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

I completely agree. But I also kniw that some brokers (not all) practice some seriously shady business. And I dont think they should be able to get away with it as easily as they do.

No matter what is done in this situation (short of returning to government regulation of shippers and the transportation industry) the free market will eventually prevail. IMO best outcome IF changes are made is that the rates will somewhat stabilize and be slightly less susceptible to violent swings... And alot of stupid carriers will realize that they have just been doing it wrong all along by not saying NO to hauling frieght at or below cost.

 

Sounds good to me. You don’t haul cheap either so I’m surprised you’re leaning to the side that could potentially bring rates down for everyone.

 

Youre right... And this would drive alot of idiots out of the trucking industry, boosting the load to truck ratio. The ones that would survive would be guys like yourself that have developed direct relationships with shippers, and those that are willimg to do specialized frieght like OS/OW, hopper & tanker, livestock, DOD, ect.

 

You absolutely right . I don’t haul cheap crap . However I think we should find a balance an fair way to do business , otherwise this Industry will go only for Megas . I may retire in a few years , but this industry should continue for the future generations.

 

This is exactly where I stand on the matter... There needs to be a compromise. I REFUSE to drive for a mega, and I can't afford to step out on my own. So I drive for a small company that does very well, and takes very good care of its employees. I dont want to see them run out of the business... By megas, a collapsing market/industry, or anything else.

 

Full disclosure, I don’t know the people, but I know the people that know the people. Lol.

 

But when you have a decent amount of guys that are happy with how things are going why do we all need to cater to the ones that aren’t happy? I don’t feel just because anyone can buy a truck that it should mean the rest of us have to drop down just to bring them up a little. Go open a restaurant or any other kind of business and see if the other owners rally around you if you fail. There are too many that are really good at driving a truck but are poor businesspeople.

 

Reguardless, you have been able to successfully bypass the broker, you know how to say no to cheap frieght (although I doubt you find yourself needing to very often), and you run a successful trucking company (reguardless of how big or small it may be).

My point is... With some changes it would become nearly impossible for fools to continue to drive rates to the bottom unknowingly due to ignorance. And guys that truly know/learn the business will be the ones that succeed.

 

Look at cattle brokers.... They are told I want X many head of this type of cattle, OR I want to spend X dollars, get me good cattle and a good price.

Broker goes to the auction and buys cattle (or finds them on the open market). Cost of cattle is paid directly by the buyer, broker is paid a flat rate per head for sitting at the auction and doing the bidding OR finding the cattle on the market. The brokers pay isnt based off the dollar amount of the sale, but off the volume of the sale. The more cattle the broker can buy for the buyer the more the broker makes.

If the buyer isnt satisfied he finds a different broker in the future.


Brokers need to be incentivized to move more loads... Not make more $$$ per load. This would take some of the completion that is currently on the carriers shoulders and place it back .onto the brokers. Because they are more concerned about frieght volumes than frieght rates. Higher paying loads move faster, the faster a load moves the faster a broker can move onto the next one.

Does any of the dribble make sense???

 

Man, what a cluster **** this is going to be.

Why can't you just say no to cheap freight, now?

If any o/o thinks this will be a win for them, they have no idea how business works. The end result will be you out of business, period.