GUIDE TO

HIGHER PAYING
FREIGHT
By: David G. Dwinell, Master Broker

Copyright © 2005 by David G. Dwinell

No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, scanning or otherwise, except as permitted on the Loadtraining.com website, or as permitted by law
without the prior written permission of the publisher.
 WELCOME
My name is David G Dwinell, I am known as an “EXPERT” in transportation, by
the US Justice Dept and a lot of Mutual Fund Managers. (Visit
transportationexpert.com) to see details. But Today, I would like to introduce you
to the right way to load higher paying freight.
First, know that I have been training Transportation Professionals in my School
since 1987. I have been a Motor Carrier Contract and a Licensed Broker
since 1981. I have authored several Text Books on the subject, (unlike other
Schools of Brokering who use newspaper clippings as their text book), that have helped
over 49,000 other trucking companies and drivers expand their businesses.
Transportation Professionals such as drivers, owner operators, trucking
company owners, traffic managers, warehousemen, growers, lawyers and
doctors. Those attending achieve the MASTER BROKER CERTIFICATE.

My services and products have been well received since 1987. Not 1 copy of
my Text Books have ever been returned as “Unsatisfactory”. I was told
recently by a School Graduate (Class of 2001), who was taking the TIA
“Certified Transportation Broker” course about Brokering, that our Master
Broker Training programs were far more comprehensive and complete than
the TIA - CTB product. He ought to know, he came to my School after years
as the “Brokering Manager” for Schneider Transportation.

Know this, as a BROKER, for 25 years, I have never had a Claim against my
Surety Bond, and I have paid all of the Motor Carriers brokered ON TIME. I still
have my original Shipping Clients, 95% of which I have never physically met.
There are few people who can make this claim. If you want to learn to do it
right, come to Arizona for a week, and learn how easy it is to succeed in
transportation.

Let me describe the TRANSPORTATION MARKET.

It is fragmented into 300,000 plus Motor Carriers, Contract, Common, Brokers

and Forwarders. Over 130 people a day get new Authority and Licenses. 90%
of all Brokers, also own trucks, 4 Million CDLS, 20 Million pieces of equipment.
Trucking is turning into a Commodity.

In my 90,000 plus freight brokerings, my average Freight Bill to a Shipper, is

$880 (retail Freight rate), and my average payment to a Motor Carrier is $755
(wholesale freight rate) with a Commission Margin of 14.5% or about $125, for the

Copyright © 2005 by David G. Dwinell

No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, scanning or otherwise, except as permitted on the Loadtraining.com website, or as permitted by law
without the prior written permission of the publisher.
last 25 years. @ 5 loads/day, that is Yearly Revenue of $1,144,000.00 and a
commission income in excess of $169,000/yr.

Today, the current state of affairs in the Industry can be classified as a

“SELLERS” Market. There has never been a better time to get into trucking.
There are far more Loads in most Major Cities than there are TrucksTo Haul
Them. Owner Operators are getting their Authority and changing to small
Trucking Companies, rather that work for the Truck for a Buck people. You
know who they are! they are mostly the largest Motor Carriers in the USA, like
the one in Phoenix, or Chattanooga. They are losing Owner Operators in
droves, and are unable to attract new Owner Operators, because there is far
more money in Today’s Freight Rates than ever before. Did you know that in
2004 the Big Carriers averaged 136% owner/operator turnover rate. In fact,
some sell their trucks to as many as 10 new and different owner operators
each year – Legally, using the same base plate over and over.

These large Trucking Companies are called TRUCK BROKERS. Their market is
you, the small helpless truck owner. Well this BOOKLET is designed to
empower the little guy. Transportation in the United States is the Largest
Industry IN THE WORLD, generating almost 1/3 of the Gross Domestic Product
Income in the USA. Trucking alone generated almost $700 Billion dollars in
2004, an amount that is larger than 100 other Countries Gross Domestic
Product. No One player has more than 3% of the trucking market. This means
opportunities for the Trucking Entrepreneur.

This Guide is to assist the reader to load HIGHER PAYING

FREIGHT using our Learning Programs
KNOW THIS: ALL SUCCESSFUL TRUCKERS HAVE A BROKERAGE. You must learn
to Broker to be an effective and PROFITABLE Trucker. A Trucker and a Broker
both need to know the Status of Supply (trucking capacity) and Demand (orders
from Shippers) before quoting freight rates to shippers or accepting a broker’s
freight rate. If you are the last Truck in LA on FRIDAY ; what should your freight
rate be?

Most Frequently Asked Questions:

I want to find a reputable Broker to work with - What makes a good broker?

Brokers have Credit Ratings. Check their Credit before loading with
COMPUNET CREDIT.com (They publish the Gold Book of GOOD Brokers). I guess my

Copyright © 2005 by David G. Dwinell

No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, scanning or otherwise, except as permitted on the Loadtraining.com website, or as permitted by law
without the prior written permission of the publisher.
question to you; why do you want to work with a Broker, when shippers are
having a difficult time finding Truckers and you can work with them - direct?
Learn to BROKER and when you work with shippers direct, they will offer you
more loads (Truck Load and LTL) than you can truck yourself, so you need to
BROKER the excess out to other Motor Carriers. That is what our School is all
about – we will show you where they are, what message about your trucks
and brokerage you should give, and the answers they will need from you to
work with you direct.

If I get my own Brokers License can I Broker loads to my own trucks?

Not without having Motor Carrier Authority for your own trucks. Licensed
Brokers are not allowed to hire Owner Operators, as they do not have
“AUTHORITY” only a “License” (visit FMCSA.DOT.GOV - 49 CFR 370 & 371). Brokers
are not a “MODE” of Transportation according to DOT. They CAN NOT issue a
“BILL OF LADING” or declare an interest in a Cargo, or take possession of
FREIGHT- ONLY an Authorized Motor Carrier has the power to do all that.
What you need is to learn to broker, so when a Shipper (the ones we help you
find) offers you 5 loads for your 2 trucks, you haul 2 and broker 3. You don’t
want to give the loads back, because your New Shipper will perceive you as
being to small to really help them.

How Do I get my own DOT Authority and/or Brokers License?

Simple, visit www.fmcsa.dot.gov and complete the OP-1 and pay $300, all
on line. Can I make a suggestion, Call OOIDA (the independent and owner
operators association @ 800 444 5791 – ask for Joe Shewmaker ) They are the Nations
only Organization who will actually look out for your interests, and help you
succeed.

I want to own my own truck and be an Owner/Operator

Caution: What comes first? the CART or the Horse! trick question- NEITHER.

Cargo comes first then Horse and the Cart. Buying a Truck and Trailer does
not insure success in the business, in fact, in Today’s market place, it’s a
recipe for disaster – THE CORRECT ANSWER – get the cargo - then go get the
Truck and Trailer. Truckers who go from broker to broker – only receive
“WHOLESALE FREIGHT RATES”. So they go BROKE. Motor Carriers who sell and
market to Shippers, FIRST, then go trucking, bill and receive “RETAIL FREIGHT
RATES” direct to Shippers, avoiding broker loads.

Copyright © 2005 by David G. Dwinell

No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, scanning or otherwise, except as permitted on the Loadtraining.com website, or as permitted by law
without the prior written permission of the publisher.
SITUATIONS TO AVOID at all costs. Today’s Huge Motor Carriers…

It is True, that Truck Brokers – those with Motor Carrier Authority and a Brokers
License (the ones who hire Owner Operators) tell you that their share of Revenue is
about 25 to 30% of Gross Freight Billings to Shippers, but the Truth is more like
50% of the Gross. You get all of the Liability and expenses they get all of the
Profit. Example: You are coerced into an “own a Truck for a Buck” and
become an Owner Operator. They pay you 84 to 95 cents per mile (wholesale)
while they are billing on average $1.75 (retail) to their shippers. 70 to 90 cents
a mile is a lot to pay for a Dispatch. In other WORDS, you are screwed. In
today’s marketplace, where instant Internet Communications make it
possible to talk to shippers Direct, even while your in your truck, Your Own
Authority is far more profitable, we teach you how to be profitable. You will
recover your Investment in school in a few days of leaving, and the best part
is – IT is TAX DEDUCTABLE!

LESSON 1
TO BE A SUCCESSFUL TRUCKER and BROKER, you must change the
Transportation Definitions you learned first.

First – the place where you have been getting freight you always thought
was the SHIPPER ! - well in actuality The place where you pick up is the
“CONSIGNOR”, the person who creates the Bill of Lading.
The SHIPPER is the person paying your FREIGHT Bill, according to The
Negotiated Rates Acts of 1993 (The Law which requires a written contract between a
shipper and motor carrier)– the Shipper could be the Consignor, The Consignee
(where you deliver), or neither. - as you will note in the DVD/VHS Tape. Our School
Teaches you FOB Origin, Destination, and all of the other terms you will need
to be an effective trucking company to work with shippers.

Again – The SHIPPER - the person who pays your freight bill – could be a broker too ;
The CONSIGNOR, the place who creates the Bill of Lading , where you load;
The CONSIGNEE the person who executes the Bill of Lading at unloading.

AGENT – a force for another; To be a successful Broker, you cannot be an

Agent of the Shipper, or an Agent of the Motor Carrier, as your License
requires you to be a Middleman, not promoting the Interest of the Shipper
over that of the Motor Carrier. Brokers may not file a Tariff or quote a Freight
Rate from a tariff, or create a Bill of Lading. The Freight rate they quote is the
Market Freight rate. (like a real estate agent, they will only tell the homeowner what his
house can sell for, its not about what the homeowner wants for his house)

Copyright © 2005 by David G. Dwinell

No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, scanning or otherwise, except as permitted on the Loadtraining.com website, or as permitted by law
without the prior written permission of the publisher.
Discussion

Most Brokers think they work for the Shipper and their Job is to beat Freight
Rates down. In fact, just the opposite is true. Technically, the Broker must
protect the interests of Motor Carrier, in that he collects the money from the
Shipper on behalf of the Motor Carrier. An example of a recent Court
decision actually creates the Freight Broker as a “FIDUCIARY OF THE MOTOR
CARRIER” (example - see the Worldpoint Case (part of the Brokerage Operations
Manual, he main TEXT BOOK of the Arizona School). As a result of this Federal Court
Decision – (Seattle, WA broker bankruptcy decision), several small motor carrier’s,
burned by Broker Bankruptcies, have petitioned the State District Attorneys (
in the County of Brokers Residence) to seize Brokers Assets, and personal assets
such as Brokers home and bank accounts, until the matter of the Brokers’
Fiduciary responsibilities, are clarified. This has induced several bankrupt
Brokers to pay instantly out of their own pockets because they know they
would be jailed after failing the State District Attys Fiduciary Test. Real Estate
Brokers or Lawyers are charged and jailed after they abscond from their
ESCROW accounts another persons monies. Ask any Real Estate Broker what
would happen to them if the above took place. The same could be the fate
of Freight Brokers who abscond with Motor Carriers Money. I assist my School
Graduates in recovery of their funds from rip off brokers. Come to School and
learn to do this for yourself.

This Decision “makes the Motor Carrier and his Bill of Lading – GOD. As a
Motor Carrier, every consignment you take and the Bill of Lading should show
your Motor Carrier Name & MC Number, no other. The Law is very clear
about Brokers who issue a Bill of Lading. IT IS FORBIDDEN. (see 49 CFR 370.7
and .9) . If you are not allowed to change the Bill of Lading, Deliver the Load
on your own Bill of Lading (make out a new one) and get the Proof of Delivery on
your own Bill of Lading, not the Consignors. If the broker refuses to pay, call
me, I will help you collect your due monies after I point out the law for your
truant Broker. Note: most Motor Carrier/Broker Contracts are set up as a
Motor Carrier /Motor Carrier Contracts. The originating Motor Carrier says he
wants to broker the load to you, but keep his interest in the Cargo, he is
actually Contracting you as another Motor Carrier – NOT A BROKER. (90% of
Motor Carrier -Brokers don’t really know the law or their responsibilities to you
their subhauler.

In other words, a Licensed Broker or Forwarder who is not a Motor Carrier has
no business creating a Bill of Lading or declaring an interest in your Cargo.
While that Cargo is on the Highway, it belongs to you and your Insurance

Copyright © 2005 by David G. Dwinell

No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, scanning or otherwise, except as permitted on the Loadtraining.com website, or as permitted by law
without the prior written permission of the publisher.
Underwriter, until you give up possession to the Consignee, after the
execution of the Bill of Lading. In fact, you do not have to give up the original
Bill of Lading to anyone without payment first. You can submit a Delivery
Receipt (DR) as proof of delivery without giving up the original Bill of Lading.
If you work with a broker who does not pay unless he gets the original Bill of
Lading, remind the Broker, or other Motor Carrier, 49 CFR 370 et al actually
states in the part “Records to be Kept by Broker” that the Broker shall receive
a Copy of the Bill and he is required to keep it for 3 years and 3 months, the
Federal Statute of Limitations. Did you know the same Law reference indicates
that “all parties (shipper and motor carrier) to a brokered transaction are entitled
to know what the Brokers Commission is”. If the broker fails to tell you, or even
the Truck Broker you are leased to, does not respond to your request for this
information, you can file under the Freedom of Information Act for the copies
of the Truck Broker or Brokers invoice to the Shipper, as all records of those
who hold Brokers Licenses are in fact of Law “Public Records”

LESSON 2
A Simple but Foolproof way to sell Trucking services.

One can say that it is the objective of every Motor Carrier to have less than
6% deadhead each year so they never have to work with brokers. This is
done everyday by the big boys (you never see a Schneider Truck on Transcore/DAT)
and a lot more small trucking companies than you might imagine. I indicated
earlier, that those who go from broker to broker go broke. The opposite of
that scenario would be the most successful market approach for a Motor
Carrier. To stop running from point to point, for wholesale rates, and praying
to get home occasionally, may I suggest that the “Dumbbell approach” to
the market place is the best road to success. You will learn in my class, that
the “Dumbbell” of course refers to picking your marketing areas and soliciting
shippers within the circle (the dumbbell weight) area. The distance between
each circle should be about a 1 day log books worth

You should solicit these shippers by letter and phone as a Motor

Carrier, that way you can find shippers at each end of the dumbbell for load

Copyright © 2005 by David G. Dwinell

No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, scanning or otherwise, except as permitted on the Loadtraining.com website, or as permitted by law
without the prior written permission of the publisher.
going back each way. That way as a Motor Carrier, you will invoice Shippers
direct for each direction of loads for “RETAIL RATES”.

Find the Shippers with this simple but effective target mechanism.
Define the Zip Prefaces within the circle, select the “SIC” code (manufacturers
that suit your equipment type), order a CD Rom ( Zip + SIC) with the gummed
mailing labels from Manufacturers News 888 752 5200. This targeting will result
in immediate responses from the shippers at each end of the Bar between
the circles. The marketing messages can be tailored to each shippers need
and the freight rate methods for going in each direction are available when
you attend School, (this is 3 hours of Lecture and demonstration and there is hardly room
here to accomplish this feat)

At the minimum, you should have a Business Plan that calls for you to reach
50% retail invoicing at the end of six months of selling and 100% at the end of
one year. Note; you will seldom achieve 100%, but 80 to 95% is not unheard
of. Now the same shippers will offer you loads going to some other area not
within your circle. These are the loads you broker, and you must find the
backhauler to secure a commission from the move.

You should know that all Motor Carriers solicit or are called by Shippers within
50 Miles of their “Yard”. In fact most Trucking companies not only have little
trouble going outbound from home but get their highest freight rates as an
“OUTHAUL”. Typically however, the same Motor Carrier (90% of Motor Carriers)
spend 75% of their Administrative Time and Costs, getting loads home (the
backhaul). They usually work with a Broker to get Home and suffer the
wholesale Freight rate (the brokers realm). The significant fact regardless of the
size of the rate you receive, you will have accomplished your goal billing
shippers at each end of the “Dumbbell” FOR RETAIL RATES – goodbye
brokers. In our Class, we will show you how to develop the correct “Outhaul”
freight rate, and correct “Backhaul” freight rate. Learn how to NOT LEAVE
MONEY ON THE TABLE, how to expedite rate, exclusive use rate, air freight
rate ( 70% of all air freight never sees the inside of an Airplane) , red label rate, blue
label rate, consolidate LTL at Freight Rates as large as the Big Boys.

The above is a sample of what our School delivers to each Graduate. There
are 87 other topics that are covered in this detail, everything from the History,
the law, to FREIGHT RATE Development, Negotiations, from getting a 5 year
Contract from your Shipper, to brokering a load to another Motor Carrier, all
the way to - your IRS 1099 reporting requirements, to Bookkeeping, credit and
collection from shippers and other Brokers.

Copyright © 2005 by David G. Dwinell

No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, scanning or otherwise, except as permitted on the Loadtraining.com website, or as permitted by law
without the prior written permission of the publisher.
The most important thing we teach, however is to broker your EXCESS SHIPPER
LOADS to other Motor Carriers without Liability and without the need for
Insurance for your Brokered loads (the Motor Carrier who hauls, has all the Insurance
needed).

The Marketing Message of Trucking and Brokering are at opposite ends of the
Spectrum for a Shipper. On the one hand, the truckers sales position is an
Arms Length Transaction, such as; here is my rate take it or leave it, contrast
to the Brokers market position to the shipper, “what do you want to pay”?
School Graduates know how to sell both, without conflicting the shippers
mind, especially about Liability for Cargo Loss.

Here is what happens to those who start up Brokering without the proper
instruction. The Liability from incorrect brokering causes your shipper quit your
TRUCKING & BROKERING relationship quickly. In fact, you will have to
maintain a high cost Sales Program to continuously find new shipper
relationships to stay in business. Only 1 in 19 brokers makes it past 2 years in
business (govt statistics). Over 60% of our Graduates are in business after 2 years
(we have kept track of our Graduates over the last 18 years). Training with our Programs
increases your odds of success 11+ times vs those without training.

The Brokering Sales & Marketing plan does not even resemble that of the
Motor Carrier. Our School will prepare you for this completely different
business. Most Broker make the mistake of think Trucking and Brokering fit
hand in glove, Nothing could be further from the truth. The ones that don’t
get it, are part of the 18 our of 19 who fail in the first 2 years of bonding,
screwing a lot of carriers in the process.

You can buy our Text Books without taking our Training Programs. Book
purchase means that attendance in the future will be less the price of your
books. Our Text Books are HOW TO BOOKS and many of the 49,000 book
purchasers did it themselves, using our Text Books.

The fastest growing segment is the Brokering Industry is that of the

Broker/Agent who works from home on the Internet. It is also the cheapest
way to start up your brokerage, (less than 1/10 the start up costs) of your own
brokerage.

Our School is brokerage is a Broker/Agency for Advantage Transportation, a

Forwarder/Broker (you know, the same people who own Dart/Advantage, St Paul). They
have their Phoenix Corporate Sales office next to our School. Visit next door
to qualify while you attend School. Its easy to be an Agent, in fact,

Copyright © 2005 by David G. Dwinell

No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, scanning or otherwise, except as permitted on the Loadtraining.com website, or as permitted by law
without the prior written permission of the publisher.
Advantage Nationwide Agent Network is their largest and fastest growing
profit center, doubling every 9 months. Our Graduates qualify as Agents
during their 1 week stay, and most of them have their own MC and Trucking
company they can operate without reference to Advantage. In other words
the Agent undertakes his own Sales Program (for his Motor Carrier rights and for his
separate Brokerage), finds shippers for both his own MC Motor Carrier Authority
Trucks and his Advantage Broker/Agency. Only the Brokered loads are billed
thru Advantage, the Trucker invoices his own Shipper loads - direct for his
own retail Freight Rates.

The Agents Selling Program featuring your Motor Carrier Authority and an
Advantage Agency opens a lot more Shipper doors than starting your own
brokerage. Success in your trucking and brokerage efforts is immediate and
large, usually within a few days of Graduation. Shippers are confident that
Master Brokers (graduates) will properly handle their loads, properly pay the
brokered trucks (paid in 16 days acoording to First Advantage), and bring Integrity to
their whole trucking and brokering experience.

Here is what is coming in the next year. We will offer Internet training for a
substantially reduced fee. Book purchase and reading must occur before
Internet training will be understood.

Copyright © 2005 by David G. Dwinell

No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, scanning or otherwise, except as permitted on the Loadtraining.com website, or as permitted by law
without the prior written permission of the publisher.