what happens when you brokers fail at getting loads covered?

I dont think about it...It's an irrelevant aspect of my calculations.

It's all based on willing buyer / willing seller...

I focus on what I need to be profitable, and negotiate accordingly. Also referred to as "keep my eye on the ball"

 

A Good question that I will make even better

I've seen margins as little as 0% up to 70%- That's right 70%- And Ive seen Brokers Give 100% of the linehaul plus FSC to a carrier.........

Your Typical % ?> 15-20% is generally a target they most like to hit- The "Sweet" spot typically 25% of Linehaul- Some Shippers DO figure in a FSC...

And If your doing LTL- classified Tables with Freight Class,Weight and break....But Most Non asset brokers stay of clear of that segment of transportation.


your probably Wondering.."How the Heck did they keep 70%?"

I Remember it well, it was a 'truckload' from upstate NY (A stone customer that became good friends with us) going to Belgrade,MT, I Couldn't move it for its a Lane I dont handle, Long Story Short,I Recommended a Carrier to them, They sent it out to a half Dozen 3pl's...........

46,000 pounds of Cut Stone and a 3 pc saw with attachments-legal Load.
$7,000 was his Target.....broker that actually handled the move for him was LST services
found carrier to move it for $ 2700.00 ........Carrier made a huge complaint about it stating the brokerage said he only had $3200 in the move..Word got back to Stephen,(Salesman) ,Whom whispered to me over the phone 1 day in disbelief......

Anyway- broker Barred from any further business with this company.

I give that carrier a HUGE Atta Boy for getting this Customer involved (Most likely smelled a rat) But I also keep thinking...."What were you thinking moving it at $2700" Oh Well

Life in the transportation business

 

I have that answer. If its mass production of cheap freight, examples shingles lumber mulch the most a broker might make $50-$100.

If the freight is IMPORTANT examples are military machines engery supplies
The broker trys to make somewhere between $150-$450.

I know because I get the same shipments sent to me as brokers.

 

I average ~10% on Reefer/van (for me this is basically all produce with load values under 15k) and ~15-20% on flatbed which for me is all building materials. This number is going to come down because I'm now working a pretty big flatbed account with much lower margins than my other flatbed account.

I really like hanging out in the 8-12% range where I'm probably both better and cheaper than the competition. Good recipe for getting tons of loads.

 

I was just asking because all i hear on here is how Brokers are Scum and are walking with all the money.

This may be an excéption to the norm , but my close friends 3 man brokerage shoots for a %20 märgin but most freight moves at %15 sometimes lower.

So he averages 13-14%.
Somedays less than that.
He's been in business for 30 years and does an honest 11 hours a day himself to keep the show running.
Its work on the brokers end also.
And believe me a Ton of stress.

 

If that flatbed account is on the east coast I might be able to give you some insite of the operations. Just name the city and state I'm sure I've been there before

 

It's national. I couldn't really talk about it in public anyway.

 

Love them or hate them you got to have them, brokers that is. To me if a broker makes less than $200 on a shipment delivered I think thats fair.

The ones that I hate are the ones don't pay TONU.

 

This time of year I'm going to take a stab at this. GP.
That stuff doesn't really need to be tarped but should be kept dry. Some stores and jobsites set it outside uncovered. A lot of places are 24 hour 7 days a week. You can even load RGN if you stack it in a box of 4. Will need straps though for it.