New brokerages - MC# starting with 14 / 15

tasuinam

tasuinam

Well-Known Member
Apr 8, 2020
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Winnipeg
www.interlandcarriers.com
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Now that we are all rested from the long weekend - and watching Barbie ... need to understand what is happening with all these new brokerages poping up in the last three months

They email and I have never heard of them - no references
And if they do have a reference it is a company that's been active for three / four months

In this market what idiot would open up a trucking business?

Thoughts???/
 
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The new wild west. Before everyone was buying a truck and now just work from home and make money. Seems as there is no policing so anyone can open 10 brokerages ( like before get 10 CVOR's) one for every member of the family and carry on.
 
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This all means that everyone, brokers, carriers and shippers alike, must tighten up their vetting process. Why give credit to someone whose ability to pay for your services is questionable at best? Shippers, brokers and carriers who broker some of their freight, must not succumb to the allure of tantalizingly low rates offered by firms whose documents are still wet! Offering extremely low rates when the cost to operate equipment remains high can only result in disaster. If you have been in this game long enough, you should have a fairly good understanding of where rates should be, in good times and in bad. Anything that dips below the “low” limit should be regarded as suspect, not some sort of great deal. Time to operate smarter.
 
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loaders said:
This all means that everyone, brokers, carriers and shippers alike, must tighten up their vetting process. Why give credit to someone whose ability to pay for your services is questionable at best? Shippers, brokers and carriers who broker some of their freight, must not succumb to the allure of tantalizingly low rates offered by firms whose documents are still wet! Offering extremely low rates when the cost to operate equipment remains high can only result in disaster. If you have been in this game long enough, you should have a fairly good understanding of where rates should be, in good times and in bad. Anything that dips below the “low” limit should be regarded as suspect, not some sort of great deal. Time to operate smarter.
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These 'new' companies are smart - they offer rates that are just a tad bit above market -
 
tasuinam said:
These 'new' companies are smart - they offer rates that are just a tad bit above market -
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This reminds me of years ago when everyone was buying trucks and undercutting to get the work. History repeating itself but now in the form of Brokering loads instead of driving them.
 
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If you want to deal direct with shippers you pretty much have to broker... unless of course you've got a fleet of 80+ trucks that can go anywhere at the drop of a hat.
 
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JACKBURTON said:
All you need is a PO Box or a basement to start a "trucking company" these days.
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Yes, it would seem that fewer people will go pro with an office in a strip mall these days.. ah.. the good old days of mildew infested office space.. someone uses the one bathroom and the whole place gets stunk up for an hour.. windows don't open.. dirty work space that is just barely meets the legal requirements for human habitation (or maybe not even).
 
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Loadlink has made life so easy for people to farm out there loads. You no longer need a relationship with a carrier anymore as many will call especially on high volume lanes. Loadlink barley polices who is using there system so they dont care as long as they get paid. Alot of customers dont care as long as they get a cheap rate. The transportation Saga continues.
 
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Mario said:
Loadlink has made life so easy for people to farm out there loads. You no longer need a relationship with a carrier anymore as many will call especially on high volume lanes. Loadlink barley polices who is using there system so they dont care as long as they get paid. Alot of customers dont care as long as they get a cheap rate. The transportation Saga continues.
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Loadlink will only care about its bottom line for its shareholders, expecting them to to police anything is just wishful thinking unfortunately. Every "New Broker" they add is just another dollar to their bottom line. I would like to see some more vetting on their part but its probably not gonna happen in our lifetime LOL. It does look promising on the state side, they are getting alot of attention about "Scam Brokers" who are impersonating real brokers and carriers, to buy and sell loads and disappear once paid. Legislation might push the Freight boards to do better but will have to wait and see.

Frankly speaking these days if it is anyone new I have not heard of its "Pre-paid Freight Charges" or "C.O.D" before our wheels turn.
 
Funny thing is when I started out (25 years ago) only the large US carriers would give me credit... so if it didn't fit on Werner, YRC, Jevic, Melton, Dallas Mavis, Greatwide etc.. then I couldn't move it. And then, little by little, the little guys would book and then quickly cancel once they figured out I wasn't quite broke in yet.. And then factoring took off... and as soon. as I was in the good books of Apex, ITS, Rivieria and a multitude of other factoring companies I was in with everyone.
 
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Freight Broker said:
Funny thing is when I started out (25 years ago) only the large US carriers would give me credit... so if it didn't fit on Werner, YRC, Jevic, Melton, Dallas Mavis, Greatwide etc.. then I couldn't move it. And then, little by little, the little guys would book and then quickly cancel once they figured out I wasn't quite broke in yet.. And then factoring took off... and as soon. as I was in the good books of Apex, ITS, Rivieria and a multitude of other factoring companies I was in with everyone.
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MUST BE NICE!
 
Freight Broker said:
Funny thing is when I started out (25 years ago) only the large US carriers would give me credit... so if it didn't fit on Werner, YRC, Jevic, Melton, Dallas Mavis, Greatwide etc.. then I couldn't move it. And then, little by little, the little guys would book and then quickly cancel once they figured out I wasn't quite broke in yet.. And then factoring took off... and as soon. as I was in the good books of Apex, ITS, Rivieria and a multitude of other factoring companies I was in with everyone.
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My experience was very similar. 25/30 years ago, Canadian carriers (remember there were fewer of them then) seemed to be extremely careful about who they extended credit to, very much unlike today. Again, the US carriers, who at the time appeared to be keen on making their presence known in Canada, were very welcoming and anxious to to do business. In order to soothe the fears of Canadian carriers, we made every effort to pay them well within their terms. After that, the rest is history. In this business, like any other I suppose, being a nice guy is helpful, having steady, desirable freight lanes is a definite bonus, but paying your God Damn invoices on time is KING!!!!
 
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loaders said:
My experience was very similar. 25/30 years ago, Canadian carriers (remember there were fewer of them then) seemed to be extremely careful about who they extended credit to, very much unlike today. Again, the US carriers, who at the time appeared to be keen on making their presence known in Canada, were very welcoming and anxious to to do business. In order to soothe the fears of Canadian carriers, we made every effort to pay them well within their terms. After that, the rest is history. In this business, like any other I suppose, being a nice guy is helpful, having steady, desirable freight lanes is a definite bonus, but paying your God Damn invoices on time is KING!!!!
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Yes, I still pay mine in 5 days... always have.. not easy when your customers pay in 30 days plus. But over the long term it has worked out. In 2006 I finally hooked up with a small carrier in SC that basically gave me all their trucks for my exclusive use. I paid him in advance on loads and offered interest free financing on equipment.. worked super well until he died suddenly... 76 years old in 2016 .. died on the job.. and sadly I was the last person to speak to him. By the book they were a B level carrier.. the old guy had no patience for paperwork.. but man.. he was great to deal with, and we both made alot of money working together. One in a million for sure.
 
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Mortgage Brokers, Stock Brokers, Insurance Brokers, Customs Brokers and every other type of Broker is highly regulated on a provincial level and maybe even on a Federal level.

Freight brokerage isn't, there is no reason for it, except for the fact the large players in the Canadian Transport industry have yet to apply the right political pressure in Ottawa to bring this into order.

Brokers should be regulated and LL should be responsible to enforce it as the only Load matching in the country.
 
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