Who is supposed to pay the liability and cargo insurance?
- Thread starter RoadHouse
- Start date
guido4475
Not a Member
Quite often you have mentioned running for low rates. Once in awhile in a pinch yes. But I am getting the feeling you are trying to change this carrier and its rates into a bottom feeder carrier. Maybe it is you that should change carriers to fit you're needs instead.
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Murraycroexp
Veteran Expediter
Hey, let's agree to disagree....sometimes.
Carriers of ALL sizes CAN do things right & wrong.
O/Os have all different needs.
Some carriers need more or less margin. It'll either work, or not, long term.
O/Os can and will operate and make money for all different CPMs per mile, short and long term.
There's not ONE rule that works for all except the one that makes safe, insured transit of freight.
If it's not for YOU, that's great.
But don't knock the guys that CAN make it work for them AND plan for the future.
They're just on a different spreadsheet than you are. That's not a bad thing.
It's just a different thing.
Carriers of ALL sizes CAN do things right & wrong.
O/Os have all different needs.
Some carriers need more or less margin. It'll either work, or not, long term.
O/Os can and will operate and make money for all different CPMs per mile, short and long term.
There's not ONE rule that works for all except the one that makes safe, insured transit of freight.
If it's not for YOU, that's great.
But don't knock the guys that CAN make it work for them AND plan for the future.
They're just on a different spreadsheet than you are. That's not a bad thing.
It's just a different thing.
Let's be honest we have seen on this thread how low rates contribute to o/o not being able to afford the correct insurance. We have seen examples on this site of low rates causing so called carriers to close their doors owing people money. We see examples of so called carriers shifting charges such as cargo insurance to trucks that sign on with them. We have seen examples of so called carriers telling drivers they must wait 4 to six weeks to get paid partially due to underfunded startups and low rates not allowing them to build cash reserves.
We can argue or not about how some can run cheaper than others but their is little argument to the fact continues low bidding hurts this industry.
Imho of course.
Sent from my Fisher Price - ABC123
We can argue or not about how some can run cheaper than others but their is little argument to the fact continues low bidding hurts this industry.
Imho of course.
Sent from my Fisher Price - ABC123
Murraycroexp
Veteran Expediter
Yet the BIG carriers are the FIRST to contract the LOWEST bid. The lowest.
We lose bids many times a day that the big carrier's broker side posts. We have good relationships with many of them and they, many times, confirm they went with the 85 CPM bid.
Trust me. Almost NO carriers are immune. Even the ones that say "low carrier bids are the scourge of earth".
They employ humans that get pats on the back for excess margin.
We lose bids many times a day that the big carrier's broker side posts. We have good relationships with many of them and they, many times, confirm they went with the 85 CPM bid.
Trust me. Almost NO carriers are immune. Even the ones that say "low carrier bids are the scourge of earth".
They employ humans that get pats on the back for excess margin.
Oh nice snipe ...counter snipe! LOL
RoadHouse
Active Expediter
I think that all carriers need to pay their drivers cargo insurance and the primary liability insurance. That should not be deducted out of the drivers settlement. The only thing a driver should pay for if they are leased on to a carrier is bobtail insurance, and personal injury insurance. If the carrier charges their drivers for cargo and primary liability on their settlement, that carrier is not on the up and up! It's not the drivers job to pay the bills of the carrier!
So it's on the up and up if a carrier takes 35% off the top and uses part of that money to cover cargo and general liability? But if a different carrier takes 10% off the top and charges back to contractors it's not cool? What's the difference? If you're leased on at a carrier you're paying for it same as you would if you were independent.
WELCOME TO THE TRUCKING INDUSTRY!!! Now that we have the whining solved We can move on.
The fleet owners first concern is making sure that vehicle is ready for his or her use. That's why they keep 40 percent for maintainence, and insurances. This avoids conflict of interest as well.
The reason drivers pay their own insurance is so they are held responsible for their actions or inactions, Why should a broker/carrier pay for someone else's screw ups? Besides, one way or another you pay for the insurances either you make 80 to 90 percent and pay out of pocket yourself, or have it deducted from your set element.
If you have to pay for your own insurance you might as well get your own MC number and get a real rate. The down fall is you may be seen as a competitor by your fleet owners or carriers.
Be Safe.
Bob Wolf.
The fleet owners first concern is making sure that vehicle is ready for his or her use. That's why they keep 40 percent for maintainence, and insurances. This avoids conflict of interest as well.
The reason drivers pay their own insurance is so they are held responsible for their actions or inactions, Why should a broker/carrier pay for someone else's screw ups? Besides, one way or another you pay for the insurances either you make 80 to 90 percent and pay out of pocket yourself, or have it deducted from your set element.
If you have to pay for your own insurance you might as well get your own MC number and get a real rate. The down fall is you may be seen as a competitor by your fleet owners or carriers.
Be Safe.
Bob Wolf.
RoadHouse
Active Expediter
Who is going to pay for their carriers insurance when all they make is 90 cents per mile? I work at Panther and I get a dollar a mile and my carrier pays for the primary liability and cargo insurance. I pay less for insurance and I make more money than those guys who run for small mom and pop carriers. I also don't have to worry about being ripped off because the company goes under!
Panther closes its doors in five minutes from now just how do you get your paycheck and your escrow back-?
westmicher
Veteran Expediter
The odds of a publicly traded company using GAP accounting and having to follow bank covenants is far far less likely than a "carrier" who factors, pays weeks later and has no true investment. Can it happen... Yes. Statistically EO postings prove the reality.
By the time the vultures pick their bones nothing left the little guy
Murraycroexp
Veteran Expediter
Another good reason NOT to factor invoices. Shaves percentages off of money that was never even the carriers to begin with. Preserve those funds for the drivers.
Sure glad we don't factor.
Sure glad we don't factor.
guido4475
Not a Member
CharlesD
Expert Expediter
Factoring makes ok sense for a very small operation. Look at it this way. When we were still somewhat small, I was still driving. I had four other drivers. I could send everything to our factoring company and I was done with it. They paid the drivers and took care of the invoicing, billing, and collecting. With the volume we were doing back then, the annual cost of factoring was less than the cost of an office person to do that and since I was on the road still, it made perfect sense to let them take care of that. Now, it's a different story. Factoring fees are now way more than the cost of an office person. It makes sense if you can do it when you're small, but the problem is getting away when you get larger. Now our goal is to get enough of a reserve built up to be able to get away from factoring, but the amount needed is much larger than it would have been a year or two ago.
What's the average shelf life of a load before the driver gets paid for it?
Murraycroexp
Veteran Expediter
Without checking every transaction, I suspect the average is about 6 weeks. We certainly have brokers that go past 6 weeks, but we also have plenty that fall under. But I'll pull the report and report back. I might be surprised!!