YOU WANT A REEFERPosted by Kevin Snobel at 06:47 AM
It's that time of year where we ship reefers (no not that kind). We want a driver to PULP the commodity they are hauling. We want the driver to install and monitor the Temptale (THE WHAT?) 0h I know, Transportation companies are putting more and more ONUS on the drivers, yet they do not train the drivers properly.
First off, let's get something straight, and set the record straight. I am not a big proponent of having the driver do everything. They are paid to drive the truck. If the carriers do not dispatch correctly, what is the sense. Tell the drivers to PULP bananas, or grapes, or berries, or whatever. It is like telling them to take a thermometer and get the babies temperature. Yet most companies, when there is a claim, hold the driver liable for the first whatever amount.
Brokers want the driver to call them every 4 hours, and have strict delviery schedules. Again, point out the obvious. If a driver pulls off the road, calls a dispatch, lets them know where they are, gets back on the road they just lost approximately 15 minutes of ON DUTY NOT DRIVING TIME . IT IS illegal to talk on the telephone and drive at the same time, in MOST STATES AND PROVINCES. LEAVE THE DRIVERS DRIVE. Chargebacks on LTL shipments this is ridiculous for the customer, and the Load Broker to hold the carrier responsible for. It's LTL, don't ask the impossible, after all, its your customer, casuing the delays somewhere along the way. Murphy's Law with LTL shipments, can and will happen (READ DELAYS).
I attended a WEBINAR recently hosted by CCJ Magazine. The lawyer presenting said what I have been preaching for a long time.
Carriers should not be signing contracts, with brokers. We haul the load, we sign a B/L(BILL OF LADING) it has enough terms and conditions on it. That should be sufficient. A lot of Load Brokers (BIG AND SMALL) want the carrier to allow them to OFFSET a CLAIM against any freight charges owing. HOGWASH. We will settle the claim, pay what we legally owe, and you will pay the freight. Nothing more, nothing less. If there is a loss, that is why we have Insurance. It is up tothe Insurance Company to settle the claim. Why on earth would we agree to let the broker or the consignee offset any claims, against all money owing for freight charges. This is the same as admitting liability and fault. Prove it was our fault and the Insurance company will pay what they legally have to pay.
Let's look at the example they used in the webinar. Carrier "A" is hauling a machine. Upon delivery there is a part broken that is worth $100.00 The carrier has a contract with the LOAD BROKER, to allow them to OFFSET any claims agianst freight charges owing. The consignee has to have a new part flown in from the Far East. TOTAL COST $30,000.00. The load broker offset the total of $30,000.00 against all freight charges owing to the carrier, for a $100.00 machine part, for the total of the replacement costs. Not only illegal, but so far out in left field, some carriers accept it. In fact the Insurance company would state you are only liable for the cost of replacing the actual part damaged. Some Load Brokers, are now asking carriers to sign contracts with the same legal liability limits for carriage in the United States of America, and Canada. FULL REPLACEMENT VALUE. No declared value required.
DON'T sign them. ALL CARRIERS should be sticking together ( instead of getting it stuck to them) on this
I strongly recommend every carrier read, every contract thoroughly, before signing them. If you have signed them, try to redo, reread, rewrite re anything to negate cartain clauses. As for me I am still looking at my many ACRONYMS. Does everyone know what the follwoing mean (1) RFID (2) E.D.I. (3) P.O.D.(4) COGS and last Acronym for this week. RFQ. OKAY ONE MORE This one I love the lastest in BUZZ WORDS the last couple of years KPI.
Comments
The laws are somewhat outdated. Unlike a for-hire common carrier, the very thing that gives a contract carrier operating authority is a signed contract, be it a simple one page contract or something more. I don't really know if a bill of lading would qualify as a contract. More and more stumbling blocks keep being put in front of carriers, more taxes, more rules, higher tolls, more papers, etc. This business has been built upon the small businessman, but it just seems like our government wants big business to control it all. I am very disappointed about the billions of dollars of federal subsidies to CSX, part of which are paid for by tax paying carriers, only to see CSX trash the trucking industry in TV ads. Dubai ports, the same company who tried to purchase our ports a few years back, owns CSX, so U.S. taxpayers in essence are paying tax dollars to subsidize Dubai.
Posted by: Stephen Hummel | June 26, 2009 09:23 AM
My favourite is TLA
(T)hree (L)etter (A)cronym !!!!!
Posted by: Dave Maloney | June 29, 2009 01:15 PM
No problem you dont sign the contract someone eles will and you will go out of business.Go get your own customers and then you can do it anyway you want.Brokers have enough nonsense to deal with including every other carrier trying to double broker freight left and right.If your moving my customer freight your doing it my way because at the end of the day Im the one that can lose my bread and butter by the actions of unqualified drivers,dispatchers,and trucking company's.This is the most pointless article Ive ever read Im sure you where self schooled using the finest manuals available not dealing with real world experience.
Posted by: Freight Broker Pete | June 30, 2009 03:21 AM
Actually Pete: I have been in this business since 1976. I have seen many companies come and go. I have seen contracts demanding the world, and leaving carriers out to dry. I have also seen Brokers left hanging out to dry. More importantly, the point is: Everything (most anyways) are a 2 way street) This business was built on trust. yet most carriers loosing money, are not from their own customers it is from disreputable, load brokers who take the money and do not pay the carriers, want original B/L as they double brokered, and when their (in your words MY) customer pays them , the carrier is still waiting to be paid. That is why in ONTARIO you have to have 2 bank accounts, one is a sperate trust account where all Freight costs are supposed to be set aside. I bet 90% do not do this though.
Frustrating yes, Tell a carrier I did not get paid by my customer yet, I will pay you when I get paid, NOT MUCH DIFFERENCE FROM A PONZI SCHEME, Borrow from one to pay the other.
Please remember the following
1) Freedom of speech, is a wonderful freedom we have here, and I certainly appreciate your feedback.
2) What I have written is from personal exprience,in Courts, in business, and 33 years of history in the business.
3) Ask most carriers who hangs them out to dry for payment OTHER CARRIERS OR LOAD BROKERS. The majority will say, load brokers. It is also the few bad apples that taint the picture for the good ones. I assume by your comments you consider yourself one of the good ones, and always pay your bills on time, never make a carrier wait to be paid until you get paid and keep a seperate TRUST account as per the LAW.
4) If as a carrier,you are given a 10 page contract, to sign for a $500.00 load, and it states right on it, 60 days to pay, WELL I THINK YOU GET WHAT YOU PAY FOR ON BOTH SIDES OF THIS COIN. That is why you have trouble with that particular carrier, not much integrity there, especially for the money.
Thanks again I appreciate your comments, your feedback, and your honesty, however the webinar presented by CCJ that I quoted from, stated most of what I reiterated, so I would assume your comments, are also guided at one of the most respected, Transportation Lawyers in North America.
Posted by: Kevin Snobel | June 30, 2009 07:44 AM