Deal with Direct shippers NO MORE BROKERS

Discussion in 'Shipper and Receiver Reviews' started by NikolaTesla500, Jan 19, 2015.

  1. NikolaTesla500

    NikolaTesla500 New Member

    Well been doing it for a couple of years, working through brokers, I am just sick and tired of TQL, JB Rob, etc.. They keep anywhere between 15%-40% of your earnings, unless your a super negotiator then your likely to make a little more, but me, Im a truck driver i cant negotiate for crap. Then get a direct shipper my friend says.... so i start cold calling but no luck in MIchigan, Anyone out there can through me a bone on getting a direct shipper. I went through a website called www.sendmeatruck.com, I did get a nice load from a direct shipper but i need something permanent, anyone?
     
  2. Injun

    Injun Rabid Squaw Staff Member

    I believe @SkateBoard has a permanent customer he runs for on a casual basis. @mndriver might have some experience here as well.

    Guys?
     
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  3. Skateboard

    Skateboard ** Commie Express ** Supporter

    Ya, I have one direct shipper. He called me in a panic. They have their own trucks and don't deal with outside truckers. One guy had a heart attack. Since then when I'm home I send an email to them. Many times they have a long run that none of their guys wants to do. Getting paid $2.50 a mile out of NH for a load that weighs 5,000 pounds, takes up 10', goes 2,000 miles and he tells me to pick up other stuff if I want along the way is just unheard of.

    As far as you finding shippers, FORGET IT. A shipper deals with one broker usually. They send out an email on Monday morning with all the loads for the week to the broker and the shipping manager is done.

    No calling truckers with load info
    No verifying authority
    No W9
    No insurance faxing
    No tracking
    NO F'ING ANYTHING

    The only way your going to score with a shipper is to have enough trucks to take care of all their loads and have spare trucks and drivers just in case. And be ready to drop a bunch of extra trailers in their yard too.

    Also, shippers aren't dummies. They know how much a lane costs. People believe brokers get $5,000 for a load and ship it for $900. I can assure you that doesn't happen. I personally know 2 brokers that I talk to on a regular basis. One broker I know ships out 12 steel loads a day. This is all she does. She makes $50 on each load. She pays the rest to the truckers. Why you ask? Because THEY MOVE. If they don't, she's out. Almost all her loads are covered by repeat truckers.

    The other broker I know is out of Texas and moves 7 loads a day, every day, 7 days a week. Same thing. $50 per load.
     
  4. NikolaTesla500

    NikolaTesla500 New Member

    Thanx skateboard., I will attempt a new strategy. What if I SWIM gets an OP-1 and signs up with landstar as a broker, and filter all the good loads for SWIM´s trucking company since it is not under SWIM´s name
     
  5. Blood

    Blood Driveler Emeritus Supporter

    Yeah,
    unheard of would be an understatement.
    That deal would be worth spending a few extra days at home waiting for.
    Or scheduling loads back to coincide with their available loads if you can get enough notice...
    assuming there is plenty of open deck freight going that way.


    Not necessarily.
    We had a few that shipped regular loads daily or close to it.
    If any of the daily runners didn't show for Ryerson Steel they'd just call Yellow Freight (and pay through the nose).
    Depends on the size of the facility.


    When you can get a load bumped up 600-800 dollars over the phone on a Friday afternoon I'm pretty sure the broker already knows the money is there. I've had numerous brokers tell me that they were taking money from their own pocket just to get the customers load moved. :D

    I can believe the $50 out of TX if open deck freight out of there sucks as bad as van freight.
    The last time I was in Houston they were offering 80 cpm. :eek:
    I bounced 350 miles and made about twice the money with the D/H included.

    I knew one guy who started brokering after he lost his CDL and we were the first carrier he used.
    Most people were afraid of him since he was brand new.
    I saw a lot of his invoices and he took a flat 10%, at least on the loads we pulled for him.
    I doubt he was commanding top dollar as a newb and I called on some of the stuff he was moving that paid anywhere from a couple hundred to several hundred dollars less.

    You can only assume that those other brokers were taking 10% and some besides.
     
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  6. Mike

    Mike Well-Known Member Staff Member

    You can deal with shippers directly, depending on where you live I guess. There were a few places where I picked up when I was in South Arkansas that paid pretty well, and while I was thinking at the time of going out on my own, I took the time to talk to the folks at some of these places and they were very much open to dealing directly with local drivers. It was just a matter of being able to communicate with them well enough to get the loads before they got bumped to the brokers and such.

    It's unlikely you are going to ever get that from huge corporations, but you can find small places to work with. The trick is being able to sell yourself to them.
     
    Tazz likes this.
  7. rigjockey

    rigjockey I am the reason why we can't have nice things! Staff Member

    Not sure what all that means but Back in the '90's you needed a million dollars of your own customers to become a load broker for Landstar. We looked into it.
     
  8. Skateboard

    Skateboard ** Commie Express ** Supporter


    Like I said, shippers know what a lane pays. You can deal with them directly and your probably going to make the same as with a broker. Your not going to hit a home run. Been there and done it. There is NO selling. Nobody gives a S***. I can assure you. The only people who care about quality is places like Tyson getting their flash frozen chickens to the cooler or others like that.

    People who don't have their authority or tried talk up a good game with key phrases like, knock on doors, sell yourself, quality of service and nose to the grindstone. Everyone has a story and chances are it's all BS or their telling some half truth and leaving out the important details.

    I'm a clean cut guy with a nice clean truck also. I haul for 3 small companies in NH, one in my town!!! I know all the owners and they know me but they won't deal with me directly. It's too easy to deal with one company. One of the companies has the freight charge right on the BOL. $75 to $100 is what the broker makes. I haul stuff out of the NH National Guard. Same thing. Freight charge is right there and same thing.

    Mike, you can deal with those shippers direct and they may pay the brokers lets say $1,000 for a load and you count on being offered $850. Now your dealing with an unknown company who may or may not pay you. You have access to a D&B or credit report on them? NO! Got a bond to file on when their 90 days out? NO!
     
  9. Skateboard

    Skateboard ** Commie Express ** Supporter

    I do. As soon as I'm close to being home for a week I send an email to them. I've planned to be at home for a week sometimes and only spent 3 days because they had one for me. They make something special for power plants and it can show up anytime. Looks like a hot tub. Made out of special material that far exceeds my cargo and any that I could get.

    Those loads being bumped up on Friday come from the shipper, not the broker in most cases. Those two lady brokers I know have shippers that require them to post the price on the load board so they can verify. If a load isn't going to move she calls the shipper and they put more money on it and want to see it listed as such.

    I haul for Ryerson all over the country. Those loads always pay well and the price is also listed by all brokers and it's usually the same. Almost all the time the loads are covered by PLS. You won't find Landstar in there. They can't compete because they have to move money up to corporate and can't pay even close to what the other brokers are paying. Those pipe loads I was moving up to Williston, ND all late summer and fall were paying $3,700. Landstar was paying $2,800. I can't remember the exact figures but I'm sure I'm close. I would take a load then book another load for 2 1/2 days later and dead head back.

    Now that I look back I think the shipper saw the oil prices drop and wanted those pre-booked pipe loads shipped at any cost ASAP.

    Your best bet in dealing with a shipper is to find someone you can pick up, deliver then dead head back and do that non stop for lets say $1.85 on all miles. Your going to do well doing that non stop.

    You can all talk a good game. I would like to see just ONE of you actually do it. Chances are your going to sit back and say, geez, this kinda sucks. I thought I would be getting $37.50 a mile.
     
  10. Blood

    Blood Driveler Emeritus Supporter

    They weren't using brokers when I pulled their loads about 7 or 8 years ago, at least not on the daily loads we pulled. If one of us took off or broke down they'd just call Yellow. I gave it up when they went to an online bid system because it was just stupid to screw around waiting until the day before to know for sure if you had the load on a short haul daily deal.

    PLS sounds kind of familiar but I think the web based bid site I signed up for was Worldwide Global Logistics or some such B/S. It's been too long to remember.
     
  11. Blood

    Blood Driveler Emeritus Supporter

    Sometime when produce is hot in a given area call one of the brokers who don't list the price and has the same load as a broker posting rates. You'll find variance in rates up to and over a thousand dollars. I dunno how they move it but apparently they move enough loads to stay in business (unless things have changed).
     
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  12. rigjockey

    rigjockey I am the reason why we can't have nice things! Staff Member

    Big deal. it is probably a perishing load and your gonna spend all day while they reject Accept or bargain on the price and quality of the shipment. at the food terminal.
     
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  13. Monica

    Monica New Member

    Looking for a Direct shipper from Houston Tx to Dallas or New Orleans M-F contact me 53' Reefer...
     
  14. mndriver

    mndriver curmudgeon extraordinare

    I have a select group of brokers I use. That number is getting smaller and smaller.

    I have tried to get direct and it's next to impossible. The bean counters control it and upper management have their noses into it specifying how they want to ship.

    And that's to place 25-50 daily loads with one broker allowing thier employees to focus on doing other things than wrangling trucks.

    Like actually loading and unloading them and doing the paperwork.

    I don't mind working with the brokers. I get paid easily that way and a refined list emailed out or a couple of calls during the middle of the week books next week all ahead for me.

    As one shipping manager told me, "I can't deal with one-truck shops. I need a reliable source of transportation and I don't have to worry about that calling a broker and/or emailing them a list of loads to be delivered. "
     
    Last edited: Sep 17, 2015
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  15. Urziel

    Urziel Member

    From the shipper's perspective it's a matter of cost savings. Unless you are a large fleet it's a safe bet you are not going to have sufficient capacity to service a major customer by yourself. Add into this the cost to the shipper of hiring staff to sort through carriers and have the additional accounting paperwork and they'd rather farm it out to the broker.

    For the carrier the broker acts as a resource network for loads and have more accountability in the form of a bond. The key for carriers is not doing business with brokers that slow pay or take more than 20% off the top. A broker can have all the shippers in the world and it means literally nothing if the broker can't get carriers to move their freight.
     
  16. Duck

    Duck Quack Supporter

    Because $3000 a week is more than good money for sitting at a desk making phone calls?

    I guess brokers can make a lot of money if they learn to speak Russian.


    Or Arabic. :mad:
     
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  17. CarrierFriendly

    CarrierFriendly New Member

    I'm a broker and I believe in being fair to both my shippers and my carriers. I would rather take a slim margin on a load and take care of all parties involved. My shippers appreciate the service I provide, whether it's a planned load or a last minute load. If it's not a winning situation for all involved then I'm not interested. My customers rely on me for getting their loads covered and my carrier partners rely on me for consistant loads. If I treat either party unfairly then there goes the relationship. Simple as that. My company brokers more loads than any other 3PL, 1 in every 4 brokered loads in the US. So, carriers love us because we access to more shippers than anyone else and shippers love us because we have access to more carriers than anybody else. Plus, we pay our carriers faster than any other 3PL. And when I find a reliable carrier partner, I will actually team up with them to get them loads. For instance, I have a hotshot in Houston that does an awesome job for me, so I will actually call area shippers and offer them "our" services. It works out very well for everybody. Even though my company has "lane experts" that I'm supposed to use to cover my truck loads, I find that by teaming up with a handful of trusted carriers that have the right equipment in the right place to get the job done, I get happy shippers and happy carriers. I essentially become my carrier partner's sales team. It works extremely well. I'm not the typical "broker" though. Glad to help anybody any way I can.
     
  18. FedupinFlorida

    FedupinFlorida New Member

    Ok, great!! So what is your company's name, so I can get in contact?? It seems as times have gotten tougher, the broker is taking more and more from the carriers. I've asked a few shippers what the load paid and the brokers are taking up to 35%, from my experience. This is completely unfair. Yet, when you try to negotiate with them a better rate, it's just not happening. They give you all kinds of excuse. "That's more than I have in it" "I'm doing this as a favor" "I'm only making $50 as it is" "I'll make up for it on the next load" (Never happens) "I'm actually losing money" (I had someone tell me that on a load. I found out they were making $300 off of a $500 load for 35miles. The load wasn't ready when I got there, and wouldn't be ready till the next day. I told him to shove it. I ending up getting $450 for the load). When times are bad, as they are now, we have to sacrifice our equipment, buy cheap tires and Chinese parts to make ends meet and all brokers have to do is take more money off of a load. Nice!
     
  19. DirectShipper1

    DirectShipper1 New Member

     
  20. DirectShipper1

    DirectShipper1 New Member

    I am a direct shipper and hate dealing with Brokers. We have been in business for 20 years and steer clear of them. I ship about 10 loads a day and go to nearly all 48 contiguous states. I do have several carriers who take my loads regularly. They only run the lanes they like and can pick which of my loads they want. You are right, direct shippers do know very well the cost of a lane and really try to stay within the market rates. I post all of our loads on DAT and Truckstop.com. Another thing about direct shippers, we are more likely to negotiate a higher rate with a carrier than with a broker. I hate paying them and knowing it is really coming out of the drivers pay.
     

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