The Transportation Intermediaries Association (TIA) has requested that an old regulation attempting to make pricing more transparent should be overturned. Their reason is that the trucking spot market is already transparent enough – even though most freight brokers have been stripping away transparency using restrictive contracts.
In March and April when the freight market to a nosedive due to the COVID-19 pandemic, some truck drivers claimed that freight brokers were price-gouging by posting rock-bottom rates knowing that many truckers didn’t have any other option. While brokers were being accused of pocking huge amounts in commission, the then-head of the TIA said that the average broker margin is around 16%.
The problem is, for many carriers there was no way to know how much the brokers were being paid for the load.
TIA even agrees – sort of – with that statement. They say that if they disclosed how much they were being paid for a load, the shipper would get upset because that would be disclosing sensitive business information. Yet that claim doesn’t stop TIA from asserting that “motor carrier transportation on the spot market is one of the most transparent market places in the world.”
“Load boards, the internet, and rate quotes in person-to-person communications within the industry provide the rate transparency that was intended by 49 CFR 371.3 when commissions paid by carriers to brokers were common,” reads the petition for rulemaking submitted by the TIA.
The regulation that TIA is asking to be revoked actually requires brokers to provide pricing information to any carrier that requests it. Nowadays, a clause revoking that right is found in most contracts which carriers sign to get a brokered load.
The Federal Motor Carrier Safety Administration (FMCSA) is asking for the public to weigh in on whether or not they should comply with TIA’s request to revoke 49 CFR 371.3. You can make a comment on the public register until January 25th, 2021.
Source: ttnews, federalregister, federalregister, overdrive, truckersreport, truckersreport
These guys, not all but most, will post .90 freight, and if they cant move it, then go up from there…they bribe dispatchers with kickbacks for pushing drivers to take cheap loads, they need to be forced to disclose what the load pays from the shipper, only that will keep them honest, cuz if they take too big a cut, then nobody will move there freight…let’s level the field, make there mon disclosure agreements illegal….full disclosure…we got disclose routes, verified by tracking, temps, verified by tracking, it’s time, past time to level the field…
Yes indeed, All carriers agree, stop the fake news brokers talk about. They only want to keep there greedy system of keeping carriers in the dark, I only have one word for brokers ” parasites ” for the freight sector.
What a joke! Try being a O.Op and ask your company for all the confirmations you haul for them- then in less than a week they find a reason to cancel your contract.
I’m not asked about my profit margin from the shipper or brokers. It’s private. I strongly disagree with any regulations that require 3PL (brokers) to disclose their rates from shippers. My rate I received is our business. A good deal is when I didn’t get enough and theypaid to much. Business.
If you let your truck be double brokered, triple brokered, everybody gets a piece of your money, then ur a good guy, going broke, but a good guy…I’ll give u a prime example… mcdonald’s load for there supplier, there prime supplier, everybody knows who it is…dallas to Portland a 1.00 a mile from the broker, everybody knows mcdonald’s pays top dollar to move freight, but after getting bent over by the brokers..I got pennies…goes on everyday, more regulation…please
Why would you keep pulling their loads? They keep getting away with it because they know that there are O/O out there such as yourself who will keep pulling their loads for pennies. Search the boards for better loads and make your money!
brokers are thiefs. need to work directly with shippers.
Tried to book a load with TQL Portland OR to Minnesota posted at $2400. Agent said the best he could do is $2700. I offered $3400. Found the same load same pick up and delivery address for $3400. Yes yes transparency is much needed.
Back on 1980 , companies show in the same pay statement, how much they get paid by brokers; of course brokers get paid more money for emergency loads .Drivers make 95% of the job, getting paid by cents, when others are waiting in the load to be delivered, and instruct to a driver e-mail the delivery order sign in order to get paid .
Huh?
I got a great idea…let’s eliminate 3rd party freight providers, if you don’t have skin in the game, you shouldn’t be able to offer freight…by skin I mean trucks, trailers, dot numbers,insurance…let’s level the field…we gotta pay for that, so should they…
16% commission is to high for someone sitting behind the desk the drivers should get more money in their pockets bc we take risk not the shipper, carrier or brokers
16percent is bull.they get a lot more
Your 100% right about that some make as high as 40% of the load. They call that “ negotiation room” but rarely make less than 20%, there is also the problem of price fixing ( setting minimum rates amongst brokers) in this day and age with communications the way they are the broker could, and should be eliminated all together.
Will it truly matter what “the public” says anyway? This has the look and feel of a dog and pony show, so they can claim they opened a public forum on the matter.
The public won’t care, because they’ll never hear anything about it on the air waves enough to care or understand. And the few voices who do say something will get drowned in a churning sea of corrupt cronies and trucking industry mafia-type bosses.
Give me a break!
Exactly!!
The public is referring to us drivers. Those fleet guys need to think about this too, not just owner ops. A lot of fleet guys become owner operators down the road. The stuff you ignore today might directly affect you later. Again, if you’re not willing to fight, you have to right to complain.
why don’t we ( as haulers) try to turn the tables and introduce an amendment required on every R/C that if the broker is NOT truthful or shortsighted, in selling the load then there will be an automatic percentage added to the freight bill. Besides, if we bill this item separately then it can go into arbitrage and then there will be a record of the practices of any particular broker on every load. it will be difficult to word , but amount of securement and any special handling / requirements, if omitted will trigger an automatic 5%. There are troubles w/ this particular addendum, mainly different equipment, but gotta start somewhere.
Geez! YOU ARE THE PUBLIC!
Transparent???… And yet they always can come up on the money when they really need it moved…I’m giving up my commission…😅😂
Their need to be transparency on the broker rates. The brokers are using and hiding behind the that clause in the broker carrier agreement to price gouge and affect small carrier like myself and many others. I fully and wholly support transparency on this hot button issue. Small carriers are hurting right now due to brokers alleging that the shipper are cutting rate so the small carrier are low balled when we know that the broker may be asking the shipping company for increase rates due to demand and a lot of small carriers are shutting down. due to high truck note, High commercial insurance and maintenance cost on equipment. The fuel rates are low right know and broker are taking advantage of the fuel rate also, I had a blow out in a steel whse a few days ago due to metal slag in the yard that is not magnetically sweep up. The front steer tire firestone cost me $439.00 on a local transfer from whse to whse with a day total of $275. Any large maint cost could shut any small carrier down at anytime with these low rate the broker are peddling in these trying times. All we as small carriers are trying to do is get an honest rate for an honest days work to put food on the table and keep our heads above the water during these trying times.
The bikers live by the golden rule, they have the gold, they make the rules
Yeah, but who gave them the gold and allowed them to make the rules. The “broker” has figured a way into the system by providing an easy path to the loads. This is a job that can be done by the transport company or the shipper, but its way easier with a broker. That being said, the cost of making a few phone calls to some well established known transport companies should not make them a single high commission (its a volume game), and should not give them the ability to gouge during times of distress. They used contracts with a lot of legal mumbo jumbo to make their role seem more pertinent than it is, and by signing, we are giving them the authority to control the rate.
The government gave them that ability. What do you think lobbying is for?
basically yeah. the problem shouldn’t be how much it pays as to how much you are willing to haul it for. this disparity is the heart of competition. the problem arises when the load is sold as one pick one drop and it turns into an all day affair at each end. if you don’t have any handling, at all. what do you charge over your cost per mile. for some it will be double, and for oversize that won’t cover it. these load boards were set up for easy backhauls and many would do it for cost just to get the truck home. now brokers see a decrease in the nationwide fuel price of 7% and decrease their payouts by 7%. look at loads out of New England, does even megacorp ( i use this as a generic, but i see some jackass actually named his outfit this way) have a cpm of a buck a mile?
There is another aspect to all of this & it is because many of us are morons. I cant tell you how many guys I’ve talked to and dont know what their cost per mile is much less their break even point. There are too many just flying by the seat of their pants.
Look. It all went to hell when Reagan deregulated the industry. O Ops have been getting pinched one way or the other ever since!
There should be no regulation protecting the brokers ever, I was an independent driver and and in April, Lost on Average $1,000 a Week Trying to Haul. As a single Truck owner, that forced me out of business. I had no regulations from the Government PROTECTING ME. I am friends with a broker out West, and he informed me that his company made so much money during the Pandemic, that he was given and all expense paid 7 day vacation fishing trip. The company offered several choices of destinations to all employees. The brokers take advantage of the small companies, knowing as a Small company, they cannot protect themselves like the government has protected them. Everyone may say, then don’t use that broker, Ok, exactly where do we go to get a fair rate? That is all any trucking Company wants, is a FAIR RATE
Go ahead and request it from some and see how fast you are “blackballed”!
The facts are that to be “truly transparent” they should put the paid amount on the rate-con! The simple facts are many of us get to places and find out from them that they are paying far more than we get paid to deliver for putting something on a board and a couple of phone calls…. while we do the real work of delivering it!
Truth is if you hauled military you know already that brokers start at trying to make 50%! I have had far tom any load where I got paid 5-6k to take across the country only to hear at shipper or receiver that they paid 8-10 for it (meaning them making an average of 38.5% pff the loads… and often up to half!)
We know in this industry we have a lot of “not college educated” individuals….. but that does not mean they are all stupid! We know the truth of what brokers are doing! I recently dealt with a kid a GA tech who brokers from his dorm room!! And made half of what I made on a load I ran! Drove me crazy the whole way to get it there ASAP … and when I got there I found out why…. if it got there by Thursday instead of Friday the receiver gave a bonus of $500 which I never got any of!
Things have gotten ridiculous! Not only are we now making less than we did 20 years ago…. everything cost more, and everyone is making more of the owners and drivers! And now we have all this going on with brokers!! Not only is it time to make them be “on paper” transparent…. but even set federal regulations keeping the broker from making more than 15%! That will actually make them work harder to get rates up for us, more load, and fight harder for more volume to make more come into the industry! While many employment field are making far more money (heck even fast food is now $15 an hour) we are one of the few that has not been adjusted for cost and inflation and in fact we actually make less than we did in 2000 as an average!!! Which is insane and all because of how poorly this industry is regulated of financial side but yet we are one of the toughest regulated on saftey side!
I agree with everything you said Sir!
The reason for these articles, is so that the PUBLIC, which means the hundreds of thousands of drivers out there (fleet and owner operator), can weigh in and sign petitions, or make phone calls, etc. Sure, voicing your concerns to a corrupt system might not get you immediate results, but putting it out there on public record will give the lawyers more ammo if a class action was to be filed. We need people to ask these brokers hard questions, to get their answers, or lack of answers, ON RECORD! The devil is in the details, and details is what wins lawsuits! If you’re not willing to fight, you have not right to complain.
I work mostly in new england area o/o, I think the broker agents up here seem to be in pack together not to pay rates above a certain percent. The only way you can tell is if you do a military load which shows rates or loads that you have been doing for years and see the difference in pricing, yes fuel surcharge has lowered but shipper rates have not . I see it everyday specialty loads that were paying 600.00 for 90 miles from 1 broker who handles that shipper now the same type of load going 250 miles pays the same broker agent pocketing the money, I dont do those loads anymore, but there are people that do cheap loads thats the problem they will always find somebody to haul these loads and yes if theres no response to the cheap price it will go up to hundreds of dollars more. (brokers have every excuse heard them all lying crooks)
That’s a fact…
If so many truckers are upset about this issue then why not open your own brokerage and hire trained people in that field to run the brokerage so they can publish the amounts. It is not a hard task. Find someone who is smart enough to collect from thousands of trucking companies to build and operate the brokerage. Then only broker loads to the trucking companies that invested in the brokerage. Kind of sounds like a union of truckers. Are trucking companies so stupid or strapped for cash that they can not form a union or a coalition of companies to outsmart these bully brokers? How much money does it cost monthly to operate a brokerage and what are the profit margins? Come on truckers…..work together and be smarter than your opponent. I drove for 4 years and got out because the lifestyle was terrible and the pay i was looking for was not achieved.
16% seems like an outrageous commission. Thinking of other services like Realtors, talent agents, brokerage commissions for stocks ( mostly gone now) and others are way less. Truckers always take it on the chin.
Brokers have zero risk, zero “skin in the game”, yet, they take 16% of the revenue for doing what? Making a few phone calls, posting a load, shuffling some papers. Do they have to buy equipment, fuel, insurance, tolls, pay for maintenance and repairs, drive, are they on the hook if freight is damaged or missing? Does the broker get stuck at the loading dock wondering if they will get stiffed on detention? No! They punch out, go home, same time every day, the O/O is out there until the work is done, the only one who really has any skin in the game.
In relation to what the O/O does and the risks they have, the broker’s roke is paltry, yet, they are the only one who, guarenteed, knows how much profit they will make off every load they handle BEFORE the load moves 1 inch.
That seems outrageous and is a very lopsided picture.
Time to level the playing field. Reveal exactly what the rate is that the customer is paying for shipping.
You spent more time then myself but At a Boy!👍
I wouldnt say the most transparent lol and they should run 100% transparent because their assentially a middle man that load coordinates. No reason for big profit margin cuz they dont carry potential unexpected cost like a repair for example.
Some time ago, we got a load, it was for 1500 for almost 1200 miles, due to a damage on the truck, we have to drop the load, guess what minutes later the load was again on the board but for 2100… so, yes they definitely play with us, pay what they want, and yes there are many o/o as my self sometimes doing this loads, fearing if we don’t the broker will not give us good loads on the future…
Brokers are crooked they should have no part in booking loads
Carriers:
If the load doesn’t cover your costs and provide a margin, don’t haul it. Know your costs, and you will survive. It’s none of your business what the broker is getting paid by the actual customer. You have no idea what costs were involved in securing the business and you don’t have any knowledge about the various value added services the broker may be providing that ultimately drives the pricing decision to make the deal work for all parties involved. If you want the business without the 3rd party involved, go get it yourself. If you don’t like the rate because it doesn’t cover your costs, understand your costs better and make better rate negotiating decisions. Also, avoid agreeing to percentage based pay deals with brokers. You won’t need to know the details or even worry about the rate to the customer this way. Last, it isn’t hard to identify brokers who have a history of treating carriers unfairly before you accept a load. There are plenty of resources readily available. Don’t do business with them.
Brokers:
There would not be a huge direct cost to providing rate information to the carriers. That argument holds absolutely no water for the vast majority of brokers. Brokers keep this information on every load anyway and at the push of a button, most would be able to provide the information if was required. But that isn’t the point. They shouldn’t be forced to disclose their margins on any load, ever. Nobody business gives away internal margin or customer information. Shippers don’t share this. Carrier’s don’t share this either. Why should brokers? All brokers have loads which provide good margins and some loads lose money. If brokers were forced to share this information with carriers, it would not add much to the cost of transacting business. However, brokers would have unreasonable exposure when carriers target their higher margin business. Free customer lists with margin information….you know some carriers would try. Treat carriers better when they experience unforeseen extra costs. Do your job and have the conversation with the shipper to get extra money for the carrier when it is justified.
Shippers:
If you think it is in your best interest to go along with the transparency logic, think again. Many brokers will leave the market if their ability to make money is diminished. It simply wouldn’t be worth the time and effort. They provide value otherwise they wouldn’t exist. Do you really want less service providers and reduced access to capacity options in this market? With rate information made available for carriers to review, you can bet your broker will have a much more difficult time getting competitive rates for you. Managing costs in this environment is hard enough. Showing your cards before future negotiations won’t make the outcome better. The pandemic placed extreme pressure on shippers to secure rate decreases to levels that were beyond unreasonable. You know who you are. Now you wonder why some brokers and carriers don’t want to allocate resources to your business. The ramifications of extreme rate cutting were quickly realized and it caused this transparency argument to gain traction. Yes, there were some brokers who decided to expand margin by paying carriers less when they saw the opportunity even though the rate to the shipper didn’t change. However, the vast majority carrier pay reductions started with the shipper, not the broker.
Bottom line, we all need to be honest with ourselves. This isn’t about transparency or the costs associated with providing transparency. It’s about making better decisions and minding our own business. There is a mountain of evidence that proves more government involvement to make things fair will not get a desired result for anybody.
Well said and true.
So true on all parties. The key is honesty from all three. You know the expression happy wife happy life. Happy shipper happy broker happy trucker. However there is almost always one of the three that’s not happy, then there’s no one happy.
All three,be honest, control your greed sensor.
The brokers are as transparent as a clean glass window. You can see right through them as to the crooked way they do things. Charge the customer or manufacturer a high price to take the load and broker it out to a carrier and or an owner operator that is looking to get moving and make some money to pay bills for peanuts. Brokers are getting rich. I think they should have to let people know how much they are making to get the load so we all can decide how much we get paid to haul it. Only fare, don’t you think. Or just get rid of brokers.. Just my opinion..
Liars and Thieves
I say each broker goes through a full audit and show invoices matching bills paid to drivers. Call customers involved and make sure their bills and invoices match.
Reality:
Most truckers will cut each other at the nuts to run freight… Dummy says to the broker — Hey man i need a back haul out of here… Code i will run cheap freight… Everywhere you go then is a back haul.
” keep the line moving,….there’s nothing to see here folks ! “
If the manufacturer is shipping their goods from point A to point B then the rate should be disclosed to the carrier, especially the owner operator who in the end will decide if the rate is appropriate and will cover his or hers expenses, if the broker gets whole of the paperwork and it clearly states that that particular load pays $6,000.00, then they figure the mileage from pointA to point B, he or she will then try to sell the load for $2,000.00, all the while the broker takes $4,000.00 after shafting the owner operator he gets squat for hauling it for pennies, while the carrier or broker who took the load takes that huge payday to the bank, it stinks to high heaven, there’s got to be a solution for a better transparency, from the broker to shipper or broker to the owner operator, nickel and dimming got to stop, the MATH doesn’t add up
Got to give brokers credit for having chutzpah, any broker who can say they are transparent, with a straight face has plenty of it!!!
They are crooks Taking $$ away for unrealistic fees
If you can cut out the middle man everywhere else. Why can’t you do the same with trucking? Their are too many people making money off a job they’re no doing. And legally they can get away with it. People who make up the laws for trucking seem like they’re paid to screw over Average Joe. Just so the can make a few extra bucks for a job they get paid absurdly too well for.
Here’s the deal… When it comes to rates , ONLY you can say yes or no , put the real blame where it should go. As unpopular as is,
You know it’s way more complicated then that.
There are times when I have to suck it up and get moving or I can just say no forever and not actually go anywhere.
I’m not advocating hauling cheap(er) but it’s not as easy as turning down everything that’s not exactly perfect unless you happen to be independently wealthy.
It is easier than you are making it to be. If all brokers had a set percentage they were paid the freight rates would be worth more than just fuel to move. It was this way before 1978 and trucking paid more than today. Imagine getting paid more than you do but fuel costing $.65 a gal and your truck payment being under $500 a month. Fight for a set fee for brokers.
When you call a broker to inquire about a load, it should not be a negotiation, it should be this is what I charged the shipper and after my 5-10% this is what’s left, you want the load, yes or no! I hate talking to brokers knowing that they are priming up to steal money from me! Why are brokerage firms able to grow, give bonuses to employees, take luxury vacations, steal money from their living room couch in their underwear but us small carriers are struggling to maintain single equipment? The trucking industry is a ses pool for earners to eat from trucking. Everyone not turning a wheel wants a piece of the trucking pie and they are getting it except the small carrier! Brokers are taking a back seat at the moment, offering more on loads because the magnifying glass is on them, but some are still offering ridiculous prices! Brokers have been over eating far to long, it’s past time for transparency, I wanna vacation, I wanna update my equipment, I wanna grow as a business but I can’t because more than my required profit is lining the pockets of someone who takes no risk, sleeps in their own bed nightly! Remember what we heard live from numerous brokers, “Beat Down them Trucks”, you think they were joking? To you brokers: be warned transparency is coming, we’re not taking it laying down anymore! To you small carriers and O/O: stay up, transparency is coming. Stop hauling cheap freight, it’s OK to tell a broker NO! Remember they need you, you don’t need them!
Transparent is enough. That’s the first lie. You will never see the real price. If the port workers gets a 30 to 60 thousand dollars bonuses every Christmas for a royalty. Then you have agent then a broker then you have owners then you have dispatchers then office staff then mechanic’s then insurance. Then fuel The the truck driver’s. With the driver is split again with company for 50. 50. Split of and average of 600.00 to 1200
So let’s say load pays. 800.00. – fuel 200.00 now you have have 600.00 ÷ 2 = 300.00 for and 14 hr day. oh yeah fees board, truckman “led” etc average per day 25.00 now you have taxes 60.00 now you have about 200.00 average 200. 00. ÷ 14 =. 14.00 per hr so upper people in the food chain has taken it all from the top. Just saying
Douglas Riesberg’s comments spot on, I don’t want anyone knowing what I make it’s not your business. As far as transparency issue, sounds like your all running out of people to blame for your own stupidity. Once they make them show everything your next. Then it will just be ref. Loads -1.80 flatt1.60 van-1.45 for everything..yea but hey you got your “transparency”. And for the kids that listen to the “old hands” if you made more 20 years ago then you do now you were hauling dope from LA to Atlanta. Takes a lot of miles to make 5 grand a week at .73 cents a mile and if you ran 10,000 miles a month you got a 3 cent bonus for all your miles. For you kids that can’t do math that means run your dick in the dirt we will give you a 360 dollar check for your efforts! Lol
Most of the comments here are ridiculous with a few reasonable ones thrown in for good measure.
Much love to you all, as ridiculous as you are.
I have an email from a Nigerian prince and he SWEARS what he’s offering isn’t a scam. So, if this Nigerian prince is honest, I’m sure trucking brokers are too.
Only thing transparent about brokers is their scotch tape. And even then I would keep some glue on hand just in case.
This is why I quit hailing general frieght 20 years ago..
And I’m a company driver..who gets paid percentage
I have seen brokers paid $4000 for a 1000 mile trip and only pay the truck $1000. That is a bit more than 16% try 75%. The big brokers have rules that you must average $500 per load you book all week. TQL fires you if you are below that.
Full transparency would be all brokers are legally bond to only making 7.5% of load. This would require all shippers and brokers disclosing their agreements to trucking companies. All other money goes to truck. Call your Congressman and demand new rules for freight brokers. Increase their bond to $250,000 to cover they thieves.
I am not a driver but i know there is more freight than drivers out there what ever happened to supply and demand. There should be a set rate for all lanes. Enforced by the truckers.