Brokered Load and the term Exclusive use? What's it mean?

Discussion in 'Freight Broker Forum' started by JonJon78, Jan 21, 2019.

  1. JonJon78

    JonJon78 Road Train Member

    7,041
    37,549
    Jul 1, 2018
    0
    Just curious if a load is brokered out as exclusive use meaning that customer is buying the whole trailer even if they are only shipping a partial load what are the repercussions If a company or O/O books that load and then decides to grab another partial load to go with it?

    I'm guessing for the breach of contract some type of fine would be imposed and you wouldn't let that company haul any more loads?

    Any of you freight brokers ever actually caught a company doing something like this?

    I'm leased to a company and see a fair amount of loads listed as exclusive use. Being leased on here I know that wouldnt fly as it shows in the system as "exclusive use" which would prevent me from grabbing another load with it under the same dispatch number. But for people running their own numbers it could fly I'm thinking?

    I dont know how would they get caught anyhow because obviously they would deliver the second load that was picked up prior to making the "exclusive use" delivery...
     
    Otr Traveler and 4mer trucker Thank this.
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. ZVar

    ZVar Road Train Member

    10,911
    23,825
    Sep 10, 2010
    Flint, MI
    0
    Most places I would guess would seal the load. If, once at the receiver, the seal is broken the load will be rejected.
    But yes, other than that it will be specified in the contract. If there are no penalties in the contract, the worst that can happen is said broker will not work with you again.
     
    Last edited: Jan 21, 2019
  4. 6wheeler

    6wheeler Road Train Member

    2,696
    4,772
    Aug 30, 2009
    0
    It doesn't happen very often with flatbed but here is how it goes.
    You can do whatever you want with your own truck and trailer. The broker doesn't own 2 cents into your business. I've done it before without a problem.
     
    JonJon78 Thanks this.
  5. Kshaw0960

    Kshaw0960 Road Train Member

    1,581
    5,023
    Jun 17, 2018
    0
    I’ve done it a few times but it’s not common. If they book exclusive use and it only uses 10 ft of my flatbed I will look for a partial. I however make sure it won’t delay delivery of the exclusive load and I make sure the partial load gets unloaded first. If nothing is quick I won’t bother with a partial.
     
    IH Truck Guy and JonJon78 Thank this.
  6. NHS

    NHS Light Load Member

    62
    107
    Nov 26, 2012
    0
    Some contracts specifically are bid as “Truckload” rates where the customer states that no other freight is to be hauled on the truck regardless of weight and amount of trailer used. The contract usually says what the repercussions are of not sticking to the terms of “exclusive use”. It could include termination of the contract or such things as being barred from a particular traffic lane.

    For dry Van/reefer Loads, seals usually keep people honest, for flatbed loads there obviously isn’t much of a way to control it. Sure it’s easy enough to sneak another partial on and off of the trailer without anyone knowing but I guess you have to ask yourself if the extra money is worth loosing a customer (direct or broker) over it. Best case if someone finds out about it they tell you not to do it again or won’t use you on a particular load. Worst case you or someone loading your truck damages the other freight on the trailer and now you have a claim, plus you probably lose the the work in the future as well.

    As a broker if I have a small load that is exclusive use, I will make sure I put a note of it on the rate con and spell out the repercussions of non compliance. Obviously everyone is free to do what they wish, but at least they’ll have been warned. If I find out you violated the terms, most likely I won’t use you again, as it will have most likely damaged the customer relationship. I’m not a big one for trying to fine people as that can add a lot of non value added time to my day, but I supposed others may try to do that.
     
  7. JonJon78

    JonJon78 Road Train Member

    7,041
    37,549
    Jul 1, 2018
    0
    I should have specified I was referring to Flatbed as that's what I haul.
     
    Lite bug, 4mer trucker and ZVar Thank this.
  8. ebill45

    ebill45 Light Load Member

    167
    105
    Oct 11, 2011
    dalton ga
    0
    If they don’t seal it. Go for it. Just don’t say anything stupid like asking the broker if you can put something else on it. Most brokers these days want to track your truck so they might get suspicious if you go out of route
     
  9. Rubber duck kw

    Rubber duck kw Road Train Member

    6,092
    17,685
    Dec 9, 2017
    0
    You charge full load rate for a partial, that's all. They want to pay full load rate for 10k pounds that's fine with me.
     
    Deere hunter and JonJon78 Thank this.
  10. JonJon78

    JonJon78 Road Train Member

    7,041
    37,549
    Jul 1, 2018
    0
    Well today I selected a load on my company's load board that was #2500 11' x 6' machine "exclusive use load" it was a full load rate.

    They called back and said the customer found someone to haul it for less than half of the rate we quoted them...

    Kind of what got me thinking about the "exclusive use" and why I created this thread.

    I knew right away if someone is undercutting that much then the "exclusive use" was not happening and that driver was taking that 11 foot machine and adding it to another load he had lined up...

    Unless hes a complete idiot, bidding it that low... That wouldn't surprise me either.
     
  11. Rubber duck kw

    Rubber duck kw Road Train Member

    6,092
    17,685
    Dec 9, 2017
    0
    I know that used to be what the old man would do, you get a full load going one way and then pick up a bunch of different partials to another full load. It's nice when that works but then one gets yanked out from under you and you're looking around going WTF do I put with all this now?
     
    JonJon78 Thanks this.
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.