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Freight Rate Transparency Policy Showing Positive Results
LogisticsCom reaps early benefit of being first to open up freight rates via transparency
Greg McClain, a former truck driver himself, is the CEO of LogisticsCom and believes this will become a slow and growing trend in the industry.
"I want this to become the standard operational procedure in this business. It works in other industries and there is no reason that it should not be implemented in trucking. The results after one month of having such a policy has shown benefits to LogisticsCom, our clients and to the carriers," McClain stated.
"Retaining customers is the easiest part of the freight brokerage business," McClain claims. "The toughest part is carrier retention, but, if you pay those carriers on time that is a huge benefit. You provide them with a decent rate, that is a huge benefit. You provide them with documentation that you are giving them the best possible deal, capping your commission rate at 12-15%, then that is the icing on the cake. You have carriers more than ready to move your freight and that keeps your clients happy," McClain added.
McClain noted LogisticsCom added 12% to their client base over the last month, netted a postive growth in their carrier base and begins with sign contracts for the month of June with several national accounts.
"When we showed the national accounts how LogisticsCom could save them money simply by capping our commission rate, seperating that fee from the true cost of the carrier - it was an easy sell."
McClain is calling for all small to midsize broker agents to develop an Ethical Rate Transparency Policy and is calling on all shippers to request the same from all their brokers.
"Once we get this ship sailing and we get some of the old dinosaurs in the industry to think with a 2014 mentality the trend will turn. This policy is a great thing for shippers and is a solid benefit for the much forgotton, yet critical drivers we have out there," McClain added.