JBT - Back dooring

Boy, did this get off topic in a awful hurry. It started as a complaint about back dooring and turned into a free for all. JBT has always done a good job for us and has never back solicited us (that we know of anyway).
However, brokers need to realize that that is the chance you take when you deal with anyone. I have also had carriers call me and say, I just got a call from your customer, he wants rates direct from me.
Every one uses the term "my freight" . Guess what, it is the customers freight and most will use who ever can save him a buck.
Is it any differant when a driver/dispatcher/salesman goes out on his own and starts calling all your customers and introducing himself.
I hate to say it but "loyalty" is pretty much gone these days. Be thankfull for the customers and employees that still show some cause they are few and far between.
 
hey JBT, you screwed me big time for some waiting at one of your customers. Not that this has anything to do with the conversation on here. I was promised the waiting time for days, then when I called to see where my revised fax was, the dispatcher asked me if I had nothing better to do. "thats good serive?" I work my hardest to keep my drivers happy, and pay the fuel the bills, but its hard to make a buck these days, when companies do not pay promised waiting time and are cutting rates.
 
dee5276, I am confused. Are you saying that JBT, the company that hates brokers with a passion, actually brokered freight themselves? Boy, what a world we live in. I guess brokering freight is only a bad thing when other people do it.
 
Let us bicker no longer

I think My Trucks my rates nailed this issue right on the head. I am in full agreement with him, the freight brokers we deal with are an integral part of our modest operation. We would not think of jeopardizing our relationship with them in order to get 15% more for the freight we cooperate on in one lane. Secondly, there is the issue of integrity, which for us is primordial!
As for the comment posted by Freight broker, for whom I have great respect from reading his prior postings, I must dissagree.
The degree of risk a carrier has is generally much greater. In his comment he has taken a rare exception to the rule, noting the case of negligence in particular.
The Carrier is held responsible for the actions of all of their employees directly. The carrier has a great deal invested in his operations , these investments encompass all the requirement of the freight broker mainly such fixed costs as ; office equipment, telephone system and administrative staff.
The carrier on the other hand must add the following fixed costs such as a yard and associated garage/warehouse. Equipment including tractors and trailers.
The big difference comes with the variable cost of labor for the drivers and lastly the crusher being the price of fuel. Honestly, how often is the full price of the fuel surcharge given straight to the carrier.
Therefore, in the case that something goes really wrong whereupon, the carrier his held accountable for one of their drivers actions, which could run into the millions of dollars, the carrier stands to lose everyhing. That means all the assets they have.
The freight broker in such a case is one step removed from the fray. The carrier will always be persued before the freight broker.
Also may I add that a smart broker will not leave loads of capital (profits) in his bank account, leaving little to be seized.
 
Customer Solicitation

I've had the unfortunate experience, as most have, of carriers making overtures to customers I had sent them into. I've also had one experience in last 12 years where the customer approached some carriers that I had sent in. I terminated my relationship with both the "back dooring" carriers and the unethical customer immediately. Both as a matter of principal. In short, I will easily forgo the opportunity to make a few more bucks, if it requires me to compromise or alter the benchmark for ethical behavior that I set for myself, regardless of whether or not I could use the money. To do otherwise would have made me a hypocrite, and reluctant to look in the mirror at the face I shave every morning.

And speaking of hypocrisy, to those who disparage all freight brokers (not just a few bad ones), why do you take shipments from them? I understand a carrier being reluctant but for the sake of expediency, of wanting to move a truck, but then why complain?? If you dislike (hate?) freight brokers, but use them anyway, what does it make you???
 
Alx, I agree with pretty much everything you said, except for the last sentence. On the contrary, a smart broker will and does leave ample capital in his account. As has been discussed here earlier, a successful broker is one that is well-capitalized, in other words, enough money to pay his carriers regardless if he has received the funds from his customer or not. A broker that does this will not have to worry about anything being seized because his payables are always current. I also take some exception to your comment about a broker being somewhat removed from the fray in the event of a problem. Most brokers carry either contingency cargo insurance or an Errors and Ommisssions policy, or both, to protect themselves for such instances. The legal climate, especially in the US, tends to distribute blame on each and every party involved in a mishap, carrier, shipper/receiver and broker.
 
ONE MORE THING. this has been a very good read back and fourth, nice to see both sides. But to say brokers have the same risk as a carrier is not a true statement. Most people think its pretty easy to send a truck to pup a load and del it .Simple right. Delays at border, Drivers hours of service, flat tires, accidents, doors coming off trailer. When a broker sells freight for 100 porfit that money is in th bank. When a carrier accepts freight for a profit of 100. He hopes to keep 60 dollars by the time it dels. Brokers are here we work with them but asset based carriers need to be getting the bigger piece of pie. They are the ones out there through sun sleet and snow. 7 days a week. havent found too many brokers wokring on saturday (besides on call from back deck)
 
Loaded miles, you're right this is a good read, but you should have seen the ones similar back when this site got started. At least now even the most anti-broker carrier out there, has learned that there are brokers who don't work out of their basements, actually put on a suit every morning and go to an office, and carry payables and receiveables that would sink a small sized carrier. I do not know of any broker that can offer freight with a 100% profit margin. In the 20 years I've been in operation, my gross profit margin (before payrolls, rent, utilities, phones, etc.,etc.) averages 15-18%. Sure sometimes we will click on an LTL and make 30 points, only to be followed by a full load where we pay MORE than we have just to keep our customer happy. To suggest that a carrier is not getting the largest "piece of the pie" is extremely inaccurate, or you're hauling freight way too cheaply. No, I don't think anyone would suggest that it's easy to operate a transport company, I don't think there is any successful company around that's easy to operate.
I am encouraged however that you can see the benefit of seeing both sides of the story.
 
I work out of my home...one man operation.. and I've done quite well with it. Is working out of one's home so bad?.. I mean...do most of you guys work in beautiful glass towers with a view of the city? Last time I worked for someone it was in a dingy office that smelled of mildew, old sweat and other odors.. the flies were bad.. and there one toilet for 20 people. and the heat...OMG..the heat.. the place was air conditioned but even so it would hit 40C in there in the summer. And to add insult to injury, I had to commute an hour every day to get there.
 
I've been on both sides of the fence.

In order to be an effective carrier, you need to broker freight as well ... or you can't remain focused on your core lanes. Generally, when the brokers get bigger, they also build up an asset base at least to some degree, in order to satisfy customers' specific requirements.

The main difference between a carrier and a broker is that a carrier's operations are driven by its assets ... a broker has assets to complement its non-asset base, it's more of a marketing company.

In all cases, the most effective players are those who have both elements ... a small carrier cannot service customers effectively enough (even if rates are cheaper) and a broker without skin in the game cannot gain much legitimacy in the marketplace with major shippers.

We all have to learn to work together ... even though we compete.
 
In reply to loaders

I appreciate your comment. I would like to clarify my earlier post by adding the following to what I said earlier. When discussing the freight Broker's exposure in case of an unfortuante occurance, I simply ment to say that the broker's main asset (Cash as receivables) is more liquid than the Carrier's asset based wealth.
You are also right in adding that the situation south of the border has become more litigious, requiring caution and due diligence on the part of the broker when selecting his carriers.
 
Well JBT -- we have done a few loads with you and nothing stands out about the transactions -- good or bad. However, based on what you have posted in regards to brokers -- you have earned a spot on our DNU list.
You should try and understand that there are bad brokers AND there are bad carriers -- it's all about who YOU choose to build a business relationship with and who chooses to do business with you. Why are you hauling freight for what you refer to as brokers "sitting in their basements playing online poker"? You dont have to. It sounds like your attitude is attracting bad business.
 
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