A great blog from our very own Shelly Benisch on this topic!
Multis - The Good, The Bad and The Uglies - MCs
Multis - The Good, The Bad and The Uglies - MCs
The "multi" model may be a fairly new model to expediting, but to the trucking industry it's not.
The trucking industry has been using the "multi" broker model for 40 + years. It has been a very successful model for many independent o/os.
As in all things in life and other industries, some do things the right way and some don't. It shouldn't be a surprise that there are some that don't do it the right way in the expediting sector.
The trucking industry model tends to be a multi broker model vs the multi carrier model in expediting.
I think it is safe to say that all carriers have a brokerage dept, but not all brokers are carriers.
Some carriers like Schneider and JB Hunt (to name a few) have multiple brokerages to deal with specific commodities and modes.
The carriers, thru alliances, move each others freight using their assets, owned or leased. Usually these companies are set up properly and are doing it the right way.
However, that doesn't mean a one off operation can't also do it the right way. Whether "leasing" on with multiple carriers or using the broker model. Does it take more work, absolutely. Is more risk involved, sure. Is there more rewards? That is the question that has been debated on here and in the trucking industry for years.
Like other industries, there are successes and failures.
She did, somewhat. I just wanted to make it clear that this is not a new concept. The insurance challenges addressed in the article are not a challenge in the big truck sector. Maybe the cost is to some, but the product is readily available by many.
I'm guessing, but probably due to the different types of vehicles expediting uses. Vans, Sprinters s/t. The big truck sector, I think, is going to be based on the type of trailer you pull and the commodity.
My opinion hasn't changed since this has started. For the rate the "bottom feeders" haul at, the exposure and costs are too high verses the return. If one wants to haul for other carriers, get with a carrier that allows you to run under their authority or get your own. The article is correct in that they are cracking down on the rouge operators and companies so much of it is coming to a end in the near future.
there seems to be two different routes of multi's....fastrod....we are talking about trying to get rid of the ones that are under insured and misrepresentation...It's just a new concept to expediting and after some time it may replace the exclusive use concept for vans and sprinters. Might be a good change but only time will tell.
It's just a new concept to expediting and after some time it may replace the exclusive use concept for vans and sprinters. Might be a good change but only time will tell.
I met a Sprinter o/o in Atlanta last year. He was leased to LS for about 6 years. He has been doing about the same thing. He has a couple of local customers and partner carriers with a few or just DHs back. The loads out pay enough to afford that.
Does he have the required insurance for his partner carriers and HIS customers?...
So how do you know who is under insured?there seems to be two different routes of multi's....fastrod....we are talking about trying to get rid of the ones that are under insured and misrepresentation...
So how do you know who is under insured?
My operating authority requires me to maintain a policy with $300,000 primary liability. Some on here claim you need no operating authority to expedite on your own in a van so how how would you know how much insurance they are required to have.