Is anybody really making enough profit?

Don't let the broker tell you what they are paying, tell them what you will haul it for. They want you to move it, they'll pay what you ask. They don't want to pay it, then don't haul it. Then what the "other guy" would/did get paid is moot. Who is really in the driver's seat, hmmm?

 

Supply/demand is true but as in my experience with dump truck brokers in the past, they would tell you the"rate" but tell you do not put that rate on the ticket. That is obviously charging the customer one rate and paying you another.
Another thing about (dump truck) brokers is that when you sign an agreement and they state that they will take 8% and then the settlement comes in at 10% or more after the fact. No one regulates these brokers. In CA the CDTOA wants brokers to be regulated since many are "Briefcase Brokers" are not required to post insurance or have a CA# unlike freight which at least it requires an MC #. I understand that brokers are a necessary aspect in the freight biz but their exposure is minimal. When was the last time a broker was cited for any vehicle violations? Some brokers virtually have no overhead and they make their money on the # of loads. While carriers particularly the O/O's, make money one load at a time.

8% of the load is fair in my book and 8% of 10 loads say, is good money.

 

I've only draged reefers, vans, and tanks. So I will not begin to play some kind of expert on some of this specialized freight you above posters speak of, ie: cattle and dumps. No doubt in my mind you are correct.

However, if one who is not privy to the rates to and from Wisconsin, then my post above won't make much sence, at least on the surface.

Look, I am with you guys 100% with the notion that every load from point A to point B should pay a certain standard. But I have been at this game too long, and I know that it will not ever work the way some of you wish.

The way I see it is this - I get a very very well paying load to Florida, with the understanding that my backhual will pay considerabley less per mile.

Due note that I am home every week and I make more doing this, than Joe blow leased to Mega carrier inc, who stays out weeks on end running for .95 cpm, all the while hauling what would be considered a "backhaul", yet he never knew it, or the rate in the first place.

Trust me, there is a reason that O/Os leased to mega carriers only get that .95 cpm, not matter where they go, to and back.

I hope I don't come off as brash here. Trust me I hear what you are saying. But reality is at play people!

 

Did not agree or disagree with the $11,000 to the broker. And your point about the value-adds the broker provides on superloads is also valid (don't have enough info on this one example to know who was paying for what). But to say that 10% across the board is a fair rate to all brokered loads might be unfair. I tend to agree that your figure is fair to what I call "Freight Floggers" who do nothing more than receive the same loads as do other brokers and try to move them. Nothing special at all about those types of loads, and in my opinion, 10% may be too much for them. But I would be willing to bet that the superload mentioned above is something completely different. The broker may have other expenses above a phone/fax/pencil such as providing a project coordinator (and the salesman who found the customer, and the other usual and customary overhead expenses). The project coordinator would be the point contact, may run the route or work with the states to get the pre-route done and will probably run with the load. Travel time, hotel, salary, etc. do cost more than the 10% you suggest. And a buffer to pay for other things like layovers, detention, etc. has to be considered in the pricing. If it all goes well, the the PC did their job; if not, you can be sure the trucker is going to squeal like a pig. And just like truckers, everyone is in it for a profit, not just covering expenses.

 

Yep, all he was doing was booking the load, the truck had to set up the escorts, order and pay for permits, etc...

Even if the truck was earning as much as the broker maybe it could be justified. FYI - Mr Broker started out offering $16000 and then went to $18000 to try to get it covered.

The good news - the load showed up on a load board and the greedy pr*ck didn't get it

 

like i said earlier, there are some brokers that take advantage of the situation. but that's not always the case. sometimes we brokers get some really, really bad rates. i only work on about 2% of the loads that i'm offered. there are some shippers that i really want to tell to not email or fax anymore of their load lists b/c the rates are that bad (but gotta think about winter when loads aren't as plentiful).

i know it's bad out there and that alot of you guys are struggling. shoot, plenty of brokers are too. a good friend of mine has had his business fall off 60% in 3 months b/c his shippers don't want to pay fuel. 90% of my customers think it's still 2003 where fuel is going up but isn't helping to kill the economy.

the OD load is an extreme example of what a broker is doing. personally at this day in time i (and alot of other brokers) just want to make enough to pay the broker (w/o owing), eat, and pay bills. Just like for some truckers things are good and for others it's a struggle to keep your head above water, it's the same for the brokers. If the truckers are feeling it, you better believe we feel it too.

 

You have that right.
I saw a load posted last night on a board going to CT for 1.20 pm WTF? It was 40K too. What the Hell is wrong with people? The sad truth is some "bottom-feeder" will take that load anyways.

 

So that load would pay roughly $3480 (from L.A. to Hartford) at around 2900 miles. Running a rig that gets 5.5 mpg using 527 gallons of fuel X $4.80 per gal which is $2529 and TTT would be $951 for 6 days and that's just going there what about coming back?
I wouldn't take that load but someone would.