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Freight Tec News

Asset-Based Carriers – Brokering Freight

Excellent article taken from the Journal of Commerce, Aug. 10, 2009 Issue, page 9.

Broker vs. Motor Carrier

I HAVE BEEN on both sides of transporation, and everyone brokers loads (“Brokers Ride a Rollercoaster,”  It’s comedic when I hear a shipper say they don’t use brokers and only use asset-based companies.  If only they knew the number of asset-based companies that are brokering loads and charging the shipper asset-based prices.  It’s all one big brokerage at the end of the day.  Brokering loads cannot be avoided completely unless your customer doesn’t mind their freight not moving.

On the flip side, I know for a fact some so-called asset-based companies only own three to four trucks and continue telling shipping companies they have over 10 times that amount of trucks.  They tell the shipper they are indeed asset-based with several trucks to load their freight, but have every intention of brokering it all.

The worst thing about this is they demand more money for the comfort of using their trucks while really brokering every single load.  I am not saying all asset-based companies do this, but beware of those few that do.  I want to end by saying it doesn’t matter if you’re dealing with a broker or asset-based carrier; both have their fair share of service failures, one no more than another.  Heck, I get calls from asset-based companies asking for help covering their loads, and I call asset-based companies for help covering my loads.

– By batlogistics1 on 7/18/09

A MAJOR BENEFIT to using a Top 100 freight broker like Freight Tec is our intense Carrier Qualification process. With the possibility of asset-based carriers brokering loads, you’re leaving yourself open to many potential problems. You have no assurance of their qualification process and no say in WHO they actually get to haul your load. That is scary! Freight Tec qualifies each and every carrier making sure they meet the requirements for safety, insurance and quality service. Choosing a broker with such high standards, protects you and your freight.

“…Shippers, brokers, and others responsible for carrier selection must have proper protocol in place for selecting carriers and must be diligent in their efforts to properly investigate and qualify carriers.  Failure to do so could lead to catastrophic events to the public and substantial financial damage to the shipper, broker, or others engaging carriers to transport freight.”

– By transportation lawyer, Justin R. Olsen

Again, Freight Tec has a stringent gualification process for EVERY carrier.

Beware of ‘Reincarnated’ Trucking Companies

Excellent article taken from the Journal of Commerce, Aug. 10, 2009 Issue, page 8.

‘Reincarnated’ Truckers Live On

MORE THAN 1,000 trucking companies shut down for violating federal safety rules may still be operating on U.S. highways under new names.  Federal investigators call them “reincarnated motor carriers” — and they’ve proved harder to stop than one of George A. Romero’s zombies.  These bus operators or truckers shut down one moment and reopen under a different name, often using the same physical and mailing addresses, the Government Accountability Office said.  Congress last year demanded an investigation when a carrier that operated a bus was involved in a fatal Texas accident turned out to be a “reincarnation” of a company ordered out of service by the Federal Motor Carrier Safety Administration two months earlier.  The operator had simply registered with the FMCSA under a new name.  The GAO identified a potential 1,073 carriers, including truckers, that may be “reincarnated” companies.  At least 500 of those motor carriers were still operation as recently as June, the GAO said.

Fair Commission Split

Am I being paid a “fair” commission split for the kind of business I’m doing?

What is a “fair” split?

A “fair” split is one that takes many things into consideration. Here are a few of them:
What Freight Tec takes into consideration:

  • Trustworthiness of the Agent / Prospective Agent
  • revenue level
  • gross profit
  • credit risk of your Shippers
  • ease of doing business with your Shippers
  • (the list goes on, and for simplicy’s sake – I’ll stop here)

I notice when prospective Agents call me to find out about Freight Tec’s Agency program – the first, and most popular question they ask is “… what is your commission split?” While a fair and reasonable commision split is important to have, it is not the most important thing to have.

If a company offered you a radically high commission split, would you take it?

Would it raise any red flags to you?

What are some potential risks for you?

Here is a list of some critical issues You need to know before signing on with ANY Broker:

  • Trustworthiness of the Broker
  • Financial stability
  • Back office support
  • Hours of operation
  • Reputation in the industry
  • Policies and Procedures of the Broker

Companies in the industry offer commission splits that range from 25% – 70% being paid to the Agent. The Industry average being paid out is 50% – 60% to the Agent.

More to come on each of those topics listed above…   If you have questions or comments – please email them to:

Thank you

Legal Case – Jones v. D’Souza

Winford Dallas JONES, Plaintiff,
Loretta M. D’SOUZA, Personal Representative of the Estate of Kristina Mae Arciszewski, deceased, et
al., Defendants.

Sept. 11, 2007.

GLEN E. CONRAD, United States District Judge.
This personal injury action arose from a serious accident involving two tractor-trailers that occurred on
the night of September 12, 2004, in Wythe County. One tractor-trailer was driven by the plaintiff,
Winford Dallas Jones, and the other was driven by Kristina Mae Arciszewski, who died in the accident.
The plaintiff alleges that the court has diversity jurisdiction over this action, pursuant to 28 U.S.C. §
1332. In his complaint, he asserts state common law claims for negligence, negligent hiring and
supervision, and negligent entrustment, and federal claims under the MotorCarrier Act and the Federal
MotorCarrier Safety Regulations. The case is presently before the court on the motion to dismiss filed
by defendants C.H. Robinson Worldwide, Inc., C.H. Robinson Company, C.H. Robinson Company Inc.,

C.H. Robinson Company LP, C.H. Robinson International, Inc., C.H. Robinson Operating Company LP, and C.H. Robinson Transportation Company Inc. (collectively referred to as “ Robinson” ). For the following reasons, Robinson’s motion will be granted in part and denied in part.

Avoid this Scam AND Keep your Job!

When YOUR Company gets hit with a $60,000 claim and YOU get fired, it’s YOUR fault!

This scam cost a good, honest guy his job. Don’t let this happen to you.

 There is an EPIDEMIC in the Transportation World right now, today – 2008. YOUR freight is being illegally double brokered by your Carriers to other Carriers without your knowledge or permission. When this happens – YOUR freight is no longer insured!!!

True story: A few months ago, a carrier brokered a load of pipe to a friend who had a truck.  There was no paperwork exchanged. While transporting the pipe, the driver took a corner too fast, and rolled the trailer and all of the product down a steep mountainside.

The problem:  THE SECOND CARRIER WAS UNINSURED.  He had no cargo insurance and no liability insurance.

The result:  The Shipper was left with the problem of suing the first carrier for the value of his pipe. The first carrier simply filed bankruptcy and started a new company one month later under a new MC# (learn why MC#s give you instant critical info).
The Shipping Manager was screwed, and he was fired for using the first carrier.

What could the Shipper have done to avoid this expensive loss? They could have qualified the Carrier to a service and performance “standard”. This is not a guarantee that they would not have had the same problem. But odds are they would have avoided the problem. (learn more about setting your own “standard”)

The Shipper could have used a Top 100 Broker such as Freight Tec. How does this protect you? Freight Tec QUALIFIES EVERY TRUCK on a DAILY Basis. Before a truck is used by Freight Tec, they must be qualified, and in our system. Then they are re-qualified every day. It seems excessive – but it’s the only way to be sure you are protected.

Knowledge is power

Visit our website for more “Inside Information”

Foreseeable Damages

If the Shipper gives notice to ALL parties (the broker and/or the carrier) that if the load misses its appointment time that there will be penalties assessed of $____ per day or $____ hour UP FRONT (notice of “foreseeable damages”) prior to the truck even being dispatched, and ALL parties agree to these terms, then the Shipper can collect for delay charges.  This notice must be in writing, and should require signatures. This falls under the “just in time” concept that the auto manufacturers use, and they pay a Premium for this guaranteed service.  If you negotiate something like this with your Provider, expect to pay a premium for this type of service. Use a company that is large and financially stable enough to execute this high level service.  If you use a smaller provider who has their truck break down, they may not have the ability to fix the truck fast enough to make the appointment, and they may not have the resources to pay for all the penalites from the delay. At best, your freight could sit for hours or days while you try to find another provider to move the load. Use a large, stable provider with the financial ability to support a broken down truck quickly – or any other type of delay that could cost YOU money.

Reasonable Dispatch

A truck has the right to deliver the freight in a reasonable period of time. The driver of the truck must act in the best interest of the public. He must drive safe, obey the speed limit, follow the HOS (hours of service) regulations, and follow local laws while making every reasonable effort to deliver your freight on time, or as soon as possible. If the Driver delivers late, you cannot legally deduct delay charges from the freight bill. Lets assume you and your provider both agreed to your “Foreseeable Damages” description in writing. In the event of a missed appointment, you legally must pay the original freight bill in full, and then file a formal claim to recover your delay charges. Your claim must include receipts and other supporting evidence of your damages and costs. Wise Shippers greatly reduce their risk by obeying the law and following this process to recover damages.

Freight Tec is in the Top 100 of all Top Brokers in the Nation

Freight Tec was recently named as one of the Top Brokers in the Nation by Inc. Magazine.

What it does: A freight broker matching shippers materials with carriers in need of loads to transport.

Why it’s growing: Investment in technology that provides its customers with live tracking, logistics integration, customizable pick and supply chain management.

What’s noteworthy: The company’s revenue numbers for 2006 have put it in the top 100–out of an industry of 14,000 in the United States.

Read the Article here