Back in the old days the shippers used to have to staff a traffic department. Even if everyone “went to the source” as you say, that still wouldn’t cover 100% of the loads every week so now the shippers are back to staffing a traffic department because they’d need to check insurance and verify everything before a carrier could haul for them. And they’d also have to pay a whole bunch of different carriers for the loads they move. So the shippers deal with brokers instead of a thousand different carriers simply for convenience. The brokers deal with the trucks so the shipper doesn’t have to. The brokers verify insurance so the shipper doesn’t have to staff a traffic department anymore. The brokers pay the carriers so that the shipper cuts one check a week to the broker instead of paying 1000 different companies. You may see them as not needed, but from a shippers point of view it makes their life easy. Long term contract with a broker to move loads at a set rate and everything else is out of their hair.
How many carriers would be able to run if they were waiting 30 or 60 days to get paid from the shipper? How many currently take advantage of the quick pay option from the broker?
Ya know...I just hate brokers
Discussion in 'Freight Broker Forum' started by mwonch, Apr 7, 2023.
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So, you're working for a company that's 140 trucks, and totally relies on broker freight? Is that correct?
If so, why? Seems like a ####ty businesses plan to me but what do I know?
Do they have shiny trucks? And pay on a 1099? Asking for a friendLong FLD Thanks this. -
That’s more trucks than the company I’m leased to and I’ve hauled one broker load in the last 2 weeks.
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Spot on.
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Block the numbers. ##*k em.
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A little over a year ago with 10 trucks, this would all make sense. Dispatch wasn't 24/7 then. It is now and they've grown a lot. I don't know their biz plan, but I assume it's at least an okay plan.
And no, they don't pay 1099. As fro the shininess, I guess that all depends on the driver and whether or not he uses the Blue Beacon account. Everything's leased (by them not to us). We get a salary (as long as we're out Sun-Fri or Mon-Sat) plus 25% of revenue AFTER the truck makes 5K (paid weekly). High co-pay insurance, but okay otherwise paid by the company. Small company, so they take pains to be driver-centric. As long as it's not too far outta the way, we can take any routing we plan. They pay for premium parking if we wish (not reimburse, they actually call to pay). Not too bad of a company.
Perhaps you can see why I won't quit over this broker-fear stuff.rbrtwbstr Thanks this. -
They still do this for contracted carriers. What's your point?
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Dealing with a single carrier or handful of carriers with contracts is a world away from dealing with 1000 different carriers every month.
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1. So what.
2. Lie to him too.
3. You might need a pickup number.
I told ya how to fix your problem.
You don't want to take the advice, good luck to you. -
I turn my ringer off when I am sleeping, unless I need to leave my ringer on if I am waiting for a door or waiting for a call that I am empty.
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