“The brokers make too much”

So my question remains. Are we, owner operators, fleet owners, better off controlling how much a broker's cut should be, or not?
Are you guys, opposing it, see it as bad thing leading to some catastrophe in the industry in the long run? Or perhaps, you are saying this out of some philosophical conviction, which does not allow you to admit that you'd be better off by imposing a maximum broker's share?
I think, having brokers in check would be beneficial at least for the time being.
Thank you.

 

So does a store require you to sign a contract stating if you slip and fall they aren’t liable?

exclusive deals are common, but that would equate to a company driver or lease on owner op not being able to pull from the competition.

true free markets means no one is regulated or everyone is.


Brokers can make all the money they want not against it one bit, but regulate them how you regulate an MLO and see what happens. Industry now self corrects big time.

it’s a win win because all these double brokers get kicked out, meaning more loads for the legit ones, and rates will pick up.

a simple contract, you give me kid and I haul.

another question rises why don’t brokers have non compete clauses on the shipper side? Meaning shipper can’t ship with carriers direct? Just like they have with carriers not allowing carriers to solicit the shippers the brokers have dealings with?

You know why? Because shipper is holding all the cards, and in turn broker passes the responsibility onto the carrier because the carrier is dependent on the broker.

you want free markets? Get rid the clauses that’s hindering carriers.


Carrier starts - > needs brokers to survive -> gets enough capital -> goes after shippers directly- > broker out of business

but here’s the issues once carrier starts with brokers they are now screwed because of the contracts. Stuck in limbo because the shippers they know they can’t contact.

yes cold calls to other shippers, but how can you tell if tql, coyote, ch, or are the big name companies don’t have contracts with them leaving you in said situation.

 

Once again, we aren’t talking about compensation for a service commensurate with the value provided. We’re talking of allegations that brokers are keeping their profit margin and fees the same or close in a down market. Which doesn’t hurt the shipper. Doesn’t hurt the broker, the trucker is paying more out his own profit margin and is taking the biggest losses. You’ll have to decide how much sense it makes to promote that sort of situation without a correction.

 

I appreciate brokers myself. I would have to have atleast two full time sales people at 100k per year to run like I do now. Do I pay 200k to brokers? I seriously doubt it, and even if I do it’s worth it because I run where I want when I want depending on conditions. This allows me to maximize profit potential.

If it wasn’t for this PPP thing then rates would be way higher then they are. Since I can get 60 cents per mile paid for by the gov, and if I get a new fuel card program where I pay 1.30 vs 2.30 then all of a sudden I can run for 1.50 vs 2.30 all miles and be at the same profit numbers.

Don’t shoot the broker for giving you loads at the market average just because the average is ####. There are many more factors at play here. Like I said before, If you don’t like it then get your own customers or start your own brokerage. Government control is not your friend.

 

Some do, and it's perfectly legal. Just because most don't, don't mean it's regulated. Again, my daughters indoor soccer field for an example...

And all this is nit picking specific cases anyway. Your statement was that all industries are regulated from top to bottom like trucking. Nothing could be further from the truth.
All transportation industries, be it trucking, trains, boats or airplanes are highly regulated. As is medical. Nothing else jumps out at me as being highly regulated. I'm sure there are more, but I'm done with this conversation as all you are doing is trying to change the subject.

 

That perspective is appreciated. But I have a hard time blaming truckers for running cheap loads as the BIGGEST factor in holding rates and profits down. And some people are making that charge. As you say, lots of factors in a #### market.

 

Exactly. Exactly! Everyone is regulated but the broker. What kind of industry is best, one that makes the trucker an equal partner in a previously lopsided transactional system or one that keeps it the same, at the truckers disadvantage?

 

@Midwest Trucker yes government control isn’t my friend, but don’t control me when you ain’t controlling the rest, get it? Either release carriers from these stupid regulations, or go full on gooberment on everyone in the industry.

@ZVar yes your daughters soccer field is not in sales, it’s in the leasing and renting business. So here’s the question to you, when you lease the land for the one time use, does it have a clause stating you can’t next time lease from their competitor?