“The brokers make too much”

Discussion in 'Ask An Owner Operator' started by Long FLD, Apr 24, 2020.

  1. TallJoe

    TallJoe Road Train Member

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    Deciding about a carrier's profits cap would be difficult. I'd settle for a formula in which the shipper's pay is divided between a broker and carrier 15% / 85%. Imagine how good a job of negotiating brokers would do in favor of carriers.
    "Book it now " clicking would make so much sense. However....there would be fewer loads available. But at least if there is any, it pays good. No too many garbage loads on load boards. Either you go for a profit or you don't go at all.
     
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  3. Long FLD

    Long FLD Road Train Member

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    Everyone wanted deregulation, that’s why we are here. Saying anyone’s profits should be capped is a terrible road to go down. The shipper/broker agreement is frankly nobody’s business other than those two parties involved. If there is so much money left on the table then why doesn’t anybody go and purchase the capacity needed to service the customer direct and just cut out the broker?
     
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  4. xsetra

    xsetra Road Train Member

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    Please review the Federal statute at 49 U.S.C. §13506 closely if you choose to broker shipments of exempt commodities. Keep in mind that there are non-exempt commodities that are similar to exempt commodities or created from exempt commodities listed in the statute. These are listed at 49 CFR §372.115**. Brokering shipments containing these non-exempt commodities makes you subject to regulation by FMCSA. If you broker a shipment that is a combination of exempt and non-exempt commodities, then you and the motor carrier that transports it are subject to the regulations of FMCSA. As a broker, it is imperative that you be fully aware of the commodities for which you arrange transportation and that you have the proper broker authority. For example, a shipper wants you to move a shipment containing hogs (ordinary livestock, an exempt commodity) from North Carolina to Maryland. Because that shipment is exempt, it is not required to be transported by an authorized motor carrier, and you do not require authority as a property broker to broker the shipment. Another shipper wants you to move a shipment containing hand tools from Indiana to New York. That shipment must be transported by an authorized motor carrier, and you must have authority as a property broker to arrange transportation for it. A third shipper wants you to move his shipment of raw and roasted peanuts from Virginia to Delaware. The raw peanuts are exempt, and the roasted peanuts are not. That shipment must be transported by an authorized motor carrier, and you must have authority as a property broker to make the arrangements for transport.
     
  5. TallJoe

    TallJoe Road Train Member

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    I am just saying what would be good thing for me. Profit and shipper's pay are not the same thing. Everyone can have as much profits as they want. But there could be a universal formula based on some cost indexes for equipment, fuel, tires, minimum federal labor wage that would dictate what a given range of distance should be paid at the minimum, for instance:
    0-100 - $4
    100-500 - $3
    500-1500- $2.5
    1500 - more $2.25
    We all agree that running 1 dol per mile is stupid and deplorable then let's get rid of the stupid and deplorable.
    Either we go for what is considered a minimum decency rate or don't go at all. Wait and sit until your turn for booking freight arives.
    Otherwise, all of you scorning at all those pulling for 1 dol a mile now, should stop blaming them and shut the hell up.
    Who of you used the phrase, 18 months ago or so "don't be that 2 dol a mile guy..."
     
  6. xsetra

    xsetra Road Train Member

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    I can't find it now, but I thought I read, all parties involved in transporting a load. Can request from all parties involved a copy of the contracts.

    This doesn't give the transparency before doing a load, but if you want you can find out after.

    I just take the loads I'll profit with or don't run. Not sure I want the government limiting profits in any business. Now that I said that, I think I want less government including less subsidized industries.
     
  7. TallJoe

    TallJoe Road Train Member

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    Many posters here on this forum were blaming, scolding, insulting, also educating, informing, pleading for not taking the cheap freight. Laughing at those running for less than they were running, telling them they were stupid and better off staying as company drivers.
    This is not effective. If you cannot reason, then you should impose certain regulations. If they don't know what they should be running for and your businesses suffer because of that, then perhaps they should be imposed the minimum rates of what they should be running for and then you would not call them stupid.
    Minimum rates, I am afraid, would need to be coordinated with what the broker's cut can be too.
     
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  8. MTN Boomer

    MTN Boomer Road Train Member

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    The more Government regulations, the more chaos, the C D L didn't make any one a better driver. The more red tape in the hiring process, the longer a truck sits without a driver.The E L D got rid of more drivers, the safety groups are still not happy.
     
  9. 6wheeler

    6wheeler Road Train Member

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    Because the broker's have a contract that prevents the shipper from dealing direct with carriers. Non-compete, and back solicitation causes
     
  10. LtlAnonymous

    LtlAnonymous Road Train Member

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    That sounds vaguely anti-free-market. Huh.
     
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  11. Dino soar

    Dino soar Road Train Member

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    Actually you can't find out afterward.

    That regulation does exist that you are permitted to see what the load paid.

    However, every single solitary broker that you will work for has in their contract that you waive your right to do that.

    I'm not saying the government should be involved at all except to make sure that the loads are not double brokered and to make sure that the Carrier knows what the shipper has paid the broker.

    Then just the same way that when 3 or 4 contractors bid on the same job that dictates the market rate.

    It would work the same way for the brokers.

    The free market would establish the rate and the better brokers would get a better rate.

    Not to mention that what they would charge the shipper would be a maximum amount of money instead of the minimum amount that they try to charge now. That would be how they make money.

    And just like everything else in the free market the better brokers would make more.

    That would be a way better system.
     
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