Does it seem like more companies are skimming

[BigBadBill]

John, ok, so would the secret company build the management fee back into the rate?

TT, why would they do that? I understand that keeping this secret makes it smell like a week old diaper but building the management fee back in. Really?

 

[BigBadBill]

I think that's probably common as well. It's VERY common, and advisable, for a company's 3+ divisions be separate entities for various reasons such as risk and internal profits. I used to work for one broken down as per below.

1. Parent company. The one the local customers called to have goods moved.
Carried broker authority as well.
2. Carrier company. Possessed MCs for carrier authority and "got its work" from the parent company.
3. Leasing company. Leased and purchased equipment. Then leased that equipment back to the carrier company at a small internal profit.
4. Holdings company. Owned and leased properties. Then leased those properties back to the parent company at a small internal profit.
5. "Venture" company. Operates trucks for one specific high volume customer.

There are various reasons for having divisions and it is something that we do. I think from reading what tomtom is posting this is a bit different.

 

[jelliott]

John, ok, so would the secret company build the management fee back into the rate?

No. Again the company is paid to manage freight on the customers behalf. So the 3PL would be compensated exactly the same no matter what carrier they had move the freight. Often times it might be a flat x per week to manage a plant or a flat x per transaction. They have to manage and pay thier staff and expenses off of that. Now if the 3PL is really a brokerage model that is a whole different ball of wax. Don't run that so can't really give much opinion there. Again a true 3PL management model is a whole different thing than a broker that calls themselves a 3PL.

 

[letzrockexpress]

Which part of the union mentality?

The " Those big boys are screwing us and we deserve more" mentality.

 

[OntarioVanMan]

The " Those big boys are screwing us and we deserve more" mentality.

Oh that part.... thanks...

 

[Tomtom]

Hmm, I'm 73 and been around this business longer than most. I understand the business model and no issue with it. But why hide it if it is all legit? Why wouldn't the carrier just be honest?

 

[xiggi]

Hmm, I'm 73 and been around this business longer than most. I understand the business model and no issue with it. But why hide it if it is all legit? Why wouldn't the carrier just be honest?

Does it really matter and what real difference would it make if you knew?

Sent from my Fisher Price ABC-123.

 

[Murraycroexp]

Hmm, I'm 73 and been around this business longer than most. I understand the business model and no issue with it. But why hide it if it is all legit? Why wouldn't the carrier just be honest?

Is it really hidden? Or just not publicized? There's a huge difference.

 

[jimlookup]

The " Those big boys are screwing us and we deserve more" mentality.

Isn't this what big business feels about unions?

 

[letzrockexpress]

Isn't this what big business feels about unions?

I don't know. What's your point?

 

[jimlookup]

I don't know. What's your point?

The feeling can go both ways. I'm not a union lover. I just believe they're not any more corrupt than politicians or big business, I dislike them all.

 

[letzrockexpress]

The feeling can go both ways. I'm not a union lover. I just believe they're not any more corrupt than politicians or big business, I dislike them all.

Not sure how that correlates to my point but ok...

 

[Tomtom]

Does it really matter and what real difference would it make if you knew?

Sent from my Fisher Price ABC-123.

Really.? Hypothetical. Everyone knows John is as stand-up, as straight a shooter as it comes in this business. Doesn't keep anything from his drivers.

Now imagine he was hiding something like this? Would you not ask if it was so innocent why not be upfront about it?

So if you would question the intentions of someone like John, what would you think about an average carrier that you don't completely trust?

 

[Tennesseahawk]

What I really hate is bidding on a load they have no intention of covering it... Only to resell it and skim a little off the top.... That to me is double brokering... Who's watching the children?

Actually, that's C&M's game. They are the "go to" company for getting something covered, and they win awards because of it. But I see what you're saying... someone doing that just to grab a quick buck, and not even knowing if they can cover it.

 

[davekc]

The reality is most carriers try to operate with a veil of secrecy. With the age of technology, it gets tougher to hide information even though many still play that game.
The bottom line is the revenue, but it makes for a better relationship when you know you and the carrier are on the same page verses a bunch of goofy game playing. We read it all the time here on EO.
From a contractor or fleet owners prospective, a little honesty and a degree of transparency goes a long way.
It really is that simple.