Pitiful Practices

J

jeepnut2010

Member
Apr 12, 2011
49
0
6
Peterborough ON
5
I sat with a owner of a trucking company who stated "there are no more good loads to pickup and broker out" WTF? Is this what it has come to in this industry?
 
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I'm not surprised. Trucking companies are keeping revenue by taking any and every order possible and cherry picking any freight for their own trucks, sell the rest. Meyers sells freight so much, you'd think they weren't a trucking company anymore so there must still be money in brokering.
 
noproblembuddy said:
I'm not surprised. Trucking companies are keeping revenue by taking any and every order possible and cherry picking any freight for their own trucks, sell the rest. Meyers sells freight so much, you'd think they weren't a trucking company anymore so there must still be money in brokering.
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Well said.

There can be money in brokering so long as you are not spinning your wheels so to speak in the wrong direction....

This would depend on the suspect trucking company 'owners' definition of 'good load'...

Shipment Type #1 - Shipments that prove to be high volume, low margin and everyone makes their $10 (maybe a little more) so long as the shipments are straight forward (quick load, quick offload, usually the same broker/carrier combo for a particular laneway, minimum legwork for everyone) are common - this may be the type of business this 'owner' was referring to because for him as a trucking company there is more expense in picking these up and then rebrokering them (which I have a problem with anyway). In fact, this arrangement is an example of a well oiled machine. Everyone is on the same page, shippers, receivers, drivers, etc... are organized and it's likely regular business... Keep it up, good work everyone. Just not good business for a carrier who invested labour in the pickup, then also in the crossdock then to also invest in the staff to rebroker, there just aren't the dollars in these kinds of shipments...

Shipment Type #2 - Shipments that are highly technical, require much more care and handling (for both broker and carrier and perhaps customs broker if applicable) including setting up apts, specialty equipment, show freight, store fixtures, etc...
I suppose these shipments could be viewed by this 'trucking company owner' as the ones that are ' good loads' but their lack of getting and maintaining this kind of business has nothing to do with the current market, these shipments exist and there are plenty of them. He/she needs to invest in the proper staff to service this kind of business (sales to get the business and dispatch/customer service to maintain it). Possibly there is a market in rebrokering this kind of business but I would again suggest against it. The more times 'sensitive' shipments are handled there is an increased risk of something going wrong.. Instead of the risk of 1 truck 'breaking down', there are now 2 or more (I use breakdown as an example, but of course there are other factors).

Everyone I speak to lately tells me the same thing - "business is great, everyone is busy and we're up over last year"... I'm just not sure this particular owner you were speaking to (jeepnut2010) has a clue.

I've seen amazing growth this year, it's nice.

Keep well,

Mike

Note sure I made the point here I intended to, I've had several side projects while I tried to piece this one together..
 
I look at the volume of phone calls on the same posting for any given truck and I might get 3 brokers all working on the same order and in a bidding war for my truck, which can be quite hilarious when you look at who calls and what they offer...and how they justify the rate. My view is that the person who complains they "aren't making money" is doing one of two things: either (a) selling a price and trying to buy a truck for a squeaker of a rate that yields like 5% margin on a truckload, for example or (b) has no control of how they buy trucks or space on a truck and ends up having to take a mulligan or two on orders to save face with a customer who may be a fairweather client who calls when their pants are down at 4:30 on Friday. Or...(c) the guy who claims they "aren't making money" pitches a lowball rate not based on any market prices and then realizes in hindsight there was no point in doing that. I've seen all those situations when I was on the load broker side of the business, from desperate sales people who pitch dumb rates and then cut it by $50 out of fear to rates based on a set carrier doing it and then the carrier goes out of business so you're bullied into honouring the rates or "lose the work". Owners of companies generally say they don't make money out of habit, to be blunt and honest. I have never heard of an owner of any company say they make money so I've become accustomed to the fact that it's just what they say, even if they really mean to say they're not making gobs of money. It's a common refrain. I say you can't make a dollar out of 15 cents and you can't polish a turd so people who sell cheap freight and expect to make money shouldn't be surprised they're eeking a living if they haven't learned to gently say no to cheap client freight. Make sure to keep the door open at 4:30pm on Friday for when they magically have their wallet open and the truck is booked though lol.
 
npb - yes, yes, yes and yes. Did I mention well put?

Some of us try to get some of that business - the one where the client instead of trying to form a mutually beneficial relationship that will encourage our best efforts all the time prefers to tender all shipments to 20 brokers and 50 carriers (and it's funny when they forget to BCC...), I was reviewing that the other day and think there are 2 or 3 clients we work with in this fashion although we are still selective on which shipments we work on...

Of course we have said goodbye to several old customers like this in the past, you can't base your entire business on this kind of relationship, the workload is just too high and the margins just too low (assuming you get the business paying a 'fair' price).

Anyhow, keep well,

Mike
 
MikeJr said:
npb - yes, yes, yes and yes. Did I mention well put?

Some of us try to get some of that business - the one where the client instead of trying to form a mutually beneficial relationship that will encourage our best efforts all the time prefers to tender all shipments to 20 brokers and 50 carriers (and it's funny when they forget to BCC...), I was reviewing that the other day and think there are 2 or 3 clients we work with in this fashion although we are still selective on which shipments we work on...

Of course we have said goodbye to several old customers like this in the past, you can't base your entire business on this kind of relationship, the workload is just too high and the margins just too low (assuming you get the business paying a 'fair' price)


Anyhow, keep well,

Mike
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Mike

It is funny how the customers you drop due to low rates seem to come back after they get jerked around by the "lower priced" carrier/brokers. They realize you only get what you pay for.
Grass is not always greener on the other side.

Eddie
 
NEWBY said:
Mike

It is funny how the customers you drop due to low rates seem to come back after they get jerked around by the "lower priced" carrier/brokers. They realize you only get what you pay for.
Grass is not always greener on the other side.

Eddie
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So totally true Eddie, I don't know how many have come back for the customer service instead of the *lowball* rates.........
 
MikeJr said:
npb - yes, yes, yes and yes. Did I mention well put?

Some of us try to get some of that business - the one where the client instead of trying to form a mutually beneficial relationship that will encourage our best efforts all the time prefers to tender all shipments to 20 brokers and 50 carriers (and it's funny when they forget to BCC...), I was reviewing that the other day and think there are 2 or 3 clients we work with in this fashion although we are still selective on which shipments we work on...

Of course we have said goodbye to several old customers like this in the past, you can't base your entire business on this kind of relationship, the workload is just too high and the margins just too low (assuming you get the business paying a 'fair' price).

Anyhow, keep well,

Mike
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I have a couple customers who do this as well and it always cracks me up because if you do get the load it's always different then what you quoted and the price changes anyways and they pay more.
 
Valerie K said:
So totally true Eddie, I don't know how many have come back for the customer service instead of the *lowball* rates.........
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There is something to be said about only few dollars spent for piece of mind. If it means people are left in the lurch last minute regularly, the end costs tend to increase (substantially). Try calling FedEx Custom Critical on a Friday afternoon and see the price difference vs. some of the wonderful carriers that do amazing work for us all... $50-$100 now or thousands later.

It's not rocket science.

Although it's not Friday, I'm off tomorrow (and next week). Wish me luck, going to Ottawa tomorrow!

Happy Thursday all,

Mike
 
Best thread I've seen for a while ...

Where's Roca????

Work your best for your customer, and your customer will reward you. Treat them as would a tow truck driver and you'll get what you deserve.
 
Thanks guys.....am fustrated and "theman" you are correct thats what I was thinking. PS I get a constructive post going here.....and I post looking for a better carrier....and get BASHED....WTH?
 
PS this is Drew hoping to sucker someone on Kijiji...We are currently looking for 7 flatbed or step deck ownwer opertator with 3 years experience and a clean cvor.Dedicated runs to ca and throughout the midwest and southern states and wind energy loads.We pay top dollar and every friday we have 20 trucks and need 27 to service all the new customers.Reply to mailto:drewalex2929@gmail.com or call 800 265 1713 or fax resume to 905 623 4525
 
jeepnut2010 said:
PS this is Drew hoping to sucker someone on Kijiji...We are currently looking for 7 flatbed or step deck ownwer opertator with 3 years experience and a clean cvor.Dedicated runs to ca and throughout the midwest and southern states and wind energy loads.We pay top dollar and every friday we have 20 trucks and need 27 to service all the new customers.Reply to mailto:drewalex2929@gmail.com or call 800 265 1713 or fax resume to 905 623 4525
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I'd say that's Drew there, jeepnut. It's a Bowmanville fax number and the only flatbed company in that town that I'm aware of. Stay far and away from CMX.

I'm assuming you're a flatbed guy. Have you checked out Anderson Haulage? GTI Roll has a terminal in Stoney Creek and is a big stable company that gets amazing rates for what they do.
 
MikeJr said:
There is something to be said about only few dollars spent for piece of mind. If it means people are left in the lurch last minute regularly, the end costs tend to increase (substantially). Try calling FedEx Custom Critical on a Friday afternoon and see the price difference vs. some of the wonderful carriers that do amazing work for us all... $50-$100 now or thousands later.

It's not rocket science.

Although it's not Friday, I'm off tomorrow (and next week). Wish me luck, going to Ottawa tomorrow!

Happy Thursday all,

Mike
Click to expand...

Exactly! Fedex or Thompson Emergency is usually who we run into when clients call up with LTL expedites and expect LTL rates on truckload service only because they've just soiled themselves due to sticker shock and quickly shopping around. Of course, they wouldn't have to expedite or call around if they just stick with the program and get in a groove with the right carriers. I have one client that has great lanes and expects LTL rates with truckload service and not willing to pay a fair truckload rate when they call begging for a truck. I gladly drive past cheap freight but also leave the door open for the comeback quote too.
 
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