Ripoff or Crazy IC?

Dervish1 · Feb 19, 2009

Can someone tell me the the Industry Standard definitions, of the following terms :

The Definition of a "Hot Shot"

The Definition of a "Line Haul load."

The Definition of a "Expedited Load."

The Definition of a "Special Load."

What is the difference between an employee and a Independent Contractor?

Additionally, Is there a law which requires a Broker to disclose the amount the Shipper is paying the Broker to move the load.

Thanks

piper1 · Feb 19, 2009

The independent contractor and broker are bound to any agreement the two parties have made. If the IC has agreed to the 60% of the 2.00 rate then that is what he has a legal right to. If the agreement states 60% of whatever is charged, then the IC has a right to his cut of the higher rate. Any broker (or company for that matter) makes money by charging the customer as much as possible and paying the contractor the least amount possible to move the load.

Does it pass the smell test....no not really but, a lot of the industry "stinks" if you know what I mean.

As far as the difference in the types of runs, I don't think there is a cut and dried standard definitions.

Line Haul generally means regular somewhat scheduled freight moved how the carrier see's fit as long as it serves the customers needs.

Expedite is generally urgent freight moved under very specific time and service constraints and is usually tracked (satellite etc)

Special Load, something different than regualar line haul service. Could mean anything.

Hot Shot, like expedite but different. (do a search on the site, there was a thread not to long ago about it).

An employee is someone who works for a company and that company is responsible for remitting thier income tax at each pay, benifits (if avail), the safety and training of the worker etc...

A contractor is a business dealing with another business. The company has no real responsibility for the contractor. It's just 2 businesses doing business.

As far as your last questions go, you may want to check out the OOIDA.

mjolnir131 · Feb 19, 2009

"Hot Shot"
Due to local colonialisms has several meaning some areas it's synonymous with expedite others it means using a pick up to pull a smaller trailer usually involving cars but not always.

"Expedited Load."
Time sensitive freight plain and simple.

"Special Load."
Requires special handling because of numerous passable factors example maybe but not limited to being fragile or a critical temperature must be maintained,it may be alive etc etc.

No there are no laws saying there has to be full disclosure and have always assumed most carries paid you lower than half of what they take in.

Dervish1 · Feb 20, 2009

Piper1 and Mr. Ingels

Thanks! This was my first post. If you have time I would like to speak with you regarding pricing and ideas I may use to stay afloat as an IC in this environment.

Thanks Again;

Dervish1

Turtle · Feb 20, 2009

Line Haul, short for Line Haul Road, originates from a railroad term. It's the railroad that handles freight over medium to long distances, as opposed to local switching runs. Freight starts at the Originating Line Haul Road and ends and the Terminating Line Haul Road. If the Line Haul Road is not a direct line, there are Overhead Line Haul Roads (A.K.A., Bridge Line Haul Roads) that are any (rail) roads between the Originating Line Haul Road and the Terminating Line Haul Road.

Translated to trucking, the Line Haul is simply the distance from originating shipper to the destination consignee. Or, for the driver, from the point of their pickup to wherever they deliver it to. If the freight has multiple stops and transfers, as with LTL freight, the Line Haul, as far as the driver is concerned, is from terminal to terminal, with each terminal transfer being essentially an Overhead Line Haul in the scope of the overall Line Haul shipment. For expediting and most long haul truckload shipments, the driver's Line Haul and the freight's Line Haul are one in the same, from pickup to delivery.

nightcreacher · Feb 20, 2009

turtle im sure you just confused him,

Line haul in other words is load from pick up to delivery,

Expedite is any load that needs to be there asap, or receiving company may shut down do to lack of parts or parts for their machines

Hot Shot,back in the days of the oil boom in texas,guys with pick up trucks pulling flat bed traiers woud haul the pipe and etc,for the oil rigs,these became known as HOT SHOTS.

Special loads,they can be over dimensional on flat beds,or loads that need special handling

Employee or Independent contractor,very touchy subject.many IC'S are really employees,it's a very gray area.Biggest difference,IC pay there own taxes,workmen's comp ins.

There is not a law that I know of, that the broker has to tell the company what they are getting paid fo the load. The property broker usually gives their loads out to companies for a rate around 10%.Shipping rates are not usually on the bol's un less government loads

hope this helps