The key word here is "backhaul". That is a term that carriers and independents have put upon themselves and causes low rates for some lanes. THERE IS NO SUCH THING AS A BACKHAUL! At least not in my book. I have no desire to have a broker or anyone else think that I need a load to get me back to my other load. Every load is unique and not a backhaul. That way, it can be negotiated as any other load. Once a broker gets wind that the load you are inquiring about is a "backhaul", you are on the losing end of any discussion. Same thing if you make stupid comments like "I am trying to get home". Once they know things like that, they control the ball. You have to act like you can take it or leave it.

 

Well, it's not exactly where you live, or want to go considered "backhaul", tho i'd try not to mention it in negotiation. It's more like a from a bad to a good area. For example i live in NJ, still my coming home rates are far better, than coming out. So basically i'm making my money on a "backhauls"!

 

A Landstar agent sent me a rate for a truckload that paid $0.83/mile and was over 1,000 miles. If I were an agent or broker I would be ashamed to even post that I had a load that cheap. I thought that it must be an LTL at that rate until I looked at the weight. It was over 40,000 pounds.

 

The fact that they offer "quick Pay" should be a dead give away that we're getting screwed over. Its a sucker deal. Direct to shippers is where we ought to be somehow. This whole thing got messed up somewhere along the line.

 

I don't see quick pay as a dead giveaway that anyone is getting screwed. Many major manufacturers offer discounts for quick pay. I used to own a company that offered 2% if prepaid or was paid within 10 days with the net being due in 30 days. It was called 2% 10 net 30. You can go direct to shippers and may wait 45 days or longer for your money. Remember, it is the carrier who decides on the terms for which you will haul freight. A broker may offer net billing as their terms, but you must agree to their terms or they must agree with yours.

 

I have spent time with some brokers explaining that there is no such thing as a backhaul. Some of these brokers have never hauled a load of freight themselves so they don't understand what it costs to run a truck. With some I have told them that I don't haul for fuel money. I also give them an idea of what it actually costs to operate a truck. Some are quite surprised at how much it really costs to just break even. I will tell them that I don't haul for fuel money. I will not haul a load that doesn't at least cover my expenses and some profit. Without the truck no one make money. I have also explained to some that the reason that I get some of the rates that I do is because of my safety score and reputation. When I book a load they know that it will be picked up and delivered on time and in one piece.

 

GMan, my point is that anytime someone is offering to pay you fast, its making up for something else thats lacking. Business pays on 30 to 60 day terms. Stippers on the pole get paid the moment they finish thinking that they're making money because at the end of the night they have a fistfull of ones.

 

I know im not in OTR trucking. But with my commercial clients that i haul wastewater for. If i get paid with in 30days thats fast. Most of the time its 45-60 days. Its just the way it works.

 

BTW i would never EVER offer a discount if they pay faster. I think thats a bunch of BS. It cost X amount to do a job. I want X Amount. There is no discount. The price is the price.

 

Most business does pay in 30 days, but not all. I have done business with a couple of brokers who pay when I give them the bills. If they are mailed then they send a check the same day with NO discounts. Most major companies will offer some sort of discount if they receive their money early. It helps cash flow and prevents them from having to borrow money in order to pay bills and keep the doors open. Some of the largest corporations in the world use factors. No business can survive without cash flow. Some companies that offer the discounts will raise prices to offset the added cost. With brokers it makes them a little more profit. I would expect that many brokers who offer quick pay with a discount are mostly passing along their cost of borrowing or factoring their receivables.

It would be much better if we could all operate with cash. We have become addicted to credit. It can help us to bridge the gap between the time when we receive products or services and when we are paid. It would be much better if we could receive our money the same day as when we delivered the loads and without any sort of discount. If you don't like discounting your invoices then raise your haul rate to compensate for the discount. You will still receive the same amount of money as if you waited 30-60 days.