Posts Tagged “truck brokers”
Thieves have been stealing nuts grown in California by the truckload, according to a recent news story in The Packer, a national weekly trade newspaper for the produce industry.
The crooks apparently hacked into a truck broker’s computer and stole IDs and other information that made them appear to be legitmate truckers. With that information, the thieves forged documents, drove trucks to nut packers, conned their way in and drove away with loads.
The Packer article quoted Carl Eidsath of the California Walnut Board as saying, “At $7 a pound, if you lose 42,000 pounds (the size of a typical truckload) that really adds up.”
(Let’s see, if our math is correct, that comes to $294,000!)
There were six such thefts in 2012, plus three more in 2013. The article says in one case, thieves broke through a fence at Gold River Orchards in Escalon, CA and made off with an estimated 63.5 tons of raw walnuts worth about $400,000.
The thieves hooked up three tractors to harvest wagons where the untreated nuts were piled. Although the nuts were recovered in an adjacent county, the thieves got away.
As a result, a task force of California walnut, pistachio and almond marketing boards have been formed looking for ways to protect the industry.
Some practices have been developed, which apparently are working. The industry is now using black lights to check IDs and contacting brokers before releasing product to get a serial number that only a real broker has. The trade also is working closely with the Los Angeles Police Department, who believe the thieves are Eastern European criminals.
Truck brokers, freight forwarders, as well produce grower/shippers and receivers could face fines totaling as much as $10,000 per violation and per day if refrigeration equipment on the trucks they hire is not in compliance with new California regulations becoming effective with the New Year. The penalties apply even if the trucks are only passing through California and do not stop in the state. The rules apply under California’s Health and Safey Code.
The regulations stem from the California Air Resources Board (CARB) and covers truck and rail owners and operators, plus any “hiring entity” using their services.
These issues were dicussed during a recent web seminar sponsored by Western Growers, Irvine, Calif., the California Grape and Tree Fruit League, Fresno, and C.H. Robinson Worldwide Inc., Eden Prairie, Minn. Also participating was Rodney Hill, an air pollution specialist from CARB who helped develop the rule.
As an example of rule violations, Hill said a truck loaded in Arizona and traveling through California on its way to a delivery point in Oregon could be fined, even though no deliveries are made in California. The rule applies because the truck is operating within the state. It doesn’t matter where the truck is licensed.
Hill Compliance for hiring entities shouldn’t be too difficult, though, according to Hill and others in the Web seminar.
Matt McInerney, Western Growers executive vice president, said due diligence and documentation are the keys to keeping produce companies out of trouble. Hill agreed with that assessment.
“Begin changing your contracts now so you will be ready Jan. 1,” McInerney said.
“For those of you who have pre-printed pads of bills of lading, I know you want to use up what you have. But you should get new ones printed, or get a stamp made with the right language so you can add it to the forms you have on hand.”
Hiring entities and loading dock personnel, Hill said, will not be expected to inspect refrigeration equipment to see if it is compliant.
However, if the equipment is not compliant and the hiring company’s contracts and other documents don’t have language showing it required the carrier to use compliant equipment, citations and fines will be issued, Hill said.
It is difficult to find anyone in the trucking industry more aware of the checkered past of truck brokers than Jimmy DeMatteis. For this reason, and simply because it is the right thing to do, Jimmy goes out of his way to make sure those people behind the wheel of the big rigs get a fair shake.
As president of Des Moines Truck Brokers, Inc. (DMTB) he knows the reputation of the company’s 43 year history is on the line with each load. It all began in 1951 with his dad, James A. DeMatteis (Jim Sr.) hauling produce. By 1960 he was a small fleet owner and three years later became a broker of exempt commodities.
Jim DeMatteis Sr. with LJ Mack circa 1960
Jim Sr. started DMTB in 1969 and remained a one-man operation until 1984 when James R. DeMatteis (Jimmy) came aboard.
“We have always been advocates for small carriers and their success,” Jimmy says. To back up his claim, just go the company’s website at: www.dmtb.com where it states, “Our reputation for paying carriers is second to none”. DMTB has a policy to pay all carriers within one day of receiving the carrier’s freight bill.
Jimmy has served on the board of the Transportation Intermediaries Association (TIA) for the past 6 years “because I believe in our industry and I want to see us do it right.”
Jimmy also serves on the Executive Committee of The Alliance for Safe, Efficient Competitive Truck Transportation (ASECTT) whose main focus is addressing “all the fallacies and flaws in CSA-2010.” He notes the Federal Motor Carrier Safety Administration (FMCSA) decided it was “going to ram this program down the throat of every motor carrier.” As a result ASECTT filed a lawsuit. It resulted in the FMCSA having to reevaluate the way it rated carriers through alerts in its safety management systems. The ratings system has resulted in safe carriers being rated as unsafe. “We want FMCSA to do their job. Their job is to determine the safety fitness of the motor carrier community. Instead they have chosen to deputize the motor carrier, shipper, and broker communities to do their work”
“We want the FMCSA to state they are the party responsible for a carrier’s safety fitness, not the shipper, not the broker,” he states. “Shippers are putting things in contracts based on CSA scores that black list many good small trucking companies. Carriers get put out of business because shippers or brokers won’t work with them as they are deemed unsafe by these scores or alerts.”
The problem comes from the FMCSA basing its program on percentages. “No matter how many bad carriers you get rid of, you are always going to have 35 percent that are going to have alerts. This is very damaging to small carriers. It works well for large carriers and gives them a distinct advantage,” Jimmy states.
Based inNorwalk,IA, DMTB recently moved into new facilities shared with a sister company, Capital City Fruit, with whom it has a 43-year relationship.
Jimmy emphasizes small trucking operations are the backbone of the trucking industry.
“I want to think we at DMTB get it. We treat others with respect, we pay fast and take time to talk to our drivers,” he says. Des Moines Truck Brokers has a policy if a driver walks into its office with bills of lading and the staff has not met that trucker before, everyone stands up, and introduces themselves and shakes his or her hand.
“We in the logistics industry all do important work, but at the end of the day, the person doing the most important work, is that guy or gal out there behind the wheel,” Jimmy states.
For more information about Des Moines Truck Brokers, Inc. go to www.dmtb.com or call 800-247-2514
Fred Plotsky and his staff at Cool Runnings arrange about 8,000 loads a year. 
He sees the biggest issue facing trucker is financing, followed by the rules and regulations on the trucking industry.
“However,” he adds, “If you can’t get the financing, the rules and regulations don’t matter.”
The president of Cool Runnings, based in Kenosha, WI, says truckers are facing rising costs with everything from tires to fuel and labor. An engine overhaul that was $13,000 two years ago now costs $20,000 to $21,000. The mechanics who work on those diesel engines have hourly rates that have increased from $60 to $100 per hour.
While the produce rates have gone up in recent weeks, the price of disel fuel remains high as well. For example, Fred says a truck averaging five miles per gallon, running 3,700 miles per week, at today’s diesel prices, that is costing $3,000 a week, which is hard to finance.
While Cool Runnings charges a two percent fee for advances on loads, Fred points out a lot of truck brokers charge three to five percent.
“The broker has to borrow to finance advance loads. The bank is not loaning you that money for free,” Fred states. “Financing is tight. You either pay the bank, or the broker for the cash advance. It is going to cost you more either way.”
It used to be the average cash advance was around $500 to $700 for the fuel to cover a trip from Idaho to Chicago. The advances are around $1,500.
“You are talking two percent of $1,500 when it used to be two percent of $700. The truckers have to find a way to finance this themselves, while the others who do not figure it out fall by the wayside,” Fred says.
Cool Runnings works with a lot of owner operators and small fleet operations. “The guys who used to have 20 trucks now own eight or 10. If he had 10 trucks, now he only has three or four trucks,” Fred says. “They just don’t care anymore. They’ll say, `I’m tired of fighting the rules and regulations and everything else.'”
One example of excessive government interference, Fred notes, are the CARB (California Air Resources Board) rules in California. The requirements, some of which have to do with reducing emissions, increase the costs of operation and is make it very difficult for truckers to comply, much less continue to operate profitably.
He knows one trucker who delivers freight to Utah and runs to Idaho and to pick up potatoes and French fries for delivery to Chicago. That trucker receives a consistent, steady fair rate. The trucker also does not have to comply with California’s CARB rules.
“Now that those rules are stabilized, just don’t keep changing them,” Fred states.
Cool Runnings History
Although it has been nearly 26 years, it seems almost like yesterday when I first met Fred Plotsky. I was riding in a car with a friend and business associate named Gary Robinson in Highland Park, IL during a week I was working in Chicago. Gary had just sold his truck brokerage, Cool Runnings.
How would you like to meet the new owner of Cool Runnings? He’s really a great guy,” Gary asked me. In a moment, Gary had Fred dialed up on his car phone. I met up with Fred later that day and the rest is history. We have been friends ever since.
Fred and I immediately found a few things in common. We both had an interest in produce trucking for starters. Both of us loved to fish. Fred goes after northern pike, especially on fishing expeditions to Canada, while this southern boy prefers the warmer climates and large mouth (you might find Fred reporting to work at the Cool Runnings offices in Kenosha, WI, wearing shorts in January).
Fred also has love for listening to radio, and only a few months earlier in 1986 I had launched the Produce Truckers Network and had two radio stations airing it — WRVA in Richmond, VA with Big John Trimble and WMAQ in Chicago with Fred Sanders.
Both of us are sports fans with Fred a great follower of the Chicago White Sox and the Milwaukee Brewers. He is forgiving of my support of St. Louis Cardinals.
Over the years I’ve learned to respect Fred as a loving husband, great father, little league baseball coach — and a fair and honest businessman.
It has sort of become a tradition with Fred and I to occasionally have lunch together — usually involving chicken wings and root beer. It was during such a recent visit, Fred shared some thoughts on Cool Runnings, which he has owned since July 1986, as well as what is happening with the trucking industry, and what he views as the major concerns and issues with the professionals driving the big rigs. — By Bill Martin
Fred Plotsky, who with his staff at Cool Runnings, arrange about 8,000 loads 
a year, sees the biggest issue facing truckers is financing, followed by the rules and regulations on the industry. “However, he adds, “If you can’t get the financing, the rules and regulations don’t matter.”
The president of Cool Runnings, based in Kenosha, WI, says truckers are facing rising costs with everything from tires to fuel and labor. An engine overhaul that was $13,000 two years ago now costs $20,000 to $21,000. The mechanics who work on those diesel engines have hourly rates that have increased from $60 to $100 per hour.
While the produce rates have gone up in recent weeks, the price of diesel fuel remains high as well. For example, Fred says a truck averaging five miles per gallon, running 3,700 miles per week, at today’s diesel prices, that is costing $3,000 a week, which is hard to finance.
While Cool Runnings charges a two percent fee for advances on loads, Fred points out a lot of truck brokers charge three to five percent.
“The broker has to borrow to finance advance loads. The bank is not loaning you that money for free,” Fred states. “Financing is tight. You either pay the bank, or the broker for the cash advance. It is going to cost you more either way.”
It used to be the average cash advance was around $500 to $700 for fuel to cover a trip from Idaho to Chicago. Now the advances are around $1,500. “You are talking two percent of $1,500 when it used to be two percent of $700. The truckers have to find a way to finance this themselves, while the others who do not figure it out fall by the wayside,” Fred says.
Cool Runnings works with a lot of owner operators and small fleet operations. “The guys who used to have 20 trucks now own eight or 10. If he had 10 trucks, now he only has three or four trucks,” Fred says. “They just don’t care anymore. They’ll say, `I’m tired of fighting the rules and regulations and everything else.'”
One example of excessive government interference, Fred notes, are the CARB (California Air Resources Board) rules in California. The requirements, some of which have to do with reducing emissions, increase the costs of operation and is make it very difficult for truckers to comply, much less continue to operate profitably.
He knows one trucker who hauls potatoes and french fries between Idaho and Utah. That trucker receives a consistent, steady fair rate. The trucker also does not have to comply with California’s CARB rules.
“Now that those rules are stabilized, just don’t keep changing them,” Fred states.
Although it has been nearly 26 years, it seems almost like yesterday when Ifirst met Fred Plotsky. I was riding in a car with a friend and business associate named Gary Robinson in Highland Park, IL during a week I was working in Chicago. Gary had just sold his truck brokerage, Cool Runnings.
“How would you like to meet the new owner of Cool Runnings? He’s really a great guy,” Gary asked me. In a moment, Gary had Fred dialed up on his car phone. I met up with Fred later that day and the rest is history. We have been friends ever since.
Fred and I immediately found a few things in common. We both had an interest in produce trucking for starters. Both of us loved to fish. Fred goes after northern pike, especially on fishing expeditions to Canada, while this southern boy prefers the warmer climates and large mouth (you might find Fred reporting to work at the Cool Runnings offices in Kenosha, WI, wearing shorts in January).
Fred also has love for listening to radio, and only a few months earlier in 1986 I had launched the Produce Truckers Network and had two radio stations airing it — WRVA in Richmond, VA with Big John Trimble and WMAQ in Chicago with Fred Sanders.
Both of us are sports fans with Fred a great follower of the Chicago White Sox and the Milwaukee Brewers. He is forgiving of my support of St. Louis Cardinals.
Over the years I’ve learned to respect Fred as a loving husband, great father, little league baseball coach — and a fair and honest businessman.
It has sort of become a tradition with Fred and I to occasionally have lunch together — usually involving chicken wings and root beer. It was during such a recent visit, Fred shared some thoughts on Cool Runnings, which he has owned since July 1986, as well as what is happening with the trucking industry, and what he views as the major concerns and issues with the professionals driving the big rigs. — By Bill Martin