Broker Transparency

Discussion in 'Freight Broker Forum' started by Dave_in_AZ, Nov 28, 2020.

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  1. 062

    062 Road Train Member

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    If it’s so easy a caveman can do it, then why not open your own brokerage?
    As far as who should make the money. If you don’t get the rate you want, then why pull the load?
     
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  3. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    And they make so little money, why then the need to pay lobbyist millions of dollars to have the statute changed?
     
  4. God prefers Diesels

    God prefers Diesels Road Train Member

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    I don't have near the experience as you guys. But I don't understand how transparency could result in a "race to the bottom". I would think as it is now, the shipper tries to cut the broker's throat, and then the broker tries to cut the driver's throat. If there were transparency before the fact, the broker and driver would be working together against the shipper to drive rates up, not down. Can someone explain my thinking here?

    Currently, I haul for the rate I need to haul at. I try to get that rate as high as I can in the meantime. It's really all I can do. But if I knew what the shipper was paying, I bet I could push my rate even higher. Then, if the broker wanted to make more money, he'd have to go after the shipper for it, instead of lying to the trucker. In the end, that would cause rates to go even higher, until they settled with supply and demand. But right now, the broker is getting the rate that's already settled by supply and demand, and trying to beat the trucker down as far as he can in order to make even more money. I don't blame the broker for doing this. I just don't get why we wouldn't want more transparency. I mean, if the broker already negotiated a rate with the shipper, then why should a trucker have to negotiate with the broker? We're negotiating twice on the same load, instead of once. The more middle men you add to an equation, the worse it is for price coming out the back end.
     
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  5. bryan21384

    bryan21384 Road Train Member

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    I agree wholeheartedly with your post. I'm not sure what gets solved with broker transparency. All they will do is put a made up number on the rate con, because it's not anybody else's business what deals are made with THEIR customers. The problem isn't neccesarily the brokers in my estimation. I think it's too many people trying to go into business for themselves and they have they dont have any business being owner ops. Covid probably has helped that problem somewhat.
     
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  6. 062

    062 Road Train Member

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    Brokers already undercut one another, and putting the rates on display will make it easier to do.
     
  7. 062

    062 Road Train Member

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    Like any other business. To gain or maintain advantage.
     
  8. Rideandrepair

    Rideandrepair Road Train Member

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    I honestly wonder what the actual result of any changes would be. Last I heard the argument was for more transparency. This recent thing is to do away with existing transparency. Or did I miss something?
     
  9. God prefers Diesels

    God prefers Diesels Road Train Member

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    Hmm, I didn't think of that. I guess the real solution is to either keep hauling for brokers at the max rate you can get, or go after direct freight.
     
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  10. PSM379

    PSM379 Heavy Load Member

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    Always going to be some loser to haul cheap freight, brokers aren’t afraid at all.
     
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  11. bigguns

    bigguns Road Train Member

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    Yes I did and I stand by it. What they need to do and what they will do, are 2 different matters.

    Going back a bit: people need to eat but nobody is wanting to see a grocer’s profit. Meanwhile people in this nation go hungry.
    People need medical care but no one is demanding that anyone in the medical field show there profit. Again people go without the care and medicine they need.
    Some truckers are demanding to see brokers’ profit. Is it just because there is a regulation requiring transparency? No. No. And no.
    Nobody is forced into trucking. Nobody is forced to use brokers. Based on what I have said above in the first 2 paragraphs, with the exception of the regulation requiring transparency, why should brokers show their take on a load?
    Oh and another point worth mention. Trucking has been deregulated for many years, so why should one very small segment of trucking be regulated?
    I was for broker transparency but with all that I have posted I have decided that transparency is unfair to brokers and not really necessary.
    It is truckers’ business decisions that they choose to use brokers. Near about anybody can hang onto a steering wheel but that doesn’t mean they should be involved in the business of trucking.
    Most of independent truckers’ problems stem from the fact that there are individuals out here hanging onto a steering wheel and don’t have a clue about running a business.
     
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