broker-group-ceo-warns-full-transparency-will-put-3pls-owner-operators-out-of-business

Pardon my ignorance but what new rules?

 

Way way back when I started the thread about guys wanting to cap a brokers profit I stated I view them as two separate transactions. The deal between the shipper and broker has zero to do with the deal between the broker and the trucker. These guys think that all of the sudden rates will increase for them if they know what the broker got, and I don’t see that. If anything it will show the shipper how much money they could be saving because trucks are already moving their loads for less.

 

Sorry, the ones the protesters are wanting now. I should’ve been more clear.

 

Ok understood but my question is why are percentage drivers any more entitled than cpm drivers?

 

Cpm drivers can verify they are being paid correctly by simply viewing thier dispatch, and understanding how thier carrier calculates miles(address to address or zip to zip, shortest route or practical, ect.) for any given load.

 

Were the loads getting moved? Yes. So that tells me that these guys were choosing to haul them on their own free will. Nobody was forcing them to take the loads.

Let’s talk about contracts....sometime back in 2017 people signed their contracts for 2018. Everything happened, yadda yadda, freight rates on the spot market jump. Do you think that there was never a time when a broker had to come out of his pocket to get a load moved? When they were all riding high on the spot market and everyone was getting their authority times were good. To me this is all a bunch of undercapitalized people that are whining because their business model only works during good times.

I would speculate that most of the time a large shipper wouldn’t care what a broker pays a truck. The broker is there so they don’t have to deal with thousands of trucking companies. They know the loads will move one way or another. The can sit back with their net 90 terms and not deal with guys wanting paid sooner. It’s a simple transaction with between two companies, how much is that worth to a big shipper?

 

Well maybe the shippers would be more inclined to deal directly with carriers.

The addage "You get what you pay fo." comes to mind.

 

This line sums it up. Money drying up and now they need help. I think they are reaching

 

So, let’s just keep it the way it is just for you .

 

Maybe, but I’d be willing to bet it wouldn’t be the small carriers.

I’d put myself in the shoes of the shipper. Would I want to send one email a week that says here are the load numbers that need picked up by such and such date or would I want to deal with a bunch of carriers? Let’s say you move 50 loads a week. How many carriers would make contact with you to move those loads? And then once they’re moved how many will want paid right away because they can’t wait 60-90 days for their money?