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How to Negotiate better with Brokers as a Truck Dispatcher

How to Negotiate better with Brokers as a Truck Dispatcher.

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  • GLI Dispatch Services
  • February 6, 2023

How to Negotiate better with Brokers as a Truck Dispatcher

1. Be mindful of spot rates

Spot rates are one-time fees for moving a shipment. Spot pricing might differ significantly based on the season, fuel costs, hot and cold lanes, supply and demand, and other factors. A good load board will list the typical spot rates for a given load according to the lane and kind of machinery.

2. Be familiar with loads-to-truck ratio

Always look up the number of trucks posted for the desired lane to determine how much wriggle space you have when negotiating load costs. There are many loads but few trucks? Trucks are in high demand, giving you the advantage to negotiate a lower price. However, the opposite of this is also true. Rates will probably be lower and there will be less room for negotiation if there are more vehicles than cargo. You can see that information when negotiating rates thanks to a competent load board.

3. Estimate your mileage expense

You can’t keep your truck on the road and still turn a profit if you don’t know how much it costs to operate. You’ll go out of business if you take rates that are less than your operational expenses. Calculate your cost per mile to help you make wise choices while driving. Simply tally up all of your costs and divide them by the number of miles to get your cost per mile. Don’t forget to factor in your variable costs, such as meals and housing, fixed costs, such as your truck leasing and insurance, and wage costs (the amount you pay yourself or your drivers).

4. Observe load times

Your negotiation position is more advantageous the longer a load sits on a board. A better rate can be available if the broker has been handling the load for some time. Keep an eye on the pick-up time. The likelihood that the broker needs a carrier, STAT, increases the closer the deadline for the cargo’s requirement to travel. Learn about dock operating times. Bring it up to the broker or shipper if you need to work after-hours, drive-in rush hour traffic, or have special pick-up and delivery schedules that make it difficult to deliver on time.

5. Think about the departure point

For instance, getting good rates into Florida is simple, but leaving is another matter. If you are aware that getting a decent rate on a load while you are leaving a region is improbable, be ready by bargaining for a better rate when you are entering the region. It will assist in defraying the cost of leaving.

6. Ask if there are any additional costs

These are just a few of the possible expenses, so be careful to enquire about any other fees that might apply, such as late fees or those related to the shipper or receiver.

7. Include deadhead miles in your calculations

Driving an empty trailer will result in deadhead miles. Deadhead miles can be reduced by planning return loads, but some are unavoidable. Make certain to take them into consideration while negotiating freight prices.

8. Review load rates

Check around because not all load rates are created equal. The platforms of several brokers make it simple as they provide side-by-side comparison of different loads. This is a wonderful place to start, but you’ll also need to take other aspects into account, like deadhead miles and surcharges.

9. Dare to say no

You are an expert who has experience moving freight. They can rely on you to finish the task. However, there are situations when brokers merely don’t want to compensate the haul fairly. Never attempt to take a risk that you cannot afford to lose.

10. Request a written rate confirmation

A shipper or broker is not required to pay the carrier without a formal freight contract. Therefore, be cautious to document everything. Check it through to make sure everything you agreed to is there.

11. Offer friendly customer service

Keep in mind that you and the broker are both attempting to obtain the best deal possible. Good communication is a sure thing. A broker will respect your ability to clearly, concisely, and immediately explain why you are charging a particular rate if you are aware of your cost per mile and are knowledgeable about the market. Pay attention to their needs, too. You’ll gain a solid reputation for having fair negotiation abilities if you act respectfully. What if they choose to pay your rate, too? Not just this time, but also in the future, you want to be the person they call back.

GLI Truck Dispatch Services offers one of the best truck dispatch services to owner operators and carriers across USA. We offer other back-office solutions such as compliance and accounting to carriers in addition to our truck dispatch services to help our carriers succeed in this competitive yet rewarding trucking industry. At GLI, our truck dispatchers don’t just dispatch, they go the extra mile to help build relationships to help carriers grow their business. Its where professionalism meets quality. Visit www.glitruckdispatchservices.com to learn more about our processes and how our method of truck dispatching can help you succeed and grow your business. 

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