How to back door the broker ?

I could be transparent RIGHT NOW for anyone that would want to know "true" market rates customers are paying for transportation for free without having to be a 3rd party money slob.
(spot market and contract)
You guys that work with brokers that simply don't know what the rates are would probably throw-up or become really sick if you knew.

Its a blinding scheme 3pl's have used for years.

 

Some brokers bid on loads and then sell them back to others like O/O taking a cut. We've had that happen a lot but still made out above our required rate.

One thing that I wish would happen other than increasing their bond to $250k is that they have to disclose the path that shipment takes from the customer to the truck in the trucks invoice. This would eliminate a lot of the BS that happens.

 

Whisper transparency into Trump's ear once president...And he may consider getting more involved in the horribly deregulated disaster we call transportation

Secrecy,Lies. and smoke n mirror tactics have been involved for far too long

 

You just invalidated your entire statement by considering that Trump would be able to accomplish anything else but creating a TV show out of the Presidency.

 

that's right. direct freight is the way to go. Middle men are usually trouble in the transport business.
Is that hard to knock on a few doors and solicit shippers?

 

I love when I call on a load and the broker tells me what there paying, then I laugh at the rate, then the broker says "with fuel prices what they are".....

Most of ease guys are crooks with a telephone and computer. At the end of the day there making at least 30% on loads and trying to sell there crap rate like there doing you a favor.

 

The larger brokerages I'm familiar with have profit margins of anywhere from 15-20% for full truckload. I'm not sure if this is considered reasonable by the driver community, but I don't believe I have heard of an entire brokerage operation running at 30% ever. Now that most certainly isn't to say that I haven't seen an individual shipment be at 30% margin, but this is definitely an exception.

I can tell you that I don't know of any individual customer ever running any volume of freight for much above 20% margin in a brokerage. The only account that I know running above that is 8-10 stop and requires overhead in regards to setting up and reconfiguring appointments throughout the process at each stop along with some additional financing and billing challenges.

The brokerages I'm familiar with who have worked with large scale or Enterprise level customers rarely run those accounts above 15% and more often than not 7-12%. I'm not sure if this is seen as too much margin for a broker, but from my observation these accounts required a fair amount of overhead. Including dedicated personnel responsible for all transaction tendering and acceptance, load building, appointment scheduling and invoice/POD management. These shipments are usually obtained during very competitive RFP processes that drive the rate extremely low between multiple brokerages and asset based carriers.

I have very rarely even seen a load with upwards of $3-4 per mile unless it was very short notice with extremely challenging circumstances and conditions.

Not meant to disagree or cause any issues, just wanted to give another perspective with some financial transparency.

With the brokerages usually managing overhead of sales teams, brokers, transaction coordinators, invoicing/billing, collections, additional finance functions, POD management, customer management and data management what do drivers and carriers think is an appropriate margin rate % for brokerages?

 

8-10%,, If it was up to me..You lead me to freight,,Ok I'll throw you a few bucks.. Not 20% of the linehaul.. Hence why i seldom use Brokers......

We (carriers) accept virtually all the responsibility on said move.....Im surely hesitant on giving away 20%

You Lead me to Freight..Ok Heres $50 or whatever...Im not giving you hundreds.

 

I don't believe all of the hype that spot market rates paid to the brokers have remained unchanged from the "glory days". This assumes that shippers are ignorant and out of touch with the reality of the truck situation where you have 10 trucks fighting over every load. Now, there probably are examples where this is the case (rates unchanged from the glory days) but that would be the exception not the rule with most ordinary freight.

 

$3 to $4 per mile is the average for some of my trucks and this is specialized freight, this includes all of those short $2 per mile runs we get. the rest of the fleet is above $2, approaching $3. I worked with one broker a long time ago and their margin was at 6% which was really good however the guy who owned it made a point that there are brokers who have low - really low - overhead and repost loads capturing the revenue and not being transparent - he said that they can have a large margin like 20%.