Under $2/mile loads with $6/gal diesel.

Question:
If you knew that a broker had $5000 on a load, would you not be more inclined to argue for ... $4500 than $2500 - which is what the average is?
Transparency would have a catalytic effect on the supply and demand. To a large degree, it would also eliminate the parasitic element of which the brokers are so often accused.

 

Times like this it wouldn’t matter. If the broker was smart he’d let guys undercut each other and wait until the last minute to book the load and the rate would be quite a bit lower no matter if people are aware of the other business transaction or not.

How about when the market flips? Transparency would keep the spot rates lower because you’d see the contract rate.

If you were a broker would you want to disclose that info? Would you want your competition to be able to see your contract rates that easily? That would drive rates down too as everyone goes lower and lower to get the contract.

 

It happens everywhere, regular people working at regular jobs don't see their "rates" going up either, while everything else does.

 

I don’t see that changing anything

If I wanted it worse than you. Then I’d tell them a lower price and this would happen all the way down to where it is now

The problem is US

 

Spot market loads shrank by 9.8% August to September.

 

I don't see transparency to be in conflict with the competitive spirit of the free market.
I have this theory that knowing the potential brings the bidder closer to the upper limit.
Therefore, demand and supply would still dictate rates but the role of the middle man would be reduced to bare minimum.
Whatever shippers would have to pay would be more effectively passed onto the carriers, also when the market flips, regardless of truck to load ratio.

 

When times were good and I'd speak to brokers...
"Can't you help me out, $3 bucks a mile on this"
I'd say why would I do that when there's loads on the board posted for $4-$5 a mile?

Now the conversation goes like this...
"We are not even close, I move these everyday for $2 a mile.
I'm like you move heavy tarp loads for $2 a mile, wow. Ok have a nice day.

 

Well, it is not only about forcing them to pay you whatever they got, it is also about you knowing what you leave on the table.
We don't want carriers to leave money on the table when they don't have to, do we?
Knowing what the potential is should awake from a negotiating carrier more predatory instincts and aim higher.
How many times was it discussed here that owner operators did not know what they were doing by taking freight cheaper than what they could? Or that someone was appalled by finding out that a broker had so much on that load but offered only that little?
I am confident that transparency would bring a whole new light on how the rates are negotiated which in itself would be not a bad thing.
I can't see a negative aspect of transparency.
Even when the market flips....
If the broker shows that he has only $2000 on a load that eveyone else pays $3000 then it does not affect me a bit.
I tell him you to go back to his shipper or customer and ask for more...or else I don't haul it for him but will for someone else.

 

I never understand why people worry about this. If you are that worried just go get some direct freight or stop working with the low ball guys. Let the bottom feeders take that stuff and move on. I don't care what the broker makes as long as I get a fair deal. If I don't get. fair deal then more than likely I will not be driving my truck. This is one of the reasons I have not ran crazy this year. Not enough good freight to keep me motivated to move my butt out of my chair.

 

I suggested it as adding an additional arrangement that could only benefit a owner operator without changing the fair element of the game.
You bet, I would benefit from that arrangement and I would not mind having it as a law.
I am for maximizing the flow of money from shippers to carriers and limiting the role of middle men.
I still need a middle man but I want to control him. I am the one doing the hard work.