Unreliable Carriers

From a carriers point of view, we have had some horrible experiences - some that has already been touched on. We continue to get screwed over and over. This week we spent 10 hours at one receiver waiting to get unloaded and for a different freight broker at different location we spent 14 hours getting loaded at a shipper. Two other shipments just up and cancelled after the driver arrived and took a considerable amount of time for the freight broker to contact their customers to find out if it was accurate. When those situations happens the domino affect screws up a number of other commitments further down the line. Sometimes we can make up for it with another driver or another combination but when you get one after another after another you just can't fix them all and a failure happens. We hate like hell to make that phone call about the issues affecting a load so we do what we can avoid it.
I don't think its about the rates. Like you said, most of us still continue to offer the same great service - rates or not. The frustrating part is that it seems like it is never acknowledged as it is the assumed expectation to do the job as expected and promised. You get to hear about the competition who gets away with it and then further gets rewarded with additional loads because their rate is $12.00 lower than mine.
I'll echo what I have always said. If they break down, ask for a repair invoice or the phone number of the location that they are at. If they consistently fail don't give them any more loads. If they are the only guy that can do it, tell them that your rate is X if you get it there within my terms and Y if you don't.

I've noticed more delays too. Likely some are due to Covid .. and layoffs due to Covid. Some of my shippers are short staffed now because some of their people have fallen ill or have died. Even shippers who have historically been great to work with are experiencing longer than usual load times.
 
  • Like
Reactions: bellcitytransport
As my largest accounts don't pay detention I've taken to increasing my gross margin on their loads to 20%, knowing that 5% of that will in all likelihood be paid out in detention charges. The money has to come from somewhere, and in the end it will make it harder for them to get trucks in a tightening market if I have rob Peter, Jane, and Bill to pay Paul's detention.
 
  • Like
Reactions: bellcitytransport
Wanted to throw a quick word in. We lost every lane on an RFQ this year, and in the end, we are getting 30 loads a week because of carriers that couldn't honor their contract rate / volume. We just kept in touch and offered our rate over and over. Actually it happened with 2 rfq's. Customer service and persistence can go along way !

As for brokers driving the rate down. I've always tried to be fair and lost a lot of business over the years because I wouldn't drive rates down to get the load. Fast forward march - early covid. Trucking companies marked up their rates 40 percent ( same as when ELD came in 2 yrs ago ) .... We all had to pay to get those trucks...but there was no reason for the carriers to go up that much... except they could ! So I have a hard time now hearing complaints about brokers driving rates down ! Many took advantage when they could, so they should expect the same when the market shifts. For those carriers I worked with that didn't increase excessively - we work out fair rates and they get the majority of my business.
 
As my largest accounts don't pay detention I've taken to increasing my gross margin on their loads to 20%, knowing that 5% of that will in all likelihood be paid out in detention charges. The money has to come from somewhere, and in the end it will make it harder for them to get trucks in a tightening market if I have rob Peter, Jane, and Bill to pay Paul's detention.

I'm curious, what is their reasoning behind not paying detention? Smart to over charge in anticipation of having to pay out though
 
  • Like
Reactions: Wiley One
I'm curious, what is their reasoning behind not paying detention? Smart to over charge in anticipation of having to pay out though
I'm sure we all have a list of reasons why customers claim they can't pay detention. I think I've heard almost all of them by now.
 
  • Like
Reactions: Wiley One
I'm sure we all have a list of reasons why customers claim they can't pay detention. I think I've heard almost all of them by now.

I agree on a case by case basis but unless I am mistaken, this seems like an actual policy which I have not come across in my limited 5 years in the industry. Unless its Normerica lol
 
My customers claim they will pay. but when it happens there are always extenuating circumstances. I still work for them, however, because generally delays are few and far between.. although since covid they've gone up. There are shippers and receiver who I will not work with... where delays are more the rule than the exception.. Like that awful steel place in Bolingbrook, IL.. 10 hours to unload seven bundles is fast for them..
 
I'm curious, what is their reasoning behind not paying detention? Smart to over charge in anticipation of having to pay out though
Its a real poor decision on the part of the payor of the freight not to include detention time as an additional billable item. As @Freight Broker mentioned he increases the rate to cover the possibility and in the end the freight payor has no clue if he is paying for the actual freight or how much is included in detention. If you break down each item the freight payor can deal with those items one by one and thus lower his overall cost for moving the freight.
I try my best to convince my customers of this; most get it but others just want one price to cover it all. For those who do not want to come to terms about the extra line items and deal with them we send them a summary of their shipments with the waiting/dwell time, among other items, and tell them that we can lower their price if they move these items to the other method and that keeps the conversation moving in the direction they like to hear - lower.
 
  • Like
Reactions: Shakey
I agree, I find it interesting in the sense that wouldn't you as the payee want to know where your money is going. IF you have a customer/receiver/shipper that is costing you additional monies due to their delays in getting a truck offloaded/loaded, the issue of lost monies should be addressed with them, not the carrier or broker that has to bill detention time.
 
I think the best way to go with RFQ's is to initially cherry pick the loads that you know you can do for sure.. Once in the door, and once you've been abe to do a few loads then go ahead and quote the other lanes. Many people invest too much time at the outset quoting everything. Most shippers really only want you to quote your core lanes... It's almost counterintuitive.. if you only quote your core lanes you're seen as something of an expert in your lanes.. If you quote everyhting you're regarded as a one stop shop that likely can't do anything very well.
Some big players in this business put out an RFP every six months, incumbents don't get the same lanes twice unless they drop the rate 10%.....The carriers start pushing the rates down below the water mark just to keep the business.........We wont do it but if you want to haul for an iconic Canadian company you have to start printing your own money also.
 
  • Like
Reactions: bellcitytransport
Some customers deal with detention and delays by simply lying. I had a truck arrive this afternoon for pickup.. the shipper's computer shows truck arrived at 12:09 pm for his appointment.. docked in to load at 12:20 pm.. docked out (loading complete) at 1:50 pm. That looked great until 2:15 pm when the driver called: "hey i'm still waiting to get loaded.. haven't got started on me yet". I asked the driver to shoot me a photo of his empty truck, and I forwarded on to my customer... lets see what happens.
 
From the carrier's side there's no high-road out. Lets say you're doing a load of flowers for a broker who brokers out milk runs.

Not only will they run you to the bottom; they'll also find every excuse why not to pay detention; quoting "my client didn't pay my detention" who's fault is that? Am I in bed with your client or you? It seems to me brokers try to make the best of every situation; share the profits; pass on the fines and fees. Think about how many Canadian brokers pay 100$ layover; when the market rate is already 250. Who knows what they charge their clients? What happens if he got 250 and he paid me a 100 for a layover?
 
  • Like
Reactions: doxilica
From the carrier's side there's no high-road out. Lets say you're doing a load of flowers for a broker who brokers out milk runs.

Not only will they run you to the bottom; they'll also find every excuse why not to pay detention; quoting "my client didn't pay my detention" who's fault is that? Am I in bed with your client or you? It seems to me brokers try to make the best of every situation; share the profits; pass on the fines and fees. Think about how many Canadian brokers pay 100$ layover; when the market rate is already 250. Who knows what they charge their clients? What happens if he got 250 and he paid me a 100 for a layover?

Quote it hourly and it wont have any detention involved..
Did myself numerous times including regional deliveries..