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...
Brokered Load and the term Exclusive use? What's it mean?
Discussion in 'Freight Broker Forum' started by JonJon78, Jan 21, 2019.
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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
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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. -
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. -
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.Gearjammin' Penguin, Freddy57, 86scotty and 2 others Thank this. -
Lite bug, 4mer trucker and ZVar Thank this.
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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
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Deere hunter and JonJon78 Thank this.
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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.Deere hunter, Lite bug, Nostalgic and 4 others Thank this. -
JonJon78 Thanks this.
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