Suggested Changes to Trucking Operations

Qualifying training as a broker Sec 32916 (c) 

RE TRAINING corp sales staff  wear two hats

RE TRAINING your point of SALE – dispatch wear two hats

PREPARE WEBSITE to NOT incriminate your brokerage

PREPARE 2 BROCHURES or ONE

 

Your Position in Freight Rate

FOR A CARRIER its about costs and profits and market yield

FOR A BROKER rates are not about you, but market yield only

 

SUGGEST before sales begin, survey the market by interviewing BACKHAULERS in the market place before you start to sell

 

ASK BACKHAULERS WHAT THEIR RATE IS TO GO HOME. Average responses, add your commission, and you have Market Reality.

YOU MUST QUOTE MARKET not WHAT YOU WANT

YOU POSITION YOUR CARRIER FOR HIGHER RATES using your brokerage money saving lever. BACKHAULERS WORK FOR UP TO 60% LESS.

BACKHAULING RATES are the only truth in the marketplace.

 

Suggested Website Practices:

DON’T MIX MESSAGES remember Liability !

HOME PAGE DIVISION

CARRIER DOES EQUIPMENT & GEOGRAPHY

BROKERAGE DOES THE WORLD W/O REFERENCE TO SPECIFIC EQUIPMENT TYPE

BROKERAGE IS A PERSONAL SERVICE trucking is a tangible service

SEPARATE phones, addresses

BROKER DISPLAYS credentials, any certifications, bond & License   ( such as a Master Broker® Certification; which would a shipper care to work with, some one who is trained or uncertified

CARRIER DISPLAYS credentials, insurance, DOT # and rating

 

What changes are necessary for selling brokering vs. trucking:

YOUR CLIENTS WILL OFFER YOU MORE FREIGHT THAT YOU CAN HAUL

WELL NOW YOU HAVE A NEW COMPANY!  how do you sell it

EXPLAIN NEW LAW TO EXISTING CUSTOMERS They will not understand

HOW TO CREATE NEW BOL, declare value on brokered loads, write the actual hauling carriers name on BOL

SHOW THE BROKER INVOICES, NOT THE CARRIER INVOICE

EXPLAIN INSURANCE, OR ACCEPT THE LIABILITY IN THE EVENT OF LOSS 

EXPLAIN , how you will book and contract with BROKERED motor carrier on behalf of shipper. Vetting the Safety Due Diligence and your role.

 

Quote Process Changes:

TRUCKING here is my rate ! -  take it or leave it

BROKERING what do you want to pay

BEING A MARKET CREATURE

PROMISES ABOUT PROVIDING A TRUCK

SUBSTITUTING YOUR TRUCK WHEN YOU CANT FIND ONE

COMMITMENT establishing Notification Time

GETTING EXCLUSIVITY

THE LOAD SHEET/RATE CONFIRMATION completion

 

Changes in Order Taking Process:

TWO CREDIT APPLICATION/CONTRACTS two signatures

CHECKING CREDIT REFERENCES evaluating the results

CREDIT TERMS and other terms

YOUR LETTER EXTENDING CREDIT, one for broker & one for trucker

AN EXPLANATION OF INVOICING POLICIES

VISA/MC  as an alternative

NOTICE of “BOOKING”

 

Changes in Finding a Truck:

POSTING YOUR LOAD and waiting for trucks to call you

USING YOUR HISTORY who did it last

YOU SEARCH LISTS OF TRUCKS you are in inferior position

YOU GIVE LOAD BACK  you can’t find a truck

THE BOOKING congruency in a Verbal Contract

NOTICE  to shipper, instructions about the BOL

 

Suggested Contracting Process:

WRITTEN CONTRACTS ARE NOT REQUIRED BY LAW

BROKERS WANT THEM TO MEMORIALIZE their lack of liability

SAMPLE 1 PARAGRAPH CONTRACT minimizing Liability

The “CONTINUING CONTRACT” not required but common practice. Contains your CREDIT REFERENCES

CARRIER VETS BROKER

BROKER VETS CARRIER

COMMON OR CONTRACT AUTHORITY = NO DOUBLE BROKERING

INSURANCE ACORD® Cert holder only

W-9

SAFETY  Due Diligence   CSA 2010

SEND THE RATE CONFIRMATION

FIRST CHECK CALL – remember, NO appointments - Carriers Job

 

Rate Confirmation:

WRITE IT AS IF YOU ARE THE DRIVER this is where claims start

CARRIER MAKES HIS OWN APPOINTMENTS remember you are not a “Principle” in this transaction and can not Control Driver.

RATE CONFIRMATION is not the controlling document in an act of transportation, but should be sufficient for carrier to dispatch his own driver

RATE CONFIRMATION confirms a Contract between the shipper, and carrier THROUGH YOU THE BROKER. You did not hire carrier on behalf of shipper, the Contract is NOT BY YOU.

YOUR FIRST CHECK CALL -  4 STEPS TO NON LIABILITY

 

Bill of Lading:

FEDERAL TITLE, conveying the absolute responsibility to carrier named for the goods and public safety, as well as carriers absolute power over the cargo, while in their care

RECEIPT from carrier to consignor, then from consignee to carrier upon delivery

CONTRACT between motor carrier and Consignor (may or may not be the shipper by definition)

The NEW BOL brokers liability to inform shipper

Other Bonds Available