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Category : Freight Trucking Company

Podcast interview!

The owner of Freight Tec, Steve Van Otten was on a podcast with Trey Griggs a week ago! ūüôĆ It was a light, fun interview that includes some sports talk. ūüéß Here’s a one minute clip below.¬† #freightbroker #bestagentprogram #freightbroker #freighttec #freightbrokerage
ūüé• Link to full video: https://tinyurl.com/3zskrn7m

 

Red Barn Academy

The Red Barn Academy that has a two-year program that reinvents lives broken from addiction and crime by teaching honesty, accountability, and integrity in a farm setting. ūüöú Once a year they put on a car show and hold a graduation for students who have completed their program. ūüĎŹ We have become friends with some of the students earlier this year while working with them for a charity event and loved seeing their graduation this weekend! ūüéď #redbarnacademy #graduation #congrats #carshow #loveourcommunity #freighttec #freightagent #freightbroker #freightbrokerage #bestagentprogram

Agents Liable for Customer Bad Debt?

Should Agents be 100% liable for their customer’s Bad Debts?

Imagine one of your largest customers going belly up… and they owe you and your Broker company¬†$50,000.00…

You soon learn there is no hope of collecting any of the money owed…

Who should pay for that bad debt?

It should be split the same way your commission was paid out between you and your Broker. If you are on a 50% / 50% split with your Broker, then you should both pay $25,000.00 of the bad debt.  If you are on a 60%/40% split, you would pay $30,000, and the Broker would pay $20,000.

Why?

Its fair. Its ethical. And both parties always have great interest in doing business with customers who will pay you.

I’ve heard of Brokers paying 100% of any bad debts from their Agents… They are CRAZY !

Lets me share¬†a story with you…

I know of a company who practiced the policy of paying 100% of any bad debts from their agents. They did it because they thought it would lure agents into their company, and you what? They were right! They did lure a lot of agents into their company!

A few years down the road, they were hit for a $400,000.00 bad debt from one customer, then another one for 109,000.00, then another one for $55,000.00. The agent (who’s customers they were) didn’t care… he didn’t have to pay any of that $500,000.00+ back. No worries for him…

But there was great pain and anguish for all the other agents, and the broker. The broker was not in position to handle these rapidly mounting bad debts (there were more that rolled in). The broker tried to work things out…¬†but the hole they were in got deeper and deeper too fast.

The broker quit paying the carriers.

The carriers sued all of the customers (and I mean EVERY single customer).

The customers had to pay all the freight bills again. (after already paying the broker months ago).

The customers were very angry.

The customers no longer trusted the agents they had worked with for years.

Good agents and several other good people lost their customer base – and their jobs. They could no longer provide for their families.

Agents now had to start over Рtheir previous customer relationships were ruined because their broker ended up going belly up and not paying the carriers.

The criminal thing behind it all was this: There was a rotten apple agent who PURPOSELY did business with companies he knew were at risk of not paying their freight bills for one reason or another. Because he was paid his commission each week – he knew he would be paid before the bad debts hit the broker.¬† One bad apple spoiled the bunch… Actually, he put them out of business.

Shippers Can’t Be Too Careful in Qualifying Carriers

This is a True Story.  A carrier calls our office to book a load we had shared with our network.  We start our Carrier Qualification Process and find out that the Carrier wants to use an owner-operator.  We advised the Carrier that we needed to see their federal operating authority, Certificate of Insurance, W-9, and a signed copy of our Broker/Carrier Agreement.  When we receive everything back, we find that the Certificate of Insurance shows CARGO LIABILITY INSURANCE ONLY.

So, we called the Carrier back and asked if they had a separate Certificate of Insurance for Auto Liability.¬† He said, “No. Our owner operator carries Auto Liability Insurance.¬† All we provide is Cargo Insurance on the load and trailer.” ¬† When we talked to the Owner-Operator, he forwarded to us a Certificate of Insurance showing Auto Liability Insurance.¬† At this point, most companies don‚Äôt check any further.¬† But our Carrier Qualification clerk, Kellie, called both of the insurance agents to verify insurance coverage.¬† This is what she found:

The Owner-Operator only had “Non-Loaded” Auto Liability insurance commonly referred to as “bobtail” insurance.¬† HE WAS NOT INSURED IF HE WAS HAULING A LOAD!!! The company for whom the Owner-Operator was hauling DID NOT HAVE AUTO LIABILITY INSURANCE.¬† Therefore, if we would have given this Carrier our load, our Shipper and we would have had a huge public liability risk since nobody was insured to protect the public. Imagine what would have happened if this truck was involved in an accident while hauling a load for one of our shippers.¬† The injured parties would have sued everybody‚ÄĒincluding our shipper and us‚ÄĒfor damages.¬† The trucker and the company probably are “judgment proof” as all of their operating assets are most likely heavily financed with little or no equity.¬† That would leave only Freight Tec and its shipper liable.¬† As a result, we would have had to pay.¬† Freight Tec carries Professional Errors and Omissions Liability Insurance (the same insurance as medical doctors, lawyers, CPA‚Äôs, and engineers carry) in the event we make a mistake.¬† Fewer than 50 property brokers out of over 15,000 carry this insurance to protect their shippers.¬† Freight Tec is one of a select group of brokers who does.

BOTTOM LINE: You cannot be too careful in Qualifying Carriers.  Freight Tec does this every day on a FULL-TIME basis to protect our Shippers and ourselves from potentially devastating lawsuits.  To further protect our Shippers, we also carry Professional Errors and Omissions Liability Insurance.

Take a Ride In a Self-Driving Semi

The automated, driverless vehicle is something we keep hearing more and more about. They could potentially remove the human error factor in driving, it could save a lot of lives. But it’s expensive, and not everyone is going to want to give up control of their vehicles.

But you have to admit, there’s something fascinating about the idea. Take a ride in¬†world‚Äôs first road-ready self-driving truck:

What do you think? Is this our generation’s “Flying Car”? Fun to think about, but never gonna happen?

Highway Bill, and what it means for You

Congress approved the Highway Bill, and President Obama is set to sign it on Friday, July 6, 2012. The report contains the TIA-OOIDA-ATA compromise language almost exactly.

How will this affect you?

Read the great blog post and summary from DAT.com.

Leave a comment below and let us know what you think!

Ban On Cell Phone Use While Driving Hits Commercial Drivers

Well, it’s official. ¬†Effective January 3, 2012, the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) and others implemented a rule banning the use of cell phones while driving for all commercial truck drivers.

Violations can be severe – up to $2,750 fine for each offense and possible commercial license suspension for multiple violations. ¬†It’s not just the drivers either – companies that allow their drivers to use cell phones while driving could be hit with fines up to $11,000.

While this restriction will undoubtedly affect many carriers, Freight Tec strongly supports the FMCSA in this decision with the ultimate objective in keeping our public roads safer.

Watch for Red-Flags and Avoid Cargo Theft

The FBI estimates the loss value of¬†Cargo Theft¬†at¬†roughly $30 Billion dollars a year.¬†¬†Don’t think that effects you as an every-day consumer?¬† Think again.¬† That $30 Billion¬†loss¬†causes retail business everywhere¬†to mark-up their products an additional¬†20% for consumers!¬†¬†… And that’s on items you buy everyday!¬† Electronics, food and clothing were the top three commodities stolen in 2010.¬†
(National Insurance Crime Bureau)

According to the NICB’s report, most Cargo Thefts happen within 200 miles or four (4) hours from the driver’s starting point.¬† Criminals view Cargo Theft as relatively ‘low risk’ and usually produces a ‘high return’ for them when they turn around and sell the product they’ve stolen.¬† Criminals follow drivers they’ve targeted and can usually steal the cargo within five (5) minutes after the driver stops.¬† That is scary!¬† Another growing trend is ‘Fraudulent Pickups’ where thieves access load information online and impersonate a legitimate carrier to pick up a load directly from the shipper… and after they’ve picked up the load, they disappear.

Ways to Prevent Cargo Theft:

  • Run Background Checks and Screen Employees.
  • Train Employees and Educate them on hijack awareness and prevention.
  • Consider In-Transit Security when choosing shipment routes and avoid stopping again within 200 miles (or four hours) after picking up a load. As well, use secured lots and avoid parking in theft hotspots.
  • Conduct periodic supply chain audits to discover gaps in shipment protection.

Let’s work together to keep the cargo we haul safe from criminals and thieves.

Have comments or more ways to prevent Cargo Theft?  Leave us a comment!

EOBRs can Reduce Violation Fines

We love staying up-to-date and reading the Journal of Commerce РTrucking.  Last week an excellent post really got us thinking.  EOBRs can SIGNIFICANTLY reduce violation fines.

You can read the full article here: FMCSA Orders Trucker to Install 700 EOBRs

Basically, the Federal Motor Carrier Safety Administration (FMCSA) ordered JBS Carriers Inc., of Greeley, Colorado, to install Electronic Onboard Recorders (EOBRs) in it’s 700 trucks by March 2011.¬† This came about because of many hours-of-service and CDL violations.¬† Their choice was to take on a $81,780 fine or install EOBRs and take a reduce fine of $16,000.¬†

With that much in fines, installing the EOBRs seems like¬†a no-brainer.¬† No question¬†they will¬†help this company reduce it’s future violations significantly, and make them a better carrier in the process.

With upcoming changes regarding CSA 2010, we all should be looking at ways to reduce our violations and become better, stronger transportation providers.  

Be sure to also read our article on CSA 2010 Opinions – The Good and the Bad.