RELO Roundtable…a gathering place

A moving company IS NOT the same as a moving service

Virtual marketplaces are an inevitable threat to established bricks and mortar businesses as more and more budget conscious consumers turn to their computers to search for moving and storage services. Today it's expected that over 80% of shoppers will start their relocation research using their favorite browser.

When selecting a reputable relocation service provider, practical reason, common sense, and good judgment frequently don’t stand a chance against the overwhelming power of the almighty dollar – especially in today's cash-strapped economy.  The process of moving, after all, is usually quite expensive!

Unregulated virtual bulletin boards, reverse-auction sites, and popular find-a-mover web services are successful because it’s usually the lowest “rock bottom” price that quickly tips the scales in the minds of many inexperienced and uninformed users. Most are so blinded by the savings found on the internet that they don't recognize the shysters lurking behind the unbelievable deals.

But are these convenient online shopping venues really safe to use?

A lot depends on:

• Which moving and storage companies or relocation product service suppliers you're considering
• The experience and trust level of the user making the inquiries, and , of course,
• The honesty of the party providing the answers

Don't be surprised, then, to find that not everyone portending to be a honest, hard-working mover is a really a licensed household goods carrier and reputable local service supplier.

Here are 3 important considerations a virtual mover might be somewhat vague or evasive about explaining:

1.  Difference between full-service mover, move manager, a move broker and a moving services provider.

a) Full Service Mover – These transportation service companies have been licensed by state or federal regulations to provide local and long distance intra- or interstate moving and storage services.

Most use their company's OWN van operators, local personal, independent owner-operators; and facilities or equipment qualified under the Federal Motor Carrier Safety Administration (FMCSA), or state Department of Transportation (DOT) or public utility corporation regulations to perform their service.

Just be aware that qualified isn't necessarily synonymous with quality. One is a compliance standard and the other is a service objective.

b) Move Manager – These individual or third-party companies provide relocation consulting and budget advisory services, including industry specific resources for individuals or organizations undertaking a personal or group move.

Unlike the business professionals who supply the material and equipment and perform the dirty work involved in moving, move managers focus more in the organizational and budgetary aspects of relocation planning.

Many full service movers are also move managers. Not many move managers, however, are also full-service movers. Move mangers DO NOT not have to be licensed by the FMCSA or many state or international regulatory organizations.

c) Move Broker – Using the FMSCA definition, a broker is “A company [or individual] that arranges for the truck transportation of cargo belonging to others, utilizing for-hire carriers to provide the actual truck transportation. A broker does not assume responsibility for the cargo and usually does not take possession of the cargo.”

Although they must be licensed by the FMCSA for interstate moves, brokers generally have no dispatch control over any of the driver or equipment resources used by the transportation companies that they have contractual agreements or interline relationships with. Some full-service household goods carriers are also move managers and move brokers.

d) Moving Services Provider – Except for the two options discussed above, this unregulated group is not licensed under the federal consumer protection regulations (49CFR375) for the transportation of household goods in interstate commerce. It consists primarily of a combination of individuals and companies comprised of:
     * Full-service movers – see above
     * Move Managers – see above
     * Brokers – see above
     * Real and virtual internet moving service companies, including:
             – truck rental outfits
             – material and equipment suppliers
             – public and private contract labor services
             – purchasing clubs
             – business lead aggregators
             – logistics and reverse logistics companies
             – freight consolidators
             – mobile/portable storage container operators
     * Real estate and relocation service companies
     * State licensed or FMCSA approved local, intrastate and interstate less-than-load (LTL) and truckload (TL) general freight common or contract motor carriers
     * Relocation consultants

2. The “released rate” valuation coverage used to prepare many low-cost moving quotes online limits the liability of your household goods carrier to only $0.60 per pound per article for any lost or damaged items.

Why? Probably because it is the the most economical valuation protection available since, by law, it must be offered at no additional charge. Under this option, for example, if your mover damaged a 10-pound piece of expensive technology or artwork valued at $1,000, you would only receive $6.00 in compensation (60 cents x 10 pounds). Under this 'cheap' valuation option, a missing $5000 diamond might only net you a few pennies.

What your virtual mover or internet broker might not tell you is that while there is no additional charge for this 'free' option, you must sign a specific statement on the bill of lading or moving service contract agreeing to it. If you do not select the released value option in writing, your shipment will automatically be transported at the carrier's full value level of protection liability and you will be assessed the applicable charge. Depending on the size of your shipment, this could potentially and unexpectedly add hundreds of dollars to your final bill.

Full Value Protection and Released Value are not insurance policies governed by State insurance laws; instead, they are Federal contractual tariff levels of liability authorized under Released Rates Orders of the Surface Transportation Board of the U.S. Department of Transportation.

General freight common or contract motor carriers, mobile portable container operators, and property brokers or freight consolidators DO NOT have to abide with the FMCSA's consumer protection regulations and liaibility laws. Their release rate valuation coverage might only limit their liability to just $0.10 per pound per article.

To learn more, read Understanding Valuation and Insurance Options which is part of the resource library at the FMCSA's Protect Your Move website at https://www.protectyourmove.gov/.
 

3.  Business days are not the same as calendar days when determining pick-up and delivery commitments or transit schedules.

When shopping online, budget conscious consumers or company transferees and new hires usually try to get the best service possible when planning their own move – especially those moving under the increasingly popular but more restrictive lump-sum corporate relocation or international mobility services packages.

Most try to negotiate the shortest pick and delivery service parameters for the cheapest price…and then are genuinely surprised when they find out what they actually bought.

For instance, depending the time of the week, agreeing to three business days for pick up could actually be two days longer than allowing three calendar days to have a mover get your things out of your residence at origin.

Allowing a virtual mover two to ten business days to deliver isn't the same as the 2-10 calendar days that a reputable mover might commit to on their written estimate/order-for-service. For example, using business days, the first agreed delivery date on a shipment picked on a Friday would be the following Tuesday. The tenth business day doesn't fall until Friday of the following week.

If calendar days are used, the first agreed delivery date would be likely be the following Monday; the last date falls on Tuesday of the following week – three days sooner than the above example. The longer the transit period, the more dispersion there will be in the contracted delivery dates.

Most household goods movers are specialized motor carriers that operate on irregular routes using both company employees and independent owner-operators who sometimes work seven days a week. Many local, intrastate and interstate LTL and TL general freight common or contract motor carriers and mobile container operators, however, only work Monday through Friday because of their mixed customer base and operating hours.

When shopping for your mover online, don’t automatically choose the company with the lowest price. You might be surprised at what type of relocation service you're actually buying … and what the sales person isn't telling you.

Instead select the local or long distance motor carrier or service supplier that will provide you the best value in your overall situation!

Related Articles:

Selecting a Household Goods Carrier for a Long Distance Move – RELO Roundtable

How does the moving industry measure quality? – RELO Roundtable

Rescission Estimates and Relocation – RELO Roundtable

How to Find a Reputable Mover: A Professional Guide – RELO Roundtable

Is shopping for a mover in a virtual marketplace safe? – RELO Roundtable

  is a mutually supportive but commercially neutral learning environment that deals with the trials and tribulations of movin’.

Have questions or need professional assistance with an upcoming moving and storage issue, or help choosing a domestic or international relocation product or service supplier?

FOLLOW US and SUBSCRIBE at: