Monday, December 8, 2014

Freight Broker Myth #3


Myth  #3 Non Asset Freight Brokers Have Less Control Than Asset Based  
Actually both non asset based brokers and asset based brokers must maintain high standards in order to stay in business.  Most freight brokers require their carriers to comply with strict company policies as it relates to compliance and performance.  For example, experienced freight brokers require carriers to meet the highest safety standards as well as insuring all their carriers have an active carrier authority and are properly insured.  Smart brokers track their carrier's time pickup, on-­time delivery, complaints as well as  freight claims.  If service falls below a certain level, carriers are many times deemed NO LOAD to prevent future issues.  When loss and/or damage of a shipment occurs, shippers may be concerned that they will not be reimbursed for damages during transit.  The fact is, broker are required by the FMCSA to perform due diligence on every carrier including making sure each motor carrier they use has both a valid authority as well as the proper insurance to cover the value of the freight on board in the event of a claim.  This due diligence that brokers are required to perform on every motor carrier they use is a major benefit to doing business with brokers.  Freight brokers must carry at least  $100,000 in contingent cargo insurance to help supplement the primary cargo insurance of the asset based carrier.  

Fact:  Good brokers are masters at staying on top of their shipments.  So a shipper can trust their broker to take care of weather issues, driver sickness, traffic accidents or whatever may delay a delivery.
 
FACT: Good brokers are masters at controlling the “controllables.” When it comes to delays due to weather, traffic, driver illness and equipment breakdown carriers have no advantage whether a customer’s product picks up or deliver on time in good condition. - See more at: http://blog.ldiagent.com/3-myths-surrounding-asset-vs-non-asset-based-freight-brokers/#sthash.gzIGCq59.dpuf
FACT: Good brokers are masters at controlling the “controllables.” When it comes to delays due to weather, traffic, driver illness and equipment breakdown carriers have no advantage whether a customer’s product picks up or deliver on time in good condition. - See more at: http://blog.ldiagent.com/3-myths-surrounding-asset-vs-non-asset-based-freight-brokers/#sthash.XVZFpeKE.dpuf
FACT: Good brokers are masters at controlling the “controllables.” When it comes to delays due to weather, traffic, driver illness and equipment breakdown carriers have no advantage whether a customer’s product picks up or deliver on time in good condition. - See more at: http://blog.ldiagent.com/3-myths-surrounding-asset-vs-non-asset-based-freight-brokers/#sthash.gzIGCq59.dpuf
At the end of the day, freight brokers play a vital and growing role in the world of logistics and will continue to play a vital role in the foreseeable future.  The good news is more and more shippers are using freight brokers to their advantage.  They are learning how freight brokers can benefit them.  As the perception of freight brokers change, the freight broker will have greater   opportunities to convert those few reluctant shippers into customers.  It simply comes down to education, expectation, execution and delivery.  In soliciting a hesitant shipper, if you are able to communicate these benefits and follow through with exemplary service you will gain customers for life.

adapted from: http://blog.ldiagent.com/3-myths-surrounding-asset-vs-non-asset-based-freight-brokers/

Join us in class or online soon to learn how to be a freight broker and join this fast paced world of transportation.

Moving forward,

Jeff Roach
www.transportationtraining.com 

Friday, December 5, 2014

Freight Broker Myth #2

Myth  #2 Non Asset Based Freight Broker Are Not Cost Effective 
  
It makes sense that if you remove the middle man (the broker) from the transaction it will result in lower prices for the shipper.  When actually a broker may very well get you the best price.   There is power in numbers.  As a result of a freight broker's volume in a given lane, within a given market or with a group of carriers, they are able to leverage that volume to negotiate better pricing.  Equally important is the fact that freight brokers routinely re-­position assets resulting in less empty miles and more profit retention for their asset-based carrier partners.  Because no carrier wants to run empty, back hauls are typically done at a discounted rate, which allows brokers to offer competitive rates to the shippers while earning a small profit for these return trips.  

FACT:  Smart freight brokers are able to leverage back hauls and volume to decrease their cost basis, which allows them to make a small profit while maintaining competitive prices.  

We train our freight brokers to negotiate the optimum deals because we know a well serviced customer will keep using that broker.  It is a mutually beneficial relationship.

Moving forward

Jeff Roach
www.transportationtraining.com

Thursday, November 13, 2014

Freight Broker Myth #1


Dennis Brown wrote an article on brokers with assets vs. those without.  I have summarized his thoughts in my next 3 blog posts. Enjoy the read.

 3 myths about Asset vs. Non Asset based Brokers by Dennis Brown

Myth #1 Asset based freight brokers are the better choice to move my freight. 

Asset based freight brokers have their own trucks so it makes sense to think they are more ready to move a load than a freight broker who must find a carrier for the load.  Actually, most freight brokers have access to thousands of trucks through various carrier partnerships.  It may come as a big surprise to some shippers but, as a result of not being asset based, the freight network of trucks is typically much larger and more flexible then even the largest asset based carriers.   The non-asset broker has more capacity to assist his customer in moving their freight because they are able to cast a wider net.

FACT:  Experienced freight brokers can give shippers instant access to a large pool of qualified carriers and increased flexibility.  


So if you want to become a freight broker we have our quick basic course.  One week and you can start a new career.

Moving forward,

Jeff Roach
www.transportationtraining.com
www.brooketraining.com

Monday, November 10, 2014

Education Transforms Lives

Today I read this article from a graduate of Prisoner Entrepreneur Program (PEP).  The PEP is an educational opportunity inmates can utilize to learn how to be an entrepreneur, to turn the lives towards becoming productive members of society.   Their success has been amazing.  Isn't this what a correction facility should do? 

 My passion is helping others through education turn their lives around in small and large ways.  This guy turned his life around in a big way by taking advantage of this educational opportunity. 

 Testimonial from PEP Graduate Cristian H.

Posted: November 10, 2014 in PEP Re-Entry, Testimonials
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The following was written by PEP Class 8 graduate, Cristian H. 

cristian h
Cristiam H., PEP Class 8 Graduate
“To everything there is a season, a time for every purpose under Heaven.
a time to be born and a time to die,
a time to plant and a time to uproot,
a time to kill and a time to heal,
a time to tear down and a time to build,
a time to weep and a time to laugh,
a time to mourn and a time to dance…”
Hope came for me at a time in my life when death at a young age was normal for a kid from my neighborhood. A millionth second chance was presented to me, and it was time to make a decision, once and for all.
I was raised well by my parents, and they did the best they could to keep me on a path of righteousness. I rebelled due to a desire to fit in with my “friends”. I struggled with a deep sense of inadequacy and this only fueled my desire to belong. Sin caught my attention at an early age and kept me wanting more until the age of 21, when I found myself in the county jail with several felony assault charges. I called my family with apologies and good-byes.
I cried out loud with tears in Bexar County Jail, praying Hail Mary’s and Our Father’s, desperately hoping that God would hear me. He heard me and my tears went away. But I still had to pay for my crimes. I was sentenced to three concurrent two year sentences in TDC.
I entered PEP six months before the end of my sentence. After reviewing the PEP application, I knew it was ‘a God thing’. I joyfully signed up and was accepted. PEP has been in my life ever since. God has used PEP to build my character. I have been educated and equipped for success in all endeavors thru PEP. PEP is a refuge, a brotherhood and a lifelong relationship. My story is full of ups and downs pre- and post-PEP. But through it all, I am better, not bitter. Through it all, PEP is still there for me. And through it all, I will continue to move forward, focused on living a life filled with purpose. Without God and without PEP, who knows where I would be today.
Cristian H.
PEP Class 8
Therefore be careful how you walk, not as unwise men but as wise, making the most of your time, because the days are evil. Now is the time, today is the day of salvation.”

At Brooke Transportation training we have had the privledge to work with a wide variety of people looking to better their future through learning new skills.  We should all be about teaching what we know and learning from others.  

Moving forward,

Jeff Roach


Tuesday, October 28, 2014

Bill of Lading


What is a Bill of Lading?

Here are excerpts from an informative blog post by Adam Robinson from Cerasis.  Adam has a series of related articles you can browse at http://cerasis.com/blog

What is a Bill of Lading Form and Why is it Important?

A bill of lading is one of the most important documents in the shipping industry. The bill of lading is a legally binding document providing the driver and the carrier all the details needed to process the freight shipment and invoice it correctly.

A bill of lading must be completed and provided to the shipper when your freight is to be picked up. The following is the information that must be included in the bill of lading:

  • Shipper’s and receiver’s (a.k.a) consignee’s names and complete addresses.
  • PO or special account numbers used between businesses for order tracking.
  • Special instructions for the carrier to ensure prompt delivery.
  • The date of the shipment.
  • The number of shipping units.
  • Type of packaging, including cartons, pallets, skids and drums.
  • A note if commodity is a Department of Transportation hazardous material. Special rules and requirements apply when you are shipping hazardous materials.
  • A description of the items being shipped, include the material of manufacture and common name.
  • The NMFC freight classification for the items being shipped.
  • The exact weight of the shipment. If multiple commodities are being shipped, then the weight of each commodity is listed separately.
  • The declared value of the goods being shipped.

Added Notes for those on the International Side of things with a Bill of Lading
Most of our content focuses on North American understandings of terms and documents related to freight, transportation, and logistics. However, we do have some readers who are shipping modes such as ocean, rail, and air. Thank you to Peter Dawson, a highly respected Supply Chain consultant, we want to also include some other notes as it relates to the bill of lading.
The following acronyms can also include details around the bill of lading:

  • OBL: Ocean bill of lading (Type of bills can be cut too)
  • AWB: Airway bill of Lading
  • ProBill:  In use for GTS ( Ground Transport service) mainly for Truck

Generically a BOL is a contact of carriage, but even with various geographic locations, the terms that we use in North America are different to other places. For example, an OBL (to some) is an ocean bill of lading; where as to steam ship lines this is the ORIGINAL BILL OF LADING, wich is needed to be presented for the goods to be moved off the Wharf to the warehouse.

Importance of the Bill of Lading Form

As noted previously, the bill of lading is a legal contract and can be used in litigation. That in of itself then says, and must be understood by those using a bill of lading form in the process of shipping freight, that the bill of lading accuracy and use is one of the most important things you can do to run your logistics department effectively.
A Bill of Lading has 3 basic purposes or roles:
  1. Evidence of Contract of Carriage
  2. Receipt of Goods and
  3. Document of Title
Evidence of Contract of Carriage
Many people think that a bill of lading is a contract between the Seller and the Buyer and many also think that a bill of lading is a contract of carriage between the Carrier and Shipper. However, this is not entirely correct.
The contract between a buyer and seller was already established when the buyer placed the order with the seller and they both discussed and agreed (verbally or in writing) the what, where, when, how and how much of the transaction in detail.
The contract between a shipper and the carrier was already established when the shipper or their third party logistics provider made a booking with the carrier to carry the freight from A to B.
The bill of lading is the EVIDENCE of the contract of carriage entered into between the “Carrier” and the “Shipper or Freight Owner” in order to carry out the transportation of the freight as per the contract between the buyer and the seller.
Receipt of Goods
A bill of lading is issued by the carrier or their third party logistics provider to the shipper or 3PL in exchange for the receipt of the freight. The issuance of the bill of lading is proof that the carrier has received the goods from the shipper or their 3PL in apparent good order and condition, as handed over by the shipper.
Document of Title
Technically it means that whoever is the holder of the bill of lading has the title to the goods (rights to claim the goods). However, this title varies according to the way in which the bill of lading has been consigned, which we will discuss in detail below.

Types of Bills of Lading
There are two basic types of bills of lading. A straight bill of lading is one in which the goods are consigned to a designated party. An order bill is one in which the goods are consigned to the order of a named party. This distinction is important in determining whether a bill of lading is negotiable (capable of transferring title to the goods covered under it by its delivery or endorsement). If its terms provide that the freight is to be delivered to the bearer (or possessor) of the bill, to the order of a named party, or, as recognized in overseas trade, to a named person or assigns, a bill, as a document of title, is negotiable. In contrast, a straight bill is not negotiable.
State laws, which often include provisions from the Uniform Commercial Code, regulate the duties and liabilities imposed by bills of lading covering goods shipped within state boundaries. Federal law, embodied in the Interstate Commerce Act (49 U.S.C. [1976 Ed.] § 1 et seq.) apply to bills of lading covering goods traveling in interstate commerce.
It is important to ensure that, when signing the bill of lading, the description of the goods in the bill of lading is accurate as well as all of the information in the bullet points above.  If the bill of lading is inaccurate, with errors, or if not use at all, there are consequences that could occur.

Consequence of Not Used or Inaccurate Bill of Lading
One of the most costly and obvious consequences of not using or filling out a bill of lading inaccurately is that you most likely won’t get your product to your desired recipient, but the main consequences are:
  • Exposure to Claims: For example, if the bill of lading indicates that the goods were loaded in good order and condition, but the consignee receives them at the destination in a damaged condition, the consignee will be entitled to make a claim for the damage against the bill of lading carrier. Thus, if the information is not accurate, it will be difficult to get your full freight claim paid as you won’t have the right information to recover the cost of damage. Another example might be that the bill of lading said there were 100 boxes but only 90 arrived. The consignee will be entitled to make a claim against the bill of lading carrier for the shortage.
  • Loss of the right to limit liability
  • Loss of P&I cover
  • Loss of the right of indemnity from the charterer
  • Criminal prosecution
Clearly, as you can see from the points above, that incorrectly using a bill of lading can mean severe consequences. So how can you ensure you are compliant?

Solutions to Ensure Your Bill of Lading is Correct

  • Employ a transportation management system and the services of a third party logistics provider: Sometimes, I wonder, how do manufacturers and distributors stay competitive in their core business with all of these details and potential risks that are out there in the logistics and freight world? Using a Transportation Management System, such as the Cerasis Rater, takes all the data entry points you must have in a bill of lading and has them as easily filled out guided fills to decrease the chance of error. The TMS also stores the documents, allows you to email them, and print them for ease of use! Additionally, if you have a provider, like Cerasis, that includes freight claims services for you, that bill of lading is then easily used to make claims easier.
  • Use a Consistent and Standard Bill of Lading: There are many online bills of lading forms you can download from the internet, but once you choose one, make sure you use the same one so you are familiar and so are your consignees.
  • Triple Check Before Signing: BEFORE you sign, the easiest thing you can do is triple check all of the information that needs to be in the bill of lading (as outlined above) is accurate. It’s YOUR signature on a LEGAL document, so it’s VITAL to check!


Moving forward,

Jeff Roach


Wednesday, October 22, 2014

New Freight Brokers


We ask every group of graduates of our freight broker training school to give us input on our courses. I enjoy reading their thoughts and posting them because I know what they say about the course is a lot more important that what I say.   Some recent graduates gave us these encouraging words about their experience in Brooke’s live basic freight broker training course.  Freight brokering is a career with great potential for anyone who is willing to learn and work hard.  

These two recent students found value in the week spent with us. Read through what they thought and any of the testimonials on our website: www.transportationtraining.com. 


One of the most important things I learned was the legal part of the course.  I think that most of the course was good information.  I also liked the hands-on-experience with Tish on the load boards and price quotes.  Overall the course was more than I expected.

The part on software or tools for the business was also a plus.  It shows you the different tools and advantages of each software.  – Anonymous

 

If you are looking for a school that really wants to cater to your needs and be flexible enough to provide what you really want to learn, Brooke Transportation and Training Solutions is your call.

They are being very flexible and taught me what I need.

Brooke really shows a commitment with the students and really listens to meet your expectations. –D. Torrez


Give us a call if you have any questions or would like to enroll.

Moving forward,

Jeff Roach
www.transportationtraining.com

Wednesday, September 24, 2014

Words to Live By


THE AUBURN CREED
I believe that this is a practical world and that I can count only on what I earn. Therefore, I believe in work, hard work. I believe in education, which gives me the knowledge to work wisely and trains my mind and my hands to work skillfully. I believe in honesty and truthfulness, without which I cannot win the respect and confidence of my fellow men. I believe in a sound mind, in a sound body and a spirit that is not afraid, and in clean sports that develop these qualities. I believe in obedience to law because it protects the rights of all. I believe in the human touch, which cultivates sympathy with my fellow men and mutual helpfulness and brings happiness for all. I believe in my Country, because it is a land of freedom and because it is my own home, and that I can best serve that country by "doing justly, loving mercy, and walking humbly with my God." And because Auburn men and women believe in these things, I believe in Auburn and love it.
-George Petrie (1945)

I didn't go to Auburn but their creed gives me a great standard to try to live up to.  I am proud to be in an educational business and in it purpose to teach skill as well as encourage integrity.

Moving forward,
Jeff Roach

Brooke Transportation Training Solutions
Phone 214-206-1169

jroach@transportationtraining.com
www.brooketraining.com
www.justintimefreight.com

Thursday, September 11, 2014

Advance as a Freight Broker

Here's a testimonial we just got from a student in our advanced freight brokering course.   We are so honored to have our instructor Vinny.  He not only teaches freight brokering excellence he also encourages all his students to higher goals.  My vision for my freight brokering school was just that.  Not only teach students how to be great freight brokers, but also teach them how to have integrity in every business dealing. 

At the end of the day if you do all your work with honesty and diligence you have success even when you don't close the deal.

" Vinny is an outstanding instructor.  I believe he can help anybody gain clarity and move toward even more success in life with his training.  I was able to move forward on several issues I’ve been stuck on for years.  From the very first session I saw results and felt very comfortable with his warm, open, and caring approach.  With his training I was able to determine what was truly important in life and translate that into specific actions.  He was able to hold me to the goals we established and keep me moving forward.  I know he can do the same for you as well.  He has that uncanny ability to get to the heart of the matter in an amazing way.  Through his training I was able to facilitate change very quickly and positively.  I know that working with Vinny will provide you with an amazing growth experience and lead to a positive change in your life.  If you are ready for growth and a positive change, than I highly recommend my trainer, but most of all, my friend, Vinny."



Thank you.
A. Gonzalez


Moving forward,

Jeff Roach

www.transportationtraining.com

Tuesday, September 9, 2014

Truckers Needed


We have a truck driver shortage.   Drivers are needed to keep our economy going .  As truck drivers stop driving to pursue other ventures or retire, they are not being replaced by a younger crop.  We need to encourage those needing employment to look into the transportation industry.  Freight haulers enjoy the freedom of the wide open road and see the country while earning a living.  As a freight broker I depend on and appreciate reliable truck drivers.  I rally behind anything that supports this critical arm of our industry.   Below are excerpts from Business Insiders explanation of why we have a shortage of drivers:

Higher driving costs and falling pay have created a truck-driver shortage that's likely to worsen in the coming years. The American Trucking Associations (ATA) estimates the U.S. is short 30,000 truck drivers — a number expected to surge to 239,000 by 2022.

"Smaller 'owner/operator' firms are increasingly dropping by the wayside as the cost of operations and maintenance are simply becoming too expensive to stay in business," Paul Pittman, a planner at a North Carolina-based logistics company, told Business Insider by email.  So drivers are suddenly faced with the choice of leaving the profession entirely or moving to a larger company where wages are likely to be lower. 

"As controls continue to tighten, many of the existing drivers currently employed are turning to other areas of employment simply to get off the road and escape some of the regulations implemented to govern their operations," Pittman said.

To hang on, small operators are forced to cut corners …

The article goes on to explain other reasons for the decline in drivers include trucker’s increased time away from home, under appreciation of the driver and dishonesty in recruiting. 

There may finally be some movement on this front. Last month, Swift, one of the largest haulers in the U.S., announced it would refocus expenditures on better labor conditions for employees, including higher wages.  To read the entire article click here.


Moving forward,

Jeff Roach
www.freightbrokertraining.com

Monday, September 8, 2014

Start Selling

Selling does not start until you get the first no.

Moving forward,

Jeff Roach
www.transportationtraining.com

Friday, August 22, 2014

Not In for the Long Haul


We have a major truck driver shortage.   Drivers are needed to keep our economy going.   Many truck drivers are quitting.   As truck drivers stop driving or retire, they are not being replaced by a younger crop.  

Below are excerpts from an article from Business Insiders that give an explanation of why:

Higher driving costs and falling pay have created a truck-driver shortage that's likely to worsen in the coming years. The American Trucking Associations (ATA) estimates the U.S. is short 30,000 truck drivers — a number expected to surge to 239,000 by 2022.

"Smaller 'owner/operator' firms are increasingly dropping by the wayside as the cost of operations and maintenance are simply becoming too expensive to stay in business," Paul Pittman, a planner at a North Carolina-based logisitcs company, told Business Insider by email.  So drivers are suddenly faced with the choice of leaving the profession entirely or moving to a larger company where wages are likely to be lower. 

"As controls continue to tighten, many of the existing drivers currently employed are turning to other areas of employment simply to get off the road and escape some of the regulations implemented to govern their operations," Pittman said.

To hang on, small operators are forced to cut corners. For Jeff, a driver who asked to be identified by only his first name, the pay isn't the biggest issue — it's the compromises some firms are making on driver compliance.

"When you're non-compliant as a driver you run the risk of fatigue and the risk of hurting other people," he said. "And as a driver it's my license on the line." Jeff said he was asked by multiple trucking companies to falsify his logs, but he refused to.
"I consider myself a safety-oriented driver, and I have found that is a bad thing," Jeff said. "Because since I got my CDL [commercial driver's license] in 2008, I have worked for about 10 different trucking companies. That doesn't look good because it looks like it is job hopping ... I'm sticking to my guns."

Time Away From Home

Another problem is lack of time spent at home. Todd Feucht of Wisconsin says drivers can expect to spend as little as 52 days at home a year. Feucht, who hauls oversize loads, averages about three to five weeks. Last year he was home 54 days, including his vacation days. "Back in the day you were treated like a knight, but now you're treated like a peon," Feucht says.
All of this helps explain why the turnover rate at large truckload carriers was 92% annualized in Q1, according to the ATA. Turnover refers to the rate at which drivers leave the industry and are replaced.

Getting Squeezed

Meanwhile, drivers with less experience or bargaining power get squeezed. Feucht has been driving trucks for 20 years and thinks trucking companies need to be more honest when recruiting.

There may finally be some movement on this front. Last month, Swift, one of the largest haulers in the U.S., announced it would refocus expenditures on better labor conditions for employees, including higher wages.
"After assessing the current and expected environment, we believe the best investment we can make at this time, for all of our stakeholders, is in our drivers," the firm said in its earnings release. "Our goal is to clear the path for our drivers by helping them overcome challenges, eliminate wait times and take home more money."


Moving forward,

Jeff Roach