Brokers

Slick talking brokers caused all the shippers out here to strip out their shipping departments? Hahahaha... That's just ridiculous and doesn't even make good sense. Do you think shippers are stupid? I mean someone please explain to me from a business standpoint why any shipper would want to deal with the increased costs and headaches of an inhouse transportation/logistics department? When trucking is not even their core business and they can save a lot of money by outsourcing it?

 

Ok... Let me start with federated department stores (Macy's, Lord & Taylor, May's, Filenes Basement and tons more) had their own in house vendor relations departments. Kohl's also had one. Home Depot also "had" one, Owens Corning also "had" one. Where do you think they went? You think they just decided one day to fire all those people? I'll tell you where they went. They're gone. It's the only way a broker can break into a national account and save the customer money. That's about as much explaining as I'm willing to do for someone who hasn't got a clue.

 

Of all those companies what part of transportation not being their core business do you not understand? It does not make sense for them to waste resources on that. That's been the trend for years.

 

Yeah Tim, really living in the dream world there on that one. First off why is the broker required to report what he or she really has in it? That has not gone on for years, second off it really does not matter what the broker has in it, they really don't have anything at all in it. I agree with most of what you have said throughout this thread, and here is my opinion. The honorable brokers take the truckers rate and mark it up and sell it to the shipper (that is what I call the truckers broker). The dishonorable ones take the rate from the shipper and cut the rate to the trucker (that is what I call the shippers broker or a freight broker). Most of the brokers are the latter. I agree the shippers are mandating what they want to pay and that is the ignorant truckers fault for not knowing how to run their business and negotiate a proper deal for all parties concerned. Truckers run around talking a big game but most cave in when their little panties get into a wad. This is what the brokers and the shippers all know, now we will just leave an area vs. hauling cheap freight out (there is no such thing as a back haul at Powerhouse). I tell my operators that if you don't have enough money to top those tanks and come back home on your own when you need to, than you should not leave the house in the first place. Only go as far as you wallet can take you back, then you will be able to never have to haul a back haul. Pretty simple is it not? Charge enough up front without trying to gouge the broker or shipper, stay just a fraction under the Mega-Carriers (and no they are not doing it cheaper than the Independent Carriers so quit blaming them), you should stay very busy and profitable. We have thousands of brokers and shippers that we have worked with over the years, some good some bad. We stay with the good and never work again with the bad. As much as I hate to say it brokers are necessary to facilitate the deal that most small carriers can not do themselves, but they seem to expect the brokers to work for free.

Real brokers know the shipper's cost to run the truck just like the trucker does. Real shippers know the shipper's cost to run the truck. Mega-Carriers know the shipper's cost to run the truck. Smart Independent Carriers know the shipper's cost to run the truck. The only ones that don't know the shipper's cost to run the truck are the flunkies in our industry. Flunky Brokers, Flunky Shippers, and finally the Flunky truckers themselves

 

Well let me chime in here. I've been driving 4 years and Im just trying my hand at Brokering. I know what it takes to run a truck, I've been an OO for two years so I hope to be a better broker than most.

 

So Angela what is the shippers cost to run their own freight on their own truck all miles?

 

Hey Powerhouse . Good morning. I don't have that answer. If I contact a shipper that has their own trucks, the conversation ends there, I can't do anything for a shipper that has their own trucks.

 

Really?? Because I run a lot for a shipper that has their own trucks! They use me for LTL stuff that does not connect with their drivers routes. Better rethink that!

 

Ok, I will try this a different way.

What is the line item cost for a shipper to run their own truck?

insert broker here

What is the line item cost for a carrier to run their own truck?

Hope that makes sense.

 

She has no idea. She was a leased O/O and has no idea of what the total cost for a shipper for running a truck. I have been an independent O/O with my authority for the past 10 years and I fairly good guestimate. Most of the problems with brokers today is due to their complete cluelessness to the industry.