Broker to carrier spot, who decides the rate and fuel surcharge?

Yes and no. DAT and ITS both get their numbers from the factoring companies as far as what's being paid on the lanes/what broker credit/days to pay look like. It represents a section of the market, but it isn't the whole picture, necessarily, either.

 

They lump everything into the rate pot and average it out. That includes permit loads, hotshots, drop deck etc etc. Sorry, but that's garbage IMO. Also, I routinely see that same loads posted from multiple different brokers and each one will vary significantly from the other...all of which are too low no matter what. People hauling for those rates are leaving a lot on the table.

The credit ratings come from everywhere too, not just factoring companies. Speaking of which, those reporting agencies only accept Accounts Payable data if they can link directly to your Receivable system according to Ansonia. So most OOs don't, or won't allow that capability to them. OOs are most of the trucks on the road so think about all those slow paid invoices that never get reported.

I used to send in completed forms to Transcredit but DAT and ITS no longer use them. That's not a coincidence. I check every new brokerage who calls me against Sunbelt Finance (a very large factoring company) and their DTP numbers are always at least 7-15 (late) days different than what ITS shows.

Everything ITS and DAT does is in favor of the brokerages and it shows time and time again. If a carrier uses skewed data, they're making a huge mistake IMO.

 

I'm not saying you're wrong; I'm just saying that it is based on an actual chunk of the data, and not the whole pie. And in a lot of cases, the loads that are posted roughly the same, it's customers dictating the rate that they want to pay, versus what the brokers or carriers think the rate should be. As far as the credit ratings on their sites, I'd need to look into it more closely, but I guess I just kinda figured they were pulling the credit ratings that they use from the same factoring data.

I don't know that I necessarily agree, either, that everything DAT/ITS does is in favor of the brokers- if it were, they'd give us more accurate data across the board. I certainly don't like trying to divine in my crystal ball on an unfamilar lane whether or not the averages line up with reality. I think that they do the best they can with what they have.

 

Pumping up broker's credit scores to make them look better is unacceptable. Same goes for their attempts to suppress lanes rates.

 

I don't know that they're intentionally doing either of those things. You're assuming nefarious means where incomplete data and/or incompetence is a more likely explanation.

Remember Hanlon's Razor: "Never ascribe to malice that which is adequately explained by stupidity."

 

I find that a magic 8 ball is more accurate.

 

Sorry, I find your stance naive. It's easy to plead ignorance while ripping people off. I used to see it used as a defense often in court.

 

And I see your stance is the same overly cynical approach that one frequently sees from other owner/operators. I too, have seen ignorance as a (failed) defense in court. You're looking at the thing from only one side, and missing the forest for the trees.

Put it this way: how many independent owner/operators acquire loads from ITS/DAT? How many subscriptions are they selling to those?

There's anywhere from 300-400,000 independents, depending on your source, and almost 600,000 total fleets, ranging from 1 man bands, to the megas (per OOIDA- see: https://www.ooida.com/wp-content/uploads/2021/03/Trucking-Facts.pdf).

In contrast, there's approximately 15,000-17,000 brokerages in the United States, depending on your source.

If you simply follow the profit, it doesn't make a ton of sense to actively screw over the significantly larger portion of your revenue stream.

 

Are you sure you're not a trucker? You'll argue a point until it's as smooth as a bowling ball.

 

Factoring company's send their information from trucking companies that factor loads with them so DAT and Truck Stop can get "lanes" and rates.

Know who uses factoring company's? Trucking companies that need cash fast, in other words broke.

Now you know why the rates are low