Should you run all your loads with one Broker/Shipper/Customer?

This is a great question, and the answer is simple... You never put all your eggs into one basket. I have two reasons as to why I say this... 1st) Look at what happened in 2020 (the COVID pandemic), and 2nd) What if the Broker, Shipper, and Customer's supply chain takes a hit from their supplier or their credit score gets downgraded? 

I see this a lot. A Carrier will only work with one Broker for ALL of their loads. If we ever have something like COVID happen again and your Broker loses 50% of their loads (business from their customer) and you're now getting 50% fewer loads, well that wasn't very smart of the Carrier for trusting one Broker with that much business. While the getting is good, you need to be running loads with multiple Brokers and expanding your network.

Second, what if the Broker’s credit score gets downgraded? Yes! This happens more than you might think. The supply chain can be a very sensitive thing. If the Broker, Shipper, or the Direct Customer experiences a shortage with the product they're producing, say for example like glass, and they can't get sand to make the glass then they might be short on cash for 1 or 2 months. They may resort to not paying their bills in an appropriate 30-day window, instead extending it to 60 days so that they can get their hands on the cash they need to pay their bills. Then this will reflect with their Credit Score with your Freight Factoring Company and the Freight Factor might say "Yes, they did have a good score, but looks like something is going on and they are taking longer than they used too to pay their bills. Unfortunately, their credit score has been downgraded and they are now "not approved to factor."

These kinds of situations are not made-up scenarios. These are very real situations that happen every month. So, as a Carrier, you need to diversify and not get all your loads from one source. No one plans on getting into a car crash or getting stung by a bee, and when it happens you might have to make some life adjustments. But, if you plan ahead, don't overexpose yourself and don't run all your loads with only Broker/Shipper/Customer, you increase your chances of not finding yourself in these sorts of predicaments.