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