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Freight Skool Group

551 members • Free

Freight Broker Pro

27 members • Free

185 contributions to Freight Skool Group
War good or bad for the freight market?
I would bet the clothes off my back that the top 5 3PLs will report higher than expected revenue at EoY. If you’re a 3PL with clauses in your shipper agreement that adjusts for war or act of God you should be ahead, assuming you run freight based on a margin percentage.
1 like • 7h
Interesting topic, @Rayan Speid the challenge is the SSls are using Force Majeure, with their contract they can increase fuel and GRIs due to the war. There is a documentary starting with Tom Hanks on World War 2, the tag line is the wat that affected all people in every country. The current war is affecting every country as they all still use oil. There is not one country that is not affected. Having had to pay an increase on drayage over seas, fuel is $10.50 per gallon USD. Setam ship charging $350-$550 EFS (emergency fuel) GRIs General rate increases are $200-$1000 these are all per container. The last portion, 4PLs & large 3PLs with customer fuel programs are accruing fuel. Generally they follow DOE or FCA based on the previous months average. Example, average for Feb was $3.59 per gallon DOE, March war occurs, fuel goes up by 30%. The 3PL/4PL has to pay the higher fuel which will not catch up until April based on March average. This will continue until the war is over and fuel returns to normal levels. If you do not have a serious war chest to accrue, you cannot manage this type of program. SME brokers and 3PLs did need to adjust fuel in March and April. I hope the US minister of Energy is wrong, he did predict the end of 2026 to 2027 before we will see fuel stabilize, that was also predicated with the war ending soon.
Freight
Hello community I’m coming to you all asking how do I build a book of business when most if not all brokerages want a active book of business
1 like • 12d
@Micah Simpson will share that @Dennis Brown is correct, there are many brokers who will invest. Would suggest investing in your skills to be successful. Will share, Dennis Brown is not only a member, he has one of the best training programs available. To clarify, Dennis does not ask me to promote him, do not receive any renumeration. Hell @Dennis Brown did not even give me my point on LI answer. LOL Good luck with your new carrier
0 likes • 12d
@Dennis Brown my pleasure, have followed your information and company and know you are excellent. You did one post, if we got the answer you would award an extra point. Guess at this stage it was the wrong answer. LOL Keep helping the sales people in our great industry to be successful.
Fuel
Is everyone having as much fun discussing fuel increases as I am? This is something beyond the control of any asset carrier or broker. Yet shipper still believe somehow our industry is benefitting. The USA uses DOE, this process and formula work very well, diesel is $3.69 per gallon we get X per mile, moves to $6.00 per gallon we get X per mile. Canada uses FCA, this is done with a formula and creates a %. Prior to the war in Iran, % was 48%, now it is 91%. This is harder to explain to customers. DOE or FCA was established to offset fuel increases due to wars, act of God, geopolitical challenges. Have had many brokers reaching out, they did all in rates. This is not a practice I agree with, should always be linehaul plus fuel. Pass through fuel as it is the carriers cost not a brokers. Then when fuel moves it is passed through. The biggest benefit, your revenue or margin is not affected. Truly hope we can see resolution sooner than later. Germany we paid $10 per gallon USD to drayage partners this week. EFS from SSLs are $350-$500 per container and expected to climb if they will even continue servicing the region.
2 likes • 19d
@Steven Tittle that is a real challenge. Had a shipper reach out 2 weeks ago. Stated his carrier is NO longer honoring their rates. Further discussion reveled it is the fuel. I did ask how the service has been? How long have you worked with them? they have been together 4 years, on-time is 98.6%. My comment, would it not be better to pay them the fuel? You and your boss drive pick-up trucks, your cost at the pump is $2.34 per liter, or $8.55 CP gallon. Liter you multiply by 4.2 to get price per gallon, they are CDN, converted is $6.24 USD per gallon.
0 likes • 12d
@Rayan Speid I use the same saying, I do add, the light at the end of the tunnel and it is not a train.
Cargo Van Class excerpt on Dispatchers
A Dispatcher works for you. Not the other way around. Remember this. In recent years Online “Dispatch” companies (Many of them located overseas) have made their way into the Freight Transportation landscape. They perform all the functions that a Freight Brokerage does, like find you cargo van Freight, but they have none of the legal requirements of a Freight Brokerage. This has led to an epidemic of fraud, primarily where the dispatcher gives you a load, you haul the load, the dispatcher collects the money on your behalf (illegal) but then never pays you. You see this story play out over and over, it primarily happens to those new to the business. Wanting to get loads so bad starting out that they sign on with a dispatcher service ( Because the freight brokers won’t onboard them being their authority is new) and then the dispatch service never pays you for your service. Remember Freight Brokers have to, by law, carry a $75,000 surety bond. So if you are signed on with a Broker, you haul that load, you will get paid because you have a broker bond to file against to get your money from them. But dispatchers have no bond, no laws or regulations requiring them to pay you. Why? because legally they work for you. Learn more about dispatchers in our Cargo Van Freight Class.
1 like • 28d
@Steven Tittle @Ingrid Brown scratching the surface, if time permits I will share a more detailed article on dispatch services. One aspect is the carriers who enter into an agreement with an overseas dispatch service. These carriers are fully aware of what the overseas office is doing., They agree to share profits. The challenge is the lack of a contract, when a challenge takes place, overseas will walk away. The accident, cargo claim will come back to the original MC#, carrier now has a claim or worse, many cases the dispatch service did not even pay them. One way to identify this for carrier and brokers, if the MC$ being used the carrier that is issued the MC# has never serviced CA, TX, FL for example, they are posting in that market, when you call it will be an overseas dispatch service. They are so aggressive have had ALS Shipping contact me 5 times, have informed them I am reporting them and MC# to FMCSA. They called back to inform me they will have a new MC# in less than 48 hours. They are aggressive as FMCSA and FEDS haver done nothing to even slow them down
0 likes • 27d
Believe Dale Prax has a great handle on the overseas. Follow Dale Prax On the heels of the release of the recent Freight Integrity LLC investigation into #ForeignDispatch services and operational control being handled overseas, something just as important came into focus. The buying, selling, leasing and renting of MC numbers. Federal Motor Carrier Safety Administration didn’t issue their March 19 bulletin by accident. This is a massive problem. The Agency was clear—DO NOT sell, purchase, or lease a USDOT or MC number. https://lnkd.in/eZmr_93r. Our next investigation goes straight into this. A company tied to the buying and selling of MC numbers, and a network of 118 affiliated entities connected through ownership, shared data, and operational patterns that don’t line up with independent businesses. The affiliation of these entities was not disclosed to FMCSA as required by Public Law 112–1 41 paragraph 32103(D)(i) Map 21 made this a law for a very good reason Some of those entities have been involved in serious crashes, including fatalities. Individually, they look clean. Together, they tell a different story. This is exactly why FMCSA had to draw a line with that bulletin.
Fuel is limited at truck stops?
Has any dispatchers recently getting feedback from the driver and carriers about getting fuel at the pumps and it’s a minimum or it limited them to get a full tank?
0 likes • Apr 2
Do have several reports from overseas they are limiting fuel. We have aircraft grounded restricting air shipping. The challenge with announcement last night, 3 more weeks or uncertainty as to when the war will stop barrel price went up again. $7 per gallon, Germany is over $9 heading over $10 per gallon
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Bill Robinson
6
1,269points to level up
@bill-robinson-4594
24 year transportation specialist

Active 6h ago
Joined Feb 2, 2024
Ontario, Canada
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