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When Freight Becomes a Hostage: My Experience With Trans Atlantic & LT Group
- Thread starter TaskSwap
- Start date
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Hate to say it but this is what happens when you shop at the bottom of the barrel. What made you think these guys were ever a trusted carrier? I’ve been saying it all along, negligence isn’t an excuse. When you chase the cheapest rates you attract carriers like this. As others have pointed out, a reputable carrier would have charged more but you wouldn’t be dealing with this mess.
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I disagree, and I do so from personal experience. After 30+ years in this business I am not proud to say it , but we have been burned by unscrupulous carriers more than once, many more times than once to be exact! In the majority of cases, we paid the “going” rate or even more. Saying that the rate someone paid will determine whether they would be ripped off or not is way too simplistic. We have had excellent service from carriers who came in below what other, “reputable” carriers had quoted. The best way to avoid getting burned is to be extremely cautious about who you’re dealing with. Sure, someone quoting 30%, 40% or more less than everyone should raise a red flag, but sometimes their particular situation allows them to take your load at what appears to be a discount. Proper vetting procedures is your best bet to avoid the scammers. Having said all that, if a broker insists on continually placing his freight exclusively with carriers who offer the lowest rates possible, then yes, he should be prepared to be burned on a regular basis.
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That’s one way to look at it, and you have every right to disagree, but it definitely increases your chances of getting burned. From my experience, the shadier or lower quality carriers are usually the ones coming in cheapest. They may already have red flags on their notes and are hoping to win freight by undercutting the market to seem more attractive
Of course there is more to it than just the rate, it is always a combination of factors. But the reality is you are far more likely to get burned when you chase profits over qaulity/reliability.
You do not need 411 to tell you if something is off. A simple search will usually show you plenty. I see threads as far back as 2016.
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Operating under the assumption that paying a “healthy” rate will somehow shield you from receiving shoddy service, is no different than thinking you will receive great service from the supplier with the lowest rate. Neither negates the need to perform the most extreme levels of due diligence in today’s market. Without question, employing a business plan that places more importance on profits, as opposed to providing good service, will undoubtedly lead to a higher number of service failures.
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Paying a healthy rate might not guarantee perfect service but pretending rates do not matter is just ignoring reality. The carriers who consistently come in at rock bottom prices are usually cutting corners somewhere, whether it is safety, compliance, driver pay (Yes, your driver inc guys you always rant about). You can vet all you want but if you keep chasing the cheapest option you are stacking the odds against yourself. Proper due diligence combined with paying carriers what it actually costs to run a solid operation is the only way to avoid getting burned.
There is no doubt that paying a healthy rate, or a better than average rate, or an over-the-top rate, should capture the attention of a bonafide carrier. A decision maker in a company may choose to move the shipment with a better rate over a lesser rate, should push come to shove, and one shipment has to be delayed (for instance in a breakdown situation). A low rate, below average, or just ok rate, will immediately filter out a number of good carriers and you will be left with trying to pick the best of a diminished pool.
Unfortunately, the rate will not shield you from a nefarious individual masquerading as a carrier. A defined procedure to vet, review and monitor carriers is the way to go if you want to be in the brokerage business. The trick in this market, if you're brokering out freight, is to teach the freight owners how bad it could get should a shipment go sideways and OP shows a perfect example. The broker and the freight owner have to work together to be successful.
Unfortunately, the rate will not shield you from a nefarious individual masquerading as a carrier. A defined procedure to vet, review and monitor carriers is the way to go if you want to be in the brokerage business. The trick in this market, if you're brokering out freight, is to teach the freight owners how bad it could get should a shipment go sideways and OP shows a perfect example. The broker and the freight owner have to work together to be successful.
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That is exactly right Jim L. What gets me hot under the collar is this automatic assumption that a broker is at fault when a shipment goes sideways simply because he didn’t pay what some people think is an “appropriate “ rate. That is hogwash. In the case of this OP, would a rate of $750, or $800, or $900 guarantee trouble free transport? Would he still have to accept the blame for a screwed up load if the carrier accepted a higher rate? The problem here is with the carrier, not the rate that he offered and accepted. That can only be prevented through thorough and rigorous vetting. Please understand, I am not, and never will encourage anyone to build their brokerage business by only accepting the lowest rates offered, it will in the long run, result in far too many service failures.
I think these agent programs are definitely contributing to this issue.
Most of the people who get into these agents programs are sales minded individuals who also have a vested interested in moving loads. They also have desperation if they don't as they won't make a dime. No safety net, nothing.
Makes it pretty easy to see how taking a chance on a sketchy carrier would be the choice to make.
Either make $50 bucks or lose $100 out of my pocket.
My buddy recently joined one. He has full carte blanche if he wants to use a carrier. They have procedures in place, they use highway for vetting. But if he wants to use a sketch bag, he has full override power.
Most of the people who get into these agents programs are sales minded individuals who also have a vested interested in moving loads. They also have desperation if they don't as they won't make a dime. No safety net, nothing.
Makes it pretty easy to see how taking a chance on a sketchy carrier would be the choice to make.
Either make $50 bucks or lose $100 out of my pocket.
My buddy recently joined one. He has full carte blanche if he wants to use a carrier. They have procedures in place, they use highway for vetting. But if he wants to use a sketch bag, he has full override power.