John Jordan

I often get asked what makes w2 reps become agents besides the money? Besides money by far the 2 biggest things I hear are: 1. KPIS I’ve talked to reps who if they don’t sell a certain percentage of Drayage, TL, and LTL they get comission docked doesn’t matter if they are doing 100k in GP. I’ve talked with reps if they don’t make a certain number of phone calls they don’t comission doesn’t matter if they are doing 30k in GP. I’ve talked with reps who are required to contact prospects too frequently, or they are micromanaged and have talked about management blowing deals for them. Not being able to run certain freight because it doesn’t make enough money, or it’s not in their companies niche. 2. Freedom. The idea of having to sit in a office until 5pm when all your work is done at 3pm is not appealing for a lot of people especially when they are getting 5 percent comission. Having to ask permission to lose money, getting pto denied, etc is also not appealing. Having a company that is not acommodating to after hours concerns with carriers, credit, etc. Yes, money talks. But a lot of agents leave w2 for other reasons besides the money. Some of these w2 companies make my life very easy as well. I appreciate them for that. #sales #logistics #trucking #agents

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Does going over the head of the DM for smb shippers really work? I am not talking about going to sales people, wharehouse staff, etc that’s different. But I was thinking about this, I think I shared awhile back, but my sisters now fiance is the CFO of a mid size shipper 100-300 loads a month. His dad is the owner. I never got their freight as a broker, my sister said no mixing freight and family, but we do talk logistics sometimes. He’s an extremely smart guy, but he didn’t know what a TMS was. A lot of basic logistics concepts he’s not familiar with. He’s focused on their product, customers, and other things. He pretty much leaves that all to the logistics manager. Most of the shippers I talk echo something similar that going over their head is a bad idea, and often the person over their head doesn’t know what’s going on. If it works for you great, keep doing you. This is my ancetodal opinion. Nothing is absolute, but I wonder how much time sales reps waste chasing after people who have no understanding or in some cases no care for what your selling? Happy Tuesday! #sales #logistics #trucking

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How should you network? I was thinking about this yesterday, and I think some people could get something out of this story. About a year ago Josh Lyles the founder of Salesdash CRM a freight specific CRM reached out to me to have a coffee chat. It was obvious on that call Josh wasn’t asking for me anything, or trying to sell anything. We talked about all types of things and just connected. We ended up staying in touch and talking pretty frequently. When I was considering freight tech Josh was able to connect me with some people and help me, there was nothing in it for him. He’s helped me with some personal stuff as well. When Will Hopkins and I announced we were starting our podcast Josh texted me that he wanted to sponsor it. It worked out pretty well for Josh, Will didn’t know Josh previously and signed up with salesdash for about 50 users, and loves it. I’ve been able to refer Josh other business as well, not because he asks but because I know he has a great product but more importantly he’s a better person. In a world of pitch slaps, negativity, and take take, I am happy to be surrounded by a lot of people like Josh. Happy Friday! #networking #logistics #sales #trucking

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15 Comments

To recap the 2Q24 earnings for publicly-traded LTL carriers, I felt it appropriate to come up with one word or phrase to define each carrier. Also, for comparison purposes, I felt it appropriate to look at a 2-year comparison, 2Q22 vs 2Q24. This takes out some of the noise from the Yellow Corp closure. Essentially, this gives us a peak into how each carrier took advantage of the Yellow Corp situation.   🔴 ABF: Transactional.  Transactional pricing weighed heavily on results, and still does. Their OR worsened by 4.3 points to 89.8, they experienced a large shift in freight profile (huge drop in shipment size), but maintained their revenue market share. 🔴 FedEx Freight:  Right-sizing. Finding a way to prosper while shrinking their network. Their OR held steady at 78.1, they improved their yields noticeably, but they did lose revenue market share. 🔴 Forward Air: Under construction. While the newly-merged operation undergoes its reconstruction, costs are up and business has dropped. Their OR worsened 7.9 points to 92.5, they lost major market share, and yield change was poor as price cuts were used to keep customers. 🔴 Knight Swift: Super-sizing. Explosive network and business growth while building out a national footprint. Their OR worsened by 4.6 points to 89.2, but they added major market share via new longhaul business while maintaining yields. 🔴 Old Dominion: Steady. As I have alluded before: death, taxes, and ODFL. While their OR deteriorated 2.4 points to 71.9, they maintained market share and yields. 🔴 Saia: Concerning. Costs from terminal expansion have begun to impact profits. Their OR worsened by 2.9 points to 83.3 but they have won serious market share gains while maintaining yields. 🔴TForce Freight: Fat. Their CEO feels there is too much fat that still needs to be cut. Their OR slipped 1.9 points to 92.3 and they experienced major market share losses with a big shift in profile (weight/shipment up bigly) and poor yields.  🔴 XPO: Transforming. This carrier is being re-built with the addition of Mr. Dave Bates. Their OR held steady, and good market share gains wave been won while maintaining yields. The industry is clearly down when compared to 2022, which was a banner year for carriers. When including Yellow Corp, tonnage and revenue is down 23%, and weight per shipment is down 3%. Even excluding Yellow Corp from the mix, tonnage and revenue among the remaining carriers  is down 11%. The 2nd quarter of 2022 was about as good as it has ever been for LTL carriers, as seen by their mostly robust OR figures. ORs were at historic lows and business was strong. Maintaining an OR within several points of those marks while keeping market share and yields steady is quite the accomplishment. There are some sharp operators in this industry indeed. But continued softness could begin to really test their mettle.

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Poor shipping will destroy your P&L. Don't let it happen to you. I talk a lot about the positives about what a great 3PL or ecom shipping provider can do to your brand. But the opposite is equally true. Crap shipping ---> customer complaints ---> refunds / credits. This hurts your bottom line. Increased support costs eat into profits. Dissatisfied customers rarely make repeat purchases. There goes that coveted lifetime value everyones talks about. Bet your bad reviews are about poor shipping experiences. Negative reviews damage your brand. Lower conversion rates follow, hurting sales. Inefficient operations mean higher re-delivery costs. Inventory issues arise, leading to cash flow problems. Higher inventory ties up capital. You get the picture. It's a huge snowball effect. Sure, you can continue to look at supply chain as a cost center. It is. But it can be turned into a much more powerful tool in your arsenal. What's the cost of you not fixing your ecom logistics stack? #shipping #ecommerce #logistics

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After my post yesterday I got a dm asking if it was normal for a sales rep to not be paid comission. smh. I constantly see what I would call “false advertising” in my feed “top pay, great earnings, etc”. Obviously I recruit freight agents, but I understand it’s not for everyone there are benefits to being w2 in a office, part of a team, etc. Here are 3 ctg based w2 companies that all pay 30-40 percent. For example, if you are doing 60k in gp you’d be making somewhere between 20-25k a month at all these companies. 1. MegaCorp Logistics- offices in nc, oh, fl, 2. Supply Chain Solutions Corp - offices in Chatoogna, and my home state of Minnesota. 3. Muse Freight - offices in Kansas City Mo. The sad reality for most good w2 reps I talk to is they are making 50 percent less than what they would make at these companies. I probably beat a dead horse with this topic, but the reality is a LOT of people don’t know what’s out there, in both the w2 and agent world and they are thinking their 7 percent is normal or all their company can “afford” in this market. Happy Thursday, except to everyone trying to trick people into grossly underpaid roles. #sales #logistics #recruiting #trucking

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38 Comments

Now that we are halfway through July, I wanted to look at where the dry van truckload spot market was at. Using data from DAT Freight & Analytics, I’ve calculated the dry van spot market cycle indictor as broker buy contract rates less dry van TL spot rates divided by the average of the two series. One chart below. Thoughts: •Historically, when this ratio falls below 10%, we tend to see a bull market pricing cycle begin, which is picked up well the Bureau of Labor Statistics primary service producer price index for general freight trucking, long-distance, truckload (https://lnkd.in/gUXXNHrd). Conversely, anytime we see the series move above 15%, we enter a bear market pricing cycle. Key dates for bull cycles labeled in black, bear cycles in red. These dates mirror swings in observed contract & spot rates picked up by BLS. •The bad news for carriers is that July’s reading of 15.8% is well away from the 10% threshold. As such, there aren’t signs of the market being ready to turn. •For the market to turn, we need more freight demand. Unfortunately, as I’ve been noting frequently, demand conditions just aren’t great now. For example, Cass Shipments, which tracks the trucking ton-mile index quite closely, fell in June to the lowest level since the recovery from the COVID-19 pandemic (https://lnkd.in/gAZb34hZ).  As I’ll share next week, machinery manufacturing and wholesaling is especially weak. Implication: I continue to see few signs that the dry van truckload sector will enter a bull market pricing cycle in 2024. It increasingly looks like any capacity tightening felt in June was just a return of seasonality. Continued weakness in pricing and freight demand reinforces my emphasis on why domestic manufacturing activity must be front and center in discussions about freight demand, with less attention given to retail sales. #supplychain #supplychainmanagement #freight #trucking #economics #markets

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The TOP 1% Freight Agents are insanely innovative. BUT they aren’t just innovative.. They're also fantastic at: - Creative problem-solving - Developing strategic partnerships - Quickly adapting to market changes You can’t just be an everyday agent and expect the world. What else are the TOP 1% fantastic at? #freighttec #3PL #freightbroker #freightbrokerage #logistics

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I'm convinced that most brokers who think they need more sales actually need better account management. Say you onboard a customer with five divisions, all of which route their own freight. How confident are you that your account manager: 1) Is actively trying to grow the business in the one division they started with? 2) Actually knows that there are four other divisions, all of which have freight? 3) Is trying to connect with and grow business in the other four divisions? If your account manager is just passively managing the business you handed them, you're better off teaching them to grow your existing business, rather than onboarding a bunch of other business (that will also be mismanaged). #freight #3pl #transportation

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The battle between 3PLs & LTL carriers fascinates me.. One of my burning questions to God when I get to the gates- “Did the LTL carriers secretly hate us brokers?” 👉3PL company does a lot of business negotiating competitive LTL tariffs with the FedEx’s & Saia’s of the world.. (I’m not targeting them specifically. Just using them as LTL carrier examples.) They give those carriers massive volume through their customers. 👉Me (The 3PL sales rep): Busts my butt & lands a bunch of LTL shipping customers.. Gives them great rates & service. 👉LTL sales rep (Working directly for the LTL carrier): Walks into my customer’s facility.. Tries to schmooze them & says, “Why don’t you just stop using your broker? Come to me & I will give you even BETTER pricing shipping direct.” 😳🧐 👉Now if I as the broker coldcalled a shipper & they said, “Sorry, we already have an account with (insert whatever LTL carrier name)” - If I knew our 3PL had a direct contract with that carrier too, I immediately backed off. Because we have a contract with that carrier. 👉Customer calls me wanting an ETA. I call into dispatch & I am put on hold for 30+ minutes or given a vague answer or flat out lie. “Driver was already there. Told no freight. There’ll be a charge for that.” *Click* hangs up on me. 👉I call & tell the customer what dispatch said. 👉20 minutes later customer calls me back, “Driver just showed up. I talked to him & he said dispatch never called him to request an update.” 🤨 Now I know not ALL direct carrier national sales reps behave this way… but I can count at least 6 times this happened with various carriers when I was a broker… Put me out of my misery folks! I need to know… Do the sales reps & dispatchers working directly for the LTL carriers lowkey despise the 3PL brokers they partner with? 😅 #LTL #Carrier #3PL #Sales #Contracts #Logistics

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Freight fraud is a hot topic right now for carriers and brokers. 2 Dawgs, 1 Pod. will be back at 2cst on Friday to talk everything fraud and highway related with Michael Caney. Is it a good idea to be sharing stories on the bad guys on social media or is that helping them get better? Should we be relying on the fmsca to fix things? There is a lot of different possible topics on the idea of fraud, I will say from everyone I talk to everyone loves Highway and they are becoming a household name in that space. I know it’s a common question that comes up when I talk to potential agents, and they are happy to hear we utlize highway. They have definitely figured something out in this space imo and excited to talk about it. #fraud #freight #logistics #trucking

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Selecting the right shipping provider is crucial for your import supply chain's success. Here are 5 things to consider: 1. Know your free days before demurrage charges start. 2. Assess how fast and far your product needs to move from the port. 3. Opt for transloading if traveling over 200-250 miles from the port. 4. Decide on the visibility level needed for in-transit freight. 5. Use a single provider for efficiency and prioritized freight handling.  Working with a comprehensive provider like Schneider: - Simplifies your supply chain management - Reduces touchpoints - Prioritizes your success This leads to cost savings and better customer focus.

2

I think most would agree, response times and communication are key for good brokers. But what about internally? How long does it take to setup a carrier? What if you need help after hours? Need more credit on a weekend? Other than pay, and KPIs the third issue I hear most commonly from reps wanting to leave their company is response times, and ability to service their customers. This was on the top my mind this weekend as we had 2 agents needing more credit for customers over Labor Day weekend. Response time was under 15 min and it was done. The reality is at many brokerages those requests wouldn’t have been able to be looked at until Tuesday morning since the people making those decisions are mf 8-5 people. A good agent program treats their sellers like how good brokers treat their shippers. Fast and good communication, if you aren’t able to get that at your current role, might not be a bad idea to look elsewhere! Happy Tuesday. #sales #logistics #trucking #communication

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3 Proven Ways to Win More Loads Without Cold Calling 🫡 Personalize Your Communication: When confirming a load, don’t settle for a generic “10-4, ETA 11 AM.” Don't be afraid to be more specific. Instead try this: "10-4, I’ve received the paperwork, and your driver [Driver Name, Truck Number] has been dispatched. ETA is 11 AM. How would you like to receive updates?" This way they know you're easy to work with. Not all customers want the same level of detail. Some prefer hands-off, while others appreciate full transparency. By tailoring your approach, you ensure a more satisfied customer—and build trust. 📸 Document Everything: When your driver picks up a load, send photos of the freight and the Bill of Lading (BOL) along with the update. "Your load has been picked up. Please find the BOL and pictures of the freight attached. BOL matches the papework you provided" This simple step saves money both for you and the customer. Documenting this avoids miscommunication, minimizes claims, and builds confidence with your customers. Everyone loves clarity and accountability. ⏱️ Deliver Exactly On Time Stick to the agreed delivery time- not too early, not too late- but just right. Your customer's performance is measured by orders that are on-time, which means they prefer carriers and brokers that perform well on this metric- this means you! By improving communication, documenting crucial steps, and respecting timelines, you’ll see your relationships—and your load counts—grow, all without cold calls. The only thing left is: just be consistent 🚛🚛

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Choosing the right brokerage can make or break your logistics operations. While it might be tempting to cut costs by opting for an inexperienced brokerage, the long-term expenses can far outweigh any initial savings. Here’s why going with an experienced brokerage is a smart investment: 1. Hidden Costs: Inexperienced brokers may not fully understand the complexities of logistics, leading to unexpected fees, delays, and inefficiencies. An experienced brokerage can anticipate and mitigate these costs, saving you money in the long run. 2. Delays and Penalties: In logistics, time is money. Inexperienced brokers can cause significant delays due to poor planning, lack of industry connections, or unfamiliarity with regulations. These delays can result in penalties and lost revenue, impacting your bottom line. 3. Compliance Issues: Navigating transportation regulations, including Frost Laws and divisible load restrictions, requires expertise. Inexperienced brokers may overlook critical compliance requirements, leading to hefty fines and legal troubles. An experienced brokerage ensures all shipments meet regulatory standards. 4. Damage and Loss: Poor handling and incorrect equipment choices by inexperienced brokers can lead to damaged or lost goods. These incidents not only cost money but can also damage your reputation. Experienced brokers use the right equipment and procedures to ensure safe and secure transportation. 5. Inefficient Routing: Inexperienced brokers may lack the knowledge to plan the most efficient routes, resulting in higher fuel costs and extended transit times. Experienced brokers use advanced technology and industry insights to optimize routing, reducing costs and improving delivery times. 6. Lack of Support: When issues arise, an experienced brokerage provides prompt and effective support. Inexperienced brokers might not have the resources or knowledge to handle problems swiftly, leading to further delays and expenses. 7. Poor Negotiation Skills: Experienced brokers have established relationships with carriers and suppliers, allowing them to negotiate better rates and terms on your behalf. Inexperienced brokers may not have the same leverage, resulting in higher costs for you. Choose Wisely, Save Wisely Investing in an experienced brokerage is an investment in your business’s success. Don’t let the allure of lower initial costs blind you to the hidden expenses and risks associated with inexperienced brokers. Choose experience, choose reliability, choose success. Contact me today to learn more about how our experienced brokerage services can save you time, money, and headaches. Call or Text: (541) 816-7405 Email: RNarze@Actionheavyhaul.com

4

Haven't posted much lately but this struck me... I had a recent experience with a friend and industry colleague who sought my advice on quality companies to work for in the freight industry. Despite my recommendations, they chose a job at a company I wouldn’t have suggested and ended up leaving after just 6 months due to "disorganization", a "lack of direction", and "gross misuse of funds" at the company. When they reached back out and asked why I hadn’t warned them, I explained that I avoid disparaging companies without cause but, if asked, I would have given honest feedback about whether I personally believe a business isn't succeeding. That isn't to say I would have told them to flatly reject the job. All I can do is speak from my own knowledge and experiences. I just want to see good people working in good places that are happy with what they do. The lesson: Use your network wisely, follow up, and do your due diligence. Why ask for advice and then not follow through before making a decision? If something feels “too good to be true,” it probably is.

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There is a lot of excitement in the trucking community that the current freight recession is over (heavily influenced by the articles from FreightWaves). While I’ve publicly said I expect a substantial increase in dry van truckload spot rates next year, it’s important to remember that a significant rebound of freight volumes will take some time to materialize (this isn’t an overnight thing). This can be seen in the most recent quarterly version of the trucking ton-mile index (now that September’s data is complete). One chart. Thoughts: •Q3 2024 came it 0.1% above Q2 2024; I feel good at this stage declaring Q2 2024 the bottom of the current freight recession, which began in late Q2 to early q3 2022. •While we saw very high levels of containerized imports, which appeared in sectors such as electrical goods wholesaling posting record inflation adjusted sales, it’s critical to remember that many freight-centric sectors of U.S. manufacturing continue to perform poorly relative to peak freight demand in the first half of 2022. These include: Wood products: https://lnkd.in/gNmwNRd5   Paper: https://lnkd.in/gYDt3kcK Plastic & rubber: https://lnkd.in/g8ya9dAw Nonmetallic mineral products: https://lnkd.in/gJEH2Gh5 Machinery: https://lnkd.in/gy2NrYza •It will take time for manufacturing activity in these industries to rebound. As I’ve said repeatedly, late Q1 to early Q2 2025 is when I truly expect demand conditions to get strong enough for spot rates to show the type of sustained increase needed to pressure contract rates. Implication: I get carriers are excited that brighter days are ahead in 2025. However, we need to be reasonable and understand it takes time for the manufacturing ecosystem to see sustained demand increases. Moreover, I have severe concerns about 2026, as I expect folks are going to be in for a very nasty inflation surprise… #supplychain #supplychainmanagement #shipsandshipping #freight #trucking

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Everyone always says the “cheapest option isn’t always the best” when it comes to truck rates. I agree, but I don’t see this phrase used as much in the freight tech side of the industry? I wonder how many brokerages are going to regret going “cheap” with tech especially when they market flips. You can get a tms, quoting software, tracking, vetting platforms. “ ai tools”, etc whatever else for “ cheap”. But are you actually going to recruit the best talent with below average tech? PS: I am extremely grateful HD Ships is extremely tech heavy for a company our size (50-60m), it makes recruiting a lot easier for me. Quite honestly not sure how other small agent programs compete without it. #tech #logistics #cost #trucking

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𝐖𝐡𝐲 𝐝𝐨 𝐬𝐨 𝐦𝐚𝐧𝐲 #freightagents 𝐬𝐭𝐫𝐮𝐠𝐠𝐥𝐞? - They’re stuck with non-competes/non-solicits. - Their brokerage competes with them for customers. - They don’t get the support they need. 𝐀𝐭 Freight Tec, 𝐰𝐞 𝐝𝐨 𝐭𝐡𝐢𝐧𝐠𝐬 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭𝐥𝐲. Here’s how we help agents grow: - Get paid faster: Weekly advanced commissions - no waiting for customer payments. - No competition: Your customers are yours. We don’t compete against you. - Full support: Our team handles invoicing, payments, and more so you can focus on your business. With competitive commission splits, easy-to-use tech, and a team that’s got your back, we make it simple for agents to succeed! No tricky contracts. No extra stress. Just the freedom to grow your business. 𝐖𝐡𝐚𝐭 𝐰𝐨𝐮𝐥𝐝 𝐲𝐨𝐮𝐫 𝐥𝐢𝐟𝐞 𝐥𝐨𝐨𝐤 𝐥𝐢𝐤𝐞 𝐰𝐢𝐭𝐡 𝐭𝐡𝐢𝐬 𝐤𝐢𝐧𝐝 𝐨𝐟 𝐬𝐮𝐩𝐩𝐨𝐫𝐭? #freight #logistics #support #brokerage

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4 Comments