Freight footage discrepancies.

[WALTERK]

I have a question for more experienced carriers that might be able to shed some light on how to handle a difficult situation. The issue is when a broker sends a truck for a pickup - and the amount of freight the shipper intends to load is not consistent with what has been agreed on the load confirmation.
For example: if you agreed to take 25 feet of freight and they try to put 33 feet - you obviously have to revise the rate. But at that very moment you, as a carrier, are at the disadvantage at least from the negotiating point of view because your truck is already there and if you cannot agree on extra money you have to pull the truck out of there at your expense. Obviously, the load broker will blame the shipper and claim being misinformed and vice versa. That is quite often the case but sometimes I suspect that putting the carrier in that undesirable situation might be done intentionally to leverage a better rate.

As a carrier, I have been exposed to this situation recently and it seems that this happens more and more often as the rates do not reflect rising fuel prices. I suspect this issue is even more prevalent in my line of business which is flat bed services. Since most of the shippers and some load brokers have no idea or conveniently choose to ignore the standards for a load securement and think they can stack everything on anything to reduce freight footage and get away with it.

Your feedback on this will be greatly appreciated and surely help many caught in the same situation.

 

[loaders]

Whatever the cause of the discrepancy, you as the supplier of the service, must be properly compensated. In our experience, as soon as the carrier notifies us of a change to the load size, we contact the shipper and enquire as to why the load is different from originally described, ask if it can be safely brought back to the original dimensions, and explain that if not, there will be a new rate applied. In most cases the problem can be solved, but if the shipper or the broker refuse to pay more for the larger shipment, you are completely justified to pull your truck out.

 

[Valerie K]

I agree with Loaders. I come into this situation as well, and the carrier calls me right away with the new footage and I'll call the customer and let them know the new rate. I've never had the customer say no, nor have I ever had to pull out a truck.

Please don't generalize shippers and load brokers in the same sentence. The load broker is not there, we are the 3rd party so we do not see the discrepancy. However, the shipper does and most probably knows and will try to get away with it to save themselves some money.

Communication between the carrier and the load broker is a key element when doing these transactions to make sure that the carrier does not get *stiffed* nor the load broker.

 

[DIETCOKE]

The way I look at it - you are in the driver's seat, not the broker or the shipper. They don't want to send you away and then look for a new carrier. If you are not getting a fair rate for the footage -you probably don't want to be dealing with the broker /shipper anyways.
As a broker, I have seen some carriers attempt to stack freight unsafely, show up with much less footage than required/ negotiated or without the proper equipment. Just an easy trip to the DNU list.

 

[loaders]

Just a quick thought to add to this thread. I would expect the carrier to contact me if the shipper tried to load more, or LESS freight than I had asked him to pick-up. Fair is fair isn't it?

 

[Nawk]

The rate that a broker quotes to a customer can only be as accurate as the information the broker is provided to work with. It's up to the broker to ensure that your customer understands this whenever you quote a price to them.

When freight characteristics change, a revised rate should be agreed quickly and by all three parties. A new fax / Email confirming the new price should be sent to the carrier immediately, so that the carrier feels as though this is being dealt with and they're being looked after.

A question that I always ask my carriers when this happens is "are you still able to meet your commitments with respect to the other freight you have booked".

Brokers must also look at things from a carriers point of view. If you, the broker, are trying to offer he, the carrier, another 200.00 for 10 feet and the carrier has an LTL booked for that available 10 feet paying 500.00 - where's the middle ground?

A touchy subject from both sides of the fence.

This is where relationships and fair play come into the equation. Something the big boys (CHR, Traffictech etc.) just can't get with their newby, non caring, dispatching staff.

 

[Activet]

As a broker (mostly flatbed), I have encountered this situation, albeit very infrequently. I would drop a customer like a burning ember if I knew they're trying to pull a fast one, or get something for nothing. I find this type of person absolutely despicable, and will have nothing to do with them. No business is a heck of a lot better than doing business with people who are OK with their gain being a result of someone else s loss. That being said, I realize that sometimes a carrier wants to reconfigure a shipment into a smaller space to make a load work. I don't have a problem with this approach, provided that both I, and my customer agree, and it doesn't damage the goods shipped or otherwise jeopardize the the load. Conversely, sometimes a shipper makes an honest error in their calculations and underestimates the room required. We all make mistakes, but it's wrong not to pay for them. Either way, informed consent, and collaboration works to everyone's advantage.
With the situation as WALTERK described it, I think the carrier would be justified in sending the broker an invoice for TONU. If sufficient space were available on the trailer and it wouldn't be overweight, then an honest, equitable renegotiation of the rate is required. If both the broker and shipper refuse to consider paying a fair amount for the extra space/weight, then it's time to sever any relationship with them, drive away, and send the TONU invoice. If it's not paid, then into collections.

 

[noproblembuddy]

It all depends on how the shipper is instructed how to load the freight and whether or not the driver takes an active role in telling the shipper how he'd like the trailer loaded...and whether the shipper listens or not. If skids are not turned sideways or freight is spaced any old way right to the back door, any other plans the broker AND carrier had are pretty much out the window. I've seen it happen where the freight had to be reworked at a carrier's dock to regain that space to fit planned drops on the trailer.

 

[fechner]

Extra Footage

Here is how I handle this situation - happens more than you think.

I call the shipper first to find out if any extra freight had been added to the original footage. Once I have my story I call the person I booked the freight with and tell him his customer is needing extra space and he will have to make adjustments as either "A" - I have that space already booked with my next pick so they will have rebook with someone else or "B" - I have room so I'm still looking to fill that space.

If that is the case I take my origianl rate divide it by the footage first rated then multiply out by the new space required. I also tell my customer that I have not changed his rate just adjusted for the extra footage.

In case I can't load it - I have managed time and a no load fee.

Hope that helps.

 

[Enoch]

One solution is to make sure the broker has spent the time up front to identify exactly what is being shipped. Ask for length, width, height and weight of each piece being loaded. If the broker can't commit to that, then you don't have to commit to a price. This can also save you from other problems like over dimesional loads as well, or where a stepdeck is required versus a flatbed.