Business FAQ

Question: How can the client be sure that the Fixed Brokerage Commission (FBC) shown in the Market Rate Quote has been maintained throughout the course of the purchased transportation?

Answer: After each load is booked onto a carrier, we send our clients a Pick Up Request and Load Agreement (PURLA) to sign and return (It is our form of purchase order). The Carrier Pay (CP) is identified near the bottom of the form next to the carriers name and MC#. A copy of the Load and Rate Confirmation (LRC) containing specific carrier contact information is sent out with the invoice at the client’s request. This kind of documentation makes it very simple for our clients to verify carrier pay.

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Question: Aren’t you concerned that providing this detailed information will allow your clients direct access to the Carrier and thus remove the need for your services in the future?

Answer: No. This process only serves to solidify the ‘trust with accountability’ aspect of our services, which we view as services that our customers could do for themselves, but choose not to (We may use up to 10 different carriers to cover 10 loads for one client). Doing it this way provides tangible material with which to increasingly build upon the initial trust extended to us on the very first load moved. We are providing a personal service for our clients with accountability. We think that our customers have a right, as our “employers”, to know just how much money they are paying us for our services. As a cost-plus transportation provider it follows that our clients know just what the “cost” and “plus” values are.

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Question: Why do you choose to do business, in this way, as a verifiably accountable cost-plus transportation provider?

Answer: During our 33 years as a carrier working directly for Shippers and working for Brokers on supplemental loads this whole scenario has held my attention. Prior to deregulation of rates the disparity between the wholesale cost of transportation and the retail prices charged by carrier owned transportation brokering and owner operator power unit leasing operations and other types of transportation brokers was particularly abusive on a regular basis. Since the more than ample rates back then were regulated by the government, shippers were relatively unaffected by these abusive practices within the transportation industry. Rates were regulated with the objective of equalizing the prices paid by shippers, whether they were small, medium or large volume customers.

The industry now functions in a free market environment, where every shipment is negotiable. Today the large shippers benefit from the volume purchasing of transportation in this transportation free market economy. It is our opinion that small and medium size shippers can now reap the benefit gained by the volume purchasing of transportation through the use of the right kind of pure (meaning-not a carrier “alter ego”) transportation broker (who is by definition a volume purchaser of transportation) who will work the marketplace to their benefit, just like the big shippers do for themselves. The big shippers have “in house” traffic department personnel working this free market to their advantage. Our services are designed to help equalize the small to medium shipper’s purchasing power here.

The right kind of broker will help it’s clientele to benefit from this existing transportation free market gaining access to real time wholesale prices at and many times substantially below the prevailing market rate. To do this the right kind of broker must be in a place of trust with his customer, working the market with a transparent and verifiably defined, cost-plus strategy.

Available trucking equipment supply and demand varies because of numerous circumstances which are not readily apparent to the occasional, small, and medium volume shipper. Therefore transportation prices fluxuate on a daily, weekly, monthly, yearly, and seasonal basis. It requires the attention of a professional trend watcher and carrier price negotiator to capitalize on these fluxuations in order to make wise cost effective transportation purchases. This person can be either “in house” or “out sourced”. You can outsource this talent from us. Our management fees are built in to your actual, cost effective, transportation purchases. We earn our keep by saving you money.

The wrong kind of broker, on the other hand, does not try to benefit his occasional, small, and medium sized customer by these market fluxuations which Congress has made available to the American People in the Negotiated Rates Act of 1994, seeking rather to line its own pockets, taking advantage of small to medium sized shipper customers, who are inattentive to or just not equipped to discern the market. The wrong kind of broker is on a load by load basis endeavoring to buy low and sell high to the chagrin of many Carriers and Shippers who, when found out, hold the wrong kind of broker in low esteem, and rightly so. I have come to think of this bad behavior as a kind of commonplace disrespect and disservice.

Duregger Logistics intends to be the right kind of transportation broker. There is a high road here and we intend to stay on it.

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