Freight Load Transportation Cycle

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Freight Load Transportation Cycle

A load is defined as product that a shipper needs to move to a consignee. The shipper is also referred to as a customer (your customer). The consignee is the person receiving the freight. Once you have obtained the business of a customer, they will start to offer you certain loads. If you are to accept these loads, you will in turn sell the load to a carrier at a lower rate than you quoted the customer. Sound confusing? Just wait. Once you agree to cover the load for this customer, you start your search for a truck that wants the load. You then negotiate a rate with that truck. Once you have agreed on terms, you will set that carrier up. They will send you their set up packet. It usually contains their MC # (authority), their insurance, W9, and references. In turn you will send them your set up packet (usually containing the same information). After, and ONLY after, they have faxed back the signed broker/carrier contract (this is a contract stating that they will not back solicit your customer for freight), do you go any further. You never give out any detailed information on who your customer is until they have signed the contract. Once they have done that, you then fax them a rate confirmation (explained later). They sign it and fax it back. You now have that load covered.

A load starts as a product that is manufactured at a factory or plant. It is then designated for delivery to a buyer of those goods. The load is then either coordinated for shipment by the shipping department or is handled by a third party. The load is sold to a carrier of the product by the shipping department or third party/broker. The carrier is then responsible for delivering the load to a consignee. The consignee can be a buyer, retail store, another factory for further processing, or warehouse.

The load can also be handled on other terms such as a load of cars being transferred to another dealer or a load that was delivered prior to a warehouse. There are many origins and destination combinations that can be had in this business. Products we use every day are put through this cycle for us to obtain them. Think of all of the important items in your home. They are there because of this industry and this cycle.


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