the muti carrier driver push

[PreacherRich]

Do you have liability (750k-1 million) and cargo insurance (industry standard 100k)?
Just curious, I don't know much about what is required from the carriers to be a "multi-carrier", or Independent Contractor.
This has been an interesting thread to read, even if it's gotten alittle off topic..lol

Spent a lot of time going over things with my insurance agency and this week and talking about this very issue. We require our drivers to run $100,000 cargo and $1,000,000 in liability, which is the standard in the industry. If anyone out there is carrying less than that you are wrong. What I am writing about applies to drivers of vehicles under 10,000 (GVWR)

One of the main issues with drivers having their own insurance and running for muliple carriers is this. The carrier has a bunch of drivers each paying their own premiums. If Joe the Driver had a bad month and didnt make his insurance payment, the policy could lapse and freight could be moved without actually being covered. There are several companies that did not do their due dillegence and make sure that all policies are current and put safe guards in place to make sure they absolutely were protected. I was told that with one main insurance company that just about all policies with an MC Number attached will be audited and if there are gaps, they will be cancelled or not renewed. Many have fallen recently because of that.

About just requiring a driver to run under their own authority, if a carrier books a load for Joe the Driver who is running under his own MC Number, that carrier would be brokering that load out to "Joe the Driver Carrier Group" MC# XXXXXXX. That would limit greatly the loads available because it is now a double brokering situation. Bad deal for the driver.

Many brokers out there are no longer doing business with carriers who allow their drivers to run for multiple carriers. The industry is changing and has been for a while. The multi-carrier model is not dead but is on it's way out. I would expect, in the not to distant future, all drivers will have to choose and go with one carrier. I have been strong supporter of the multi-carrier model, it was how I ran when I first bought my van and got into expediting. If I was just getting into the business toady, I would pick an awesome carrier, logo up and run.

As of now, On call Logistics is no longer hiring drivers that run for multiple carriers. However, I have an amazing group of drivers that do run for multiple carriers and am not willing to just kick them to the curb. We have been through a lot together. We have put them on notice of the changes, offered them the opportunity to run for us exclusively or their insurance agent must sign and notarize a form to make them (the agent) liable for any loss is we are not notified of any changes or cancellations of their policy.

Well, I apoplogise in advance for the typos and run on sentances....
Have an amazing day!

 

[sbarrett]

I've been hanging around this industry for a little while, probably not as long as most of you...but, i have seen a huge change. I personally don't like the "multi carrier" model, not because of the drivers, but because of the carrier/broker using them. The carrier/broker knocks down the rate and makes their percentage the same, but cuts the drivers pay down. I feel like it has deluded the market and has turned a once great industry into the Full Truck Load Industry...cheapest truck gets the load, and it's just sad.
I hope I do not offend anyone by saying that, it's not a personal attack against anyone. It's just my humble opinion (which is worth the cost of posting this thread)

 

[PreacherRich]

I actually agree with you a bit on this...

Right now, there is a ton of companies out there who seem to have the mentality of "Well at least they are moving and we are getting something". I am not sure though that it is the fault of the multi-carrier model as much as a bunch of fleet owners that have got their own authority over the last couple years and are running dirt cheap. While talking to several brokers recently, some of that rates that I am competing against really make me want to vomit. We offer a premium service which deserves a premium rate, not this lowball mentality that we are currently fighting against. There are several carriers that currently run on the multi-carrier model that absolutely will not bargain basement their rates.

There are several ways that the multi-carrier model does effect the industry which is why we are transitioning out of it. However, not every company that runs drivers on the multi-carrier model is a garbage rate carrier. There are several that fight for their drivers and respect this industry.

 

[RedBird]

THAT'S why my loaded mile average was $1.212 the last time I checked. More labor (labour for OVM) and fewer miles. But I kill the benefit by DHing home so much. However I did get my DH down to 20.85% since 6/24. Through a couple of weeks ago.

But you've got a better benefit waiting for you at home! As long as YOU are happy and the bills are getting paid, you're putting food on the table, and keeping a roof over your head! Don't worry about D'Hing home so much. You have a system and it works for you! Keep on trucking Murray!

 

[Murraycroexp]

True dat, RB!!!! Kids are kids, and they're "over it" 10 minutes after I get home. But the excitement and latching-on when I get home is wonderful!
And yep, food clothing shelter dance class martial arts class date night fun trips repairs and even paying down debt quickly. All good.

 

[letzrockexpress]

I actually agree with you a bit on this...

Right now, there is a ton of companies out there who seem to have the mentality of "Well at least they are moving and we are getting something". I am not sure though that it is the fault of the multi-carrier model as much as a bunch of fleet owners that have got their own authority over the last couple years and are running dirt cheap. While talking to several brokers recently, some of that rates that I am competing against really make me want to vomit. We offer a premium service which deserves a premium rate, not this lowball mentality that we are currently fighting against. There are several carriers that currently run on the multi-carrier model that absolutely will not bargain basement their rates.

There are several ways that the multi-carrier model does effect the industry which is why we are transitioning out of it. However, not every company that runs drivers on the multi-carrier model is a garbage rate carrier. There are several that fight for their drivers and respect this industry.

My net per mile is about 22% higher than it was in 2006 through 2008. Some of that is the rate and some is the fixed costs perpetrated by my previous carrier. Deadhead is lower now also.

 

[paullud]

My net per mile is about 22% higher than it was in 2006 through 2008. Some of that is the rate and some is the fixed costs perpetrated by my previous carrier. Deadhead is lower now also.

There is a huge difference when you only have to pay $20 a month. When I ran the numbers I tried to see about getting my van signed on at On Dekk but they aren't taking CV's until March.

Sent from my SCH-I535 using EO Forums mobile app

 

[chs007]

This is the second company I have heard of recently that is stating that their insurance company will no longer cover them if they have drivers that drive for multiple companies. Trucking industry was deregulated by the government years ago. Now it seems the insurance companies are picking up where the government left off.
Imho I think bigger fish are pulling the strings. To many small companies cutting into the profit margins of the big boys. Sure would be a quick fix to consolidate or eliminate the competition. Follow the money trail.

If u have your insurance all you have to do is get additional insured you can run for as many as you want you do not need an mc number the company does not you

 

[guido4475]

Wouldn't it just be easier and more simple running for one carrier that pays you what you're worth? Is all of this really worth all of the trouble?

 

[letzrockexpress]

Wouldn't it just be easier and more simple running for one carrier that pays you what you're worth? Is all of this really worth all of the trouble?

What does that mean?

 

[briggie1]

Wouldn't it just be easier and more simple running for one carrier that pays you what you're worth? Is all of this really worth all of the trouble?

What is the one carrier? I ran for a lot of the top name carriers over the years and switched to multi last October and like it much better than running for one

 

[blizzard2014]

I don't see how carriers can allow a driver to run for them with an expired insurance certificate when it is the insurance companies job to fax over a cover sheet that the driver has cancelled their insurance a couple of days before it is cancelled. The insurance company will also tell a carrier when a driver is about to have their policy cancelled if a driver fails to pay their premium. I guess when you have four different fax numbers and five different company phone numbers, three owners, and three physical address changes in the span of a two year period it's kind of hard for people to get in contact with you over insurance issues. lol I'm not gonna name that particular carrier, but you can check them out on the safer web system!

I love how carriers brag about their superior service when every driver on the road for the most part delivers on time. Bing on time is not providing superior service; it's the way everyone out here does business. I hope the multi-carrier drivers can find a place in the new world once they multi-carrier model is completely phased out. A lot of the drivers I worked with under the multi-carrier model were a pretty rough bunch of drivers. I don't think many of them could even get a job with one of the larger companies, or they had burned all of their bridges with the larger companies.

Oh, and every carrier drops rates when things get bad. Every carrier panics when they are struggling to pay the bills. It's just human nature. Any carriers on here paying 85 CPM with no fuel surcharge are definitely not top tier carriers. Also, the multi-carrier model was always flawed! When load is brokered out to a carrier there is a contract between that carrier and customer where the carriers insurance is listed as the insurance that pays in the event of a freight claim. There is no contract between that customer and the multi-carrier driver who us moving the load.

Even with a notarized piece of paper, the carrier that has a contract with the customer is the one responsible for the freight claims and liability unless the driver has his own authority and the carrier is actually brokering the load to the driver. I don't think the customer is going to be very happy about their freight being double brokered. Also, another big problem with the multi-carriers is that they do not have a big enough customer base to keep exclusive drivers busy. They have multi-carrier drivers because the drivers would quit if they were leased on exclusively. I predict there will be another purge of carriers who cannot keep their trucks moving. I'll just sit back and watch what happens!

 

[letzrockexpress]

I don't see how carriers can allow a driver to run for them with an expired insurance certificate when it is the insurance companies job to fax over a cover sheet that the driver has cancelled their insurance a couple of days before it is cancelled. The insurance company will also tell a carrier when a driver is about to have their policy cancelled if a driver fails to pay their premium. I guess when you have four different fax numbers and five different company phone numbers, three owners, and three physical address changes in the span of a two year period it's kind of hard for people to get in contact with you over insurance issues. lol I'm not gonna name that particular carrier, but you can check them out on the safer web system!

I love how carriers brag about their superior service when every driver on the road for the most part delivers on time. Bing on time is not providing superior service; it's the way everyone out here does business. I hope the multi-carrier drivers can find a place in the new world once they multi-carrier model is completely phased out. A lot of the drivers I worked with under the multi-carrier model were a pretty rough bunch of drivers. I don't think many of them could even get a job with one of the larger companies, or they had burned all of their bridges with the larger companies.

Oh, and every carrier drops rates when things get bad. Every carrier panics when they are struggling to pay the bills. It's just human nature. Any carriers on here paying 85 CPM with no fuel surcharge are definitely not top tier carriers. Also, the multi-carrier model was always flawed! When load is brokered out to a carrier there is a contract between that carrier and customer where the carriers insurance is listed as the insurance that pays in the event of a freight claim. There is no contract between that customer and the multi-carrier driver who us moving the load.

Even with a notarized piece of paper, the carrier that has a contract with the customer is the one responsible for the freight claims and liability unless the driver has his own authority and the carrier is actually brokering the load to the driver. I don't think the customer is going to be very happy about their freight being double brokered. Also, another big problem with the multi-carriers is that they do not have a big enough customer base to keep exclusive drivers busy. They have multi-carrier drivers because the drivers would quit if they were leased on exclusively. I predict there will be another purge of carriers who cannot keep their trucks moving. I'll just sit back and watch what happens!

Pardon me if I say I sense a little sour grapes in this post. I hate to say that because I usually read what you post and get the feeling you really have a grip on how to do this business right.

I agree that being on time is not a defining component of professionalism in expediting, but rather the main reason we exist in the first place. Having said that, Which carrier you are or are not contracted with isn't likely to have anything to with that, assuming they conveyed the proper paperwork and information to you to get the job done.

The multi carrier format requires one to be a little more proactive in their job than being contracted to a single company. There is not a qualcomm to identify your location, unless you were going to install one for each carrier. Communication is the key. All those fax numbers, phone numbers, etc., can be reduced down to a few emails and texts. Running with too many carriers doesn't make sense either. The key is the sources of the freight. Two companies that are bidding on the same load is counter productive. It is the O/O's responsibility to know what kind of freight a particular group is looking for, if they have their own customers, etc.

In the end, somebody will always do a job for less, whatever that job may be. There are renegades and outlaws who will cut corners and do illegal or downright stupid things but that is not an indictment of the multi carrier business model. It is a standard byproduct of free enterprise. There are those who will cheat and there are those of us out here who will continue to do it right. The market will determine what that balance is, not us.

 

[guido4475]

What does that mean?

Just what it says.

 

[guido4475]

What is the one carrier? I ran for a lot of the top name carriers over the years and switched to multi last October and like it much better than running for one

I would say the one carrier would be whoever you feel the most comfortable with. The one you can trust to do business with. The one who does everything they can to keep you moving, profitably. The one who has the least amount of non-sense within it's company.The one who can pay you what you're worth where you can maintain and operate you're van/truck and still support a comfortable lifestyle at home.The one where you move forward, not backwards.Not all carriers work for everyone.Just like music, we all have our own tastes and preferences.

 

[purgoose10]

My research last night and this morning indicates this carrier is the one requiring their drivers to get their own MC number. My question is this: If this company wants their drivers to have an MC number then they would effectively become a carrier, correct? If this is true then, assuming Eclipse has an MC number, wouldn't accepting loads in this arrangement itself be double brokering?

It's not double brokering if they have a contract with the company and use it as a trip lease. One carrier can be contracted to another to carry their freight if they have a trip lease. That's one way of doing it. It also depends on the MC number holder if they have broker authority. If they do and they are contracting a load just to a carrier, no it's not double brokering. Confused yet?

 

[blizzard2014]

It's not double brokering if they have a contract with the company and use it as a trip lease. One carrier can be contracted to another to carry their freight if they have a trip lease. That's one way of doing it. It also depends on the MC number holder if they have broker authority. If they do and they are contracting a load just to a carrier, no it's not double brokering. Confused yet?

That is sort of correct about the double brokering. If a carrier has broker authority and gets the load directly from the shipper and brokers it out to another trucking company and that carrier has a contract that allows them to broker the load out to another carrier if one of their trucks can't cover the load then everything is copasetic. But if the carrier is getting the load say from NLM, Active on Demand, or some other 3PL, and then farming it out to another carrier; that is double brokering. Some customers or brokers will allow you to co-broker loads with other carriers if it is necessary to get the load covered. As in the case when a vehicle breaks down. I don't think it is necessarily a bad thing to double broker a load to another carrier if one of your units has a breakdown. But to book loads off of 3PL load boards with the sole intent of re-brokering them out to another carrier; that is not ethical.

 

[blizzard2014]

So lets talk about rates per mile with the smaller companies. Who is gonna pay 500 bucks a month for cargo insurance just to be forced to work with one or two companies that pay 85 CPM with no fuel surcharge. I can go back to work for Bolt Express and make a buck a mile and my insurance will only cost 120 dollars a month. Plus I don't have to worry about them going out of business and jacking my last paycheck. Out of all of the companies that have gone under in the past two years can you name me just one of them that weren't a part of the multi-carrier model? Just name me one carrier that has recently gone out of business and has all exclusive use trucks? The fast of the matter is that when you work for multiple carriers, not only are you paying high insurance rates, getting low pay per mile, you are also playing Russian roulette with your money! These are just the facts as I see them. I welcome anyone to refute my assessment of the facts.

 

[danthewolf00]

well I have been thinking about the mc number and I don't plan to go that route. i'll look for a another company.

 

[letzrockexpress]

well I have been thinking about the mc number and I don't plan to go that route. i'll look for a another company.

Call On-Dekk. You can be rolling tomorrow.