Another Classic TQL comment

I completely disagree, brokers need shippers and truckers, truckers only need shippers! Therefore truckers do not need brokers but brokers can not exist without truckers.
It was a given that when a shipper would ship through a broker they would pay more for this extra service of the broker finding and vetting the carriers to handle the shippers commodity. This transpired into the brokers pushing their service by quoting shippers the original trucking only price or less inclusive of their service but taking their cut out of the trucker. This happened because a large percentage of truckers are not businessmen and drive their truck for drivers pay (if that) instead of business profits. Brokering is the most profitable part of trucking as the broker has very little skin in the game in comparison to the actual trucker and when that fool comes along with his truck and takes your load for 50% of what your getting then it's a very good day especially since you don't have to foot the fuel bill, truck and trailer payment or even spend your time actually hauling the load. When all is said and done there is more profit in 10% brokerage than 90% trucking.
Its music to a brokers ears when they hear "well my truck and trailer are paid for so I can haul cheaper". Bet you never heard a broker say "well my laptop, phone and brokers bond are paid for so I can work cheaper" right!
As long as the transportation industry has non business savvy truckers there will always be room for brokers. Brokers would simply not exist otherwise.

This is why in your post you described a trucker as a truck driver and I describe a trucking business owner as a trucker or carrier.

 

Ahmen to that brother !! Every word you said was golden. You are preaching to the choir on that one. I been on my soap box about this all the time. If only brokers made 10% as they claim they do and passed the rest to us where it should be we would all make money. Maybe we could make profits instead of barely making it. There is a new load board called GBT Overdrive did and article on it where the shippers post the loads and you bid on it direct with the shippers the board takes a straight 10% of agreed price. The fact is ANY shipper with a MC# can post on ANY load board and deal direct with trucking companies and truckers and cut out the brokers COMPLETLY and save money on shipping costs with truckers making more and shippers saving. If only they would realize that or to not be so lazy to just turn it over to brokers instead of doing it themselves.

 

Even if brokers agreed on a flat 10% take I fail to ssee how that stops a race to the bottom. You're dreamers if you think it does. There are truckers and brokers alike who are happy to race to the bottom. Then there are ones waiting for the smoke to clear who pick up the slack and make the real money.

 

I always wonder why most are just concerned with what a broker takes and not what they end up with.

if you get a rate you can accept, why worry what anyone else is getting?

is it because most don't know their operating costs and don't a have a true number on the minimum they will haul for?

I simply don't understand the mentality of worrying about what cut anyone is getting, if you end up with a rate you can accept.


seems like a waste of time and energy to me.

 

The problem is you seldom get a rate you are satisfied with. You end up dicking with theses brokers until you find a load you can take that you loose the least on or maybe make a few pennies. Knowing all the while they are ### raping you like a pedophile. When I do get rates I can live with yes, then I have no problem with what they make But hell only freezes over once in a blue moon ................

 

disagree. If Im not going to make money on a load, Im not going to move it.
rethink your negotiating strategy

 

I disagree with you ......Trucks are like sharks they don't move they die. I can not afford to sit until a load comes around as I no longer have the capital to do that due to a recent illness. Despite any negotiating tactics there are if they wont give you a fair price they just wont. If could hold a gun to their head like they do us knowing most of us have to pay drivers , truck payments and everything else involved , then maybe you could get a fair rate. But my guess either you ARE a broker or you have a IN with a friend that's a broker so you might get decent rates. I have drivers to pay as well so sitting is not an option or I am paying him waiting time. I do the best I can and my record is impeccable. I find it hard to meet my operating costs if not losing. It is all in who you know too. And when brokers set rates for a area they all more or less stick to it. No matter your tactics. This is not my first rodeo I just do not like being the clown. I still attest there is no need for brokers and I will always say this. Shippers can deal direct on the load boards there is NO reason for a middle man dictating our rates and what we make from them and taking a slice of the pie and for what ? Most broker I have dealt with can not even get things right...they do as little as they can as if its too much trouble for the thousands they make to get the tenders right. Sorry just what I firmly believe and always will ....prove me wrong don't just give me lip spittle. Talk is cheap, I am from Missouri you have to SHOW ME ........

 

I don't have that problem at all. If I'm not satisfied with rates my truck sits in the driveway. It's funny because as skateboardman points out why would anyone worry about what someone else makes? You will find on here guys on here who aren't worried what the broker made and then you will find guys who are incensed that the broker made anything at all. The latter usually couldn't find a decent rate if it slapped them upside the head. The problem is too many operators who think they always gotta be rolling to make any money. There are times to run and times to park. Perhaps they have so many bills that the pressure is overwhelming but then they act surprised when they get taken advantage of. Really the fact that "you have to be rolling or you're going broke" is written all over your forehead and anyone who talks to you over the phone can sense the fear/depseration and sum that up in about 20-30 seconds of conversation with you. And they know they've got a fish.

 

Correct but I think the point being made here is the fact the trucking industry let a middle man (broker) into the equation and that there are too many truckers working on the backload strategy, so the broker holds the load in the hope the cheap guy passes by rather than pay up front what it should to you or I till it gets to the point they have to move it. It's simply a gouging game with them.
Of course the guys who have experience and know their business won't pick it up till it gets profitable but not everyone out there is as well in tune.
Rollin coal is correct in saying there would be a race to the bottom even without brokers, IMO the brokers just help the less informed get there quicker.
It is a testament to how backward our industry is in this well developed technological day and age that so many brokers even exist!
You can look at it any way you like but the cake is only so big, anytime you have a 3pl in the mix there's a slice missing that belonged to you! You may be getting what your happy with but not what you truly deserve. Understanding that my friend is truly understanding the market and nature of this business.

 

The thing is if you take that 3rd party out of the picture what makes you think the customer paying freight doesn't expect to save that 3rd party's money by dealing directly with you? You can't just assume the shipper will knock the broker out and give you (the carrier) what the broker was getting. They're expecting savings dealing direct.