Could have been YOUR wife! How do you know what she does while you're gone all day (or week(s) for us OTR guys!)

She could be logged on here under a name you wouldn't recognize.

Things that make you go Hmmmm.....

 

It's true that it shouldn't matter how much a broker makes as long as you are making the money you want. I do admit that dealing with customers direct is much cleaner. Better pay and less problems.

 

Brokers don't have ethics, they're doing it for the money. But if you talk to the broker, and can cover a load a week or two you can sometimes get more money. Going to the shipper you may have to cover six to ten loads a week to get a contract.

 

I have watched your posts for a while...and once I even suggested you contact shippers directly.

The only time I would think you could legitimately solicit work from a Shipper whom you either worked for thru a brokerage agency, or learned about during discussions with a broker's agent, would be after a brokerage agency has broken the contract that exists between you. Most brokerage agency's break their contracts with trucking companies fairly quickly. This is done when they fail to pay you promptly. "The check is in the mail" only maintains the contract if the post mark on the envelope is within the period contained in the regulations.

"Pay Terms" are huge in this industry. Many brokerages will attempt to get a carrier, especially a small carrier whom is new to the industry, to believe that 60 day pay terms are "Industry Standard". Very few Corporations have such "pay terms" in their contracts with brokers. Fewer still have such pay terms included in their contracts with their "Direct Bill" carriers.The following link is "the law" as regards freight charges, and is the single biggest contract violation in the industry. In the period when I was processing freight bills, more than a third of the brokerages we worked with violated that regulation, and no contract a broker has you sign supersedes that regulation.

Extension of credit to shippers. - Federal Motor Carrier Safety Administration

You have "limited" your ability to do business in a lot of ways MD.

1; You chose a small unit with very limited weight capabilities.

2; You are hesitant to talk directly with the "Shipper".

3; Your "operational area" is to large for the one piece of equipment you have.

As Chris pointed out, you are based in Michigan, with the third largest area in the country for expedited freight at your door. You should not have to leave your immediate vicinity to make a very comfortable living, even with your limited capabilities. From DAY ONE you should have been focusing on contacting the type of business that would best utilize your service. In my view those would be the smaller parts manufacturers whom produce parts for the larger corporations that manufacture in your area. Even two years ago those smaller facilities would have gladly contracted your services on "Day Rates" that would have allowed you to be comfortable (or at a minimum pay your bills).

MD...."Sales and Service" are the only way you can survive in this industry. You are working hard at providing the "service". Now you need to work harder at "Sales". The thing you have to do is search out the market in your area and find the small company that most fits your needs....and which most "needs" the services you have to offer.

my 2 cents

 

When you refer to part 377 you have to remember that it applies to Common and HHG cariers,not contract carriers. See 377.2 1(b)...There is no time limit.

In business law,one party violating a section of the contract does not negate the contract in whole. In other words,not paying in 30 days per contract does not void the whole contract. It only gives the other party grounds to file suit for the violation. That suit may be for the voiding of the contract,but a court will decide that.

 

We've been building our customer base but I'm seeing more and more that brokered loads actually pay more. For instance, we bid on a shipper with over 900 lanes. We know what we get for those lanes and bid accordingly. They said we were too high. We are constantly on those loads and get our price but from a broker. When they are in a bind, they will lose money. The spot market can be very lucrative. We are on a load today for a broker and we know they are losing money as we are set up with the shipper. However it was a rush load and they had to pay.

 

here is where i'm at with the broker v. customer thing.

i got 3 main customers.

1. seasonal (best )
2. my normal gig (also good)
3. my back haul ( new and a pain)

1&2 pay great and i get paid right away.

3. the ONLY reason i'm keeping them is because there is a gateway to something real big. this cusomer is slow to pay and as of late they seem to tell me what my rate is. again, i keep them because of what it could bring down the road.

now the thing is most times from what i see with your own customers you dont get paid as if you would with a broker. what i mean by that is most brokers have quick pay.

what else i've noticed is that i have people calling me to do dedicated work from load boards. brokers and shippers alike. by the end of the year i should have 2 more trucks making 3 in total. i say just keep persistent and do what you need to do.