“The brokers make too much”

Neither do I want the government telling me I cannot drive 18 hrs per day.
I wish 15/85 split was possible at the contract level but that's a forlorn idea and so is anything else spoken earlier. Although, I believe it is a good idea. More fair from the current reality when brokers take more than half and we are the ones taking a loss.

 

Well in my scenario where the only regulation would be no double brokering and transparency between the shipper and the broker Most of those problems would not exist.

I would think it would be a lot harder to lose money on a load or even to break even if the Carrier knows you have $3000 into it at the very least you could have someone take it for 28 and you made something. But in general the profit would be very steady because the market would find its own level and the broker wpuld steadily be making whatever it is 10 15 20% whatever his services will yield. And it would be nearly impossible for a broker to lose money on a load.

I don't think carriers would be looking at you saying that you only have $3000 into it I'll only do it for 4000. If the Carrier knows what you have into the load then you negotiate accordingly.

The exception to that would be some cut throat cut rate broker that took a load for a dollar a mile and now is trying to sell it to a trucking company for 50 cents. But that guy was behind the curve to begin with. Since he is going against what the market forces are that's a bad broker that will go out of business as it should be.

That is why if everything was transparent the brokers would try to get the best rate so that they can make the most money and because of that, the carrier would also make the most money.

Generally the rates would be higher and the profit for the brokers and the carriers would be much more consistent and steady.

When times are bad the load will pay less but the broker will still make a certain percentage and the Carrier is still making his amount. When times are better everything goes up and everyone's pay is raised.

All with no real government intervention except for those 2 things.

 

Maybe just eliminate the broker??

Hypothetical Example:

Acme Widget has ten, 40,000lb. loads of widgets available, say all from Los Angeles to Boston.

Not time sensitive but within "reason", say 10 days, BUT they want the stuff off their loading dock pronto to make room for incoming material and the next batch of widgets going out.

With internet access almost universal, Acme Widget posts their loads on a "Common/Public Access" load board stating what they want to pay to ship each load. They get takers, ..........or not. No takers, they up the price they're willing to pay until the load moves. If loads go almost instantly, Acme Widget thinks....."Hey, Next time I'll offer a bit less per load and see if the shipments get picked up".

I think you get the idea, but no broker involved.

Anybody know how the Freight Railroads work??

 

No I did not forget. From talking to my niece, the CPA, in the past when factoring came up. Net90 is the standard in all businesses. Factoring and quick pay is only prevalent for the carrier. Likely because too many are too busy running down the price would be my guess.

When I ran the retail shop, I almost always was able to do NET30 in both directions (paying my supplier and my customers paying me) but that was because of good credit and good relationships.
Maybe the answer isn't new regulations, it's companies to stop cutting each other's throats.

 

I was thinking maybe they need to lease on somewhere. They want to take the hustle out of it. Instead of trying to up their game,they want the game brought down to their level.

 

Where in that post did I say I agreed to a crappy rate..? I got all the revenue I needed to load, drop, & deadhead the 300miles back out of a disaster zone..

But when you can feel out a small shipper, & are both men willing to be honest with one another & show your cards, it usually works out well for the 2 of you..

And yeah, I've pulled a few more for said broker. When done right, they never know what hit em..

 

There are direct shippers on load boards like DAT. They don’t pay anymore then the broker pays. They keep those extra savings for themselves. Most shippers don’t want the headache or extra liability of booking their own loads though. Just like many don’t want the extra liability of running their own trucks.

 

That has to do with others safety. If drivers could be trusted to drive 18 hours a day and not kill people then that regulation would have never come around. Simple fact with with (almost) every new HOS regulation the rates of facilitates and simple wrecks go down, even though the roads are more dangerous due to more vehicles.

There is a huge difference in regulations to protect others from you, and regulation to keep you in business because you can't do business. And yes, that's a generic you...