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?
 

There is no way of telling who is about to go down the tubes. I've already hauled for at least 3 companies who have had an A rating then went out of business owing more than $30,000 to carriers each. I've already been paid but I do watch the credit reports listed by The Internet Truck Stop. Arrow trucking also is on the crap list with an F rating and owing carriers money.

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?

I don't know but I would guess that if a receiver signs for it then that's the end of it. Most bills of laden acknowledge that the product was received in good condition.

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.

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

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?

Thanks but it's just because I'm still new at this and it's fresh in my mind. Someone like GMAN (Mike) just takes it all for granted since it's second nature to him. I'm sure I have a lot more to learn and have been very lucky so far not getting burned.

Some of them come in as 20 pages but a lot of it is just BS and contact info. The actual contract is about 3 pages. Normally just one signature at the end and I always initial every page. Your are right about the broker changing the contact but if you have Efax or something like it you have a paper trail showing the original fax that you received. Sign every page if you like, it's a good idea.

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.

You keep to your East Coast time zone when out on the road?

I suppose that makes sense to keep to one time zone....you just shut the curtains tight in the sleeper, throw some ear plugs in, turn the phone off, and snooze city here you come.

lol....Ya, I keep East Coast time. I really like it when heading out West because I keep getting back hours. I sleep like a rock for 7 hours and nothing keeps me up. I don't need ear plugs and the light doesn't bother me although I do have the privacy curtains closed but the window is uncovered.

I'm gonna watch Every Which Way but Loose for the millionth time. One of those feel good movies. The Black Widow motorcycle gang cracks me up.

Google "Carmack Amendment". And, you need to carefully check every broker contract you sign to make sure you are not waiving your rights under Carmack.

You HAVE to keep the time zone that you are based out of, FMSCA regulations :), atleast as far as log books go.

That's all good info above. I'll add some.

1. Try not to DH in the wrong direction or into a bad area to load a broker you haven't used before (you may get there and find out there is no load).

2. Don't be afraid to call the bond company to check on a broker to see if they've had any claims.

3. When things go bad at the drop and they won't play ball with detention, tell them you're taking the load back to your yard and they can pick send a truck in to get it. You will have your revised rate sheet shortly after the consignee sees you chaining up. This only works if you're close to home (they know where you live). This is like Kryptonite to brokers., It's hilarious to hear them play tough guy and then do a quick 180 when you play that card. Why? Because it can be embarrassing for them when the shipper/consignee finds out that they aren't in control of the freight because they brokered it out for substantially less than the shipper/consignee paid. That's leverage. :)

4. Stay away from Canadian (especially Quebec) brokers. Canadian brokers don't have to post a bond and Qc even hads a diffrent legal system. That means they only have to pay you if they want to (i.e. if you have leverage).

rank,have you had any problems with alberta,ca brokers? i've hauled quite a bit into alberta but not out. i'm thinking of getting my paps and start hauling freight into the states for my backhauls. thanks.

I AWAYS read every word in any contract BEFORE I sign my name. Some people just sign what they send without reading everything. If there is something that I don't agree with, I mark it out, make changes as needed and initial before sending it back. If they don't agree then I don't take the load. I have had some who said that what I read wasn't what they meant. I respond that if they didn't mean what they said then they would not have put the words in the contract. There is a broker who also has a trucking company who wanted me to haul one of their loads. The pay was good, but the way their contract read I could not take a load for any other broker after I hauled one for any account of theirs. I changed the wording where I could haul for another broker. They refused to accept the changes so I won't do business with them. I could have been on the hook for 25% of any load I hauled for another broker if it was from a shipper of theirs. They told me that what I read was not what they meant. Since they made such an issue out of it, apparently it was important to them. I won't put myself in that situation. I only made 2 small changes in their contract. They didn't want to accept it with my changes so I don't expect to ever do business with them. They won't change the contract, I won't sign it the way it is written. Most brokers don't have an exclusive agreement with shippers.

I also check out EVERY broker before doing business with them. Not long ago, there was one whose credit was "iffy." I told him that I would take it either prepaid or COD with a comcheck. We agreed on a comcheck on delivery. He wanted me to allow the receiver to unload before paying me. When I do a COD, I make sure to have my money in hand before taking the tarps off or loosening any straps or chains. There is no point hauling freight for free. When you don't get paid you are hauling for free. I usually don't haul for a broker unless he has been in business for at least a year unless it is either COD or prepaid. Most businesses fail in the first year.

I used to get a kick out of throwing addendums onto contracts, small time brokers would get all sputtery and take a who do you think you are driver attitude, the bigs of course never signed em, most of the time the small outfits did.

Addendums to contracts are a polite way of letting all parties know that you aren't going to roll over when things get hinky.

I tried that in the beginning but didn't work out too well. They will get your contract then tell you it will have to be submitted to their lawyers for review which could take weeks. In the meantime we will have to find someone else to do the load. Needless to say, very few will sign your custom contract. Especially the big boys.

If you say so, I never had any trouble with my add ons. I said I never bothered with the bigs, I never had any smaller outfits mention anything in regard to attorneys, they either signed it or they didn't.

My addendums addressed non payment, dentention and accessorial charges, they were plainly written and straightforward, which meant there was no need for an attorney.

Either way, the nastiest clause in a broker contract regards who the broker claims to be representing. If you actually read these docs you'll find a statement usually buried in the contract that states the broker is your sales agent and that the responsible parties are to be held harmless in the event of a non payment.

Most indies out here today don't even realize how much the laws favor them when it comes to payment, they go after a bond that is long exhausted and leave it at that. There is more that you can do but it requires time and effort on the part of the trucking co. to collect from the responsible parties.

I have never had a broker to tell me that they needed to send the changed contract to their attorney for approval. Contracts need to be fair for both parties. I have had brokers to take exception to my changes. If they don't want to proceed after I make my changes then we don't do business. You need to be willing to walk away. If you don't read and fully understand a contract you should not sign it.

TMC and TQL would not allow the modified contract without their legal department approving the change when I first started.

I think it was either Doghouse or Merrick that posted he was having trouble getting people to accept his contract terms also.

Thanks for all the help. My dad signed up for getloaded and is going to run on his own from now on. He got the load were transporting now and is looking for a load to get out of here tomorrow on ITS and get loaded. We just passed OOIDA on I-70. I'm going to see if he wants to be a member then check out the membersedge board tomorrow.

TMC is very much a "take it or leave it" company. :lol: Or perhaps it is more of a "Take this or I will have to pass the buck" company.

Did you actually have the legal dept at TMC review your terms? Did they accept?

The only brokers taht have ever tried to screw me were from QC.

Most are take it or leave it. I didn't pursue the contract any further since the load would be booked by someone else and it didn't matter.

The bottom line is that you don't want to sign a contract that contains language that you don't agree. I have had some tell me that it doesn't really matter and that what I read wasn't what they meant. That being the case then they should not mind if we make changes to clarify the terms. If it is in writing and you both agree then they can hold you to the terms.

Bennett has a contract that I will not sign. I made a couple of minor changes and they would not agree to it. My changes regarded being able to haul for the same shipper through another broker. If I had agreed to their terms then I could be obligated to pay them I believe 25% of any revenue that came through any other broker. Since they would not accept my changes we don't do business with them. It is a pity that they feel that they can strong arm carriers to sign a contract with them that could come back and bite them. If I have any doubt about the terminology or wording I simply will not sign it unless it can be changed to be equitable.