Can this industry ever evolve to not needing brokers anymore? Think about it

Discussion in 'Ask An Owner Operator' started by Kenworth6969, May 9, 2021.

  1. Kenworth6969

    Kenworth6969 Light Load Member

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    they just post a load on the internet and make tons of money.

    There has got to be a better way with where we are with technology now.

    Maybe like an internet service that connects drivers and shippers AND the service advertises they only take lets say 5% of whatever rate is agreed to.
    Its transparent for both shippers and carriers so they both know they ain't getting screwed.

    There has got to be a better way.
    It's soo 30 years ago to have to call brokers to find out details about loads, we should have moved past that with internet and technology.
     
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  3. Ridgeline

    Ridgeline Road Train Member

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    Not all do and if you want to spend more time trying to line up work, go for it.

    the internet is partially why we have this crap, the other part is desperate owners who need to produce any revenue to pay the bills.
     
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  4. ZVar

    ZVar Road Train Member

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    No.

    To expand. There will always be middle men. Drivers are either too busy, or don't want to go through the hassle of knocking on doors to line up clients. That's all a broker does really. Connect trucks with loads. (Yes, I know that's super simplified, but at the core it's what is happening.)
     
  5. xsetra

    xsetra Road Train Member

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    What about the trucks transparency? Are we expected to post our %profit.
    My profit is higher than 5%. Under this new rule will I have to lower my profit?

    The simple solution. Take loads you are comfortable with the pay.
    I don't worry about the brokers or shippers cost. My concern is my bottom line.
    If the pay on a load is to cheap to run it. Don't run it.
     
  6. mud23609

    mud23609 Medium Load Member

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    If it’s so easy to make tons of money being a broker why are you driving a truck?

    if it’s so easy getting shippers why are you using a broker?
     
  7. Arctic_fox

    Arctic_fox Medium Load Member

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    Honestly....no 3rd partys will never go away. They may change shape and name but there is a reason there is a market for them regardless if you or i actully need them.

    First its a service to shippers, especially small ones. It can be hard to find a reliable driver in this day and age and costly to build up a huge network of approved drivers. They can get matched to driveres with the required equipment more easily. And if they have odd one off loads where they need a diffrent chunk of equipment they arent scrambleing to find it. I.E a dumptruck instead of a flatbed.

    Next shippers using a broker know they have a much higher chance of getting someone with reliableish equipment, a decent attatude, and who will safely move their cargo. It also gives them more layers of protection if something goes wrong. I.E a driver claiming they have a hazmat or the right kind of insurance. Maybe even showing fake documents then spilling a hazmat load. Plus if a broker keeps screwing up they can easily change brokers and get a whole new set of drivers and trucks to try.

    The reverse is also true. As a driver sure you can go cold knocking and can and likely will eventually find a great paying route(s) and load(s) but that can take a lot of time and chance. Afterall there is also always a chance a place needing a one off load may burn you and leave you eating the load costs or screw around with your pay. A good broker will blacklist places that play these games, and they can and do network with other brokers to do the same. This can put a lot of pressure on a shipper to play nice that you as 1 driver or small fleet simply cant.

    Next these brokers can and do trade loads between each other. This gives them the ability to find loads that you as a driver simply never would be able to find. Hard to go cold knocking if you dont know they exist afterall. It also gives you a nice list of potential jobs to pick from and if a broker knows your prefrences a good one will try to match drivers to loads they enjoy as often as posible.

    This is only a small snipet of the reality but gives you a good idea of WHY brokers exist. Sure a good O/O can and will be able to do fine on their own. But there will always be a market in some shape and/or form for brokers simply because of the realitys of shipping in this day and age due to things like cross country loads and there being literally millions of trucks on the road any given day.
     
  8. Accidental Trucker

    Accidental Trucker Road Train Member

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    A broker knocks on doors to line up freight, and, to be able to KEEP those loads, filters trucking companies to cull the chaff. A broker that keeps lining up inferior carriers won't keep the account, just like if he keeps lining up inferior freight, he won't keep carriers.

    Truckers CAN'T (speaking in general terms, present company excepted, I'm sure) line up freight, keep track of rates, keep the truck running efficiently, manage their hours, manage customer credit. Brokers do a JOB, and it's about knowing freight rates, keeping tabs on customer credit, forecasting demand, managing relationships with shippers and truckers. Brokers provide liquidity in terms of quick pay options, etc.

    All that may change, but remember, just because it changes doesn't mean it's going away. We used to just post things in the classifieds and hoped someone would call. Now we pay a broker (Ebay, even Amazon) to give us more exposure and generate more revenue.
     
  9. AModelCat

    AModelCat Road Train Member

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    I think the solution OP is looking for is called "UShip" and you'd go broke running those loads.
     
  10. bryan21384

    bryan21384 Road Train Member

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    Sorry man..brokerage going away is a pipe dream.
     
  11. PureLeafTea

    PureLeafTea Light Load Member

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    I agree brokers aren’t needed. Same for Lyft, Uber and door dash. I don’t need to get others involved with my dinner. I want Cracker Barrel you have a car. Let’s leave some tech idiots in San Fran out of it.

    It’s not even that brokers aren’t needed it’s that they’re paid too much. What is needed is a law that what the load is paying and who is getting what must be printed on the bills. So you’d see this…

    load pays $3200.
    Fun times logistics $800
    Brokie happy time LLC $450
    Real Long Dong Carriers $600
    YOU $1350

    And that’s happening. Today too many people have their hand in the pie. Leaving nothing for the guy doing the actual work, risking the most, etc. A broker has a computer and phone bill to worry about. Zero expenses. They should be paid the least but often are not. A broker should get $19.95 per load. Something like that.

    Also pass a law the person/company with the load must haul the load. So blow hard logistics LLC can’t get all these loads with no trucks and not haul anything. If I get a load from Tommy Manufacturing I must haul it. Simple.

    I fixed everything. You’re welcome.
     
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