Some numbers for new O/O

The flaw in your thinking is assuming that if the full rate is posted by the shippers that the load will move for that rate. The reality is truckers will drive it lower and lower until the shipper accepts a rate. No shipper in their right mind that knows how much overcapacity there is in this industry would post a load and accept the first call for full rate. You’re acting as if competition between trucks would simply go away if brokers were gone.

 

Why do you assume the shipper cares how much you're making off the load? All they care is it gets moved when they need it moved. Do you think working directly with the shipper means you won't have to pay for wrecked freight if your insurance denies it?
I can tell you right now there are loads that 40-50% is coming off into brokers pockets before its actually moved.

 

I mean, if we were actually dictating the rate, why do you think I'd be dictating rates that're very frequently over a third less than what they were a year ago? The rates fluctuate based on available supply of trucks versus demand for said trucks. This has ever been the story of the cycle, and how market economics work. Repeat ad infinitum.

Between early 2020 and summer 2023, we jumped from roughly 240k carriers to 475k. Volume of outbound freight is at 2019 levels. That's what's dictating the reduced rates. Shippers can get away with paying lower, and the market bears it. I've said it before, and once again, I'll say it now: there's no financial incentive for brokers to have lower rates. Once again, 15% of 2000 is still less than 15% of 3000. Yes, you'll have the rare broker who's somehow snookered a customer into paying rates to him well above market and moving the load at market rate. But that customer is effectively a unicorn. The vast majority of us are moving at rates between 10 and 20%. If you're wanting that additional 10-20%, well, now imagine that everything is being posted directly. Do you know how many times I post a load and have someone try to undercut someone I've just finished booking? "I'll take it for $200 less" is a fairly common refrain, especially now. That'll end up eating your 'extra' right there.

You seem to be under the impression that the shippers/receivers/et al using brokers are interested in bringing back traffic departments that cost them more than the fees that hiring brokerages to do the work. There's plenty of shippers out there that either do not use brokers, or use them only in limited capacities. I can speak from years of experience that it's a much larger number than you'd think.

But hey, if you feel like blaming us, I guess go ahead. It certainly mustn't the fact that we've seen an influx of a couple hundred thousand new carriers on the road, nor demand being roughly around 2019 levels. Nah, it's just us lazy brokers getting fat making one or two clicks and phone calls, am I right?

 

And the number of brokers who are cutting staff or going out of business should tell you a whole lot.

 

Exactly so.

 

You sound like a NOOIA member. Who cares what anyone else makes as long as you get what you ask for. If you don't like the rates move on and find something that works. Take care of yourself and don't worry about others.

 

Apparently they went on strike Nov 1st and act like something big has change.

 

Ha Ha Yeah they think they are getting things done. I wish they would stay on strike!

 

Ha ha ha

 

How's the market out there boys? My buddy said he grossed 320K but I know he was in the spot market crazy, ran illegal plenty of times, amongst other things happening.