Broker loads
 

I am now in the process of getting my DOT Authority. I contacted OOIDA and the process I was told that I needed to do was to get my LLC, then apply for authority, then get a truck, base plate, insurance, permits, etc...and finally I would be ready to find a broker.

I was sitting around thinking about a broker and who I could pull a load for and thought I might call around and discuss rates and business with some brokers. The first I called was Schneider. They tried to connect me to their brokerage in Atlanta, GA. After playing phone tag for about 10 minutes, I got connected.

The lady I spoke with would not discuss rates over the phone. She said it's a load by load and week by week change in rates. They are never the same and it changes with areas, freight, and fuel prices. I pushed a little to get more information about rates and she asked how long I had my Authority. I said I did not have it yet and I was in the application stage. She then said call us back in 6 months after you have your authority. She said they had a policy of not letting a company pull a load for them unless the company has had authority for at least 6 months.

Is all brokerages like this? If so where can a new company find a load to pull?

I have contacted around 6 brokers now since I posted this. All with the exception of Landstar say the same thing. You must have your authority for 6 months or more or no loads.

One broker asked how many trucks and trailers I was going to purchase and I said 1 truck and 1 trailer. She said the company she worked for had a rule of this. No loads to companies with less than 3 trucks and they must have authority for a minimum of at least 1 year. Sounds like to me it's getting tough out there.

I might have to reconsider my stand on becoming and O/O and leasing onto a company with authority.

You better...

You can always POST your truck and let shippers come to you. Get the authority and lease to a carrier but post your truck regularly on load boards - maybe some shipper will be interested in dealing with you. I myself am leased to a carrier with own truck and trailer but I'm thinking of getting my authority in the summer.

There are kinds of brokers out there, whom will load your truck with their freight.



:cool:



Some of them will even pay you the agreed upon rate.




A lot of them won't. Those ones will just fade away into the internet.

I recently found out a GREAT friend of mine that I haven't talked to much lately became a freight broker for a major brokerage firm.

He told me their strategies, and I may make a post about it in the future if he says it is ok. I'll say a few things about brokered loads after looooong conversations with him.

If you're in an area with a surplus of trucks, he'll pay 90cpm and o/o's fight for it.

If a load is going into a desolate area with no frieght, you're in the driver's seat (not just literally). You can negotiate beyond what they're offering, up to almsot the full rate they are getting. He's admitted to breaking even on a load, and rarely, LOSING money on a load to get it hauled.

Brokerage firms make money via their customers, and the o/o's. He says his firm greatly respects the drivers as much as the customers, but also knows the supply and demand in areas all over. But without shippers that use them to move loads, they don't have business. Truth be known, he says their LTL division is doing so great, they have had meetings telling them to get the TRUCKLOADS moved quick with good drivers, even if they break even on them. Their strategy is to be more competitive and steal business from a large competitor that will go nameless, but any independent here could name in 3 guesses...MAX.

But, as said above, if you're willing to go where others won't and/or areas with no freight you can get some great rates.

Examples he gave:

A place on the east that would surprise you as a populated area to S. Cal, he's pying $2.10 a mile for van freight.

East or Midwest to Idaho pays pretty well, but that figure I'll keep a secret.

Some freight lanes, his van and flatbed freight gets moved with ease for $1.10 a mile.

Some tips:

He says he absoultely HATES dealing with load finders for major carriers ( no need to post the names, you already know...aka Kooleeeeze ). He says they have rate sheets and simply will not negotiate based on their set rate sheets issued to them by their management. He says the independents are more negotiable in either direction from sub-standard lane rates to over lane rates depending on situation. Also, he pushes the detention time, although he said it is usually $50/hr after 2 hrs.

So, to answer your question partially, they load trucks without minimum months in service. Anything looks fishy or you sound like a dumb booty and they will skip ya, or give ya the run around until the load is taken by someone else or you give up with them. He says it is rare, but, again, customers are how they make the money and the driver is the counterpart.

To answer your other question or idea about leasing to a carrier... it may be a wise choice if you select a carrier with a great client base and pays a decent mileage or percentage may be the way to go for a while, especially in this economy. Learn where the freight is. What pays the best, where is it consistent, even where is it the LIGHTEST and still paying the same.

Hope my insight gave you something to ponder. I'm slowly learning about getting authority and how to be successful. I don't see myself doing it in the future, or even ever, as I got a decent gig going for me leased onto a carrier.

And I'd give the contact info for a few like Gman or Rank that have their own authority a while. They got some decent rates. Steve Booth need not apply!!!!!!!!! (jk- you're my boy Steve!)

So wait, if you have previous truck driving experience but just becoming an O/O with own authority and stuff, brokers wont allow you to pull any of there loads??? i thought as long as you have insurance and cargo insurance you be fine.. someone please explain cause that was going to be my plan..

supply and demand, if there are plenty of trucks to haul freight they will care, if no one is around they will care much less.

Pretty much, at least with them. They aren't the major player in the brokerage game though. Start using the bathroom at the shipper and not flushing the toilet or running over the owner's car at the recieving end and you may get a phone call. he didn't mention if they have a "naughty" list.

He explained that it is like picking people in Dodgeball sometimes. They will field calls and pick the best candidate at times. Hauling for them before would be a factor. What you're willing to haul for superceeds (sp?) anything.

Sounds like drama, but a good amount of money if you figure and play their game right. I don't know much about other brokers and their practices. Usually, anyone with the correct paperwork gets the load and it is smooth like strawberry ice cream I guess.

From what I can tell, GMan is right about o/o's that are independent to sticking to their guns for the higher rate, as my 90cpm from the midwest to Cali may support.

I don't know the game that well, this is just what I pecieve. Where the HELL are you Gman?????

I read somewhere online a tip about getting good rates: pick 2 areas - one where you live and the other where you'd like to travel; and then contact DIRECT SHIPPERS in those areas via mail or email. The freight broker who advised this said that with this method you can avoid the "backhaul" rates and charge RETAIL both ways. According to him, you have to specialize in a LANE - if you run all over US and Canada, people won't take you too seriously.

Yup. He pays out the azz to get trucks where there isn't freight, and makes hella commission on the lanes there is a surplus of trucks waiting...and he knows right where those areas are.

Direct shippers FTW! (For The Win)

Sidenote: I'm not an authority on "how it works" but that was the brekdon he gave me. I'm a leased o/o yanking a different kind of frieght.

I talk to Steve Booth a lot, and it's been brought up before that shippers don't care about the age of the truck/equipment, but I'm sure some of our true independents may have some facts or stories on how long you must have your authority before certain shippers will use you. This is a foriegn area for me, just my .02 from a trusted friend/former dormrom sharer/friend and how he and his firm works.

Thanks again to everyone for the responses.

I'm far from an expert on broker loads and it's just another reason why I come here. I am getting most of my questions answered on here. Thanks to the others that have send me info through the private messages. That information was much needed.

So anyway. I have choose to get back into trucking and buy a truck and trailer and get my authority. Here's what I have been told by the brokers that I have contacted. The one's I contacted was the smaller brokers that list through Get Loaded, DAT, and Internet Truckstop. They all told me the same thing. Schneider and one other trucking company (that brokers loads) told me the same too.

They said unless you have had your authority for at least 6 months you will not get a load from them. Some have said that you must have at least 3 trucks plus the 6 months or you won't get a load either.

There are brokers that are not like that though. I called Landstar and they said time in business didn't matter or number of trucks either. C.H. Robinson said the same thing. I guess it's just the small brokers that do this thing about 6 months to 1 year in business. The larger trucking companies that broker loads seem to have the rule also. It's not a big deal because I can do without their freight for 6 months anyway.

I contacted C H Robinson. They have a local branch here where I live. I talked to the guy in the office for several minutes and he told me when I got my authority he would have plenty of loads for me to choose from. I live 50 miles from Memphis and he said there was hundreds of loads posted though C H Robinson everyday in this area and he would work with me on where I wanted to go and the rates of pay. He also said that I should stay out of Kansas, Oklahoma, and Texas because freight rates are really low there. He gave me info on where to run to make more money and was overall a very nice guy. He lived here in the same city as me and talking to him was like talking to a neighbor.

I think i danced around your question, and I apologize. I didn't try to discourage or encourage you. I'd wait a day or so for the independents to give you situations and examples of time needed to qualify to haul their loads.

Hopefully you get some shippers in remote places or vice versa. This is just my .02 from someone not really qualified to give advice.

I will say, that I hauled 2 loads from CH Robinson years ago as a backhaul for a buck 19 a mile from the carolinas to Chicago after doing 2 back to back special products loads. Is that how they generally are? I don't know, my disptacher booked it. I got a buddy at a hhg carrier that said he used to run reefer for them at 2.50 a mile consistantly year round if he committed to 45 straight weeks.

I love hearing about people geting their authority, and succeeding. Corporate america hasn't taken over yet lol. Keep doing your homework about trucking, opening a snow cone stand, or carwash, etc and you're bound to do alright if you don't rush in. Again, I can't speak for trucking per se, but business in general. I hope to see updates.

Some brokers have customers they respect and want to keep, thus they are careful about who they send in to represent them. One idiot trucker they don't know can cost them a million dollar account. The good brokers try to take care of their accounts, the so so brokers don't care and will use anyone if they are cheap enough.

You can't start at the top, you have to prove yourself to get the best freight.

yeah that makes perfect sense.. well i guess i'll probably be seeing Landstar.. ****!!!!! i guess i just want to run out there like a pup and really dont want to answer to nobody starting off.. well i learn my lesson!!

I'm nervous about getting started in this. I do appreciate all of the help and advice.

Hopefully I will get started next week. I have an appointment to get my LLC paperwork started. Once I get that done then I will call OOIDA so they can get my authority paperwork started.

I went to Memphis Thursday and found a couple of Great Dane trailers. The guy had some Utility Trailers as well. I think the Great Dane's looked better and seemed to be better built. They was all the same price so I'll be getting one there. I'll try to start a thread and update as I progress.

Thanks again for everyone's help, advice and support.

Sorry, BanditsCousin. I have been pretty busy the last week or so and haven't has as much time to check in and post.

To answer Dave_0755's question about length of time in business. Most brokers don't really care how long you have been in business as long as you can prove that you have authority and insurance. It helps if you can present yourself in a professional manner. There are some who won't load new carriers until at least 6 month's have passed. For them, it is a matter of self preservation. They have had problems with new carriers taking off with their loads, abandoning the shipment or holding it hostage. If a carrier has been in business for a while they will know if the carrier is not on the up and up. It is also good to maintain a low safety or safe stat score. That will come over time as long as you keep up your equipment and keep your paperwork straight. The lower the score the better. I have gotten good paying loads based upon my low safe stat score.

I always check out a new broker before doing business with them. In fact, I continue to keep an eye on them. I pretty much have reduced the number of those whom I do business. Just as you check out a broker they will also check out a carrier.

Contrary to what some may believe, brokers and shippers rely on smaller carriers. Approximately 90% of the freight in this country is hauled by carriers with fewer than 50 trucks. About 80% of the freight is hauled by carriers with 12 or fewer trucks. This country could not survive without the small carriers. The mega carriers cannot keep up with capacity without brokering much of their freight to smaller carriers.

When there is excess capacity then brokers can be more selective with whom they book freight. As capacity tightens they may be more willing to put freight on a new carrier. If you want to haul cheap freight you will have no trouble finding brokers to load your truck. Once you have your authority you can subscribe to some of the loadboards. I would start by posting my truck on them. Brokers who need trucks will call.

Yep, get a truck, then apply for authority, then you will get so many phone calls from insurance agencys your head will spin, they will attach their name to your authority, go get base plate. Go to work.

Suggestion: Go online and get your authority yourself, it's easy.

You'll be fine. Present yourself in a professional manner when in person or over the phone and you'll be fine. It's all in how you talk to people. Be friendly. yes, no, thank you etc.....

And don't forget, credit check, credit check, credit check...

I you can afford it you could get your authority and not even use it for 6 months. Then get signed up now that you've had it for 6 months. This is extreme, of course. Like others have said, there are plenty of brokers that will sign you up being new.

And while looking at trailers keep in mind, a lot of shippers will not load anything over 10 years old

What type of trailer are you referring to? I have only been asked the age of my trailer 4 or 5 times in 3.5 years.

Thanks!

-scott

That's a new one on me also. I guess I should check into that more. I almost bought a trailer in Memphis last Thursday. It was a 99 year model. I have pulled lots of trailers that are older and in much worse shape. I didn't think the trailer year made a difference.

BTW what is meant by a 36" or 42" kingpin setting? I am showing my rookie colors here I guess but anyway......

Here's a quote from my Mac's Dictionary:

kingpin |ˈki ng ˌpin|
noun
a main or large bolt in a central position.
• a vertical bolt used as a pivot.
• a person or thing that is essential to the success of an organization or operation : the kingpins of the television industry.

A "kingpin setting" is the distance from the front of the trailer to the kingpin, in inches. A 42" setting would mean that a kingpin sits 6" farther away from the truck than with a 36" setting. This affects how much of the trailer's load will be distributed onto the truck and also where the center of the rear axles on the trailer is. Because the maximum "kingpin to center of axles" distance is 41 feet, the larger your kingpin setting is, the farther away your trailer axles will be from the truck.

Here's a quote from Wilson trailers web site regarding specs of their NEW dropdeck and flatbed trailers:

"King Pin: Standard setting is 30", Others available as option"

When I was spec'ing my 48 ft dropdeck, I chose a 24" kingpin setting to "move" the truck farther away from the trailer.

Steve is a broker now?

I'm a bit late to this party...been runnin' my tail off for the last few weeks.

When I started pulling broker freight the only one that gave me a hard time was Landstar. I only had my MC # a week or so and that wasn't enough. I said "Look at the DOT number......we've been a private carrier since '82". She said that was OK then. Lots of brokers will load you, but yeah......you can just let your auth sit idle for 6 months and voila!

I have run into that, mainly automotive. They used to, may still in some plants, check the age of the trailer. And yes they would look at the trailer registration, even with my conestoga/flat bed.

Vans and reefers mainly, because of the age the floors deteriorate, thats why they break in half

Utility makes a pretty decent trailer as far as reefers go. A bit heavy. Usually by the time they are 12 years old or so, you start having floor trouble.

With the choice of Utility or Great Dane, I'd buy the Dane every day of the week.

And, like someone said before, CREDIT CHECK, CREDIT CHECK AND CREDIT CHECK EVERY broker you haul for. And check it often, 'cause you see, there's just no reason not to.

If you find a good CH Robinson rep, they'll treat you well. If you don't, watch 'em close. I have a great rating with them and have hauled literally hundreds of loads for them, but they are one of my last resort brokers. Theres usually something much better...

If you find a good CH Robinson rep, they'll treat you well. If you don't, watch 'em close. I have a great rating with them and have hauled literally hundreds of loads for them, but they are one of my last resort brokers. Theres usually something much better...

Do tell more..... what is much better????? I'm all ears.......

What about J.B. Hunts loads??? Are they worse????

Ever hauled for Tango Transport???

What about UTI or Bear????

You will find most of the paper companies will not load a trailer that is more than 10 years old. A friend of mine just bought a newer van so that he could haul more of them. I think that the only one's who gave him a problem with the age of his trailer were the paper companies. His other trailer was a 1999. I believe that the one he just purchased is a 2007. Age won't make a difference with most shippers. If it is something that must be protected more then they might check your floor to see if daylight can be seen. If they can see daylight then they don't load you. I think that those who went to 10 years or newer did so rather than having to inspect each trailer that hauls their freight. As long as your trailer is in good shape most will load it.

Just because it's new doesn't mean the floor isn't broken. Remember when Pepe got his floor damaged by the shipper?

BTW...who goes around with trailers that you can see through floor? I guess they don't do pre trips.

I've picked up paper loads in Redwood, MS at the paper mill before and never had a problem. Now there may have been a discussion between the broker and the trucking company about trailer age and I didn't know about it.

When I backed in they wanted me to sweep the floor then the guy would inspect the trailer for nails, dirt and anything that would damage the product. I was never turned down because of my trailer and some was in pretty bad shape. As long as they were clean and free for nails I got loaded.

Might be different at different papermills though. I know Boise is picky. BTW that's an awesome stock to purchase right now. The ticker is BZ.

I know once I had a forktruck fall through a trailer floor at a shipper once. I was getting loaded with aluminum ingots. They were very heavy and the trailer was in very bad shape. Needless to say the shipper and the broker wasn't pleased at all about that one.