Bill Bess, Director of Carrier Development
Bill  Bess,  Director of Carrier Development, was previously the manager of the Orlando, FL office, and has been with the Allen Lund Company for  35  years. With  45  years of experience in the transportation of perishable products, Bess' expertise includes perishable supply chain protocol.
Driving Through the Brokerage Minefield
November 21, 2019
Issue 201
Have you ever been victimized by a scammer? Has a load that seemed just “too good to be true” actually turned out to be just that? Has new technology that drives the brokerage industry actually created more opportunities for criminals to steal your revenue? Recently, I attended the National Association of Small Trucking Companies (NASTC) in Nashville, Tennessee. This organization is concerned with streamlining operations and maximizing profitability for the small carrier. They have a “boot camp” that carriers are encouraged to attend that offers educational opportunities to learn how to maintain a successful trucking company. Among the many topics covered during the boot camp, the one that stood out to me was “How do you plan to find freight”? According to the US Department of Transportation, there are over 700,000 motor carrier companies, with 91% operating six or fewer trucks . Smaller carriers can’t afford a huge traffic department so brokers are a good source of freight to keep those wheels and profits turning. So, how do you as a carrier, find and qualify a good broker? What resources are available to the smaller carrier to screen out the good, the bad and the ugly? What questions could you ask brokers that will give some assurance that you will get paid for your efforts?

How to Qualify a Broker:

  • Find out if they are members of any professional organizations like NASTC, TIA, Blue Book, Carrier 411 or OOIDA. Check with Internet Truck Stop (ITS) and find out if they have any negative reports. These organizations set higher standards for business ethics.
  • Check the status of a broker’s authority on the FMCSA website. Do they have a license, how long have they been in business, is their bond up to date? Check their email address, location, and phone numbers and reference if it matches the information on your confirmation.
  • Ask the broker how long will it take to get paid after the load is delivered.
  • Ask other carriers if they have information to share regarding a specific broker.

Warning Signals to Watch Out For…Scammers:

  • The scammer tells you it is a blind shipment.
  • The load information on the confirmation and the delivery information on the bills do not match.
  • The scammer is unwilling or unable to provide a fuel advance.
  • The scammer instructs you to check-in under their name instead of your own.
  • Do the Bills of Lading show the name of another carrier or broker on them?
  • If the load is just too good to be true…check it out because you might be right!

The best advice to minimize your odds of getting scammed is to develop mutually beneficial relationships with a few brokers. Only step out of your safety zone when you absolutely have to and then do your homework. The Allen Lund Company wishes you and your family the very best Thanksgiving and safe travels.
 


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Carman O'Leary
 Editor
Allen Lund Company
MarCom - Los Angeles
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About Allen Lund Company:
Specializing as a national third-party transportation broker with nationwide offices and over 500 employees, the Allen Lund Company works with shippers and carriers across the nation to transport dry, refrigerated, and flatbed freight; additionally, the Allen Lund Company has an international division licensed by the FMC as an OTI-NVOCC (#019872NF), and a software and logistics division, ALC Logistics .

Visit our website allenlund.com