Freight brokers are in hot water with truckers right now. Protests across the country have popped up with drivers blaming brokers for low rates and accusing them of price-gouging during a national emergency. Some protestors claim that brokers are taking commissions as high as 65% on loads of emergency supplies.
Last week, the head of Transportation Intermediaries Association (TIA) posted a video to Youtube blaming carriers for low rates and saying that some critics of freight brokers are “snake oil salesmen.” He also said that trucking prices are “incredibly transparent” and on average, broker margins are around 16%.
According to Overdrive, there is a little-known federal law that requires brokers to keep records of all transactions. They also need to provide that information to carriers who request it. But in most freight broker contracts there is a provision which requires a carrier to waive the rights provided by 49 CFR 371.3 – the section that allows them to request information on the load they just hauled.
The Owner-Operator Independent Drivers Association (OOIDA) has sent a letter to Congress asking them to include two provisions in the next COVID-19 relief bill:
- Require brokers to immediately provide an electronic copy of each transaction record as required by 49 CFR 371.3 once the contractual service has been completed. No exceptions.
- Explicitly prohibit brokers from including any provision in their contracts that requires a carrier to waive their rights to access the transaction records as required by 49 CFR 371.3.
In an email to FreightWaves, the head of TIA said that these requests for information are so rare that a member of his group has been a broker for 27 years and has never received one.
Weigh in with our poll on broker regulations here!
Source: freightwaves, overdrive, truckersreport
I have been stating this for YEARS. You ask for it…they MUST provide it. Now, you may never haul a load from them again, but they must comply.
Driver I been in this Business 40 yrs and I have always asked for the rate…and have had some brokers tell that if you want to continue to haul don’t share the rate….Well trucking is a Brotherhood
What?
Is oneida gonna post how much they make as well and it’s a lot into the billions that they make as well off truck drivers they are no different than the rest.
I don’t agree with this nobody is forcing anyone to use a broker so why should they post their profit are you going to post yours.
No I don’t agree
I brokers make comments about you as a carrier. I honestly think it could get you black bawled from working with a brokerage. It’s not the brokers it’s the shippers.
Think about it how are they able to ship it at the rates they are in some cases 1.00 mile because the trucking company is picking it up.
Shippers are more than likely paying 3.00 to 4.50 a mile plus paying the fees when carriers are waiting at the dock. So the broker runs to the bank laughing with 2.50 to 3.50 a mile for a phone call. They are thieves, 5% is more than fair for a phone call.
They are correct though to a large degree, there are carriers that will pay the broker to haul the loads. These are the carriers you see with baling wire and duct tape holding their bumper on. Unfortunately because of these idiots the rest of us are screwed
Brokers actually aren’t even needed these days with the available technology. Why go through the middleman…
Totally agree !
Couldn’t agree more. No reason for the outdated broker system to even exist.
The tech company then rips you off instead, like Uber.
Transparency is the Key.
I propose that the law be made that requires that the bill of lading have printed on every copy the entire rate to be paid, including all accessorial charges and any others fees or charges, and the complete name, MC#, and address of the carrier or broker the load was originally tendered to.
The law should include massive fines and prison time for fraud, or failure to disclose in full the entire amount paid.
👍🏽
Definitely agree 🚛
I’d like to see the full listing or rates listed on the B.O.L.’s myself.
A broker that I typically deal with is making a ton of money off of us right now. The rates from my previous invoices have dropped hundreds with the same broker. Broker is called echo logistics there out of Chicago. unfortunately for the company that I pull for they use only a single broker.
So a few weeks ago he gave me a rate that was $250 less then I did two and a half years ago. I told him I want the same right so he made me stay home.
I tried to find work someplace else but all the rates are very cheap at the moment.
Fortunately I am direct with one company and their business is starting to pick up again, thankfully not brokered.
Wish you the best of luck driver
I USED Echo a few times several years ago. notice – few times- and years ago- they dont seem to have changed
If you ask for it, of course you will never get another load from them again. Let’s press for disclosure BEFORE we agree on a price, this would stop the rates paid to trucks from being kept artificially low by the brokers; if it’s so transparent, then WHY SHOULDN’T it be disclosed up front. Furthermore, no more of this “that’s all we have in the load” “we’re only making $20”. No more, “the market’s flipping”, or “there are a lot of trucks that want to go there” or “fuel prices are down”. Last time I checked, I was the one paying for fuel, and any “surcharge” is included in whatever low rate you can squeeze out of them. It’s never an addition on top of the rate. The private contracts I’ve been engaged in were bid on a yearly basis. So, when they’re refusing to pay, giving these excuses, they’re pocketing the money, laughing all afternoon. I have taken economics classes and fully understand supply and demand, and the volatility of the trucking industry, however, there’s NO reason the loads should not pay FAIRLY, regardless of the direction the loads are going, or what time of year it is, and most certainly, we should not be gouged during a time of national emergency! If the rates increase seasonally to attract more trucks here or there, geographically, that’s how it should be, but the basic rates need to be FAIR. We shoulder ALL of liability and ALL of the expenses. We pay out more money monthly in insurance, licensing, expenses, equipment costs, fuel, and repairs & maintenance, than some people earn in an entire year, and we still have our own households to support on top of all of these operational costs. In these hard times, when food and materials are so needed, and brokers are refusing to pay, without a fair rate, the only unfortunate option is to leave it on the dock and put the truck in the wind. I may be standing on principle, and I may be standing alone, but I’m still standing tall knowing the quality of the service I provide is way more valuable than the .68 to $1.00 /mile.
It has turned into a Crap show. I agree with your comment.
I’ll proudly stand with you brother.
I’ve been driving truck for 23 years is about time that The hard-working drivers do something about these brokers Bunch of lowlife taking advantage if One look at it they make make more money than us Sitting at home When we had to be out there for months I hope something be done about this
You need to Thank Rick Santiago for all his efforts with the #mayday weekend who Truly put this in gear. He did more than anyone ever has in this effort and is still pushing. I’ve been sitting since April 23rd, I can’t afford to haul loads at .80 cpm or even a dollar a mile, I’d rather go broke sitting than go broke making these BROKERS money. I hear all these drives complaining about the rates but not even half will Unite and fight for our rights. Just my opinion
We shutdown Apr 2nd, haven’t pulled a load since. Rates are garbage. Waiting it out, to see if it improves any… With today’s technology, we should be able to cut out the brokers, all together…
Ooida is a joke.
I would have to say that you are incredibly ignorant of what’s been going on for the last 45 years and how much OOIDA has done for the small business trucking companies.
But then I assume you’re just a simple minded nymph parroting some fool you think is cool.
WTF does this broker issue have to do with “a massive infrastructure program” cited in the Truckers Report?
And why does your report lie about Republican non support for the project?
Say? They must send paperwork so we can see!
Yes it is our rights and the law that they show us
There are a lot of factors involved in this. Yes, there are truckers who are willing to haul cheap paying loads, and it seems at any cost. You know what I am talking about—Miami. They are a problem because they allow industry truckers to be taken advantage of across the board. As long as brokers can find suckers, they would use them! Then there are the brokers. Yes, the brokers are robbing you blind. When a load (shipper) is paying the broker $2500 and you the trucker are getting $300 to haul it, this is highway robbery and it is happening everyday. Those brokers Iike Landstar, CH Robinson, etc., are ALL scammers cheating the truckers. Brokers need to be regulated, but the problem is who does it. I don’t know about you, but everything that the US government gets involved in goes to hell. Look at all the bogus trucking regulations we go through—ELD, IFTA, UCR, Insurance, etc. I refuse to haul cheap paying loads. It implodes on itself when you do. First it starts with not being able to cover fuel costs, then maintenance, then all of a sudden a major repair comes and you, the trucker, are SOL. I have been in trucking under my own authority since the 80s, and this year we closed shop. I much rather drive my truck around our farm or a night out to the local steak house before I will run it into the ground for cheap paying loads.
You nailed it brother. I continue to bid on loads, keeping the price about 1.75 per mile and my truck has not moved in weeks.
Correct 100% I won’t haul CHEAP freight either.
As long as these mega carriers haul it though we are going to continue to see cheap rates which sucks. Like
U S Express
Swift, there was another one I forgot the name but these are in the top 5 of largest companies and made the list of THE WORST COMPANIES TO WORK FOR!!!!! Now ain’t that an honor to have but as long as idiots like these keep hauling CHEAP FGT. We are screwed
Like I said before Driver we need a voice to speak for us while we make our living we need to get back to Normal Trucking without ELD’s HOS…let us run as we did FREE.
Their should always be some transaction between broker and driver to show how much the load is paying to to protect the driver or the Dispatch whoever is in the transaction.
The reason why this activity has been going on for so many decades is because the lobbyists in Washington are being paid by all these shippers and receivers soccer moms who are voting to put a certain kind of president in the White House. I like President Trump but when this kind of thing happens they regulate the cost of freight that’s being shipped across the country. The Brokers are the middleman. True the Brokers are taking much more than their fair share because they are allowed to by the government. No soccer mom wants to pay 5 $6 for a gallon of milk. Think about it. I’ve been driving for 30 plus years now. I’ve been saying this for years and I’ll keep saying it today. 95% of this nation hates truck drivers and has a disdain and a gross disrespect for truck drivers. And their eyes we are nothing but faceless grunts on the highway.
There should be contemplate transparency from origin to end user, not just brokers who skim off the top.
I don’t blame the brokers, they are in the business to make a profit, I blame truckers for hauling the cheap freight, if you don’t move the load they have to pay more, as simple as that.
But the thing is Driver…you shouldn’t have to ASK someone if they are Screwing you over.
Amen
Don’t like the offered pay? Don’t do the job. How hard was that?
Brokers should be Capped…let them NEGOTIATE with the shipper for the best price to reach their rate, but let us Drivers know that we are getting great rates knowing that the brokers are capped, after all we do 95% of the work.
And the governor will require you the trucking company will have to provide certified records of what it costs to run your truck per mile, and your profit will be regulated. Be careful what you wish for ,just like hours of service and eld you will get it.
No driver asked ELD. You must be an agent.
Through IFTA, the government already knows what it cost to run your truck per mile, or at least the States do. That is not the issue here. The fact is that trucking is over regulated already, and anything that our Government touches will turn to crap and will often play into your pocket. The truth is that load rates are not meeting the overhead cost! What I mean by overhead is what it cost to be in business and maintain your truck. Over 800 trucking companies went out of business, including some rather large companies, in 2019 alone. Even the large ones will implode because the gap between income and expenses is far too wide and in excess, and you can’t take from Peter to pay Paul!
My advice, IF YOU OWN YOUR EQUIPMENT OUTRIGHT AS AN OWNER OPERATOR, is to shut down and deactivate. Reason I say this is you will be pay more out right now before you even turn a profit. If you have the ability to fall back on another trade you may have, do so! Put that Pete, K-Whopper, whatever you drive in the garage and wait for the storm to pass. I can’t guarantee that this will turn around, but at this point you risk placing yourself in more debt or out of business. Either way, you lose!
While at it- eliminate the other big scam- LUMPERS. Krogers , etc. knows a load is coming- they ordered it- it should be between them and the shipper to pay any lumper service directly . There should never be any reason for the driver, the trucking company or the broker to be involved in any way unless there is an issue created by the driver/company. Also- it should be required that all shippers ensure their pallets are stable and pallets not jammed on top of each other (coke, niagra) that encourages the load to fall over
The pricing problem is with the truckers, most of them have the cheap and desperate mentality. Truckers are screwed over because they have placed a cheap premium on themselves. Truckers need a strong representation to stay relevant in the scheme of things.
Unions
Full transparency, what’s the big deal. We deal with Full transparency every time DOT looks at the driver. Of course if you asked “ Kevin Rutherford“ he would say the truckers are wrong, and that we “need” criminal brokers.
The movement of loads from points of originations to points of requirements are made possible by the truckers. The truckers are indispsensible in the equation of load movements. They are a link that cannot be taken for granted, however the truckers need a common voice. Independent operators need to have a platform on which to function and do business. Truckers please get organized and we shall be better for it. Stay safe out there.
I agree organization is what we need
This sounds good but we ALL know or should know that this isn’t about transparency for us this is about transparency to the government and to see how much more they can skim off. It’s never about the people that a situation REALLY affects. It’s ALWAYS about some hidden agenda that we’ll find out about later. Also we don’t have any unity with one another in the industry. We get caught up. When negotiating a load I’ve lost and plenty of times had brokers call me and say the load you wanted but lost, I’ve got a carrier hailing it for this amount and if you can do it for less I’ll give it to you. I always say no but there are plenty of carriers that says that they will under cut the next carrier. Also we need to realize that no matter if you’re a company driver, owner operator, or you have your own authority. We are ALL affected by the rules that’s made for the industry. Of course we’re not affected in the same way but it’s ALWAYS a trickle down affect.
become a broker
Yep if you can’t beat em
join em!!!
I see no problem with that, of course i run my brokerage different. I run it as a dispatching company and the owner ops see the rate we get minus the fee which depends on the contract. 5% or $100/per truck weekly to dispatch and no broker fee. Transparency will always win. Of course iam an owner op as well and probably why i do it this way. But yeah the rates are ridiculous on the boards, fuel increasing while rates are dropping. I think that it be easier if all software puts a cap on the % a broker can take and then there be no problems. Now for shippers when are they going to have a bond so we can charge them for acting as a warehouse for hours and not getting paid?
Shippers should have to put the rate on the bill of lading when the trucker gets loaded, that way we don’t have to ask what it pays and what they are making. Brokers should only get a max of 10%. Then the brokers need to be audited like truckers to make sure they do not receive more.
How many other business’s do you ask to see this ?
This is the only solution
Very simple mandate shippers to print the rate in BOL
Intersection of the incompetent and uneducated. Truckers are unhappy enough as it is and truckers union want to scoop more gravy onto the unhappy. Grow up and learn to do business in the world of the business people.
We did it to ourselves, new laws, new rates and not to mention shippers/receivers charging us to load/unload their own products. And it seems that we tend to knuckle under to these things. We have no one to blame but ourselves for letting it happen. Now we have the ear of the White House, we should try to work things out to benefit us and them to build our lives to be better.
Who in the WH is listening to the OO ? I don’t feel that things have changed for the better in the past 3 years. Been driving for 13 so I have a frame of reference… G
look at the rules changes implemented under this admin- so far- 17 of 21 rulings have been to benefit of o/o and smaller companies. At least 3 of them they final rule implemented was 180 opposite of what had been proposed during the previous admin.
Unfortunately- we did lose out on the really big one- the ELD mandate- andthat flat out is because too many people in Congress even have too much money to lose in all these ELD companies
I stopped hauling through brokers years ago. I make deals with shippers I don’t trust any of those blood suckers. A rumor was put out there that there was a shortage of drivers in order to create competition to drive the price down, it’s that simple. There needs to be accountability for the broker up front. Than whoever’s taken the load will get a fair rate than maybe those beat up truck could make enough money to be fixed.
Totally agree with you brother, I’m out here sitting,refusing to haul anyone’s cheap load, they can haul it themselves.
We are our own worst enemy. Say No To Cheap Freight !!!! People (on here) say we need to organize ??? What do you think OOIDA is. Don’t listen to some big mouth, know nothing bashing. OOIDA is a platform and it is made of DRIVERS. AND the whole idea of transparency…WE ALREADY HAVE IT . What, you want another Law to protect a present law. How stupid can you be. Yeah you asshole. You haul cheap freight. Cry, pies and moan. You’re a bad business person. Who cares what the Broker makes or shipper paid. ALL YOU NEED TO WORRY ABOUT IS WHAT YOU MAKE. Applies to OO, leased or Company Driver.
My advice: park it, speak up, learn how a profitable business operates, don’t be a follower, stand for something or you’ll stand for nothing, don’t believe all the defeatist negative B.S., look at our industry as a whole and how each segment is a Brotherhood and quit profiling.
Stay safe. Stay healthy
That guy needs to be the leader the voice for all of us
And Brokers are now lying more so now than ever before.
They are withholding way too much of the load info during call. Most do not know what the hell they are doing and last, the female Brokers sre the worst lot I’ve seen on any industry.
Note: I do believe that the majority of female otr truck drivers do a great job!
It’s pretty easy to figure out, call the broker and tell them you are a shipper and have a load sitting on your dock, (actually on your truck) and see what they quote you
I hauled a load for a huge company (sounds like k.d. runt.) They paid me $1,200 for 185 mile short haul. Round trip from my house paid well. I asked the broker if he could do a little better (my job to ask.) He said we’re getting $1,270 for the load, we have to keep at least the $70. When the load was done, I called him, and he said I have two more of them, if your interest they’re on the app. I went to the app, offered $1,200 on each. They countered me $635. It clearly was a different person. I messaged him that I just did the same load for $1,200, I have to do better than that. He countered at $675. F-ing crooks! I believe it’s also the company that’s behind the Trucking Futures Trading scheme, designed to keep rates down for owner operators. I saw a DAT report saying the shippers are paying the same regular price. The brokers are just making more.
I’ll tell you what the whole problem is, most people’s hearts are full of greed nowadays! And it’s only getting worse! I’ll be so glad in a few more years after 25/30 years of driving truck I can finally get paid a day’s work for a day’s pay cutting and selling firewood,from then on, no one’s ever going to screw me out of a day’s pay ever again!
Two things that can help all trucker. First is a true union, not local something or other but an organization that represents every single CDL driver in the US. Owner or company alike. That way we all can get access to a way better legal representation, reliable pension and an upper hand in a political system (just imagine what can be achieved with a power of 1.5 million voters) and a lot more. Second – today technology makes all brockers really a thing of the past, it is just a question of time and investment… and continental cloud based load board that is available to every shipper will be there to fade all the brockers in to the distant memory. And while the universal load board is a sure future, the union on the other hand is an almost impossible due to “grab as much as you can for yourself today” mentality. Small groups that are able to organize fail to achieve anything.
Learn how to do tracking business ,don’t do cheap loads ,ones you have done the load ,the broker will let you know how stupid you are………. Come on,guys,it doesn’t works in this way……OK? If I have my truck and trailer paid off,no rush on mortgage or so,I can wait for better rate,but another guy starting the month with minus $5…..$6 thousands will do even $1/ml for reason…..OOIDA knows that the brokers are robbing small and middle size carriers for many,many,many …years.If they really trying to take care of them/it means for o/o as well/,please ,open load board platform ,there this carriers /who are no so ugly to pay for brokerage license/can meet the customers /shippers ,receivers…./who a not so lazy to take care of there loads/.
A 20% rate should be enough off the top for brokers
Why do we even need a broker? It would be a lot better if we cut the middle man and deal directly with the shipper. It is so unfortunate
Anything over 20% the broker is being greedy. The carrier has to cover the overall operating costs so the carrier should get the bulk of the money.
I am a new o/o as of 6 months ago. Been driving for for 13 years as a company driver. Its been very difficult to get all my bills paid. I find myself searching for more ways to cut cost. Had to fire dispatcher he wanted 10 pecent of load. Im stopping to top off when i see low fuel when its not necessary to complete the load. I feel like the brokers are low balling me i offer high but resonable and they counter dirt cheap and dont budge. Ive had to pass on some good loads becuase the rate was disrespectful. Ive been averaging 1.3 to 1.4 mile and im not very thrilled. Bearly making it. With so many different commoditys. I feel many loads would have significant price difference per load. Why is everything 1.00 to 1.60 a mile at best. All information should be diclosed thats just good buisness, should be law without a request that whould make you appear to be confronting brokers that wouldn’t be good buisness. We supply the goods that make everybody else comfortable at home and should be well compensated. Not treated like mules. Thats my rant for the day. Stay safe drivers, rested. God bless.
I park my trucks and I won’t haul load less than 2,50-mile No matter what, broker and Shipper are Greeding, Not only broker, All problems coming from Cerrier because they are cheap, I recomend all Cerrier get they own broker license then you can Control Shipper and other broker who hasn’t Cerrier
There are bad broker but this is stupid. We should all know by now things will go to shit once the government gets involved. I’ve drove for 3 years. I run a dispatch service looking for freight for carrier’s so i know about cheap freight but i also run a brokerage and people are under the impression that we have no bills. If i get a load for 1000 and i am capped at 10% its not to bad thats around what i normally take but what about factoring. 5% and pay the carrier 900. That leaves 50 dollars. Cargo insurance bond tms load boards phone internet and other things 500to1000 a month we beed to make money to. If we don’t do anything and it’s that easy to get shippers stop bitching and hauling for brokers and go get your own shippers. Since its that easy. Go do it
They should also look into the fact that a lot of these brokers are over seas brokering the U.S. loads. That to is ILLEGAL. And as far as them disclosing the info on the load is not any different then the companies do the driver. It’s not hard to reprint that document to show it pays less then what it actually payed.
anyone that uses the “Book it now” option on any app is a fool- and a lot of the problem. You are getting at least 30% less than what you would get with a bit of patience
When I ran off percentage if they didn’t tell me, I didn’t haul it. Thankfully the few brokers I delt with was really cool about it and wasn’t trying to screw people. If you let them most will and why would anyone haul something without knowing what it pays, thats just plain stupid.
If only there were an entity that fought for drivers rights,protections,health and pay
I cant remember this organizations name but it seemed to benefit drivers and enabled the middle class to flourish
What was this organization called? Can’t quite put my finger on it