Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: https://read.dmtmag.com/i/947211
March 2018 | Overdrive | 27 never going to happen to me.' " If recent Overdrive polling is any indi- cation, believing it would never hap- pen might have been naive. Almost all respondents say they've encountered some fraud or abuse from brokers. As is common in such disputes, Jordan viewed taking the case to court as too costly. This rationale means a crooked broker often walks away understanding that, at least in the short term, subter- fuge of this type is A-OK. Then he reloads to do it again. The temptation of easy money can lure less-scrupulous individuals into a trap that self-perpetuates through the industry. Say a "dispatcher sees a broker rip him off for $50,000 and walk," says Ron Reesor, marketing manager for freight-collection agency Baxter Bailey & Associates. "Nobody's going to pros- ecute. Dispatcher says, 'I could do what he did. I could steal a bunch of money.' If there's no real penalty for doing something illegal that is extremely profit- able," what's to stop the crooks? There are tools and best practices to at least avoid getting in such situations: Practice attentive negotiation with unfa- miliar brokers. Cement relationships with those you've dealt with previously. Know the tools available to verify cred- itworthiness, and if all else fails, collect payment via a third party. Though credit-checking tools continue to proliferate via load boards and other freight utilities commonly employed by owner-operators, they aren't fool- proof. Many haulers continue to get hit with the blunt end of common shady practices, some with new twists on old scripts. From mysteriously canceled loads to getting stiffed on accessorials to the worst – a broker with no intent to pay whatsoever – keep your eyes peeled for red flags, ask plenty of questions, and don't avoid researching unfamiliar bro- kers and shippers. The worst of the worst The fact that Baxter Bailey exists and is doing a hefty amount of business, with as many as 5,000 clients, is clear testament to the issues that trucking companies face in dealings with crooked brokers. Reesor and his son founded their company after watching their 200- plus truck fleet die. "I attribute it fully to brokers ripping us off," Reesor says. The company had some direct cus- tomers, but it was load board-dependent getting out of the Northeast. One too many unpaid loads sounded the com- pany's death knell. Reesor went to the Federal Bureau of Investigation about one of his problem cases, a broker based NEW BID-CALCULATING APP EMPHASIZES PROFIT MARGIN, REAL COSTS Missouri-based Power House Transpor- tation small fl eet owner and operator Scott Jordan grew up the son of an owner-operator. With some computer programming in his background, last fall he soft-launched an app that may provide independents utility in rate negotiations. Search "ICG Profi tCalc app" in Android or iOS stores. It's a $15 onetime cost. The app allows users to input their annual cost projections as a benchmark for load-by-load rate calculations to ensure a chosen profi t margin. For longtime operators who know their typical annual numbers, setup is quick and easy. The app allows users to input details for any load and target a profi t margin. Then it gives operators bid numbers in lump sum, per mile or hourly rates. Adjusting any number automatically adjusts the calculations. For a video about setting up the app and an Overdrive Radio podcast talk with its creator, Scott Jordan, search his name at OverdriveOnline.com, or listen via a podcasting app. For a video about setting up the app and an Simple failure to pay for a delivered load isn't the only way that brokers take advantage of owner-operators. Todd Dills