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jac transportation

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Oct 16, 2008
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Oshawa, ON. & Indian Trail, NC
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Why is it that load brokers with web sites post on those web pages their "equipment" - they don't have any. Why are they allowed to advertise to the public, potential shippers and receivers, false information? It's a little like advertising sony cd players for 5.99 when you don't have any. A little regulation on the net is in order here. Don't mislead the client by faking it - go buy some trucks. If you want to advertise - do it honestly. If you're a freight forwarder say so, if you're a trucking company, say so, but don't pretend to be somethng you're not.
 
They are not referring to the Trailers they have, they are referring to the trailers they can obtain. Brokers clearly dont have trucks. They davertise multiple trailers because that is their asset. They can get any type of trailer needed.
 
jac,i am curious to know who is advertising having equipment,,or maybe it reads like that to you.kinda like saying we have 50 years experiance because one employee have 30 years and the owner has twenty.....get it,,just a play on words,don't get worked up over the silly stuff..

anyhow have a great weekend...
 
I have heard of some brokers trying to partner with carriers, don't know how well it works for them. I sure wouldn't want to partner up with a carrier as a broker....
 
Why would you not want to partner with a carrier. Are you scared to find out what it really cost to run a truck?
 
Mud Puppy said:
Why would you not want to partner with a carrier. Are you scared to find out what it really cost to run a truck?
Click to expand...

Mud Puppy, I've worked as a carrier, I've driven as well. As a broker you need to find the best rate you can, if you have a carrier cherry picking there's not much left to work with.
 
godfather

if you have a carrier cherry picking there's not much left to work with.[/QUOTE]

Cherry picking?? Explain.
 
Help me to understand

Mud Puppy said:
Why would you not want to partner with a carrier. Are you scared to find out what it really cost to run a truck?
Click to expand...

Mud Puppy, I'm guessing the cost with a bit of profit for the carrier is somewhere between $2.00 and $2.20 a mile. Am I far off? I think I get the costing. Please enlighten me if I'm way off.

What I don't understand is a carrier's pricing system. Why would a carrier move freight for $1.00 a mile when the cost is $2.00 per mile?? And these are rates quoted directly to customers without a broker involved (so don't blame brokers for this one). How can this happen? And this is not an isolated thing it's rampant.:confused:

As a broker, if you want to have any customers you have to be competitive with the market price. How can a broker quote $2.00 per mile plus 10% when carriers are quoting 1/2 that to customers directly? I'm all for raising market prices. The higher the better. More $$$ for everyone.

Do you have any ideas on how to accomplish this?
 
Pablo said:
Mud Puppy, I'm guessing the cost with a bit of profit for the carrier is somewhere between $2.00 and $2.20 a mile. Am I far off? I think I get the costing. Please enlighten me if I'm way off.

What I don't understand is a carrier's pricing system. Why would a carrier move freight for $1.00 a mile when the cost is $2.00 per mile?? And these are rates quoted directly to customers without a broker involved (so don't blame brokers for this one). How can this happen? And this is not an isolated thing it's rampant.:confused:

As a broker, if you want to have any customers you have to be competitive with the market price. How can a broker quote $2.00 per mile plus 10% when carriers are quoting 1/2 that to customers directly? I'm all for raising market prices. The higher the better. More $$$ for everyone.

Do you have any ideas on how to accomplish this?
Click to expand...

If I may? ...

Pablo, you're pretty darn close on your numbers ... what you're missing though is the "average" part of the equation ... as a carrier we need to average $2.25 a mile over the round trip. So, if I am going out for $3.50 a mile, I only need $1.00 a mile to come home. Conversely, if I can come home for $3.00 a mile, I can go out for $1.50 ... the reefer route between Ontario and California is a good example. Lots of guys will go to Cali for cheap because they know they can get 6K+ to come home. The time/distance ratio has to be looked at as well. Going to Cali you get in more miles over a given period of time ... running Jersey you get less miles in over that same time period. As the ratio narrows, the cost per mile increases.

There are innumerable other reasons why bargain basement rates exist ... the biggest being today's economy and lots of guys just trying to pay interest on the mortgage, the truck payment, and at least put Kraft Dinner on the table for the kids.

Michael.
 
Aceofspades said:
if you have a carrier cherry picking there's not much left to work with.
Click to expand...

Cherry picking?? Explain.[/QUOTE]

What I mean by Cherry picking, is a carrier taking all the good runs (i.e. long mile loads) and leaving the short runs to be dealt with. It may not sound like much, but it is easier to make up for losses when you can barter 2 loads rather than 1. As a broker I consider anything under 10% a loss when dealing with the short runs... If I have an "ace in my pocket" (long load) to barter with it is a useful tool to help me maintain 10% on my loads...
 
I was in a group Discussion/Survey and one of the guys was a hired dispatcher (most likely with little experience) that worked for a manufacturing company. They have a fleet of trucks. This was a rare situation where the company was a type of combination where it was a Shipper,Carrier and Broker (of sorts) all at once. So he basically shipped outbound his own freight and took dirt cheap rates on his way back instead of coming bobtail. It all ways boggled my mind how guys send a truck for half price but apparently there are situations where there is some kind of balance (unfortunately decimating prices for the rest of us). He's able to take that loss because he more or less made 100% profit on his outbound.
 
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