sub-brokering - is this common ?

Discussion in 'Freight Broker Forum' started by dannythetrucker, Dec 21, 2013.

  1. dannythetrucker

    dannythetrucker Road Train Member

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    We all know double brokered and sub-brokered loads are common and to me seem to be becoming more common. And there's all kinds of ways the game is played. But something that has become apparent to me is sometimes I see a group of loads, often for an absurdly low price, offered by a particular brokerage. Then a day or two later those loads disappear and another identical group of loads will appear under the name of another brokerage for a better rate.

    Is it common practice for brokers either in the same office with several affiliations or in different offices who have upcoming loads (needing shipped within a week or something) to offer these loads to other brokerages ? So long as they make their money, who cares ? It's only the trucks that lose, and if they were desperate for a load it's their own fault right ? Then, whatever loads the b.s. brokerage couldn't cover within a day or two the first brokerage repost's for their desired rate ?

    just wondering, probably just my imagination....
     
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  3. dannythetrucker

    dannythetrucker Road Train Member

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    also, if you were a broker with some loads locked up paying well above average for that lane, wouldn't it be nice to sub-broker them out and lock in your profit and head for the golf course instead of answering calls all day ? I'll bet it would be. After all, there's tons of brokers who don't have a clue what they're doing you could get to work on them for you, wouldn't that be nice ?

    i.e.-got a load paying $2.85/mile ? you want $2.50/mile out of it, (or IN it, as the lingo goes). So you find b.s. broker #1 to post it for $2.00/mile and he can even negotiate up to $2.25/mile and you still get your $2.50. Sounds like a pretty good deal to me
     
  4. cabwrecker

    cabwrecker The clutch wrecker

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    What you're seeing, is a literal depiction of a company driver being bent over, somewhere.
     
  5. mickey melon

    mickey melon Medium Load Member

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    Shame on you OP......

    I understand the Gist of your post.

    First and Foremost,I DESPISE MOST BROKERS..To me they are somewhere between a ####roach and that crusty formation that forms on the side of your mouth when you are extremely thirsty.

    Secondly....The only person that gets hurt by that is the carrier.......The Load started at $2.85, Screw the carriier right? As long as its off your hands and into another brokers so he can Pawn it off to the truck for $2.10 a mile??

    Yeah I know...This is the 21st century, Every man for themselves:biggrin_25518:
     
    dannythetrucker Thanks this.
  6. Rich_Trucking

    Rich_Trucking Light Load Member

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    I was pretty pissed when I found out my 2nd load ever was double brokered. Two more Extra middlemen getting something for nothing!!
     
  7. Davee

    Davee Bobtail Member

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    Why are you all on a broker load board. Second if you don't like brokers don't use them. Why do the same people come on here and moan moan moan about the same thing. Do something about it. If you hate your job driving the truck find something else to do. If you think the brokers are making all the money. you seem to have all the knowledge in the trucking industry and know everything become a broker and make the millions you think they make .
     
    Shade_Tree Thanks this.
  8. Marlin46

    Marlin46 Medium Load Member

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    The ones I always see are BNSF sub brokering loads to Landstar offices.....usually would always do a quick check on the LS board then check the BNSF site. If it was on both more than likely it started out as a BNSF load and could typically get $50-$75 calling BNSF on it than LS was willing to go on it.
     
  9. BigBadBill

    BigBadBill Bullishly Optimistic

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    These threads make me laugh.
     
  10. dannythetrucker

    dannythetrucker Road Train Member

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    Who said anything about not liking brokers ? I looove them ! Especially the more I understand their bag of tricks, the more leverage I have to get what I want. Which is usually to find that load that pays, and is sometimes just to get a good chuckle.
     
    281ric, BigBadBill and Cetane+ Thank this.
  11. BigBadBill

    BigBadBill Bullishly Optimistic

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    Danny, yes this happens all the time. What most, including reputable brokers, don't like is what everyone calls double brokering. This commonly refeers to re-brokering a load without permission.

    Co-brokering is very common. There are a lot of reasons that this happens and it is not a bad thing. For us, when we started our brokerage business (and before partnering with Covenant) we knew that as a new, small broker we could not cover the volume of freight we had the ability to bring in. So we established a few key partnerships that would help us move loads. This allowed us to build where we got the call from the customer first because we could cover every load. That allowed us to grow.

    In other cases it is because the broker doesn't specialize in the extra freight that a customer has or region. Big one for some is open deck. If you move 200 dry van loads a week and you get an oversized from you customer you are doing right by everyone by handing that off to someone that understands that business.

    Plenty of expamples of it being done in an ethicle way. But like many things in life all we hear about is the ugly side.
     
    silver dollar Thanks this.
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