Question Regarding Fines against carriers
- Thread starter Thefriendlybroker1
- Start date
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Let's say you and I are sitting across from each other at the Husky on Dixie. We're having breakfast, and you tell me that you have a truck in Atlanta that needs a load back to Ontario. I put down my coffee and say.. "You know what, I looked on the Link this morning and I see TQL has a load from Atlanta to Toronto.. why don't you give them a call?". You pickup your smart phone and dial into the Link, and low and behold, there's the load. You call TQL and lock on to the load... problem solved. Now, you're happy and decide to pay for my coffee (thanks). The service I just provided is what dispatch services provide. I'm not going to bill TQL and I'm not going to pay you.. I found you a load and you paid for my coffee.. end of transaction. There's thus no need for me to have a bond.. TQL is on the hook to pay you.. not me.
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As long as the carrier performing the work does the billing, what they do with the money after they're paid is their business. In other words, in the scenario mentioned below by Freight Broker, if in addition to buying the coffee, the carrier who hauled the load wanted to send Freight Broker a $100.00 LCBO gift card, a freight brokers licence isn't required. Hmmmm, maybe I've been using the wrong business model all these years!!!!
Regardless of the amount paid or the currency (coffee, LCBO gift cards etc) the dispatch service is getting reimbursed in some way for the service the perform. I agree that the amount they get should be less than the spread that a broker would require because they do not have the cost of carrying the receivable or the bonds or any other cost of doing business that a 3PL would have.
However, if they are securing business and then directing it to a carrier that they have a pre arranged fee of then in my opinion they are a sales agent. If they are securing business and then offering it to the market in general, then they are a broker.
The "escort service" comparison was meant to "lighten up" a typical crazy Friday.
Perhaps, UBER would be a better example of how companies market themselves to avoid regulation.
However, if they are securing business and then directing it to a carrier that they have a pre arranged fee of then in my opinion they are a sales agent. If they are securing business and then offering it to the market in general, then they are a broker.
The "escort service" comparison was meant to "lighten up" a typical crazy Friday.
Perhaps, UBER would be a better example of how companies market themselves to avoid regulation.
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The legal distinction between the two isn't in the marketing.. its in the operations. Brokers take responsibility for paying carriers and they bill their shippers for services rendered. Dispatch services don't do that: The carrier remains responsible for billing the broker/shipper.. Moreover, the carrier is also responsible for paying the dispatch service. At no point is the dispatch service's credit worthiness ever an issue. In the United States brokers are regulated and are required to post a bond precisely because brokers DO pay carriers... i.e. if the broker doesn't pay the carrier the carrier has some recourse by going after the broker's bond. In the example below, where's your risk in not getting paid? It lies with TQL and their creditworthiness..
Now, if a dispatch service is misrepresenting itself then that's an entirely different kettle of fish. If they're claiming to be a broker or a carrier and they're not then they're guilty of fraud and deception. This appears to be the case with the OP's experience.
Now, if a dispatch service is misrepresenting itself then that's an entirely different kettle of fish. If they're claiming to be a broker or a carrier and they're not then they're guilty of fraud and deception. This appears to be the case with the OP's experience.
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Don't get me started about Uber! While I am no fan of rude, ignorant taxi drivers and dirty vehicles, I don't like the notion of a company deciding to set up shop, run an identical business and then thumb their noses at the pre-established regulations, especially when the existing players have and still abide by those regulations. It strikes too close to home for me as a broker. I am licenced and have a surety bond, I have proper insurance coverage, I follow the established rules and regulations. Does just having the latest technology give a company the right to disregard the rules? Yes, I know, the company that services the customer the best will be the one that comes out on top. I suppose the question then becomes, why have any rules in the first place if all you want to do is service the customer? Believe me, I would much rather take the money and time involved in licences and insurance, and put it either back into my company, or better still, into my pocket. Without question, the taxi industry has only itself to blame for this mess. They operated in their own little "bubble", oblivious to the notion of good customer service. It made pretty fertile ground for a company like Uber to set down roots. I love free enterprise....the competition, the new innovations it brings, but like any sport, it has to be played on a level field. To have one team shackled by regulations and the other one not, isn't a fair game in my opinion.
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The professional cabbies have nothing to fear from any ride sharing service.. this stuff about Uber is just a lot of media hype about nothing. Ride sharing and car pooling has existed for decades, and now Uber has brought it into the digital world. You know.. owning a car doesn't make me a professional driver anymore than owning a guitar makes me Jimmy Hendrix. And besides, the cabbies are welcome to use Uber as well. The cabbies have had it too good for too long.. ever pay for a 15 minute cab ride from Pearson? It will cost you 10% to 20% of the flight you came in on. It's about time they got some competition. But really.. a good professional cabbie who is on top of his game will always do better than some toothless junkie with an old car who is trying to pickup fares via Uber.
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UBER is already getting into working for restaurants to manage their deliveries ... such as pizza, Chinese food, etc. My guess is that they will get into freight at some point.
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UBER is already delivering LTL and FTL freight in California. It is still in the "trial stage" but it's just a matter of time before it heads our way.
UberRUSH and UberFREIGHT is already well into trials .... and its not Just Cali...
word on the street is UberRUSH will be in the GTA by May 1st.
UberEATS, formerly UberFRESH (food and produce and meat delivery)
UberPOOLS (car pooling)
UberCHOPPER (yes its real, helicopters)
UberASSIST (trained accessibility division)
word on the street is UberRUSH will be in the GTA by May 1st.
UberEATS, formerly UberFRESH (food and produce and meat delivery)
UberPOOLS (car pooling)
UberCHOPPER (yes its real, helicopters)
UberASSIST (trained accessibility division)
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Between Uber and AirB&B we're all going to become delivery and hotel people. Yeah, I don't see any downside to that.. 
