Lol! You gotta be kidding !

Rates should start to tick up as the weather warms up. It isn't really the brokers, but the truckers who are taking the cheap loads which keep rates low. There are some brokers who try to take a bigger share of the rate, but it is really the owner of the truck who determines the rates. If enough owners would understand that, then rates would be higher. Some figure that treading water, hauling cheap rates is better than sitting making nothing. I think that unless I can make a profit that there is no need to haul the load. There are still owners who will haul freight for $1.20/mile just to keep from sitting or deadheading. If you are sitting anyway, you may want to spend some time on the phone calling on shippers. You might get lucky. Finding a good direct shipper could provide you more steady year around freight and higher rates than if you only relied on brokers. You may need to offer credit terms, but not always. I have had direct shippers who would sit down and write me a check when I presented the bills to them. I have a friend who also has a direct shipper and they will write him a check much in the same manner. He takes the bills by and they write him a check the same day. Perhaps it would be better if most owners would spend more time calling on shippers than calling brokers. Essentially, you would be competing with brokers for the same freight. You could use direct shippers to get out of the house and brokers to get back home to your shippers. That is what many trucking companies do. It might surprise you to know that there are many shippers who would prefer dealing with carriers direct rather than having to go through brokers. Some of the bigger shippers may prefer dealing with brokers due to the number of loads, but there are some who only deal with brokers out of necessity. They need to move their loads and don't have the carrier contacts, so they use brokers who promise to move their product. Some really don't like dealing with brokers at all. They don't like the fact that brokers get a large chunk of the rate. They also feel that they can get a better rate dealing direct with the carrier. That may or may not be true. Sometimes, the shipper can get a better rate and the truck can make more money by dealing direct with a shipper. It can be a win for both parties.

One problem these days are third party logistics companies. They go in and agree to manage a shippers freight. They take a cut and then broker the loads to other brokers who then find trucks to haul the loads. It is really being double brokered, but since they call themselves third party logistics companies, they may not be considered brokers. If the third party logistics company takes 20% and then the broker takes 20%, that means that the truck is only getting about 60% of the rate. Many shippers are on contract rates, which means that they pay the same rate all year long. That doesn't necessarily mean that the truck will find the same rate with those shippers. Some brokers and third party logistics companies will agree to move freight at a certain rate. Whatever they can move the load for that is less than the contract rate is money that they stick in their pocket or their profit. Not all brokers operate in this manner, but some do. When you see a rate that is exceptionally low, it is often double brokered. It may initially go through a third party logistics company to a broker, but it is still double brokered, regardless of what the original company call themselves.

 

Most 3PLs are taking a fixed management fee. They are paid to make sure things run smoothly and it is not always about rate. They make the same money regardless of the rate that it is booked at.

The term Double Brokering is when someone in the supply side is not aware that someone is brokering it. If all parties are in agreement then it is co-brokering and that is completely legal. It is all about contract terms.

But I agree that as more and more freight is going through 3PL's that it is hurting rates in spot market. Because these 3PL's have many different sources to get freight covered outside of the spot market. When rates increase in the spot market they move the freight up the food chain.

They can justify putting freight on an unknown carrier because they are getting a discount. But who in there right mind would pay a premium to put freight on an unknown carrier when they can use carriers they have used in the past, know the track record, they have better insurance, etc.

They just can't justify the cost for the risk.

It is clear that most that are complaining about rates and sticking together don't understand all aspects of the markets including what contract rates (the driving forces behind spot rates) are in a market.

 

What are you pulling?

I see a $3/mile van load going to Jamaica, NY, and a $2.50/mile load going to Kenilworth, NJ, $2/mile to cincinnati...

Take that load to cincy, and you'll get something for $3 going to the northeast.

 

Thats a good load, i can do for 10 cents cheaper.

/sarcasm

 

Tried to send u a PM to let u know someone to look up but it said u have exceeded number of messages in ur inbox. There is a guy in Fountain City, TN that I know has some contracts to fill, maybe some open. U have flat...dry...reefer...what? Be safe out there driver and good luck.

 

If this data is an indicator, we are ready for takeoff.

lol.

 

They are out there. I haul some loads for a small company in my area. They refuse to use brokers,3PL etc. Only single owner/ops or very small fleets. They offer to cut me a check before I leave their property with the load. I never take it. Prefer to wait till the job is done.

They are out there... Get off the internet and knock on some doors.

Not sarcasm.... Only trying to help

 

and things are only going to get a lot more tight for the next few weeks too....

http://www.thetruckersreport.com/tr...spring-load-restrictions-now-s-minnesota.html