Truck Shutdown.

I know for as fact that brokers lie about how much they can move a load for. They have a set percentage they want to keep,.. and thats that. That and I have been asked to pick up an envelope and include it with my paperwork to the broker. Envelope wasnt sealed so I took a peak. Broker made $600 off me after lying to me when I tried to negotiate for more. Its not the rate or the profit the broker made that upsets me as much as it is being lied to. I made enough to cover my costs and still profit.

The other side of the coin,.. at least here in Fla. I have done my share of knocking on doors,.. I still do cold calls,.. hand out business cards. Have sit downs etc,.. bid on shipping. In my experience here,.. the shippers are just as stingy, cheap and crooked as the brokers. So when doing spot market freight here,. how can you possibly expect a good rate with a 3rd hand in the pie when the shipper isnt paying a good rate to begin with?

Hurst

 

Well put and spot on my friend.

 

That's the key right there. Brokers don't always set the rates for freight. We can solicit bids to shippers for servicing a lane, but it is the shipper that ultimately says "I want X lane serviced for Y amount." The good brokers will either avoid the cheap stuff all together or use volume with a lower take on their end to compensate for cheaper freight.