Learning about the bulk market

Aug 08, 2023 at 08:00 AM CST + 3
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Hey all, I've been in the dry van, reefer, and flatbed market for a little bit now, but saw some really interesting stuff with the bulk market and started really diving in. I work at a brokerage and saw that there are a lot of people that aren't huge fans of brokerages for one reason or the other, but I want to find a place in this community that doesn't do business in alienating people. If someone who is knowledgeable about the bulk market could call me, then I would have a more firm grasp on how best to make sure I'm adding value to the bulk community and not taking it away. Shoot me a call when you get a chance. Thanks, Sam 520-530-6887

Replied on Tue, Aug 08, 2023 at 09:18 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. The reason most people dont care for brokers in the bulk market is that most bulk shippers are posting their loads directly to this board. It is significantly easier to access the shippers direct in the bulk space vrs the van market. Because of that many of us see brokers as an unneeded extra step in our markets. There are some places where Brokers make sense, but in general they do not play that big of a role in the bulk market. Also, there are a couple bigger brokers in the bulk market that already fulfill the need that is present for brokers, making additional brokers in the segment truly unneeded. Furthermore, many brokers enter the space with little knowledge of product, rates, equipment needs, cross contamination, etc. When this happens they can drive the market down strictly due to ignorance. IF this is still the route you would like to go I would suggest you find customers that are not on the boards already. There is a company search feature where you can see who is already on the board. If the shipper has an account, most bulk carriers will not appreciate a broker trying to be the middle man. However, if you can find underserved shippers that are not on the board and provide good rates, quick pay, and a positive experiance for all parties maybe you might thrive in this market. That being said, there has been a large influx of brokerages entering the bulk market when their markets fell off. Many of these have already left the sector due to the factors already outlined.

Replied on Tue, Aug 08, 2023 at 09:18 AM CST

Posted by a private BulkLoads.com member.

The reason most people dont care for brokers in the bulk market is that most bulk shippers are posting their loads directly to this board. It is significantly easier to access the shippers direct in the bulk space vrs the van market. Because of that many of us see brokers as an unneeded extra step in our markets. There are some places where Brokers make sense, but in general they do not play that big of a role in the bulk market. Also, there are a couple bigger brokers in the bulk market that already fulfill the need that is present for brokers, making additional brokers in the segment truly unneeded. Furthermore, many brokers enter the space with little knowledge of product, rates, equipment needs, cross contamination, etc. When this happens they can drive the market down strictly due to ignorance.

IF this is still the route you would like to go I would suggest you find customers that are not on the boards already. There is a company search feature where you can see who is already on the board. If the shipper has an account, most bulk carriers will not appreciate a broker trying to be the middle man. However, if you can find underserved shippers that are not on the board and provide good rates, quick pay, and a positive experiance for all parties maybe you might thrive in this market. That being said, there has been a large influx of brokerages entering the bulk market when their markets fell off. Many of these have already left the sector due to the factors already outlined.

Replied on Tue, Aug 08, 2023 at 12:18 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "The reason most people dont care for brokers in the bulk market is that most bulk shippers are posting their loads directly to this board. It is significantly easier to access the shippers direct in the bulk space vrs the van market. Because of that many of us see brokers as an unneeded extra step in our markets. There are some places where Brokers make sense, but in general they do not play that big of a role in the bulk market. Also, there are a couple bigger brokers in the bulk market that already fulfill the need that is present for brokers, making additional brokers in the segment truly unneeded. Furthermore, many brokers enter the space with little knowledge of product, rates, equipment needs, cross contamination, etc. When this happens they can drive the market down strictly due to ignorance. IF this is still the route you would like to go I would suggest you find customers that are not on the boards already. There is a company search feature where you can see who is already on the board. If the shipper has an account, most bulk carriers will not appreciate a broker trying to be the middle man. However, if you can find underserved shippers that are not on the board and provide good rates, quick pay, and a positive experiance for all parties maybe you might thrive in this market. That being said, there has been a large influx of brokerages entering the bulk market when their markets fell off. Many of these have already left the sector due to the factors already outlined." Thanks for taking the time to write this out for me, it was incredibly helpful information. I'll be sure to look into those options and see if I would be able to add value.

Replied on Tue, Aug 08, 2023 at 12:18 PM CST

Posted by a private BulkLoads.com member.

Quote: "The reason most people dont care for brokers in the bulk market is that most bulk shippers are posting their loads directly to this board. It is significantly easier to access the shippers direct in the bulk space vrs the van market. Because of that many of us see brokers as an unneeded extra step in our markets. There are some places where Brokers make sense, but in general they do not play that big of a role in the bulk market. Also, there are a couple bigger brokers in the bulk market that already fulfill the need that is present for brokers, making additional brokers in the segment truly unneeded. Furthermore, many brokers enter the space with little knowledge of product, rates, equipment needs, cross contamination, etc. When this happens they can drive the market down strictly due to ignorance. IF this is still the route you would like to go I would suggest you find customers that are not on the boards already. There is a company search feature where you can see who is already on the board. If the shipper has an account, most bulk carriers will not appreciate a broker trying to be the middle man. However, if you can find underserved shippers that are not on the board and provide good rates, quick pay, and a positive experiance for all parties maybe you might thrive in this market. That being said, there has been a large influx of brokerages entering the bulk market when their markets fell off. Many of these have already left the sector due to the factors already outlined."

Thanks for taking the time to write this out for me, it was incredibly helpful information. I'll be sure to look into those options and see if I would be able to add value.

Replied on Fri, Sep 01, 2023 at 08:27 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Your best bet is to just call and talk to people with no expectations of anything and gather information. It is an arduous process to undertake on top of your normal responsibilities. It probably would be easier to start with learning about the products that are being shipped and then going from there. There are online resources you can find via google if you can ask the search engine the correct questions. Bulk has many more components then dryvan, reefer, flatbed freight. Equiptment, trailer types, and ancilliaries. Also pricing is done completely differently, so you need to be aware of that as the different bulk segments have different pricing mechanisms. Like the poster said above many of the bulk shippers are already being serviced. In addition, many hauls are shorter distances, so they are taken care by local asset providers with long established relationships. There are many barriers to entry. Most brokers advise not to touch it because the juice isn't worth the squeeze and their time is spent growing a business that they are proficient in.

Replied on Fri, Sep 01, 2023 at 08:27 PM CST

Posted by a private BulkLoads.com member.

Your best bet is to just call and talk to people with no expectations of anything and gather information. It is an arduous process to undertake on top of your normal responsibilities.

It probably would be easier to start with learning about the products that are being shipped and then going from there. There are online resources you can find via google if you can ask the search engine the correct questions.

Bulk has many more components then dryvan, reefer, flatbed freight. Equiptment, trailer types, and ancilliaries. Also pricing is done completely differently, so you need to be aware of that as the different bulk segments have different pricing mechanisms.

Like the poster said above many of the bulk shippers are already being serviced. In addition, many hauls are shorter distances, so they are taken care by local asset providers with long established relationships.

There are many barriers to entry. Most brokers advise not to touch it because the juice isn't worth the squeeze and their time is spent growing a business that they are proficient in.