I think it is funny all these O/Os getting bent out of shape about this. In the end it is the O/O who decides to take a load or not, accept the rate or not. Not one O/O is forced to drive anywhere, period. Don't like what is being offered? call the next number on your list.
Are Freight Brokers Necessary?
Discussion in 'Ask An Owner Operator' started by LSAgentOZR, Dec 17, 2011.
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Anyone who claims an O/O is better off using a broker to get loads vs going to the shipper is nuts. And not all shippers are going to depend on one carrier to haul all there goods.
Anyway you cut it a broker is taking money out of the pocket of anyone that takes a load from them.
With the use of internet load boards today it is just as easy for shippers to post there loads there and cut the brokers out. I see more doing this now then 2 years ago and looks like when you take a load from them off the net they cut the rate.
Case in point, a shipper we deal with faxs a load sheet every morning to the carriers the they use, if no one takes any of the loads by noon they get sent to the brokers AND posted on internet load boards, I just checked and they have posted a load that would pay me $4750 for 1500 miles. The shipper has it posted for $4000 and 5 brokers have it listed any where from $3200 to $3750. Now if I took the load from the shipper direct for $4750, after I delivered it I fax the bills to my carrier they bill it the same day and the following Monday my carrier gets paid and I'm paid. Why is it that a broker takes 30~45 days to pay on the same load? Oh I could opt for there quick pay for another 2~5% and get paid in 4 days. Just another little market gimmick for them to make a little more.
Back in the days when you had to trip lease loads you got the same rate as if you were leased on to the carrier and you could either mail your bills and temp signs back in and be paid with in a week or go to any terminal they might have and a check was cut on the spot.
Brokers can pat there self's on there backs and claim there the best thing ever for the trucking industry all they want to, but when there making there living off of the trucker I say other wise, that there just another person milking the cow.jardel, Mommas_money_maker, benthere and 2 others Thank this. -
If you didn't have the broker, your shipper would have to hire someone, pay them a wage and benefits, provide for training, pay for another phone line, computer, etc. etc. Anyway you look at it, the broker is an extension of the shipper. It's all in how the money is spent. They'd rather contract it out then keep it in house.BigBadBill Thanks this.
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Wrong! I have yet been to a shipper anywhere that doesn't maintain a shipping office, with personal that does nothing more for you then they would for a carrier.Les2 and bullhaulerswife Thank this.
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My next question to you is this. If you have all the answers, then why aren't you a Traffic Manager or VP of a large shipping operation?
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I dont have all the answers but I know what the most of the problems are. And most of it is brokers. Even in your own posts you have a little double talk going on.
Do you get these loads daily? Bet not.
Ok I'll blame the immigrants for driving the rates down to a $1.20.
You get any move conservative and immigrants is all you will have working for you. $2 a mile? Minus fuel thats around $1.50ish?
Whats well above $1.50?
Please stay out of Ohio if a $1.50 is the best you can do. There are enough rate cutter here now.
With the rates you have posted its no wonder drivers have to run there aces off to make a living. I have a 48% deadhead rate so far this year and still avg $1.68 for all miles before fuel. Take out my deadhead miles and it avgs $3.23 a loaded mile and some of that is brokered freight. I believe in letting the cheap #### set and will deadhead out for a better load.
Brokers should be forced to show the rate and fuel surcharge and the cut there taking on every load. No one had a problem doing that in the days of trip leasing, no one had a problem giving 50% pay on a load before it was hauled and no one had a problem paying on the spot after the load was delivered. You nor anyone else will give a truthfull answer as to why a carrier like Lanstar will have a load paying one thing for there lease operators yet cut it when they broker it out? Why is that?
If I hauled a load for you today and delivered tomorrow and mailed the paper work in how many days will I have to wait to be paid? 35 or more?
I've been in this way before you even knew what a truck was and even before Landstar was in business. Brokers have changed the rules of the game at the expense of truckers.kennyp, Mommas_money_maker, jardel and 2 others Thank this. -
Had 15 loads this week alone paying over $3 a mile out of OH, and they all weigh 5,000 lbs. it's Wednesday....still two more days to go.
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Not gonna answer the rest of my questions?
And how many miles are these 3 buck loads? Last time I had a 5000 pound load it paid just over 3 bucks and was a 1650 mile run. -
Any of those going eastbound?
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it sounds like my last week maybe you should be a physicBigBadBill Thanks this.
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