Interesting load cancellation

[CharlesD]

Yesterday I booked a pretty nice load from another carrier that I won't name. The load was over 1000 miles and I got a decent enough rate on it, so I proceeded to dh 240 miles to get into position to pick it up. Now I wake up this morning to a message that the load has cancelled, so I called back to inquire why and I was told that they're not allowed to broker that particular customer so they had to get one of their own trucks in there to run the load. The funny thing is that we have hauled loads from this carrier before for that same customer, which got me to thinking. Has the policy recently changed and that customer no longer wants the loads to be brokered, or is it a case where a load is brokered out but the carrier continues to try to get one of their own trucks, even after a rate agreement is completed? It just has me wondering.

 

[chefdennis]

The was a thread a while back that when somethong like...."You really believe everything brokers/ dispatch tells you!?!?

I am sure that dispatch would continue to look for one of their own truck that might haul any load at a lower rate even if it is already booked out....from my short time in this business i have found that most of the time. a carrier that brokers a haul out often pays more to a partener carrier then to their own trucks...not all the time, but in alot of instances....

 

[CharlesD]

a carrier that brokers a haul out often pays more to a partener carrier then to their own trucks...not all the time, but in alot of instances....

Which is the way it should be. A partner carrier is just that, another carrier, and they should get carrier's rates, or at least something more than a driver's rate. I guess a rate agreement is nothing more, an agreement that "if" you haul the load you will be paid X amount, not any kind of promise that the load is actually yours if the freight doesn't cancel.

 

[davekc]

I would think it happens all the time. Sometimes even both ways. We have called on a load that is brokered and it can't be put on our truck because the rate is too low. The broker was hauling it for 30 percent less than they would have had to pay us. Same holds true if they over paid a broker. If the carrier can throw it on their own truck and keep more, they are going to do it.
As to whether it was a load that can't be brokered, that is also a possibility as that is asked at the time they are booking it. I know at Panther, they have quite a few accounts they won't/can't broker. Can't say I blame them for supporting their own trucks first.

 

[CharlesD]

I would think it happens all the time. Sometimes even both ways. We have called on a load that is brokered and it can't be put on our truck because the rate is too low. The broker was hauling it for 30 percent less than they would have had to pay us. Same holds true if they over paid a broker. If the carrier can throw it on their own truck and keep more, they are going to do it.
As to whether it was a load that can't be brokered, that is also a possibility as that is asked at the time they are booking it. I know at Panther, they have quite a few accounts they won't/can't broker. Can't say I blame them for supporting their own trucks first.

Any carrier should support their own trucks first. It's just kind of frustrating if you take a brokered load because supposedly they didn't have one of their own trucks and then it gets taken back. It's happened before from different carriers, so it's nothing new, but it's still frustrating all the same, especially when said load was going to take you from a so so area into a good area.

 

[chefdennis]

I think you hit the nail on the head with "IF" you haul it you get paid...until you have the load in your truck, everything and anything else is open to anything the broker wants to do....sad but true....and yea, frustrating too...

 

[davekc]

Any carrier should support their own trucks first. It's just kind of frustrating if you take a brokered load because supposedly they didn't have one of their own trucks and then it gets taken back. It's happened before from different carriers, so it's nothing new, but it's still frustrating all the same, especially when said load was going to take you from a so so area into a good area.

There is no doubt I see the frustration. My thought is because it went to a good area it was even more reason to throw it on their own truck. I have seen sometimes where a load gets brokered and at the time they have no trucks there. Then boom, they book a load to that brokered location. Now they don't feel they need the broker. My feeling is if it is a fast pickup it will likely hold, if it is 12/24 hours out before pickup, anything can happen.

 

[Brisco]

Usually don't get involved or even seek answers to questions that may come into "my" mind when reading up here in the General area because the answer to one question in a certain thread may be answered in another thread elsewhere.

But, I do have to ask this question. Don't you guys have any sort of "TONU" charges you can charge to that carrier/broker for cancelling that load?

(Truck Ordered - Not Used)

It's a common charge in the LTL/HotShot industry and a lot of these brokers that the O/O's sign on with agree to the fee if and when issues such as this come up. It's usually up to the O/O themselves whether they charge it or not if/when that broker cancels the load. If it's a broker that supplies a high amount of loads, they will probably just eat the minor loss, but that's on a case by case basis. If it's a broker that they may hear from once or twice a month, and that broker ties up their truck up for 2-3-400 miles and 12 hours and then cancels a load, they will charge that broker a TONU fee.

How far did you get before that load was cancelled? What were your expenses during your operation to get to that load? Did you pass up any other load offers while committed to pick up this load? That carrier did tie up that truck for a load they had available, and in my opinion, they need to compensate that truck for the time/expenses that truck put forth to fulfill that commitment whether the load was cancelled or not.

 

[ebsprintin]

All of this is one more reason you should be getting something other than the driver rate.

eb

 

[CharlesD]

I did book it for more than a driver's rate and I will be getting something, but the person I will need to talk to isn't in on the weekend.

 

[x06col]

I never run a Broker load that was further than 20-25 miles out, or, with a next day or two pickup. Deadheading that far just simply rubs salt into the wound. Way too many things can happen in a couple hundred miles or, a day or two. Ya jes can't git paid till you deliver the load. Stick around, you'll see more strange things.

 

[Brisco]

Ya jes can't git paid till you deliver the load. Stick around, you'll see more strange things.

And that's one thing I don't agree with when it comes to Expediting.

I like reading Dale's Blog there on the front page. He's the best out of all four. (Or should I say all 3) He calls himself "The King of Dry Runs". I feel for him at times when he has those "dry runs".

I mean, if one has 2-3-4 dry runs that were cancelled as they were on their way to the pick-up, or even as I have read about here many times, cancelled as the driver was at the location to pick up that load, then that driver is already behind in income when he picks up his next "good load". Time and Expenses has to come out of your pay somewhere, whether you're loaded or not, right.

I understand deadheading to get to a paying load, that's part of the game. But what I don't understand is when these companies you guys are contracting with makes you deadhead to a load that has a chance of being cancelled without some sort of TONU compensation for your time and expense heading to that load you committed your truck to.

Has this issue been brought up here before?? If so, guess I missed it.

 

[x06col]

Yepper it has! Somewhere in the roasted goose hunter section.

 

[blizzard2014]

What happems is said carrier throws the load out on the broker board because one of their trucks turned it down. Then a partner carrier bids on the load and said company turns around and tells the shipper they have a truck to cover it. Well, some how another truck is loaded headed out that way and now another truck will become available in that area, or someone deadheads ot of a bad area and goes trolling through the area. Now said carrier offers the load to their own contractor (who gladly accepts and runs for way less than the partner carrier rate). Even after said carrier pays out the dry run or TONU, they still get the load hauled cheaper than they would have if the partner carrier picked it up. It's just business as usual out here. Even leased on drivers can't count on a load being theirs until the thing in on the truck, strapped down, and at least a few hundred miles down the road.

 

[dhalltoyo]

Yep. Most carriers will continue to bid the load if they can put it on a leased unit in their fleet. It is simply a business decision their part. The colonel has right. To be safe, the load needs to be close and ready now!

 

[nightcreacher]

If I'm dispatched on a run,and I fill the truck with fuel,prior to that run,95% of the time that run will cancel.You say why fill up before pick up,2 reasons.First,fuel may be much cheaper before I pick up,and second,I may be on a secure load that we cant stop for given length of time,of course those loads rarely ever dry run
I just sat 5 days waiting to pick up a load,with the D time and miles to pick up,that load paid me over $5000,sitting was well worth it.Had less that 600 miles total in it
Dry runs usually pay something,rarely pay like this last one.
Ive had loads cancel before I even got the truck started to leave for pick up,I once had one cancel after truck was loaded and I was giving my depart call.
Why loads cancel can be for various reasons,usually,paying party finds a cheaper carrier,they figure even with the dry run charge,its still cheaper to use a carrier that charges less.Why pay $2.00 mile when you can get the same load hauled for $1.25,throw in the dry run charge,still cheaper than the original amount.

 

[CharlesD]

Yep. Most carriers will continue to bid the load if they can put it on a leased unit in their fleet. It is simply a business decision their part. The colonel has right. To be safe, the load needs to be close and ready now!

But when you're sitting in a saturated area with little chance of getting something out with a decent rate, booking something a little farther out isn't all bad. Best case is the load goes. Worst case is you just relocated away from the herd and got the dry run money to pay for the relocation. Either way I'm better off than where I was a couple days ago.

 

[greg334]

But isn't there a difference between Charles, an independent and X who works for a company?

I know when I get a load canceled, unless I am en-route, or at the docks, the TONU doesn't really count - I do get compensated but not enough. A dry run seems to be a bit different, it is something that the driver doesn't have access to any loads but sits and waits and when something happens, then the company pays as little as possible. If a company has a lot of dry runs, maybe they need to look at their marketing plan.

If it was with one of the major players in this nince market, I think that the scenario played out as it has in other companies - they needed to move a truck and the load was near perfect for that purpose so they pulled it and handed to one of their own trucks.

 

[Oilerman1957]

So on the other hand, If Charles would have booked said load with said company but then found a better load, that first company would be ok with Charles cancelling the load he booked with them with no consequences?

 

[davekc]

So on the other hand, If Charles would have booked said load with said company but then found a better load, that first company would be ok with Charles cancelling the load he booked with them with no consequences?

Happens more than you think although some disguise it with saying their truck broke down.