Question for other brokers- how do you determine rates?

brokerlife · Apr 20, 2014

Hi all, I was a broker for several years at one of the big brokerages and eventually grew tired of the companies shenanigans and all the shady unethical people I worked with, and left in 2011. After a few years of fun in the bar business, I recently came back into the industry as an agent/broker. I had an internal rate system at my previous huge employer, and rates were pretty accurate. Now I have nothing of the sort and bough truckstops rate mate program. It is virtually worthless to me. The rates are usually at least $1 off per mile on everything, if not several dollars off. My only other option is calling out to carriers that have trucks posted nearby, but I hate doing that. I dont want to wast their time or mine (all told it will take me a half hour or so to get one lane quoted with all the calls I need to make). To make matters worse, it seems like in the time I left in 2011 to 2014, rates have skyrocketed and are absolutely crazy!

Does anyone have any other service/product they subscribe to that has accurate, up to date rates that you can recommend to me?

mp4694330 · Apr 20, 2014

Welcome to The Forum.

Little off topic but if You don't mind:

what are Your criteria for choosing carrier?

-first one who call?

-authority lenght?

-safety score?

Thank You for answer!

brokerlife · Apr 20, 2014

I think you may have posted this in the wrong thread, I was asking how other brokers determine the rates to give to their prospects/customers.

If that was directed towards me: I dont worry about any of that stuff, the office deals with carrier setups and qualifications. I look on load boards to call outbound or take inbound calls if I post loads.

mp4694330 · Apr 20, 2014

Thank You for answer, was just curious.

Not a broker but found this.No idea how accurate or worth anything.

http://www.truckloadrate.com/

skateboardman · Apr 20, 2014

brokerlife said: ↑

Hi all, I was a broker for several years at one of the big brokerages and eventually grew tired of the companies shenanigans and all the shady unethical people I worked with, and left in 2011. After a few years of fun in the bar business, I recently came back into the industry as an agent/broker. I had an internal rate system at my previous huge employer, and rates were pretty accurate. Now I have nothing of the sort and bough truckstops rate mate program. It is virtually worthless to me. The rates are usually at least $1 off per mile on everything, if not several dollars off. My only other option is calling out to carriers that have trucks posted nearby, but I hate doing that. I dont want to wast their time or mine (all told it will take me a half hour or so to get one lane quoted with all the calls I need to make). To make matters worse, it seems like in the time I left in 2011 to 2014, rates have skyrocketed and are absolutely crazy!

Does anyone have any other service/product they subscribe to that has accurate, up to date rates that you can recommend to me?
Click to expand...

rates have skyrocketed???? you must be still drinking at the bar, that's a funny one, oh wait , you had to have been with tql or ch robinson..

bruceb · Apr 20, 2014

What kind of equipment are you seeking rates for ? Vans, reefers, Flatbed ? What lanes ? Dat has been pretty accurate for the lanes I work in. I start with the loadboard rate and look for posted rates to see that I will need to be more than any posted rate, also call some posted trucks to ask if I get the load what rate would I need to secure their truck. Check the carrier safety score, how many trucks, longevity in business, google their name to see if any bad reviews, look at their website if any. See if it is easy to get somebody on the phone or keep transferring me. If they don't do a good job for my query, I move on quickly as I need excellent communication. Speak with dispatch and tell them I am quoting and need their rate to quote. I see many people post that this is a bad thing to do but I have no problem speaking with them honestly and maybe that 1st phone call will turn into a regular partnership going forward. If I don't get the truck posted I ask if this is a once and done or will they be back in the future. Get a contact email then using their truck I will quote with capacity which is well received by my customer who is tired of getting cheap quotes and then their cheap quote doesn't have a truck to pick up. I run dry vans to New England from PA, Cal to Va, PA, MD. Vans or reefers to Fla, Flatbeds PA to NC, AL, TX. Dry Vans Canada to Dallas. I have regular carriers that do excellent work at rates they gave me but when they don't have capacity, I have to turn back to the load boards and that has been a challenge the last 5-6 months. There just aren't trucks that are available at any price to do and I tell my customers my predicament and tell them to go to their Plan B if any which there usually isn't and the freight sits there on the dock a day or 2 more until I can move it. I can't use any carrier with any yellow flag on their CSA scores which narrows my pool of trucks. It shouldn't take you 2 long to find out how to successfully rate a lane with capacity. Ask somebody at your new company to assist you with your requests by looking at their lane history to show what they have payed in the last 3 months within a particular lane. I have a rate quide from 8 years ago and the only real change has been the FSC. I try to get back with a rate from a request in 30 minutes, but if I need more time I will send an email within 30 minutes that I need a couple of more minutes to quote. You have to start somewhere and that's part of the job of becoming a trusted source IMO. I like ITS that shows me who is looking at my posting. I can't tell you how many times I call carrier who is looking and then I call them and tell them about the load and they agree to take it, but I had to call them. Nothing is easy, if it was then we wouldn't be needed. It also helps to work with a company that has a good credit score and days to pay rating. Welcome back and good fortune !

brokerlife · Apr 21, 2014

mp4694330 said: ↑

Thank You for answer, was just curious.

Not a broker but found this.No idea how accurate or worth anything.

http://www.truckloadrate.com/
Click to expand...

Thank you, yeah unfortunately I literally have nothing to do with carrier selection- its all done in the main office... Of course I book the trucks, but I'm not sure how they validate scores and check background etc. If, while searching boards I come across a carrier that has already done good work us, I will definitely give them preferential treatment and would be willing to pay more. I also did try out truckloadrate.com a month ago, but its rates are pretty far off as well.

skateboardman said: ↑

rates have skyrocketed???? you must be still drinking at the bar, that's a funny one, oh wait , you had to have been with tql or ch robinson..
Click to expand...

Are you kidding? You must not be a broker and arent running the "good" lanes right now. I pay $800-1000 for short MI-IN van runs right now (150 miles or so), $2800 from Kankakee IL area to Reading PA area dry (can only ever find IL carriers that always crush you) and various other lanes for the customers I have already acquired in this short time- and it takes me quite a while to get these booked. All lanes I post, very few call ins, very few trucks, and high rates. The economy has grown enough where there seem to be more loads than trucks in many areas, and what previously may have been a $1.50 per mile lane is now a $3 or $4 per mile lane. Good for trucks and drivers (I know you guys were getting killed on rates for the past few years) but bad for brokers until the customers start realizing everything has changed and no one will be able move loads for cheap for a year or two.

bruceb said: ↑

What kind of equipment are you seeking rates for ? Vans, reefers, Flatbed ? What lanes ? Dat has been pretty accurate for the lanes I work in. I start with the loadboard rate and look for posted rates to see that I will need to be more than any posted rate, also call some posted trucks to ask if I get the load what rate would I need to secure their truck. Check the carrier safety score, how many trucks, longevity in business, google their name to see if any bad reviews, look at their website if any. See if it is easy to get somebody on the phone or keep transferring me. If they don't do a good job for my query, I move on quickly as I need excellent communication. Speak with dispatch and tell them I am quoting and need their rate to quote. I see many people post that this is a bad thing to do but I have no problem speaking with them honestly and maybe that 1st phone call will turn into a regular partnership going forward. If I don't get the truck posted I ask if this is a once and done or will they be back in the future. Get a contact email then using their truck I will quote with capacity which is well received by my customer who is tired of getting cheap quotes and then their cheap quote doesn't have a truck to pick up. I run dry vans to New England from PA, Cal to Va, PA, MD. Vans or reefers to Fla, Flatbeds PA to NC, AL, TX. Dry Vans Canada to Dallas. I have regular carriers that do excellent work at rates they gave me but when they don't have capacity, I have to turn back to the load boards and that has been a challenge the last 5-6 months. There just aren't trucks that are available at any price to do and I tell my customers my predicament and tell them to go to their Plan B if any which there usually isn't and the freight sits there on the dock a day or 2 more until I can move it. I can't use any carrier with any yellow flag on their CSA scores which narrows my pool of trucks. It shouldn't take you 2 long to find out how to successfully rate a lane with capacity. Ask somebody at your new company to assist you with your requests by looking at their lane history to show what they have payed in the last 3 months within a particular lane. I have a rate quide from 8 years ago and the only real change has been the FSC. I try to get back with a rate from a request in 30 minutes, but if I need more time I will send an email within 30 minutes that I need a couple of more minutes to quote. You have to start somewhere and that's part of the job of becoming a trusted source IMO. I like ITS that shows me who is looking at my posting. I can't tell you how many times I call carrier who is looking and then I call them and tell them about the load and they agree to take it, but I had to call them. Nothing is easy, if it was then we wouldn't be needed. It also helps to work with a company that has a good credit score and days to pay rating. Welcome back and good fortune !
Click to expand...

Thanks for all info Bruce! I move all loads- van, reefer, flat. Right now I am scrounging whatever I can that will bring in business (as long as time/money are reasonable) and ideally over the next 6 months I will be able to add/subtract customers to maximize my time and monetary return. Which DAT program do you use? I currently only have the shipper contract rates that pop up, but none are ever close to being accurate spot/market rates. I think maybe they fact that you are moving loads out of PA has allowed the rate guide from 8 years ago, or even the DAT rates to reflect little change? I think I will use your method of using ITS to see who viewed my posting as well- that's definitely helpful. I completely despise the produce side of logistics but may get into it a bit- since everything else seems like spot quote city right now, may as well make the big hits and take all the stress that comes with it.

sonnyp · Apr 28, 2014

If you do get back into the produce side of the business, this site is very helpful.

http://www.ams.usda.gov/mnreports/fvwtrk.pdf

WallerBroker · Apr 30, 2014

I've noticed the same thing too. I work in the brokerage department of a truck company, and my rates are just too high. Although, I do have potentials and customers who are just extremely cheap. And I am baffled on the rates they tell me they usually do it for, or what their target rate is. I am always wondering who are these carriers and or brokers who can be cheap. Did they land on a backhaul lane or something?

Fastnlo · May 17, 2014

Where do yall post your loads? (If you do...) I was stuck in the chicago area last week because noone wanted to pay over 1.44... I figured it was a bad lane and ill never go back! I had to deadhead to Indy to get a cheap load going home. Id just like to know where i can find a decent broker to work with....

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