low rated freight offer by brokers

[ONMARST]

I would like to submit a request for all carriers please do not accept low rates for the sake of their own satisfaction.
there are us brokers who offer way low rates even below break-even point especially BAT LOGISTICS IOWA .
There is a lot of difference between cost per mile and operating cost per miles

 

[Jim L]

I would like to submit a request for all carriers please do not accept low rates for the sake of their own satisfaction.
there are us brokers who offer way low rates even below break-even point especially BAT LOGISTICS IOWA .
There is a lot of difference between cost per mile and operating cost per miles

This makes no sense, no carrier will take a low rate for their own satisfaction. The carrier will always look for the highest offer and the broker will always look for the lowest offer. Supply and demand works and continue to work.

 

[jonny-chicken]

Indeed... With operating costs so high these days, those carriers who take these low paying loads do so at their own peril...

 

[loaders]

Low rates??????In todays market????Sorry, but I am flabbergasted that there would be any carriers complaining about low rates, what with the way things are lately. Carriers can pretty much ask for and receive any number they want in some circumstances. I can't think of any lane where rates haven't shot through the roof. Well, maybe there is one some where, but it sure hasn't crossed our desks.

 

[ONMARST]

Low rates??????In todays market????Sorry, but I am flabbergasted that there would be any carriers complaining about low rates, what with the way things are lately. Carriers can pretty much ask for and receive any number they want in some circumstances. I can't think of any lane where rates haven't shot through the roof. Well, maybe there is one some where, but it sure hasn't crossed our desks.

sir I'm just sharing that what happening in the market I'm not dealing them with low rates, that why i gave an example of BAT LOGISTICS
THEY POSTED 05 LOAD OF GA OFFERING MACON GA WITH 1500 USD

 

[ONMARST]

This makes no sense, no carrier will take a low rate for their own satisfaction. The carrier will always look for the highest offer and the broker will always look for the lowest offer. Supply and demand works and continue to work.

agreed

 

[ONMARST]

Low rates??????In todays market????Sorry, but I am flabbergasted that there would be any carriers complaining about low rates, what with the way things are lately. Carriers can pretty much ask for and receive any number they want in some circumstances. I can't think of any lane where rates haven't shot through the roof. Well, maybe there is one some where, but it sure hasn't crossed our desks.

with due excuse our Canadian brokers offering still low rates depending on the size of the company

 

[loaders]

The way things are right now, a broker offering a low rate obviously doesn’t want to move the freight. There seems to be an abundance of freight right now and most of it appears to be paying much more than 6 months ago.

 

[tasuinam]

The way things are right now, a broker offering a low rate obviously doesn’t want to move the freight. There seems to be an abundance of freight right now and most of it appears to be paying much more than 6 months ago.

What's irritating is borkers arguing about 'there is no way the cost has gone up so much' OR ' when the dust settles we will remember who stuck by us'.... I mean driver costs have gone up 15% atleast, maintenance costs are up $0.08 / mile - and in the US much more if the truck breaks down, fuel ofcourse - so how does a broker think the 'dust will settle'.... this is the new normal....the rates needed adjustment

 

[loaders]

I don’t think that there is anyone who would dispute the fact that many operating costs have gone up. I also don’t think there is anyone who hasn’t seen or experienced some carriers exercise blatant price gouging, for no reason other than, they can. Those are the people who we will remember. The carriers who can explain why their rates have gone up, and have either increased fuel surcharges or implemented, reasonable across the border rate increases will receive no argument from us. The ones who merely say “ hey this is the new rate, take it or leave it”, knowing full well that it is 50% higher than a month ago, well, they go on a special list.

 

[MLCAR]

The ones who merely say “ hey this is the new rate, take it or leave it”, knowing full well that it is 50% higher than a month ago, well, they go on a special list

Isn't this the same approach most brokers take when trucks are in surplus and freight is limited? Give the freight to the cheapest bid cause hey everything adds to the profit column, not as a savings to the customer. I am not one for price gouging for the simple fact that it wont last for long term growth, but I am not against anyone who can get a better rate for keeping their wheels turning. Brokers who have had issues with the BC lane during the floods and now the rise in operating costs are pathetic, and wont last long in this business. Seems we all tend to forget ultimately freight is manufactured or produced by a shipper and delivered to its destination by a trucker, without that truck everyone else in between are irrelevant.

 

[hockey]

I have to agree with loaders, costs have gone up and increased rates are warranted. I have been at this business for 35 years and have never seen the price gouging that is going on now. Reputable carriers have increased rates sensibly and we continue to do business with them. Asking $4000-$5000 out of Ohio puts you on the permanent DNU list. We all know this is not sustainable and those carriers who act responsible will be rewarded in the end. We have also never used the cheapest carrier and paid well as we want to keep our customers by providing them with good service and you can't do that with cheap carriers.

 

[MLCAR]

The idea of getting added onto a DNU list for a bid is laughable. Ofcourse its your list to be used as you please. And i should reiterate "cheaper carrier" as 2 very good carriers can be cheap in their bids to win business and lets not pretend that between 2 good carriers the highest bidder gets the tender. Cant speak on the $5000 out of Ohio without context, but there are lots of load boards out there with american counter parts that pay well. For context we had an american broker tell us they are offering a roundtrip $1825 CAD from Windsor to Mississauga, the same trip a Canadian Broker was offering for $1275 and wouldnt budge, you can guess which broker got our truck. Lets also try not to gate keep the industry and suggest Carriers need to be "rewarded" freight only if they quote something thats "reasonable" in the brokers eyes. Brokers and Carriers are meant to be partners in business since providing good service to the customer is what matters.

 

[loaders]

Good partners don't gouge their counter parts. Look, we all know the difference between reasonable rate increases and out right price gouging. Please don't try and dignify the latter by suggesting it is " over due" or somehow within the limits of an acceptable market economy. As my colleague @hockey stated, this is a situation unseen before in my 30+ years as well. The professional carriers out there are not the ones participating in this. They realize that relationships can and will continue to be profitable for years if everyone is treated fairly and kept informed. When I review our list of those who we feel are being unreasonable in their rate requests, I seem to find the same names associated with double brokering, last minute cancellations and generally poor levels of service. Funny how that works. Melroy75 sounds like you have had some bad experiences with the brokers you choose to deal with. Might be time to update your list and start doing business with some of the good guys out there.

 

[hockey]

Good partners don't gouge their counter parts. Look, we all know the difference between reasonable rate increases and out right price gouging. Please don't try and dignify the latter by suggesting it is " over due" or somehow within the limits of an acceptable market economy. As my colleague @hockey stated, this is a situation unseen before in my 30+ years as well. The professional carriers out there are not the ones participating in this. They realize that relationships can and will continue to be profitable for years if everyone is treated fairly and kept informed. When I review our list of those who we feel are being unreasonable in their rate requests, I seem to find the same names associated with double brokering, last minute cancellations and generally poor levels of service. Funny how that works. Melroy75 sounds like you have had some bad experiences with the brokers you choose to deal with. Might be time to update your list and start doing business with some of the good guys out there.

 

[hockey]

Again have to agree with loaders. 20 plus year relationships with carriers because they respect us and we respect them. I suggest Melroy 75 get off the load boards and establish relationships with reputable brokers who actually pay under 30 days and not the ones who offer you the moon and you have to chase for payment. A bird in the hand is worth 2 in the bush

 

[MLCAR]

Please don't try and dignify the latter by suggesting it is " over due" or somehow within the limits of an acceptable market economy.

what is being dignified here is that carriers are supposed to bid what is considered market value by the Broker and if not they should be put on a DNU list...Really? the Market is not what it was 30+ years ago where Brokers were a necessity to move freight and threatening to be put on list shows how fragile a "professional relationship can be". We have great relationships with brokers as well as direct customer business which keeps us active, so your suggestions are appreciated but are redundant.

When I review our list of those who we feel are being unreasonable in their rate requests, I seem to find the same names associated with double brokering, last minute cancellations and generally poor levels of service. Funny how that works.

Curious as to how these carriers weren't already on the DNU lists to begin with? yet they are able to bid on your loads and get added onto the list but not for "double brokering, last minute cancellations and generally poor levels of service" - and I am not being snarky or belittling here genuinely curious. We have put brokers/customers on our DNU after seeing issues others have faced and expressed on this platform.

I suggest Melroy 75 get off the load boards and establish relationships with reputable brokers who actually pay under 30 days and not the ones who offer you the moon and you have to chase for payment.

again thanks for the suggestion but its redundant. A suggestion in return, work with the carriers who's relationships have been built and proven over 20 years and stop whining about the ones that are price gouging, which are calling you off the same load boards you post your loads. The issue then sorts its self out.

At the end of this Sunday evening opinions will defer but the fact that remains is a broker holds the right to tender the shipment to the carrier of their choosing just as much as the carrier holds the right to ask for their price for the service rendered. If these cannot be met then move onto the next one.

 

[hockey]

Melroy 75 do what ever makes you happy. I haven't survived 35 years in this business by using load boards but by using those carriers that I have built a relationship with . Only post my customers odd stuff. And yes I do move on to next one.

 

[ONMARST]

I have to agree with loaders, costs have gone up and increased rates are warranted. I have been at this business for 35 years and have never seen the price gouging that is going on now. Reputable carriers have increased rates sensibly and we continue to do business with them. Asking $4000-$5000 out of Ohio puts you on the permanent DNU list. We all know this is not sustainable and those carriers who act responsible will be rewarded in the end. We have also never used the cheapest carrier and paid well as we want to keep our customers by providing them with good service and you can't do that with cheap carriers.

Thank you, sir, I always get great advice from you. . I never put unrealistic rates to the brokers, the last couple of weeks when brokers offer me 3000 USD and 2800 cad for 600 miles even I didn't negotiate further bc I was dealing with it for a long time.
As mentioned earlier I had a very bad experience, especially with Canadian brokers. I m not feeling comfortable mentioning their name at this forum but yes few of them dealt non-professionally.
which is ok for me bc I'm not running a large fleet

 

[hockey]

Onmarst, yes do what you are comfortable doing, Not all Canadian brokers deal like that. We pay under 30 days and pay reasonable rates that carriers are ok with. When carriers deal with brokers who aren't after the lowest cost it seems every one is happy.