Does it seem like more companies are skimming

Murraycroexp

Veteran Expediter
We have arrangements with a number of companies for this. Often times they may need the support of another carrier/broker that covers areas of specialty. Expedite, air freight, air charter, over dimensional are common examples. They partner by contract with companies that have these capabilities to better serve their customers.

Better service wins out.
 

xiggi

Veteran Expediter
Owner/Operator
Double brokering has good sides also it isn't all evil. Many loads we all haul we would never touch without it. Many people forget to look at the big picture and want to focus only on what they think is somehow cheating them out of money.

Sent from my Fisher Price ABC-123.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Should be? That is not in any way a valid argument! :rolleyes: You have ( theoretically anyhow) the opportunity to be a broker or a carrier yourself. You could theoretically do the same thing. We either use others to achieve our objectives or we are used by someone else to achieve theirs. not much middle ground.

Personally I still think the system sucks but I'll have to live with it.. And make do
 

BigBadBill

Active Expediter
Thank you John, many larger brokers would be facing serious time. One large one here in Chattanooga jokes that they never "owned" a load for the first year.

But it seems the same money is in the pot. It is just a matter of how you look at it.

On one side, less money for you. On the other side, you now have a load you never would have seen.
 

Tomtom

Active Expediter
Really? This isn't about double brokering. It is about a carrier that also has brokerage starting a third company, keeping it hidden and sending loads to the carrier as a brokered load.

Contractually legal, morally bankrupt.

Because I'm hearing it second hand I'll not drop names.
 

letzrockexpress

Veteran Expediter
Is it funny to anyone else how so many expediters claim to be running a "business" but when they think the carrier they are "doing business with" is cheating them they immediately adopt the union mentality? Priceless!
 

jelliott

Veteran Expediter
Motor Carrier Executive
US Army
TomTom it may also depend on the structure of the 3PL. Many 3PL's are paid to manage freight on a contract/transaction fee basis. They manage the freight on behalf of the customer and are not brokers. Some 3PL's are based on a brokerage model. So that would be a big factor in determining if a cross company arrangement had any benefit or none at all for the company.
 

Murraycroexp

Veteran Expediter
Carriers are in business for a reason. I too fall prey to that "feel good mentality" with brokers sometimes. They know me but they have a profitable job to do.

I'm in this for Sally, Olivia, Owen & Murray(me). Period. Every decision has my famalam in mind, almost.
 

Murraycroexp

Veteran Expediter
Co-broker agreements add to the flexibility to serve the customer's needs. It truly is a good thing. Keep the freight moving as efficiently as possible.
 

crich

Expert Expediter
Fleet Manager
US Navy
if you work on a percentage you can demand that your carrier show you the actual rate confirmation sheets of each load you do. you should be able to just drop their office and view these. some rate confirmations even break down the fuel surcharge for you.if your paying for the fuel you should be getting 100% of that plus your percentage of the load pay.if you think your carrier is cheating you take a look and find out. about 3 weeks ago I stopped running for all the multi carriers because as 1 of the previous posters said they are opening companies and even brokering to there sister company after its been double and triple brokerd to begin with. I can do better on my own even if I only run 1 $2 per mile cargo van load a week at least I profit enough to get back to where I started from and that's my home. if your sick of it happening to you for less than a couple thousand you can be in biz for yourself and that's free enterprise.
 
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jelliott

Veteran Expediter
Motor Carrier Executive
US Army
Really? This isn't about double brokering. It is about a carrier that also has brokerage starting a third company, keeping it hidden and sending loads to the carrier as a brokered load.

Contractually legal, morally bankrupt.

Because I'm hearing it second hand I'll not drop names.


Well that sounds like a different situation or intent. Can't argue with that.
 

Tomtom

Active Expediter
Crich, that does you no good if that carrier has a brokerage in a different name and never disclouses that they own that company. You see the rate con and all looks good.

John, ok, so would the secret company build the management fee back into the rate?
 

Murraycroexp

Veteran Expediter
I think that's probably common as well. It's VERY common, and advisable, for a company's 3+ divisions be separate entities for various reasons such as risk and internal profits. I used to work for one broken down as per below.

1. Parent company. The one the local customers called to have goods moved.
Carried broker authority as well.
2. Carrier company. Possessed MCs for carrier authority and "got its work" from the parent company.
3. Leasing company. Leased and purchased equipment. Then leased that equipment back to the carrier company at a small internal profit.
4. Holdings company. Owned and leased properties. Then leased those properties back to the parent company at a small internal profit.
5. "Venture" company. Operates trucks for one specific high volume customer.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Is it funny to anyone else how so many expediters claim to be running a "business" but when they think the carrier they are "doing business with" is cheating them they immediately adopt the union mentality? Priceless!

Which part of the union mentality?
 
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