The Official " I should not be brokering loads out " Thread

pfk182

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Nov 26, 2009
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I decided to start this thread to see what's out there. What kind of individuals you carriers speak with and meet that really make you wanna scream for help.

Here's my little Friday horror story:

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I would like to nominate Market Trans Transportation @ the following number 514-937-8022 - spoke to Lynn.

She has a load from Montreal to Edmonton.

I give her a call, she answers me and tells me this:

"Yea that is it, it's some sort of load, for a flatbed, that is going to Edmonton, I have a Brother in law that lives there so I know its far yea, humm... What kind of rate do I have on this... wait humm I need a rate on this, humm wait, what about $4000 CAN..."

I bogged for a second and I told myself, this is the kind of brokers that we have competing for customers and throwing them off the ball when we ask them for $2.50-$2.75 a mile? A totally lost individual, that hasn't even seen a flatbed in her life, tells me $4000 for 2350 miles? When we have about $2200 of fuel just to get there? And $1000 of pay for a driver. Cmon...

I told her right off the bat, "I think you shouldn't even try saying $4000 for a Edmonton load to anybody else if you don't want to pass for an idiot". And then "here's the rate, submit it to your customer, don't be shy...you'll see that's the going rate".

Haven't heard from her, and probably won't either because she might fall face first next time she gets up from her chair because of the lack of grey matter. But it just makes me dream of the day when they will decide to regiment the trucking industry.
 
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Sounds like dealing with Traffic Tech. I often hear bottom-dweller brokers say to me, "gee, that's a lot" and I say no, I get this rate regularly and I'm not afraid to let them move on to the next person on their list. TQL (Total Quality Logistics) offers rates on loads that are below the trip cost for actually moving the load.

In the goods market, offering a product at a price that is less than what it costs to produce is usually considered anti-competitive and, therefore, illegal. I agree the industry should be regulated to keep brokers from selling freight in the way you describe but generally the market as we know it will decline to deal with those people and freight should move at a rate that is viable. The rules of market economics as I have been taught do apply when you think about the surplus supply of carriers and the bid price of freight, if you want to think of the classical supply-demand curve situation. There has always been a glut of carriers and a shortage of freight if one wants to use Link Logistics as a representation of a true "spot market". The question becomes: do we regulate the brokers or do we regulate how transportation spot markets operate? I suggest, yes, brokers are regulated now insofar as surety and liability but not so much for a company like Link, which straddles several industries: communications, software development and running a spot market. If we wanted, the industry could petition the Competition Bureau to say that the Competition Act should apply to the business practice of brokering, which is rife with practices that would be considered illegal if it was in a consumer market rather than a business-to-business contract transportation market. The fact that Link Logistics is undeniably the main spot market for transportation services trading, companies gravitate there and it's a free-for-all, with no supervision by ANY agency. I suggest the Competition Bureau of Canada should look at it as the same ethical and legal principles that govern everything to do with pricing, collusion (which is rampant in transportation when bids are done) and bid rigging should cause concern to government officials. It's either been blind to them or no one has ever called their attention to it. Not regulate how prices are quoted and the free market price - just how players in the market are expected to behave (i.e., like everyone else in a consumer market) from a legal standpoint and how markets such as Link are allowed to operate ...and making them more responsible than being just an operator of an electronic clearinghouse for freight. Professional codes of conduct are not enough if rogue brokers are allowed to flourish.

Perhaps pfk182 is absolutely right.
 
Who cares if she sells it or not, nobody is holding a gun to her head. Nor is anyone telling you to call her and book it. Cheap freight, go figure, been like that for more years than I care to remember. God bless her if just for trying. One day she may have good freight and everyone may call her.
 
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Keep gov't out...

You guys scare me with thoughts of having government involved in any business. If you think for half a second that when politicians get involved, it will make all your problems with cheap load brokers or double brokering go away, you are so, so wrong.

As we have read a million times on this site an other sites, there are laws in place already regarding illegal activities of brokers, carriers, scums, and thieves screwing trucking companies. So, you run to the cops and what do they tell you? It's a civil matter. Don't bother me... The laws are in place already people but no one wants to uphold them.

I DO NOT WANT A POLITICIAN TELLING US HOW TO OPERATE. It's a recipe for disaster at the very least.

You as a carrier must do your homework if you are going to extend credit and cannot be afraid to say no to anyone you do not feel comfortable with.

If you don't like the rate, don't take the load and then run your truck empty out of that area and get something that pays.

And again, government regulation doesn't work and will never work. I just hope I'm not the only person here that truly understands this...
 
Heheh Moose, with all the respect I owe you, I wasnt trying to make this post about legislation/reglementation of the trucking industry. I wanted to read some funny horor stories :)

If you want we can start anyone one about that particular subject.
 
I am a dispatcher turned broker, and I understand your fustration! It can be super annoying, it feels like all you do is quote and never see any freight.
There are some good brokers out there, I pride myself on giving a fair rate and if my customer doesnt like then they can go with the cheap carrier. I always advise them that cheap is not allways the best way, I have had quite a few customers come back to me and say I was right.
Although it is hard because they (shady brokers) have the freight. Its a balance and a corrupt industry, and I dont think its going to change anytime soon.

thats just my two cents.