John Thomas on Freight Brokering

Happy Thanksgiving!

It's turkey day AND a day to be thankful. I know it's hard for some people. But when I see what's going on in other countries, I AM thankful and I hope you can be as well.

Today it is raining in the southwest. Some people would say that the sun is not shining. I would say, The sun IS shining - you just can't see it.

So, just like the sun on a rainy day - you sometimes can't see your blessings, but blessing are flowing.

Again, Happy Thanksgiving Day!

John

Broker of Property, Freight Broker or Truck Broker: Do They Need Authority?

There are various titles for freight brokers but the FMCSA calls them Brokers of Property or Property Brokers. Then others call them Truck Brokers or Transportation Brokers. They essentially are all one and same.

Each of them usually arranges for the transportation of cargo. There is some confusion here. Some individuals are arranging for cargo to be transported and they are receiving compensation for it. However,if they don't have their broker authority, they are in violation of the law.

Here is how it is stated on the Application for Motor Property Carrier or Broker Authority.

A Broker of Property (except household goods) is "An individual, partnership or corporation that receives payment for arranging the transportation of property (except household goods) belonging to others by using an authorized motor carrier".

It then goes on to state in bold letters, "A Broker does not assume responsibility for the property and never takes possession of it.

I'm sometimes nit picky and I would have FIRST stated that the broker does not take possession of the cargo and THEREFORE does not assume responsibility for the cargo. The reason they don't assume responsibility is because they don't take possession of the cargo.

But if anyone is arranging for moving cargo and receiving money for it either they (if they are self-employed) or their employer need to have their broker authority.

 

Freight Broker Business: Should You Batten Down the Hatches?

I get calls and emails from individuals who are "pulling back" and cutting expenses. For many, this might be the thing to do. For others, it could spell disaster. Here is a little story as I remember it.

There was this guy running a roadside hot dog stand with a good amount of traffic. He had a very good hot dog - the best in the entire area. People would drive for miles just to get his tasty hot dogs.

He piled on all the goodies if they wanted it that way. The crowd love it, as they say.

His business began to boom and he even threw in some chips to complement the hot dog. The crowd loved it even more.

Then one day a stranger came by the hot dog stand and asked the guy, "Have you heard about the recession that's headed our way?" The guy replied, "Why no. What recession?" The stranger wandered off but not before his warning - "Get ready, it's a coming".

So, the guy started thinking about this impending recession and thought to himself, "Well, I'd better get prepared for it. It's the only wise thing to do for sure."

So the very next hour he decided to quit giving away the chips that complemented his hot dogs. Then two days later, he started to hold back on the goodies he was piling on the hot dogs.

This guy was thinking, "I'm really a shrewd business man. I'm cutting back and will be better prepared for this impending recession".

Then several days later, he decided to go with a cheaper hot dog. It was the only shrewd thing to do. But soon his customers began noticing things and pointed out to him - "Hey, where's the chips I normally get?" Other customers noticed and pointed out - "You know, these dogs don't taste like they used to".

But the guy even quit handing out a bunch of napkins and only gave them out if customers asked for them. After all, he was doing the "shrewd" thing.

As, as you might guess, his business started to slow down. The people just passed him by. Several months later he was forced to post a sign out front - "Out of Business".

As he wandered off his business premises - his head sadly shaking back and forth - the guy said to himself - "The stranger was right. The recession has hit us".

Where Will the Elections Lead Us?

As I write this during the evening of the election, Obama has a "commanding lead". Even two of McCain's strategists can see no "clear path" to gaining the necessary 270 electoral votes. So, we will probably have a new party at the helm along with greater power in Congress for this new party - and we will have a new man to lead us.

There have been times in history when just one person can make a huge impact on others. And real change does occur - and often for the good as well. But .....

In my opinion many things will go on as before. There will be no radical change no matter who gets into office. Some people will be disappointed and others elated. But for the most part, the status quo will go on as before. Sometimes this is good, sometimes it is bad.

Also, after elections a lot of the fluff and huff and puff seems to diminish and there usually is some type of mending between both opposing sides - there is a move just a little closer rather than a continuous effort to drive spikes and nails that split "father against son", for example.

In my opinion, the war in Iraq will gradually dwindle down no matter which man is President. The economy will continue to be at the forefront in people's minds as it has been for the past 3-4 months or so.

Eventually, that too will turn around and pick up and within the next 12-18 months or less, our country will be back on track to economic and military prosperity. This is not to diminsh the current problems. But there will always be problems and there will always be those left behind for whatever reason.

But the majority, if not every single individual, will be better off two years from now - or less.

I do expect one or several of the rogue leaders or countries to really test our new President. If it's Obama, you are going to hear him talk some harsh words against these rogues and he will not throw up the white flag of surrender like some are fearful of. He will do everything in his power to defend the U.S. because this is his job.

After he is tested, he will gain greater respect not only from his current supporters but from those who initially opposed him as well.

In short, there will be some bad times for a season and it will be a struggle to pull ourselves out of the mud, so to speak. But I see a bright future. And a stronger country.

Freight Brokering and Trailer Types

Some inquiries ask what type of tractor trailer would be most likely used in freight brokering. It's really quite simple for the most part.

The most likely required trailers would be Dry Vans (V), Vented Vans (VV), Refrigerated Units (R), and Flatbeds (F). These trailer types are what you will be dealing with most of your brokering days.

But there may be other trailer types required depending upon the type of cargo. Here are some examples and they are in no particular order:

Flat Intermodal (FINT), Lowboy (LB), Container trailer (CONT), Van with a Lift Gate (VLG), Step Deck (SD), Flatbed with Sides (FWS), and so on and so on.

But by far, you will be working with Vans, Reefers and Flatbeds.