This site  The Web 

5   Chapter  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25

Should Rates Be Locked In For Freight Shipments, Here Why They Should Not

Once you understand how the trucking industry was regulated, it should open your eyes to why it should not be regulated and why it was eventually deregulated.During regulation its true, rates were set, but that was not a good thing. The large unions forced the large trucking companies to progressively increase their compensation plans and benefits to their employees without being able to increase their rates.

The profit margins of the large companies became smaller and smaller. In addition to this, it was very difficult for any independent Owner Operator to just go out and get the permits he needed to run his business, and even if he manage to get them, most of the country was divided into lanes the big trucking companies were responsible for. If you wanted to run freight in those lanes it would obviously be at a price to the large companies, which basically rented to you the availability to run in their lanes.

So as you can see, the large companies were losing, the independent owners basically didn’t have a chance, the rates were locked in, and the unions and the employees were the only ones getting paid; but the companies had no incentive to keep the employees happy because there was little to no chance to run a profitable business. After deregulation the lanes were opened up for who ever wanted to run them the rate structure was thrown out and the independent Owner Operators were free to run their own trucking company without the lordship of the unions or the large companies. 

This created a new problem for the large trucking companies. The independent drivers were quickly on the rise and they were undercutting the rates everywhere, the large companies progressively defused the unions and shook loose of them. They began to find creative ways to compete in the market and soon independent’s indeed found themselves basically where they are still today, “having cut their own throats by undercutting the rates so much.
I've taken the rest of this section out, it's a dialogue about the unethical practices of the freight brokers, I didn't want to discourage you by those things. I felt that if you get the book and see the deeper strategies that would allow you to win the battle with the Brokers it would be much more encouraging for you and would adequately offset the things that are said from this section which is still in the eBook.

What Laws Can and Should Change In The Trucking Industry

One of the biggest problems is that Brokers and large trucking companies alike do not disclose the freight cost to the independent owner operators "Truckers". Truckers have more of a right to know what the load was booked for than anyone else , yet they are disenfranchised almost without a fight. Whenever a load is outsourced the Trucking company running the load "which in many cases is the Independent Owner Operator" is the seller and the shipper is the buyer of the sellers services. Regardless of who is booking the load they are only an intermediary; technically the relationship is between the shipper and the carrier of the load. As in real estate there would never be a concept of not telling the seller what the buyer is offering to pay.

I had a broker refuse to pay me for a layover, I called the shipper and the shipper which by the way laid me over all night refuse to even talk to me saying their relationship is with the Broker and that they had no relationship with me, that's the kind of hog wash only legislation can fix. It's a pretty sad day when we have to force people to realize that we have a working relationship with us and that the intermediary is not your relationship the carrier is. But you see because it's about money they not only refuse to see it they will fight you with every lawyer they have to deny it just to save a buck.

Trucking Industry Reconstruction

The industry has to be restructured to offer full disclosure to the carrier on the load. Since the law does not require such the Brokers and the big trucking companies keep this information guarded close, most the time the trucker is forced to have to believe the Broker or big trucking company. Also there is no system of validating to the trucker that the price is what the Broker or big trucking companies are saying it is. Many of them if you ask them what it was booked for will tell you point blank "we don't give out that information".
That's part of the reason I mastered the market and decided that forevermore if there was a decent enough market, no shipper, no broker no big trucking company nobody was going to set my rate. I decided long ago to take complete and total control by using the market strength to slaughter my opponents and make them pay me what I'm worth, and I say don't you wait another day for the market to go up you get ready now, now is the time to get ready, now!

The kind of disclosure I'm talking about is possible , and I believe it can be practical, however, there are many things that would have to happen to enforce it. Shippers would be required to prepare a special documentation for each load including the load and the conditions along with the price and signed by someone one on a list of approved signers. This documentation would be faxed to the carrier by whomsoever the intermediary is along with the rate confirmation. When the carrier gets to the shipper he can check the signature on the shippers approved to sign list in order to confirm that the shipper indeed documented the Load Information Price Sheet

There needs to be a way of validating the price and the carrier on the load should have a legal right to know the price. The trucker is smart to know the market and what it should bring but the price should be accessible to all carriers entering into an agreement to haul a load and it should be available by minimal electronic means such as a fax machine which the Trucker can have access to through a Truck-stop in the event he either does not have internet or it is not available or operational.

Furthermore the transactions need to be handled through an escrow like with a real estate transaction, this way if there is any question about who gets what the escrow company can hold the moneys until the transaction is agreed upon by all parties according to the agreement and or any judgment handed down concerning the matter.It may sound like a lot of red tape but I have had many times when even after the Brokers dispatched me with a rate confirmation that I was due monies that I never got because the broker refuse to interpret a layover as a layover or a truck ordered not used as a truck ordered not used. Therefore I believe legally there should be a legal process which protects the trucker, one that does not allow the Broker or the big trucking companies handle the monies.

5   Chapter  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25