How to find direct shippers

Are you ready for direct freight?

Most new carriers start with brokers. Direct shippers want carriers they can count on every week, so it helps to have some months of clean, on-time loads first. Before you start calling, make sure you can say yes to: active authority, insurance that meets their requirements, a clean safety record, and enough cash to wait for payment.

Build a shipper list

1. State economic development and labor sites. Many states publish their largest employers by county from official employment data. North Carolina's Department of Commerce, for example, has a largest-employers search. Look for manufacturers, distributors and food processors.
2. Census County Business Patterns. The Census Bureau's free data shows how many businesses of each industry are in your county, so you know which kinds of freight are near you.
3. Local economic development groups and chambers of commerce. They announce new plants, expansions and industrial parks.
4. Drive the industrial parks near your home base and write down who ships with trucks your size.
5. Your own loads. Note the shippers you already pick up from through brokers. Don't go around a broker on a shipper they introduced you to if your broker-carrier agreement forbids it. Read the back-solicitation clause first.

Reach the right person

Ask for the shipping or logistics manager, not the front desk. Keep it short: your equipment, your home base, the lanes you run and that you can cover their overflow or short-notice loads. Small shippers and lanes the big carriers don't want are the best place to start. Follow up, and send your packet the same day they ask for it.

What shippers ask for

• Operating authority and USDOT number. They'll look you up on FMCSA SAFER. Check your own record first with our carrier lookup.
• Certificate of insurance naming them as certificate holder. The federal minimum for general freight in trucks of 10,001 lb or more is $750,000 in liability. Many shippers ask for more, plus cargo coverage. Ask for their exact limits and check with your agent. See the insurance checklist.
• W-9 and your remit-to or factoring details.
• A signed carrier-shipper agreement. Read the liability, payment terms, detention and claims sections before you sign.

The carrier packet checklist lists the usual documents.

Payment terms and factoring

Brokers often offer quick pay. Many direct shippers pay on their own net terms, which can be a lot longer. Ask about payment terms before the first load and get them in writing. Two ways to handle the wait:

• Keep a cash cushion for fuel, insurance and truck payments while you wait.
• Use factoring. A factoring company buys your invoice and pays you most of it upfront. It will usually check the shipper's credit first and send a notice so the shipper pays the factor. See factoring explained.

Where a dispatcher fits

FMCSA's 2023 guidance says a dispatch service that negotiates freight directly with a shipper likely needs broker authority. So the shipper relationship and the contract are yours. Fleetorica books loads through brokers for the carriers we dispatch, which keeps your truck moving while you build direct customers. See spot vs. contract freight.

Questions carriers ask