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H.R. 5934, The TRUCC Act
- This item is from the 110th Congress (2007-2008) and is no longer current. Comments, voting, and wiki editing have been disabled, and the cost/savings estimate has been frozen.
Original version created by webmaster
H.R. 5934 would amend title 49, United States Code, to require that fuel surcharges collected by a motor carrier, broker, or freight forwarder be passed through to the person responsible for bearing the cost of fuel.
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Visitor Comments
Steven
May 10, 2008, 1:46pm (report abuse)It gives the driver leverage to hold brokers accountable for lying. Period! Let me share with all of you that I was a Funeral Director and in the profession for 20 yrs., but OTR trucking is the most persevering job I've ever had. BROKERS who laugh about this issue, aren't away from their families and are not giving up their LIFE like most truck drivers.; Yes I do enjoy it, but I'm not 'enjoying the countryside' like the recruiting-for-dummies would bait you with. I'm all BUSINESS. Actually, the FTC has dropped the ball on this one, because a funeral establishment can be fined up to $50,000 for violations relating to disclosure. This is a HUGE, yet ONLY the beginning steps truckers ARE taking. Bokerage is appreciated, but it is time the tail stopped wagging the dog.
Charles
May 27, 2008, 3:27pm (report abuse)Wait a second. Trucking is part of the free enterprise capitalism that makes this country great. Each and every driver can decide for themselves to accept a rate or not, or to negotiate for more. The truckers are not at the mercy of brokers, they can say no and go find their own load if they choose to do so. This bill speaks to more than that though, it also includes transparency into the margins that a broker is earning. For what is the question. I can not walk into the sporting goods store and demand to know how much they made on selling me that pair of N*ke running shoes...that borders on sharing the wealth and communism. The best brokers know to keep their clients freight moving they have to keep their drivers happy. No trucker out there would believe the number of loads that brokers lose money on just to get the load moved and their client happy.
trucker
June 3, 2008, 8:14pm (report abuse)Charles I am not sure What it is that you are hiding or even why you keep at it if you are losing money, but it sounds like you must be making a nice profit on some loads by maybe claiming there is no fuel surcharge to pass on.
Charles
June 5, 2008, 10:47am (report abuse)I keep at it because I know that the market will turn and those loads that I lost money, I'll be able to go back to the shipper and say...I NEED MORE MONEY. I need more money to pay the truck and I need more money for me. See I have sales adminstrative costs that I incur to get the freight, bill it and catalog it. When I give my load to a truck he has NONE of those costs. Of course the trucks have full opportunity to get out there and PAY for their own marketing and selling, get freight and bill it.
I'll say it again, no truck is at the mercy of a broker. Say no to the rate, or figure out what profit YOU want to make over and above what it will cost in fuel...then accept nothing less.
Trucker 2
June 7, 2008, 10:22am (report abuse)Brokers on east coast, or coastal areas intentinally under quote as a group effort to force truckers to take the load or just sit. Then it becomes impossible for the trucker to find a fair rate of pay on a load. the trucker has to work for free,only gettin enough pay for the fuel, and in some cases has to pay out of pocket to get out of an eastcoast region to go inland for better rates. and the brokers on the east and or coastal areas know this as a whole. they are infairly, putting truckers out of business. one broker i talkd to in n.j. told me they do it cause they can. some poor sap allways ends up taking the load out of desparation. its unethical. truckers have no choice when loads arent paying fairly.!! brokers need a rude awakening. thankyou for this bill, ive a family and mortgage to pay for too.
Smitty
June 9, 2008, 10:40am (report abuse)Wow, I hear you Trucker 2, I just can't believe it. Not saying this to be rude but I had no idea you guys thought the we brokers are in cahoots. I love my drivers, but hate other brokers, I'm in competition with other brokers. If you truly are having this problem, I would say make sure you know the broker before you take a load. There are 17,000 brokers, call one of us bigger firms, we have more freight and more clients. In other words it's easier for us to still operate on MUCH lower margins than broker bob out of his basement who needs to make huge profits becuase he can only book a couple of loads a week.
Steve
June 9, 2008, 4:20pm (report abuse)It is not the brokers driving down the cost of transportation on moves off the east coast. This is simply a function of supply and demand. This is not something new. Brokers can post a load coming off the East coast and in 5 minutes have 10 trucks for that load. If you choose the go to the East coast you need to be sure you make your money when you go in. Right now there is simply more capacity in the market place in general then freight because of the slow economy. We all know this will change. Carriers are reducing fleet sizes and the economy will rebound. This is when you will see third parties and brokers scrambling. Good third parties and brokers recognize this fact and will treat you fairly now so that when they need you they will have the capacity they require. The Goal at my company is to ensure efficient capacity in any market. That means making sure our carriers are and remain healthly through any market.
We're gonna do things they say can't be done.
June 10, 2008, 12:39pm (report abuse)I first of all have a comment for Charles. It is the brokers because your stealing money from your help. The fuel surcharges changes week to week. It is not fair that we have to pay for the fuel and you get half the money, you said you have sales fees and all of that well if you dont want to pay the o/o the fuel surcharge then buy your own trucks and pay for fuel,repairs, drivers, and everything else. It is down right dirty that you people take the fuel surcharge when someone else is actually buying the fuel its called THEFT.
On D Move
June 11, 2008, 2:17pm (report abuse)This bill will help alot, but all this is going to do is make brokers lower the price of the load.
Wrong
June 12, 2008, 9:05am (report abuse)This bill is unAmerican, I'm surprised that such a patriotic group as drivers are for the government mandating how a free market can be run.
showtrucker@yahoo.com
June 12, 2008, 11:00am (report abuse)First off to everybody how is it fair for two carriers to keep over half of the revenue ? The "brokering carrier" kept 25% and the carrier i was leased to kept 25%... There is something wrong it's called greed simple greed... What is a 1 truck independent going to do against a company ? ooida forget them they don't care unless they can make a lot of money off the deal.. Brokers are like lawyers... Show me a honest ethical one and i will be truly amazed..
Wrong
June 12, 2008, 11:12am (report abuse)What is this grade school? Fair and level playing field is all BS. This is AMERICA everyone has the same chance. Find out how other people are making money and go do the same. This is just like all the hated about Wal-mart pushing out the little guys. Guess what everyone had the same choice as Sam Walton did, he chose to expand his store into and empire. YOu can take a chance and expand your own company to. But did sit and argue that you don't want to take risks and chances, you want to make as much as the risk takers without taking the risks. That is BS, quit asking for government involvment and learn how to run your own business. Who do you call when your in trouble a lawyer, who do you call when your stuck and need a load...a broker.
5mouth2feed
June 14, 2008, 10:38pm (report abuse)I find it interesting that brokers would have a problem with a bill that mandates they be honest about the FSC that belongs to the carrier. If you are oppossed then
you must be hiding something. As to those who have stated "this bill is un-American" or "level playing field is BS" again someone is showing thier hand at their
unscrupulous activities. This bill is about an FSC that belongs to the person actually paying at the pump for fuel. It is a fuel surcharge PERIOD. The purpose is
to pay for fuel not marketing, advertising, emplotee cost....... FUEL and ONLY Fuel.
5mouths2feed
June 14, 2008, 10:39pm (report abuse)Brokers wages should come from the frieght rate and only the frieght rate. If a driver is too dumb to calculate his CPM and know exactly what he can haul a load for
then yes he has no business in this business. However he should not have to concern himself with the cost of fuel that has been paid for by the shipper. Capitalism and Umerika have nothing to do with the fact that if anyone other that the person paying for fuel is taking a piece of the FSC that is plain and simple THEFT not capitalism.
Wrong
June 16, 2008, 9:50am (report abuse)You still don't get it.
1. There is no FSC. There is a flat rate between broker and shipper. The broker owns the load at that point. THERE IS NO FSC!!! There is nothing to steal, nothing to keep.
What ever has transpired between Broker and Shipper is completely seperate between Broker and Trucker. The shipper works with the broker and they have a budget and freight allowances. They are not saying, oh wait pay this extra FSC to the truck. Get real, it doesn't happen. There is no theft. Don't believe me ? Call a good broker and ask him how he goes about getting freight in the first place. Call a bad broker and let him tell you stories on how his client will pay a 17% FSC on top of rate...it's BS and they are hurting us all. The truth is it just doesn't happen
Jeff
June 19, 2008, 2:57pm (report abuse)It is a HUGE misconception that brokers controll the market. Supply and demand, as Steve said, is the driving force. Also, I broker roughly 30 loads a week, and at least 1/2 of them are negotiated "flat rates", where fuel sur charge isn't even discussed. As far as east coast rates go, the poor market for trucks up there is offset by the fact that I'm paying $2.50 - $3.00pr mile from CA, the south east, and the midwest to get trucks to go there. We are used by our customers as a tool for qualifying hiring, dispaching and tracking carriers. In many cases, the rate is determined by us finding a truck and negotiating the rate w/ them FIRST, then adding our profit and quoting the customer. My best friend in this business is LOOSING HIS A@@@@ right now because the customer he contacted rates w/ is not allowing him any room for adjustment with regards to fuel. Why in the world anyone thinks we have that much power is beyond me.
John
June 19, 2008, 6:52pm (report abuse)All of the drivers that are whining are the same guys that don’t know how to balance a checkbook. You need to understand that you are running a business, not just driving a truck. If you don’t get with the program and learn what your operating costs are then you will never succeed. Government intervention is never the answer; it is just one more step towards poverty for all.
Steve
June 23, 2008, 8:43am (report abuse)This bill is not just about fuel surcharge it is about complete transparency of broker’s margins and invoices. I beg you to name any other vendor or customer who discloses their profit margins. Do you know the profit margins of your fuel vendors or emergency road service vendors? Do you disclose your margins to your customers?????? This bill is about a whole lot more than FSC it is about complete disclosure of brokers invoices to its clients to the carriers it hires. This against erodes any sense of free market. If this bill passes you will see even greater consolidation in the truckload sector and the smaller independent guys will be squeezed out similar to what has happened in the LTL industry. I fear we are playing right into the hands of big companies like the YRC Corporation's, and Conway’s, FedEx's, and UPS's of the world. If this were just about fuel I would support it but the fact of the matter it is not.
John
June 23, 2008, 1:10pm (report abuse)I am sick and tired of people running to the government for help when they have the ability to take care of themselves. Running to the government is just like running to your mommy, stop being a man-child, grow up and figure out a way to deal with your problems on your own!
If you run to the government for help on every issue we will slowly lose everything and America will become a Socialist country, believe me this is not what you want.
Robert
July 1, 2008, 12:51pm (report abuse)If carriers don't want to work with brokers they don't have too. They can open their own sales office and go to businesses and solicite the freight themselves. We are a business, just like any other. If you don't want the load from a broker don't take it. If you want to get the freight yourself please, by all means do so. There is plenty out there.
Bill
July 22, 2008, 2:25pm (report abuse)Truck Drivers: You are shooting yourselves in the foot. Freight is a free market. Rates are driven by the market, not by brokers. Brokers make the market more efficient. Access to more loads allows you to lower your empty miles and increase asset utilization. Brokers can't control supply and demand. Brokers have a vested interest in the health of the whole industry. This bill will drain profits for EVERYONE in the industry. This is not rocket science, it's basic first year economics.
Mark
August 5, 2008, 2:09pm (report abuse)sure are an awful lot of brokers on here whining and crying the blues about the fact that the may have to be HONEST with the owner/operators for a change.
if you are working for a percentage of what the load pays how else are you going to know if the broker is being HONEST in his business dealings with everyone involved unless there is transparency.
As it stands now, you have to take the word of the brokers that the price the person actually paying the bills is correct.
and I am not talking about the rate a broker or 3pl is paying since the brokers have a habit of passing it around to each other and taking a nice cut in the process, but what the REAL customer is paying to get his freight hauled.
Patriot
August 6, 2008, 8:10am (report abuse)Mark...I think we are crying the blues over a ludicrous attempt to get the government involved in a free market system.
I continue to see posts like yours where there is a clear misunderstanding about working with a broker. When you book a load with a broker the transaction is between YOU and Broker, not you, broker, and shipper. The shipper is out of it.
Step1. We spend lots of time and admin money getting the shipper to work with us.
Step2. We negotiate a flat rate for load A picking at a destination and dropping at a destination.
Step3. We source qualifed reputable carriers/trucks and offer a rate to move load A.
Step4. Carrier/truck accpets rate, negoiates for more, or turns down.
As you put it "the person actually paying the bill" is paying OUR bill, not yours. I'M paying your bill.
mark
August 6, 2008, 5:43pm (report abuse)well patriot its a good thing that a real estate broker has to be up front about the price of a house isn't it otherwise with that 40,50,60% markup the most freight brokers take, a shack would cost millions.
Brokers are nothing but middlemen that have carte blanc to cheat and deceive both the the shipper and the trucker.
And if you do not believe it happens the majority of the time then you are as naive as a newborn child
It take a strong person with integrity to look at a pile of money and knowing that there are no checks and balances only take their fair share, and anyone that has been in this business knows that the brokerage system has very few people in it that have that kind of integrity.
Terry
August 9, 2008, 11:35am (report abuse)Well fuel has dropped $.40 to $.50 per gallon, you say theres no need for this bill. Well I disagree.
This BILL is exactly what is needed. Rates this week alone dropped $.50 to $1 mile. our costs didn't drop no $1 mile. This pure utter BULLSH*T and I'm going to work for the passage of this BILL ASAP.
FY to every dang broker out there. .|..
Terry
August 9, 2008, 2:22pm (report abuse)I have one more comment, for all you goobers that say you don't ask Wal-Mart what they make off a load.
Simple reason is, they buy it wholesale and sell it retail.
You as a broker are a scab scum sucker, you get it retail and try to pawn it below wholesale. So its like comparing Apples to Oranges.
Would you sell your house without knowing the commission the agent was making off the sale? Why is brokering a load any different?
Would you let a stock broker handle your money without knowing the commission your going to pay?
The list goes on and on. This is not RETAIL sales market. This is a commissioned agent business deal and we have a RIGHT to know.
Patriot
August 14, 2008, 8:19am (report abuse)Terry and Mark, - real estate and stock brokers get paid BY BOTH SIDES!! They are true middle men. So if you want to keep going down that scenario then you would have to pay us for our service of finding you loads, and our shippers of course would still pay too.
As always the bottom line is this - you don't have to work with a broker, and you don't have to accept any rates you think aren't acceptable. But we asking the goverment come in and help negotiate that is bordering socialism and communisum.
Flubber
August 14, 2008, 11:02am (report abuse)Terry you don't have a right to know. As patriot said a real estate agent and stock broker are working on YOUR behalf, and you have a right to know what you are PAYING THEM for that service. You are NOT paying us anything, we are paying YOU. So if you want to talk about comparing apples and oranges, there you go. We are not traditionl middlemen,.. traditional middlemen get paid by both buyer and seller. We are getting paid by the shipper to move their freight how ever we see fit, so your transaction is with the person who "owns" the freight, and that is the broker at that point, NOT the shipper. You are not working with the shipper.
Boondock Joe
August 15, 2008, 2:21pm (report abuse)What in heck are you talking about buying it wholesale and selling it retail. We ain't buying the load. The shipper is paying us for our service. We don't buy anything. We do sell something, we sell the opportunity to move the load we've been commissioned to move. If you don't like our selling price don't take it. But as others have stated your business dealings are with us the "commissioned agent". It's a two party transaction not a three party. I don't have aright nor do ask ask/demend to know how much in profit my shippers will make on selling their goods, it's none of my business. They choose to go into their business and I in mine; aint none of my business what they profits are.
Boondock Joe
August 15, 2008, 2:25pm (report abuse)Oh yeah, and I forgot to mention that when we "sell" our load, we are actually "buying" your service..we payin you. We payin you for your serivce to move our load. You just have to get past the fact that Idon't have a wharehouse,...just consider it my load. It's just between you and me.
Mark
August 19, 2008, 11:40pm (report abuse)well it looks like the brokers are using the motto if you can't dazzle them with brilliance, Baffle them with bullsh*t
I agree
August 20, 2008, 5:04am (report abuse)With Mark. Brokers are really good at lying and they don't want this to pass, as its the most corrupt industry someone can set foot in. Go Read TQL job vent, their past employees even say they steal from the carriers to make their commission. Big brokerages have forgotten they are suppose to negotiate the rate which they do not do, and they are paid a commission. I think many are out here hauling for the commission while big brokers pocket the rate. Its a nice Pyramid Scheme where rates trickle to the trucks. This bill wouln't be here if the truckers were not complaining. I think this whole industry is a big fraud, and we have major LABOR ISSUES OUT HERE as well. These guys are basically working for free, and starving while feeding America. I do believe if we are bought and sold, then bring the brokers to the real-estate world and make them disclose their fees for their services to all. Its obvious this service is a luxury to truckers, as no one can afford them.
Misty
August 20, 2008, 5:12am (report abuse)Brokers are not in Retail. Not even close. Here is why. They do not own anything. They have no interest in the freight. They are arrangers to bring two parties together for a commission, not what they can sucker punch out of truckers behind a mask of "Secrecy" with NO NEGOTIATION, that breaks Federal Laws of de-regulation. Thats all I got in it, which we all have been hearing now for like 2/3 years, is not NEGOTIATION, and I've determined that a lot of brokers have no idea what Transportation is even about. It figures as anyone can open up shop and they can even run with carriers money. They need to be relieved as the conduit of funds. To many losses out here and its a good faith, good boy system, that is totally outdated.
Come on Congress get this in the House. Do it for our economy.
Thank you
True colors
August 20, 2008, 5:33am (report abuse)Extortion, embezzlement, fraud, corruption, theft of services, will always show its true colors in time. Even in the church. Surely, Congress is seeing this. Congress, are you paying higher prices at the store, and being told, its the freight charges, fuel increase? I know as truckers, we pay with our trucks and then as consumers. Then blamed for all these high costs that shippers are passing onto consumers. Tell me then, why are carriers being price fixed out here for 1.30 a mile in a lot of areas, and the most 1.80 in most markets. 1.80 is rare? And fuel is over 4 bucks a gallon. Are the brokers stealing from the consumers as well, and their customers? Sure they are. Look at what one brokerage can keep. You have THE OFFICE, THEN THE BROKER, THEN THE AGENT TO PAY. When the rate finally hits a truck its NOTHING. How can big brokerages LANDSTAR give away 2 trucks, and yet these guys struggle to hang onto one? Wake up America.
Welcome to Trucking
Frederick (SilverSurfer) Schaffner
August 24, 2008, 12:30am (report abuse)There apparently seems to be some miss-understanding to this issue. The fuel surcharge was created after the '73 trucker strike. This legislated the person paying the fuel bill was to receive the fuel surcharge, only it was neglected to protect the person payin the fuel bill with transparency to ensure they weren't getting robbed. These TRUCC bills corrects that mistake from '73.
To compare this issue with retail sales is ridiculous. This is an issue of companies and brokers keeping a portion, or all, of a charge which is dedicated to the person paying the fuel cost.
As for negotiating...obviously these statements are made by someone who is not truely educated in the trucking industry. Negotiating will only be initiated when a broker is unable to get someone to haul the load for the ridiculous rate he's offering. Unless truckers unite, negotiating a rate will be left to the specialty division of this industry.
Safe Trails and God Bless,
www.theamericandriver.com
Tired
September 7, 2008, 7:43pm (report abuse)1. There is no FSC. There is a flat rate between broker and shipper. The broker owns the load at that point. this is about the most tired line next to "this is all I got in it except $50.00" and just how do you figure you own the load,mister broker? Did you purchase the freight from the shipper? all you have is a rate confirmation between you and the shipper that doesnt constitute ownership. It leaves the owners dock(shipper) goes on MY trailer to which I become 100% fianacially responsible for until delivery is made to the new owner(recvr) So how do you own something you neither purchased nor ever possessed? quote a 49 cfr regulation stating the broker has ownership? I'm Waiting Mr Broker......
tired2
September 7, 2008, 9:00pm (report abuse)You still don't get it.
1. There is no FSC. There is a flat rate between broker and shipper. The broker owns the load at that point. ok,so IF you own the load Mister Broker then you are violating the following regulation: §371.9 Rebating and compensation.
(a) A broker shall not charge or receive compensation from a motor carrier for brokerage service where: (a)(1) The broker owns or has a material beneficial interest in the shipment or
(a)(2) The broker is able to exercise control over the shipment because the broker owns the shipper, the shipper owns the broker, or there is common ownership of the two.
So Mister Broker are you 1) taking compensation when you are not allowed to? OR 2)Are you claiming ownership when you have none? Which is it? try and answer without trying to cloud the issue.
What??
September 9, 2008, 10:18am (report abuse)You say:
IF you own the load Mister Broker then you are violating the following regulation: §371.9 Rebating and compensation.
You Quote:
a) A broker shall not charge or receive compensation from a motor carrier for brokerage service where: (a)(1) The broker owns or has a material beneficial interest in the shipment or
(a)(2) The broker is able to exercise control over the shipment because the broker owns the shipper, the shipper owns the broker, or there is common ownership of the two.
Read it again, very slowly, it says " a broker shall not charge or receive compensation FROM A MOTOR CARRIER...."
We are not charging or receive compensation from motor carriers we ARE PAYING motor carriers.
tired2
September 18, 2008, 11:35pm (report abuse)what a load of hogwash,your charging us a brokers fee everytime you book a load,first you charge the shipper what you say it costs to move the load and then take as much as you see fit or can get away with in the name of supply and demand then here you go mr truck driver this all I got in it but $50.00 sorry..its no wonder the cost of consumer goods is out of control since fuel went way up you people just keep raising the shippers cost and doing your best to choke-hold the rates to the truck as low as possible,then once fuel drop down some rates really fell in the toilet. the difference between fuel at 4.70/gal and 4.20/gal on a truck getting 5mpg is .10cents/mi yet the rates dropped .50-.75/mi practically overnight but we all know its all about you and your big paychecks piss on everyone else and let the average american consumer keep paying for your expensive lifestyle.the time for stiffer regulations on brokers is severely overdue......
For Tired 2
September 27, 2008, 8:42am (report abuse)I’m laughing this post is so ludicrous.
Clearly you do not go out and try and solicit your own freight from shippers. If you did you would know that your statements are absurd. Shippers have supply chain managers, and finance directors, people that are real smart and good at crunching numbers and study how the freight is moving across the country. We don’t “say what it costs to move a load”. They TELL US how much they have to spend to move a load. Then we say, that ain’t enough, they may provide a little more, or they may say, that’s all I’m spending. You are completely clueless if you think brokers control the market.
Now, on to your comment on supply and demand; the rules of supply and demand go like this – he who has the supply controls the market over he has the demand. Let’s see, the demand is for trucks,…um who has the trucks,..how about TRUCKERS.
tired2
September 28, 2008, 11:06am (report abuse)apparently you are yet another broker that spends all your time taking loads off real time freight.com and making from what i have seen on a very regular basis a nice 20-50% deduction for yourself and then reposting the loads on get loaded.com? If that is the case,then yes the shippers post what they would LIKE to pay to get the load moved and your doing nothing more then reposting it else where.Oh and not all shippers in this country stipulate what they will pay and the few I have dealt with that do always offered me a good rate. I have spoken with a few brokers who have left certain companies because they disagreed with how they treated the trucking companies, 3 of them stated it wasnt uncommon for them to get a load from a shipper, take a dollar a mile right off the top and then take an additional 20% commission too. so a load at 3.00/mi would end losing a 1.40/mi before it ever got posted hmmm,sounds like highway robbery too me...
Lisa
October 20, 2008, 1:33pm (report abuse)Brokers are not paying the motor carrier. Carriers are EXTENDING THEIR CREDIT being the banks to million dollar brokerages. Consignor/consignee then pays for the shipment, and the broker is THE CONDUIT OF FUNDS....
Why carriers ever allowed THE BIG BANKING BROKERS, in their investment is beyond me.
CARRIERS TAKE YOUR BANKING BACK. CHARGE DEPOSITS UP FRONT ON LOADS THAT ARE NON-REFUNDABLE, WHICH IS 1/2 UP FRONT, 1/2 WHEN DELIVERED.
I can't believe that a system of banking is so out of whack. Your trucks are being outsourced, then carriers invest in everything to move SOMEONE ELSES GOODS, and truckers also taxed on everything, and then they go and put there BANKING right in the hands of others. Trickle down economics, and why truckers go broke.
See if Wal-Mart or Home Depot or whoever would like to extend you some groceries or lumber??
tired2
October 20, 2008, 10:40pm (report abuse)lisa; oh you can ASK for half up front,then you get charged a percentage of that "advance" they call it,so your still losing money.why give them even more of the freight bill? this legislation puts the negotiation back in the transactions.it also see's to it that carriers are paid for collected fuel surcharges. some of the big shippers have implemented their own fuel surcharge tables and it is to be charged seperately from the line haul.I don't hear most companies complaining about buying fuel and getting paid after the load delivers,its the lack of surcharge pass thru and the excessive brokers fee's and lack of transparency. Wal-Mart and Home Depot are retail stores,and are nothing even close to trucking except everything in those stores arived on a truck.
Get Real
October 22, 2008, 2:54pm (report abuse)Brokers are paying the moter carriers. If you continue to believe that brokers "are a conduit of funds" then you don't understand a brokers relationship with the shipper. Also, just like ANY business as a trucker make a broker fill out a credit app and get bank references, because you are extending "credit" if you aren't paid up front. If a broker can't provide you with their finacial info and references don't haul for them. Check their D&B. By the way Home Depot is happy to extend me credit, a credit card, and the finance charges to go with it.
This legislation is socialism, asking the gov't to step in and "put the negotiation back in the transaction". Nobody took the negotiation out of it, you just aren't clear in how to do it. As many, many others have said, don't accept a brokered load if you don't like the rates on any level.
tired2
October 27, 2008, 7:45pm (report abuse)nice twist of words,but brokers are paying motor carriers with the shippers money plain and simple. here is what I say to your socialism comment "unbridled free-market capitalism without regulation is a disaster, since no regulation means that lying, cheating, and fraud will become "how business is done" sounds EXACTLY like the freight brokering industry doesn't it? and THAT is why this legislation is neccessary.
tired2
November 3, 2008, 5:12pm (report abuse)get real I'll take it a little further for you,if you were PAYING me with YOUR money,then I wouldnt haven to wait anywhere from 25 to 60 days until the shipper PAYS YOU now would I? So it is clearly the SHIPPER who pays both you and I.
you make this whole shipper/broker "relationship" out to be something special and it isnt, get over it because no one is buying the crap you brokers are shoveling anymore. I didnt see your comments pertaining to the fuel surcharge tables some shippers have set up,guess when you can't twist the words to suit you,you just avoid answering.....typical
Get Real
November 4, 2008, 7:46pm (report abuse)Tired2 I feel bad, because in your scenario you probably do get taken advantage of by shady brokers. But you've been lumping all brokers into that category. I pay my carriers as soon as I get clean papers, so usually by 12-15 days. On the other end...I DO have relationships with my clients (the shippers) they have to fill out a credit app and I extend them net 30,60, or 90 days depending on their credit strength.
So as you see...I am paying carriers with MY money and am out on the credit "limb" with my clients.
So there's my response, no shoveling crap, just the way my business is run. Perhaps you should find a different broker if they don't pay you for your services timely.
Jer in Iowa
November 26, 2008, 1:53pm (report abuse)so if I pay 100% of fsc to the carrier i can still broker the gross on the load for 60-70% and make the same amount of money anyway. Its ALL negotiable. I would rather be honest and up front to carriers and have them call me back multiple times then I AND THE CARRIER will both make money numerous times.
tired2
December 10, 2008, 9:12am (report abuse)I didnt see your comments pertaining to the fuel surcharge tables some shippers have set up,guess when you can't twist the words to suit you,you just avoid answering.....typical