Broker Transparency

I won't dare hit the thanks button on this post of yours Dave, wouldn't want to be accused of anything for that...

So I'll just give it a thumbs up cheers

 

The idea of getting the freight direct, isn’t always possible. I haul mostly the same stuff that everyone else does. Megas, Independants, everyone. The problem is, the schedule of the loads are always different. The Shipper doesn’t want to deal with 100 different Carriers. A small Carrier can’t consistently cover the freight, The Megas don’t want it. Therefore the Broker performs a good service for the Shipper. And if I do the same for the Broker, I can benefit. A Good Broker that wants to keep their freight, uses good Carriers.

 

TIA: Market conditions that created broker transparency rule no longer exist - FreightWaves

It always seems like everyone that wants to see what a broker made thinks that brokered spot and contract rates are static, always good and the customer paying the freight is ignorant of trends. You'd think brokers never lose any money. But common sense tells you this business is way too competitive for that. Ten years of booking from brokers and I haven't ever worried about what any of them made on a given transaction. There's a lot of excuses why single o/o can't go direct but that **** doesn't really fly so if you want it go get it because it is out there. No-one is forced to work with brokers.

 

Broker School...They will hand you "Q" cards to answer any question a Carrier may ask you...

 

I know nothing of the subject really, but it seems to me the answer to how much do brokers make? As much as they can.

Im guessing a broker, like any trader looks for incongruencies in the market and attempts to exploit them. Then others get wind and pile in, and the spread normalizes there. Then the broker finds a new place to make money in the market, and the process repeats. So long as there are plenty of brokers chasing the same loads, there is competition.

I can tell you the competition in the market to transport cars is the most intense I have ever seen (in general, not saying presently) which led to the most unethical, lying, tell a potential customer anything to get the load I have ever witnessed. The following may be off , or it may potentially add some grist to your milling here. Forgive me if this is simply a hijack of your post.

I had to ship a few cars over the last year, here is my experience:

Google ship a car. Many, many, many hits come up. I select a few and fill out the online forms. I probably filled out 3-5 forms. Within 5 minutes and for the next 2 weeks my phone rang near continuously, with text messages, emails, etc. It was insane. I was given so many different sales pitches, most out and out lies which was obvious because it seemed implausible that in Rural arkansas 10 different companies on the same day had a driver "just down the street from me" etc. These were imo all "brokers" none of whom had even spoke to a driver yet, it was a case of say anything, absolutely anything to get a deposit. I was so taken back I felt a bit reluctant to even have the vehicle shipped at that point. I consulted with the old lady and said I lacked confidence to engage in business with these sharks, but if she was ok with it to pick one and I agreed to hold her harmless if we never saw the car again. So we select one of the prices that was probably 125% of the very lowest quote and they had the best website, etc. If memory serves it was $750 from Denver to Russellville.

So I give them a deposit of $200. Now the entire process presumably begins in reverse for the broker. All of the sudden the guy down the street from the pickup location that can pick my car up right now, he has a breakdown and cannot make it. Now that he is unavailable it's looking like it's going to cost 1250 to get it moved. Etc, etc.

The whole game was eye opening. I continued to get various offers but the one guy already had my deposit, and they are all working the same pool of haulers I would imagine. I cannot intellectualy imagine having a job where all you do, all day long is lie through your teeth.

Is the freight broker business about the same as this?

I asked the driver, who claimed to have not been home in several weeks, was filthy and driving a worn out old volvo towing the likely cheapest car hauler trailer they sell how much he made to move the car and he said 700 and I think I paid 1100 to have it moved.

Hope this adds to the conversation.

A personal sidenote: It is quite remarkable to me (and I'm new to this) that the most regulated industry on earth, trucking, gets their loads from a perhaps completely unregulated industry. It's like black and white.

 

The article answers your question if you take the time to read it. That regulation is from a bygone era that no longer applies. Why do you need to know what the broker was paid?

 

I read the story. And my opinion is, if it's a fair rate then the broker won't be ashamed to show what he makes. Truck driver's always say "somebody will take it" in talking about cheap freight, so under that theory it shouldn't make a difference it the broker's profit is disclosed

 

So you're kind of a one and done customer? You don't ship cars daily. That's why you paid a premium. Probably should have paid closer attention to the contract you were signing and perhaps shopped for a better arrangement. There was probably 2 dozen carriers lined up eagerly cutting the rate and willing to haul your cars for cheap. Of course the broker is going to shop that and maximize his cut.

 

There's no such thing as a fair.