How important is the role of brokers in trucking business?

Discussion in 'Ask An Owner Operator' started by Konrad Po, Oct 9, 2014.

  1. Konrad Po

    Konrad Po Bobtail Member

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    Can you imagine industry without brokers?
     
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  3. double yellow

    double yellow Road Train Member

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    No. They are middlemen, & while it is tempting to say they are parasites that do not actually produce anything, they allow shippers & carriers to be more productive. As long as there is competition between brokers, their price should be commiserate with their utility.
     
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  4. gokiddogo

    gokiddogo Road Train Member

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    Impossible. Trade imbalances and truck availability and market demands are always changing. Even if it was all contract freight, what happens when a customer has an extra load pop up? That shipper finds an independent to haul it? He likely gives it to his regular carrier and tells him to take care of it. Now he brokers it out. It is a necessary evil.
     
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  5. moraramis

    moraramis Light Load Member

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    It would mean you'd have to instead be bonded at a minimum of $75,000 dollars. Shippers pay slowly also. When a broker pays you that doesn't mean the shipper paid them first, it means they paid you out of their own pocket so you won't make a claim against their insurance while they are waiting for the shipper to pay. While I believe pay will increase for drivers if middlemen are removed, it won't go up that much because shippers will have to hire and pay people to find drivers for their loads.

    I honestly believe that low wage carriers underbidding everyone due to their cheap labor hurt the industry more than brokers do.
     
  6. Konrad Po

    Konrad Po Bobtail Member

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    sounds like lack of technology allows brokers to exist - if shippers/receivers were able to access vast market of drivers in the matter of seconds - no need for brokers, as I see it. drivers would only win having to deal directly with logistics departments of companies.
     
  7. wichris

    wichris Road Train Member

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    It exists now. Called the internet and load boards.
     
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  8. freightwipper

    freightwipper Road Train Member

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    I don't see why a shipping company can't simply post loads themselves at a rate and approve carriers from within.
    I'm sure it would cost them LESS than paying brokers to do it as a middle man
     
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  9. wichris

    wichris Road Train Member

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    It's the BS that goes with it unless they're working on contracts. All the perfect carriers are on these forums, you have no idea how bad the others are to work with.(LOL)
     
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  10. Konrad Po

    Konrad Po Bobtail Member

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    When I said technology, I meant there should be a mechanism that includes also lots of legal details that are taken care right now by brokers. With load board you are still dealing with brokers, aren't you?
     
  11. wichris

    wichris Road Train Member

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    Plenty of TMS systems that will auto update current carrier info. There are services that will "qualify" a carrier for you(specs that you set) or you can do it yourself. Far easier for many to turn all that plus dealing with a carrier over to someone else.

    There are load boards for shippers only and many list loads on other boards
     
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