“The brokers make too much”

Discussion in 'Ask An Owner Operator' started by Long FLD, Apr 24, 2020.

  1. Long FLD

    Long FLD Road Train Member

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    Actually I wish deregulation never happened. Because guys like me whose family had interstate and intrastate authority would be sitting in tall cotton while most of you guys wouldn’t have been able to buy a truck in the first place.
     
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  3. TallJoe

    TallJoe Road Train Member

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    I was not specifically referring to your post. I agree with your logical thoughts.
    I meant those who were so appalled by the byproducts of the same unregulated environment that they are in favor of. For instance, why regulate these aspects that suit them well e.g labor law, HOS, ability to acquire authority (wanting it to be stricter) while not regulating other aspects that they deem as unfavorable for them.
     
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  4. Long FLD

    Long FLD Road Train Member

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    If you re-read my first post again you will see it’s strayed from my original thought. I’m fine with the way things are. I don’t want rate transparency. I don’t think the shipper/broker agreement should be know. I think if people want to haul for $1 a mile then they should go for it. They won’t last. My original thought here was that I couldn’t believe supposed “business owners” are in favor of the government saying how much someone else should be able to make.
     
  5. Midwest Trucker

    Midwest Trucker Road Train Member

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    Still waiting on an answer to this one. How about a super hot important load that HAS to go. I have $3000 in it and I’m paying the carrier $3000 because the market is tight and it’s gotta go. Then, all of a sudden the carrier calls and falls off. Now, in a panic the only replacement carrier I can find wants $3500.

    What government regulation should apply to the carrier who fell off? What government regulation should apply to the new carrier and their “price gouging”.

    Here is another scenario only with market conditions flipped on its head. What if I have $3000 in the same load and when I ask the carrier what they need to get it done, they say $1400? What government regulations should be applied in this situation?

    As a broker am I allowed to lose money in scenario one? Am I allowed to make huge money in scenario two out of the carriers ignorance? I’d love to know how all of these regulations apply to these two free market real world situations.
     
  6. p608

    p608 Road Train Member

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    that wouldn't happen, in a regulated industry the price is the price, it is published and known by all
     
  7. Midwest Trucker

    Midwest Trucker Road Train Member

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    Ok, so scenario two equates to hand holding by the gov.

    scenario one?
     
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  8. TallJoe

    TallJoe Road Train Member

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    You can forfeit your 15% or even take a loss in case the load must move now. On the other hand, you can demand a hefty fall off fee in the rate confirmation. All I am asking for is that a carrier is entitled to the 85% of what a shipper pays you. Also, I dont want any carrier to move it for less.
    If we cannot establish a reasonable minimum rate, that's fine. The cheap freight will stay as a result and we will possibly operate at a loss too but at least we would know that brokers are not screwing us as bad. It would feel better, if nothing else.
     
  9. TallJoe

    TallJoe Road Train Member

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    No need for a price book per se. Just a fair split.
    I propose 15/85.
     
  10. Long FLD

    Long FLD Road Train Member

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    Also for the ones that want set rates for everyone, in Hawaii the PUC still sets the hourly rate for trucks. And guess what? People still lowball to get the work. All they have to do is fudge their books so everything looks correct before their PUC audit.

    I don’t know the answer for you guys stuck running the spot market. But I do know the last thing I want is the government telling any business how much they’re allowed to make or profit. And that’s how this thread originally started.
     
    wore out, magoo68, clausland and 4 others Thank this.
  11. Lyle H

    Lyle H Road Train Member

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    A fair split for you is not a fair split for me, or the next guy, or the next guy, etc....
    If you can't negotiate the rate you want, well...well.... they won't allow me to say it here.
    Owning a trucking business may not be for you, maybe just stick to be a company man.
     
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