Double Brokering law??

Discussion in 'Freight Broker Forum' started by Peterbuilt1013, Jan 12, 2019.

  1. Peterbuilt1013

    Peterbuilt1013 Light Load Member

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    Been a driver learning the trucking game for two years now. Doing well learning and getting things down to a science. Lately I have been curious as to how is there so many brokers.

    Now that I own my DOT authority I have to be careful of broker credit. In the 8 months of having a DOT I have 90 brokers. Why so many brokers? It seems like to me some of these broker are scavenging hard, and then some of them are making $50 on the load.

    Recently I asked a buddy who's been a trucker for a good decade. He told me that most of your loads from brokers are originally from another broker. Some of the times a load will get re-brokered 4 times before it gets to the driver.

    I find this hard to believe. But then again I have a brother-in law who had to get his own broker license because the shady brokers he would hire would profit as much as possible behind his back. Simply said, the broker looked for every way to cheap the driver. The last broker he fired was making 500k on his loads. RIDICULOUS profit margin for just having a MC# and a surety bond.

    Also another example, I know an attorney at law who does not use his license. Instead he brokers freight. He has said, I make more money in being a broker than being a lawyer.

    So the conclusion of my question is more or less, if a load does get re-brokered so much. Why on earth are the receivers who pay for the freight charge wasting $ on price gouging broker AND why on earth isn't there a broker who just simply outsmarts the leeches and has a standard platform of brokering honestly between carrier and customer.
     
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  3. windsmith

    windsmith Road Train Member

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    Whoever is paying for the shipping agrees to pay $X. All they care about is that the freight gets where it's going when it's supposed to be there, and they only pay $X. They pay $X, and a truck comes and takes their product. Then it magically appears at the receiver. What's so difficult to understand about that?

    If you want to cut out the brokers, go directly to the shippers. That's not easy to do when you're a one truck operation, and they want someone that can move 100 loads per day for them.
     
  4. Peterbuilt1013

    Peterbuilt1013 Light Load Member

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    You answered the obvious. I don't appreciate being redundant. And you suggested cutting out the brokers which is completely irrelevant to the essential question. I was just being genuine when I asked. Thanks.
     
    Lite bug Thanks this.
  5. windsmith

    windsmith Road Train Member

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    I gave you a genuine answer to the essential question:

     
  6. BCV

    BCV Light Load Member

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    The car hauling biz is a perfect example of what you're talking about. The answer to your question is there are O/O out there that will haul something for next to nothing. Could be a back haul or what ever but it's part of the game...
     
  7. Buckeye 60

    Buckeye 60 Road Train Member

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    why would a Brooker mind have another Brooker list his load , he still gets his cut , the new Brooker gets his cut and the shipper gets his frieght hauled for the agreed on price ... it's a win win win situation. ..... that is except the driver who loses a little bit for the other Brooker but that may be the only way he makes contact with that load ..... and then the guys who are mostly depending on and hauling the double and triple brokered frieght usually are the first ones to go broke when the rates go south ..... hint why loads get double brokered for the most part is the original agent is having trouble covering it . when the rates go south it's because there are more trucks available for the amount of loads which means agents have an easier time covering loads so they won't double out any loads and there are quite a few agents that haven't any of there own frieght and just work of other agents and carriers frieght . it's hard sometimes figuring out who is who and what's what but now is the time to build relationships with agent's that have there own accounts as it is harder to get in with the better agents once truck demand drops. .........
     
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  8. gokiddogo

    gokiddogo Road Train Member

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    Customer should care how many hands it passes through... increases the risk the truck will not be paid, carrier can go after a bond (which one?) If unsuccessful carrier can demand customer pay them agreed rate. End result customer pays twice. I don't think they like doing that.

    When you find a broker who takes a big fat slice off the top I take that as an invitation to solicit the customer. Be fair with me and I will work with you til the cows come home. Try to bend me over I won't work with you and will find better options for myself; which won't include you. So far this works very well for me.
     
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  9. Peterbuilt1013

    Peterbuilt1013 Light Load Member

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    Subsequently leads to why is there unreal amount of waste. The receiver who purchased from supplier has to pay the freight charge to get his product. So why pay 4,000 to a broker who brokered the freight @ 1,600? That's a lot of waste.

    Going back to my brother in law who had to hire ladies in an office and set up his own broker MC. Who he hired before last profited 500k a year between the shipping charge and the amount of $ that was going to the carrier.
     
  10. Peterbuilt1013

    Peterbuilt1013 Light Load Member

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    Great advice. I'm at a loss of understanding why companies pay a rate and seem to be clueless about what rate they can responsibly move the freight with a quality carrier.
     
  11. windsmith

    windsmith Road Train Member

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    Because the money isn't coming out of the pockets of the people who agree to the rates. Just like food stamp recipients that shop at high priced grocery stores in the ghetto - it's not their money, so why do they care how much it costs? Their job is to get it moved, not to get it moved cheap.
     
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