Back Soliciting...

M

Manitoba Moose

Member
Jul 27, 2009
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Otterburne, MB
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I hope I'm not posting this in the wrong place. If I am, please forgive me...

I have a question about back soliciting by a carrier.

Our load confirmation clearly states "Back solicitation will result in non-payment" and it is signed and accepted by the carrier.

Got a call from my client that a carrier we have used once called him on a post we had on a load board begging him to give him the load and deal direct with him. My client was specific in telling him he only dealt with us and for him to call us for the load (Man its nice having clients like that). He called my client 4 times times that day to try and talk him into giving him the load directly.

My question is to the brokers 1st...

Would you pay this carrier if you have proof positive that he tried to back-door you knowing you have full legal rights not to pay him as per the signed carrier-broker agreement?

Questions for the carriers is...

#1 - Where do you get off thinking this is acceptable behavior?
#2 - What would you do if you recieved a letter from a broker with proof positive (signed letter from client with names, dates and times) of back-solicitation telling you that the $4,400.00 load you just hauled 2 weeks ago is for free because you tried to back door me?

Trying to decide if I should pay this guy and put him on every DNU list in the world or make him pay for his unethical behavior.

Your input will be appreciated.
 
I am a carrier,and would think you should post the carriers name and let the industry know what kind of shady company they are. On the other hand [not that i would back solicit] if I was not going to be paid for a load I did I would put it in my lawyers hands immediatly,I think at the end of the day you will have to pay them unfortunately this business has become very unethical. Be thankfull your customer called and told you it seems these days most choose to just get the cheaper rate.
 
If the contract states no back solicitation and both parties to the agreement have agreed to that..then what your carrier did was wrong, and he should suffer the consequences.

As a broker myself, I do not include a back solicitation clause for several reasons..1) it is almost impossible to enforce..2) it often unfairly inhibits the carrier...i.e. if he pulls a load out of Georgia Pacific for me does that mean he cannot load out of that huge shipper again unless its through me?...unfair..3)..sometimes it makes sense for a carrier to work direct with the shipper...4) in all fairness to the carrier...does the broker...when he cold calls pay any attention to the fact that the accounts he's calling may be carrier's house account?...not really. While I don't encourage back solicitation, I don't punish carriers for it either...after all...the value I bring to the transaction should hold my shipper to me..and not some punitive clause in my carrier agreement.
 
Back Solicitation

Depending on the wording of your confirmation, you can legally withhold payment to the carrier (as liquidated damages only). There is jurisprudence that a Bill of Lading is not "in and of itself" the only binding contract of carriage, if it is issued pursuant to another contract (carrier confirmation).

PM me if you want more info.
 
It's all about partnership

You know I don't really like to whole back solicitation issue. I'm a broker and my carriers are partners in our mutual servicing of the end customer. In that spirit, if I'm servicing the account from a sales perspective, my carriers I work with shouldn't be calling in directly and they should give me a heads up if the customer contacts them directly. If there is business that can't support me and my carrier making a buck at it, I'm happy to step aside.

It really is all about choosing who you do business with. You don't need to have this in a contract with a reputable carrier. They get it. If a carrier does this you should let everyone know and hopefully no other brokers will do business with them
 
Post who's doing it
All members should add them to there DNU List
The faster we find out who's doing it the faster
the end result.
Hats off to your customer who said NO and stood there ground that is the kind of customer to go out of your way for to keep them happy
Thank them for ALL of us
 
Thanks everyone for your input to date.

We're really struggling with this issue and don't like this facet of the business. Unfortunately, the days of the handshake and trust is gone. That is why we had to institute a back solicitation clause in all our agreements and confirmations.

We work real hard in developing and maintaining our client base and at a great expense in time and dollars. Without our input, this company would never have been in contact with our client. That is where we have an issue with this. After hauling 1 load for us, he contacts my client directly from one of our other postings...

I have sent all the info to our lawyers for their input and interpretations.

It's definately not ethical what he did but is it against contractual law is my question, I guess.....
 
I'm no lawyer but if he signed an agreement by which he cannot do what he did then I would say you've got the law on your side. Good luck with it...if he wants to back solicit then he shouldn't be signing agreements that prohibit such activity.
 
Be cautious

I would be cautious on not paying, as the carrier may take the approach that he is the carrier of record on the bill of lading and bill your customer directly, and if it goes to small claims between the carrier and customer, carrier will win, and court will suggest shipper recovers their cost from the broker.
 
My question would be if you decide not to pay this carrier for service rendered would you still invoice your client? I agree this is unethical business practice however, I suspect the carrier you used may have no idea of the seriousness of the situation. Most carriers (80%) are small players looking for value for the service they provide. As we all know rates today are barely adequate to get the job done not to mention profit from. I beleive your best recourse is to pay this carrier and be done with them. Please ensure we all know who it was. I would then advise my dispatch to use reputable carriers at all times. This is just my opinion ......
 
We are still waiting for a response from our lawyer and when I do, I will keep everyone advised as to what he suggests.

The reason I'm not posting the company yet is that I like to have all my facts before I say something about them. I will again keep everyone updated asap.

Thanks for all the input and we really appreciate your responses. Great info from very inciteful and intelligent people in this industry.

I hope this post will also help others who have been in this situation.

We do not always comment on all issues but be assured that we read all comments. Great site... Great info
 
Manitoba Moose said:
I hope I'm not posting this in the wrong place. If I am, please forgive me...

I have a question about back soliciting by a carrier.

Our load confirmation clearly states "Back solicitation will result in non-payment" and it is signed and accepted by the carrier.

Got a call from my client that a carrier we have used once called him on a post we had on a load board begging him to give him the load and deal direct with him. My client was specific in telling him he only dealt with us and for him to call us for the load (Man its nice having clients like that). He called my client 4 times times that day to try and talk him into giving him the load directly.

My question is to the brokers 1st...

Would you pay this carrier if you have proof positive that he tried to back-door you knowing you have full legal rights not to pay him as per the signed carrier-broker agreement?

Questions for the carriers is...

#1 - Where do you get off thinking this is acceptable behavior?
#2 - What would you do if you recieved a letter from a broker with proof positive (signed letter from client with names, dates and times) of back-solicitation telling you that the $4,400.00 load you just hauled 2 weeks ago is for free because you tried to back door me?

Trying to decide if I should pay this guy and put him on every DNU list in the world or make him pay for his unethical behavior.

Your input will be appreciated.
Click to expand...
speaking from the broker side, I wouldn't pay him. I have a question though, can you direct me to the websites and how to post a DNU on a carrier? Can we legally do it or can the carrier sue us?
 
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