Cheap Freight of the day

Just as there is no “perfect“ carrier or broker, there is also no “perfect” customer. I fully agree that it used to be quite common for the incumbent supplier to maintain the business every time a new bid process was announced. Today however, price trumps service and lanes can be lost for $50 or less. Most often, the customer does not even take the time to ask if you could match this new, lower rate. “Doing the job right” used to be high on the list of requirements for most customers. I am sorry to say that it has sunk in the rankings and has been replaced with “lowest possible price”. A perfect example of this is the procedure used by consultants such as Nulogx. They describe to the customer this modern, tech driven process that magically selects the best carriers for each of the shippers lanes resulting in astronomical savings. In effect all they do is open a bid and receive quotes from all of the suppliers and award the lanes to the lowest bidder. Most large firms, especially public ones are required to employ the most cost efficient methods possible to maximize returns to shareholders. As margins get squeezed and competition increases, reliable, dependable service and supplier loyalty are the first casualties.
 
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The low price consultants also leave opportunity in their wake. Last year one of my larger accounts got "Uberized".. i.e. Uber brought in their bidding platform and of course all of the customer's suppliers bid each other down, like lemmings to the sea. I couldn't believe how low prices sank, and I honestly believed that this would be the end of it for me with this particular account. But then a funny thing happened: nobody could cover the shipper's loads.. and the loads ended up going out for spot bid. So far so good.. I pick my loads and put in a rate that will assure that I can move them. I like the old way better... put together longer term pricing that's fair.. I don't like bidding on everything.. it adds inertia, and the bidding process can last a couple of days until the shipper gets a quote they like. I notice I have the best success with off the beaten path stuff.. Waco, TX to Sydney, NS when it happens is better for me than Dallas to Toronto, a lane that was beaten into submission long ago.
 
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MikeJr said:
It can depend on the item being shipped.
For example: bailed used clothing, recycle plastics, etc. - 100% falls under Michael's sequence above.
However, something like.... let's say a water purification system for a hospital opening...
Do you want that traveling on a truck that shouldn't pass safety, with no insurance, a driver with 3 beers, 2 log books and a partridge in a pear tree?
People frequently ask for lower prices, I get it. But sometimes (as a broker) you've just got to remind your client how important their business is to you, how important the safe passage of their goods to their customer requires a reputable, quality carrier and that your honest pick of the correct carrier to handle the job is at a price in between the basement and premium. You've selected the best carrier for this job at a fair price for the project. Been there, done that 1000 times and the answer is usually 'yes'. If they trust you.

Keep well,
Mike
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This :)
 
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Freight Broker said:
The low price consultants also leave opportunity in their wake. Last year one of my larger accounts got "Uberized".. i.e. Uber brought in their bidding platform and of course all of the customer's suppliers bid each other down, like lemmings to the sea. I couldn't believe how low prices sank, and I honestly believed that this would be the end of it for me with this particular account. But then a funny thing happened: nobody could cover the shipper's loads.. and the loads ended up going out for spot bid. So far so good.. I pick my loads and put in a rate that will assure that I can move them. I like the old way better... put together longer term pricing that's fair.. I don't like bidding on everything.. it adds inertia, and the bidding process can last a couple of days until the shipper gets a quote they like. I notice I have the best success with off the beaten path stuff.. Waco, TX to Sydney, NS when it happens is better for me than Dallas to Toronto, a lane that was beaten into submission long ago.
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Exactly. I know most of you know I'm not in this any more, but when I was the strategy was to pick enough lanes to relevant and important to the shipper to be approved ... and then the opportunities come and when they make sense, no problem.

I also elected later in my career to work at places that were mixed between asset and non, this helped quite a bit actually.
 
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Michael Ludwig said:
Don't kid yourself ... they're not. It is a certainty that no load broker or carrier went back to their customer base and said "Hey, the market is down so we're going to pass along the savings to you!". If that were the case we would certainly see some downward trending at the retail level.
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We offer any savings to our customers on the spot market while still being fair to the carriers. That being said we pay the carriers that work with us year round the same rate (even when the market is down) on our regular lanes, which is how we keep our customers (giving them some reductions when possible) and carriers (paying fairly even when the market is down). We don't take cheap freight and any customer that consistently shops the rates is fired. The bulk of my customers have been with me for 20 years because we are open and honest.
 
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chica123 said:
I scratched out the rep's name. It's not really her fault. This is from Etobicoke to Marlboro Mass. The rate doesn't altogether shock me at this point. I have gotten used to offers like this. What caught my attention was the quote at the foot of the email in teeny tiny letters...lol
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That’s fortus group I have them and DNU. They all have this bad attitude if you ever call them lol
 
loaders said:
Just as there is no “perfect“ carrier or broker, there is also no “perfect” customer. I fully agree that it used to be quite common for the incumbent supplier to maintain the business every time a new bid process was announced. Today however, price trumps service and lanes can be lost for $50 or less. Most often, the customer does not even take the time to ask if you could match this new, lower rate. “Doing the job right” used to be high on the list of requirements for most customers. I am sorry to say that it has sunk in the rankings and has been replaced with “lowest possible price”. A perfect example of this is the procedure used by consultants such as Nulogx. They describe to the customer this modern, tech driven process that magically selects the best carriers for each of the shippers lanes resulting in astronomical savings. In effect all they do is open a bid and receive quotes from all of the suppliers and award the lanes to the lowest bidder. Most large firms, especially public ones are required to employ the most cost efficient methods possible to maximize returns to shareholders. As margins get squeezed and competition increases, reliable, dependable service and supplier loyalty are the first casualties.
Click to expand...
Having been the victim of the organization that you describe's smoke and mirrors show at one of our key accounts years ago, i couldn't agree with you any more. Lesson learned- try to always ask our clients whether they value price or service so that we know which is most important- and remind them that its a two way street on both elements.
 
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tasuinam said:
what is happening in TX today - are carriers insane .... Houston, TX to BC - USD2800
not really sure if this is where the fuel that has been stolen is going
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Beats running home for $0 USD I guess. I think brokers are going to pay a hefty price for this ridiculousness down the line.
Also I imagine some carriers hauling that stuff might be taking "secret" LTL freight.. If you know what I mean.
 
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JACKBURTON said:
Beats running home for $0 USD I guess. I think brokers are going to pay a hefty price for this ridiculousness down the line.
Also I imagine some carriers hauling that stuff might be taking "secret" LTL freight.. If you know what I mean.
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question is how far down the line - years of relationships with shippers and they are now saying this is what we will pay - if you don't wnat it there are others in line
 
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