the load board one and verify this is indeed a broker working for the company. When you get the rate conformation make sure there isn't a note that says to tell the shipper you are hauling for a different company. That means the load is probably double brokered. Call the company that the broker tells you to tell the shipper and tell them what's going on. Chances are you will get the load from them instead at a better rate and the broker who called you will be whacked with a double broker complaint. If the broker is listed as a factorable company then they are good to go. If the broker has an E rating that says they refuse to supply credit info or they have been in business for less than one year then call them back and tell them they don't have a credit rating and unless they pay you up front in full you won't do it. Do not move the truck until you have a rate conformation. Keep looking for another load just in case. Lots of times the broker is still looking for a cheaper carrier. You play the game too! When you get the rate conformation or contract, cross out anything and initial it if you don't like what they are saying. Before signing the rate conformation and sending it back make sure you can deliver on time. Lots of times the delivery date will be unreasonable. Don't call the broker, they will say deliver any time. That's BS. Cross out the date and put your date in. I cross out all penalty clauses. If the broker calls you says what the heck. Tell him you can't control the weather or breakdowns. Make sure you check on the FMCSA web site that the broker actually is a broker with a bond and not just another truck driver. This is a scam where they pretend to be a broker but actually are the ones supposed to be carrying the load. You deliver then send everything to him and he gets paid and you get crap. Make sure you check the delivery date. Sometimes you may pick a load up on Thursday that you can deliver on Friday but the delivery date is for Monday. Your not a warehouse! Sometimes a shipper will want the load out of his yard but the receiver will not be ready to take delivery for many days after you get there. You just need to calculate out how long and stuff. Make sure you also take into consideration the weekend. If a load will take you until Friday afternoon to get there then you better plan on spending the weekend sitting with nothing or find another load that is either a shorter distance or longer one over the weekend. |
Read the contract, if the broker states that he is your agent and that the responsible party is to be held harmless should be be deleted from the contract, if they refuse don't haul the load. You only need to worry about this with small brokerages the big ones aren't going anywhere and it doesn't pay for them to rip you off completely.
In the event that you do get stiffed you can go after all interested parties for double damages. The most important thing is to know who you're dealing with, like Steve said credit reports are one way, you can also ask for references. |
I really appreciate the replies.
I've read about all different time frames for the broker to come back on the carrier for insuance claims. What should the time frame be? 30 days, 6 months, one or two years? |
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The old rules which may or may not be in effect was 180 days, these were the old ICC rules. Regardless, as Steve said, if the recv'r signs of on the freight in good order it's very tough to claim damage at a later date.
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NotSteve :arrow: You need to write a book called getting loads for dummies. this is some really good advice. Matter of fact. Probably the best that I have read so far. U DA MAN...........Please continue helping us all with your knowledge and experience. Thanks...... :D
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I've never seen a contract. I am guessing they are multiple pages. Is each page signed on the bottom or just one signature at the end? What I am getting at is what is to stop a broker from changing the inbetween pages or completely ignoring your changes? How would you have proof if you didn't sign each page of the deal?
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Brokers don't want to be bad about stuff. If they are we report them to the load boards and if they find they did do wrong then they are written up. If I see something like that on there file I won't do business with them. They would go down the tubes REAL fast if they have negative reports on file. When I get some free time I'll post a contract for you to see. It's close to my bed time. |
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