You should spend a little time looking up the history of Freight brokers. Not too long ago the gov't was elbow deep in all of the trucking industry and it was next to impossible for anyone not already in the broker industry or having a ton of money to bleed into it to get going. Deregulation of the industry was a major stepping stone in making it a competitive market place. While it sounds all well and good for all freight to be one flat rate it gives the broker the ability to loose money in one lane to make sure a lane with profit is covered.
As for the 10% profits, as a small brokerage if shipper "A" doesn't pay you for the load carrier "B" hauled you are still liable to Carrier "B" for the other 90%. Also if Carrier "B" fails to pickup the load you are responsible to Shipper "A" for money it has cost them because you didn't hold up to your end of the deal. Not to mention if you miss vet a carrier and he kills someone with your load on the truck you can be held liable. see:
http://www.carrier411.com/duediligence.cfm
Long story short Greater risk = greater reward.
Question for Brokers " What do brokers consider a fair rate per mile for freight?"
Discussion in 'Freight Broker Forum' started by robbiehorn, Feb 4, 2014.
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rank Thanks this.
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Fair rate is whatever the market will bear....
When California is pushing lots and say 3.25 Cali to NYC does that mean the return load shouldn't be taken for a low rate? You have an abundance of trucks in NYC looking to go back to Cali... it will move.. but does that mean the NYC load should pay more and the Cali to NYC load should be lower? Tic tac toe! Line up the good ones! Always a moving target if you're going to play the produce game.. -
Whenever someone tries to sell a fair rate I think of a guy trying to sell a car that's in Fair condition.......i.e. below average, not great needs work.
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Some of these rates are a hell no for me. If I drove 160 miles my truck grossed a little over 700 dollars. To many regs now so I'm retired at 52. You guys keep on trucking. I drove from my 18 th birthday until 2 years ago.
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Yep they suck for the most part
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Clint Eastwood in "Unforgiven", my best western of all times, said to Gene Hackman before ending his life;
"Deserve's got nothing to do with it." -
rollin coal and LoudOne Thank this.
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Haha!! I remember that one. Sometimes I wish I could go back and do differently. $4,500 wasn't great on it but it wasn't terrible either. It doesn't really matter now anyway and is water under the bridge. There have been so many just like that one that I have walked away from, no deal. I usually take a hard line on my quotes and dont waiver. But whenever one of those falls to the wayside, there's always someone else out there that I can make a deal with, so no loss.
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