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Industry Scumbags: Shippers

The shippers have it made. They may have had to pay a little extra during the pandemic, but everyone lost a lot and some lost all during those dark times. That doesn’t mean their standard procedure isn’t to have brokers underbid each other just to have us haul it for less and less. This is a winning business strategy for everyone, except the ones doing all the actual work.

 

We don’t have to talk much about the shippers, because the only reason they’re able to continue doing business this way is because we let them by going thru the brokers for our loads. Sure it’s easy and convenient, but we can no longer allow this losing practice to go on.

 

Shippers will ultimately do as the truckers say for one simple reason: we control the movement of their products, not the brokers, and without the ability to ship their products, they won’t be able to make any money and they’ll go bankrupt. They know their freight has to ship no matter what and no one can transport it for them except us. If their brokers are not able to hire any carriers, the shipper will have to deal with us on our terms. After all, they are already paying $4 to $5 per mile to the brokers, and the brokers are stealing most of that money for themselves. We’ve all heard that the brokers are able to take as much as 60% off the load, sometimes more, and leave us with the scraps. Think about it, when the market was good, loads were paying over $5 per mile and most shipper and brokers paid without issue while still being able to profit and expand, but now loads are paying $2 if we’re lucky and scumbag brokers like TQL are pocketing a good 50%+, which means the shippers are paying that $4 to $5 per mile either way, but the money goes to the brokers instead of the people who do all the hard work and assume all the responsibility & liability. It’s time to make sure all that money goes to carriers, and if the shippers will cry that they’ll go out of business due to increased shipping costs, let them cry. I’m sure they’ll be just fine because they were paying higher rates during the pandemic and they survived just fine. Another point is that all their competitors’ transport costs will also increase at the same rate, leveling the playing field. Even if the shippers are not currently paying those higher rates, they will, unless they want to buy their own trucks and hire their own drivers and haul their own crap, at which point they will understand why we deserve what we want. But let’s face it, they will pay what we ask because they’re not going to start a transportation company and I’m pretty sure they won’t want to file bankruptcy either. In any case, I say no more of this fighting for scraps!

 

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