Some 3PL's Bring Nothing Of Value says new OTA King

We've never really done much business with Liberty in the past. We've found them a bit pricey for average service. Maybe we'll take our phone and fax machine and do even less with them now. Please...
 
nothing of value

I don't want to start another carrier/broker flaming match, however I must say I disagree with Brian Taylor's statement "brings nothing of value except cost to the transaction". That seems to me to be a very narrow viewpoint. Thinking logically, it's patently obvious that there must be some value to someone, otherwise 3pls would not exist. From what I read here and elsewhere, it seems that most carriers have more difficulty collecting from other carriers who broker freight than with 3pls.
 
I'm not a big Liberty fan but he did say "in some cases" so don't be so touchy I'm willing to admit that "in some cases truckinging don't add value also".........obviously not our company but some companies.
 
Well put Activet. I would have thought by now, the transport industry had evolved and matured enough so that tired, old comments such as this had faded away. I can only assume that the new chairman of the OTA is addressing the the last few dinosaurs of his association with this comment. He surely couldn't be referring to the majority of his own members who operate logistic divisions with their banks of telephones and fax machines.
 
Do "3ps" have to upgrade their phones and faxes for new emission standards? Again this debate will go on for a long time but trucking companies who have the biggest risk on the roads and the biggest expense on and off the roads , getting a smaller and smaller portion of the pie. We have a truck broke down with turbo issue 2500 dollars so far in repairs. The load he is hauling rev around 400 dollars, will the "3pl "cover this cost? Or do the carriers cover it as a typical expense on road and the 3pls wil keep paying for copy paper and phone bills. (using 1 800 numbers of carriers to keep cost down)
 
Travel agents sell seats on planes and cruise ships and earn a commission for that sale, yet no one asks why they don't own the airplane or cruise ship. Insurance brokers sell policies and earn a commission for that sale, yet no asks why they don't own the office towers or carry the risks of the insurance company that issues the policy. Real estate brokers sell homes that they don't own and make a commission for that sale, yet no one expects them to own each of the homes they sell. Hmmmmm............
 
They also seem to think as fuel goes up, rates go down.

I just had a 3PL tell me the rate for a FTL to Montreal is now $100.00 less than it was last week. I told him he can keep his load on the dock then. "But I have 3 loads", "You can keep all 3 on your dock then".

Perhaps he is correct in his statement, but I would alter it to say "some" 3PL's bring nothing to the table.

Oh, I see now he did say "some".
 
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I can agree with "some" the funny part is rates go up and down on rates daily, I don't imagaine 3pls who have this freight have to adjust freight rates weekly or even monthly to their customers but the rates they offer carriers changes daily. Chicago is the prime example - it will range from $900 to $1300 in 1 month, they sense trucks piling up rates go down. It's greed to make as much as you can off the carriers and run. Again "some". Without trucking companies 3pls/load brokers/middle man. Whatever they want to be called won't have any use for faxes and phones .
 
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Brokers vs carriers...

Keeps going on and on and on...

Will this debate and bitching ever end?

We are both licensed, insured and bonded carriers as well as licensed, insured and bonded brokers. As I see it, we are probably in the minority of Canadian companies to actually be a licensed broker as most Canadian companies do not have a brokerage license or bond. Check their authorities. They just do it.

The only solution I see to stop the broker vs carrier bitching is for the carriers to shut the f**k up and quit hauling cheap freight. Quit whining about brokers and look after your own business. You're the only one that knows what YOU need to operate at a profit. Oops, there's that dirty word again, profit...

Again, were are both so we see both sides of things. And every broker, as well as every carrier has his cheap ass customer to contend with. I just wish that the debate as to who is screwing who would stop.

Every thread you see on here ultimately turns into a broker screwing the carrier thread. If the carriers want ALL THE CASH ON EVERY LOAD, then it's time they invest in sales personnel to go out and solicit house accounts and then they get to keep all the cash and keep the greedy brokers out.

Or, as all carriers see it, get themselves a better fax and phone so they could be cheap ass brokers too.

So, that's pretty well my rant for the day. After all, it is "Black Friday" and all the Canadians that complain about not being paid enough are probably down south supporting the US stores and bragging about how much money they saved because they didn't buy from some Canadian that was trying to screw them...

Have a great weekend everyone...
 
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homespun logic?

Let's face it, we all choose what business we're in. I'm sure that I'm not alone in my thinking (simple logic) here, but as a broker, it is in my long term interests to ensure that the carriers that I have carefully developed good working relationships with, stay in business. I have lost some customers by refusing to follow rates into bankruptcy for me or our carriers. However, there does seem to be quite a few that go after whatever they can squeeze out of this industry on the short term, regardless of who they injure. It's entirely up to you if you want to even talk to them, let alone do their work then bitch about it later.
 
So true, been on both sides now as broker but spent the last 9 with a trucking company. And my $$ depended on what we did as a company. I did not whine and complain about cheap freight - if cheap and did not work - did not haul. Some of these 3pls play the game yes. As I have said before supply & demand makes the world go round. Don't like brokers rates, hire more sales force and get your own accounts. Everyone have a great weekend and enjoy the Grey Cup!
 
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Can remember the days before Link, Traffic Tech , CH Rob etc.. calling another carrier that you have developed a good relationship with and giving them your extra truck locations and would glady help with their freight when availible to get you home and still make a decent buck. Sometimes change is not always the answer, but we learn to live with what tools are available.
 
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LOADED MILES said:
Do "3ps" have to upgrade their phones and faxes for new emission standards? Again this debate will go on for a long time but trucking companies who have the biggest risk on the roads and the biggest expense on and off the roads , getting a smaller and smaller portion of the pie. We have a truck broke down with turbo issue 2500 dollars so far in repairs. The load he is hauling rev around 400 dollars, will the "3pl "cover this cost? Or do the carriers cover it as a typical expense on road and the 3pls wil keep paying for copy paper and phone bills. (using 1 800 numbers of carriers to keep cost down)
Click to expand...

I really hate to add to the brokers vs. carriers war, but I'm going to anyway.

Dude! We're not truckers. We're not even in the trucking business. We are Sales, Marketing and Service Business. These days you might even say we're in the IT business. That's it. Shippers use brokers because they no longer have the resources in staff, software or expertise to negotiate and manage a multitude of carriers.

I expect you as a carrier to include your costs in the rates we negotiate. And I will, because it's in my best interest, try and negotiate the best deal possible. Your cost structure is different from mine because you're in a different business. Yes in my business I have to include the cost of copy paper and fax machines and software, and AS400 mainframe computer systems and web design, and web servers, and sales peoples salaries, and rent, and commissions, and insurance, etc. I know my cost structure and I know what pricing I'm willing to negotiate with my customers.

We have two sets of customers. The people who move freight and the carriers who move it. To stay in business we have to keep both sets of customers happy.

On the orginal subject of this thread, which is the OTA's statement about brokers....

I suspect (my opinion) that OTA has always catered to the interests of the BIG trucking companies. BIG trucking companies aren't as dependent upon brokers as the small guys because they can afford to hire a sales force. Being anti-broker is a good way to keep the small guys out and limit their competition to the cartel of the dozen or so big guys that influence the OTA.
 
Right on Pablo!

It is refreshing to hear from a 3PL who understands exactly what they are. I bet your people do not use expresions such as "my driver" or "my truck".
If 3PL's didnt exist than neither would the carriers who have no customers and build their business around your ability to provide them work. These guys are usually the ones who complain the most, but accept business from anyone at whatever rate is offered. (cause you know, you gotta keep the truck moving)

Yes some are more reputable than others but that is the same with carriers as well.

By the way, this rant comes from a carrier.
 
He did say SOME brokers add no value...and perhaps that's true in his case.

When you've been in this business for awhile you cease to care what others think...instead you focus your energies on being a good partner for your carriers and customers. And you know you're providing value or else people wouldn't be using your services...I get calls from customers and carriers every day of the week...people who CHOOSE to work with me...
 
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