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Foreign based 3PLs and their effect on freight rates

Discussion in 'Ask An Owner Operator' started by georemo, Jun 15, 2023.

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  1. Jun 15, 2023 #1
    georemo

    georemo Light Load Member

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    In case you didn't know, to be able to broker loads as a foreigner, all you need is a virtual office address in the USA and you're golden, that's why you hear those Indian accents on the phone calling from US VOIP numbers and use common American names, a lot of call centers in India have turned to brokering freight because of the widespread of call centers over there and the fierce competition between them so when a call center loses contracts they turn to broker freight in the US since they already have what they need which is desks, computers, and phones, and most of all, dirt cheap labor,

    The way they do is by renting a virtual office in the states and using a US agent to register an LLC and obtain a USDOT and MC number after getting the $75k surety bond which only costs $950 for the year with no down payment.
    They then leverage the cheap labor and their large digit demographic to swarm thousands of shippers with cold calls and underbid US based 3PLs which drives rates down for every one including US brokers and of course that makes its way to truckers as they're the ones who always get the short end of the stick.

    These types of operations are always underbidding because what would look like a slim profit margin to you, is a fortune to them when most of them live off 2$ or less/day, they are able to scale these slim margins by employing a large number of cheaply paid phone operators.

    The only cure to this is by suing the FMCSA for giving out brokerage authorities to foreign operations without a physical presence in the US, for that to happen, OOIDA will have to join forces with TIA and and sue the FMCSA to revoke those authorities and refrain from issuing any in the future.

    If you're a member of OOIDA pick up the phone and call, if you're not a member I suggest you become one, it's worth the small annual fee, call and bring this up, complain, and request them to put an end to this.

    Here is a few of India based 3PLs I put together from my personal experience:

    S and S brokerage
    AMB logistiics
    Skyfly trucking
    Eternity logistics
    Admire logistics
    VAB logistics
    Immensity Logistics
    Big bird inc
    Maxxx solutions
    Grace Logistics
    Maximum Freight
    Sugar VR
    EP trucking
    7star logistics
    Lumen Logistics
    Double A logistics
    Tera Brokerage
    AP freight
    ALG American logistics group
    BESTBAY logistics
    Route King
    Adroit logistics
    Citi freight USA
    Gravity Concept
    LIBERTY SOLUTIONS LOGISTICS
    Blue dolphin
    Muddy water
    R&R Cargo
    Lighthouse brokerage
    AKA Express
    BMB united
     
    Last edited: Jun 15, 2023
    georemo, Jun 15, 2023
    georemo, Jun 15, 2023
    #1
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  3. Jun 15, 2023 #2
    Opus

    Opus Road Train Member

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    Opus, Jun 15, 2023
    Opus, Jun 15, 2023
    #2
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  4. Jun 15, 2023 #3
    rollin coal

    rollin coal Road Train Member

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    This is like Canadian and Mexican drivers routinely violating cabotage laws. The problem is some Americans/American companies benefit from the cheap help. Ran across one several weeks ago Binning Transport MC # 429642. They seem to have locked down some produce loads I used to get on occasion from legit brokers in south FL back up to TN.
     
    rollin coal, Jun 15, 2023
    rollin coal, Jun 15, 2023
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  5. Jun 15, 2023 #4
    Constant Learner

    Constant Learner Medium Load Member

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    The real problem is the US government hates its own citizens and especially the truck drivers.
    They not only allow the above to happen, they encourage and assist it.
    They're also intentionally giving CDL's to every moron out there. Therefore most of the truck drivers are not qualified to drive a semi and are putting the others at risk. Now instead making harder getting CDL's, the government is trying to limit the speed of the trucks.
    And OOIDA is like fox news, fake opposition, don't count on them.
     
    Constant Learner, Jun 15, 2023
    Constant Learner, Jun 15, 2023
    #4
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  7. Jun 15, 2023 #5
    rollin coal

    rollin coal Road Train Member

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    OOIDA is not fake opposition. They're literally the only truckers' association that actually tries to stand up for driver issues and actually have a voice in Washington. I may not agree with everything on their agenda but overall they're worthy of support from all truckers - company drivers, leased o/o and independents alike. Our Accomplishments – OOIDA.
     
    rollin coal, Jun 15, 2023
    rollin coal, Jun 15, 2023
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  8. Jun 15, 2023 #6
    Constant Learner

    Constant Learner Medium Load Member

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    It's all part of the show. Let me know when they organize a nationwide strike, then I might take them more seriously.
     
    Constant Learner, Jun 15, 2023
    Constant Learner, Jun 15, 2023
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  9. Jun 15, 2023 #7
    Opus

    Opus Road Train Member

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    Well, say what you will, but were it not for OOIDA, you'd have absolutely nothing.
    And I am not a member.
     
    Opus, Jun 15, 2023
    Opus, Jun 15, 2023
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  10. Jun 15, 2023 #8
    Constant Learner

    Constant Learner Medium Load Member

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    What do I have because them?
    Did you read their "accomplishments" for
    the last 40 years?
     
    Constant Learner, Jun 15, 2023
    Constant Learner, Jun 15, 2023
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    Snailexpress Thanks this.
  11. Jun 15, 2023 #9
    rollin coal

    rollin coal Road Train Member

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    They're not a union they don't organize strikes. Click on that link I posted and actually look at some of the victories OOIDA got for drivers. They completely dismantled and destroyed the corrupt Tennesse Public Service Commission in the 1990's. Not the ATA, not a union.
     
    rollin coal, Jun 15, 2023
    rollin coal, Jun 15, 2023
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  12. Jun 15, 2023 #10
    Constant Learner

    Constant Learner Medium Load Member

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    *In the 90's.

    Yes, they can organize a strike, a volunteer one. Judging by the cars on their parking lot, they make some serious money from the thousands of members they have.

    Bit if they do so, the government will go after them and they won't risk that cozy relationship to suffer.
     
    Constant Learner, Jun 15, 2023
    Constant Learner, Jun 15, 2023
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