DRIVER BEWARE OF FREIGHT BROKER SCAMS

You have a bad read chief. Rates are low because of the truckload market, not because brokers are keeping the lions share. If you check out the news you can see that a ton of large and medium sized brokers are laying people off or going out of business. Shippers are driving down rates because the supply of available carriers heavily outweighs the demand to move product.

 

To dovetail off this: This is very much a cyclical market. Low rates are not actually in our interest or our favor as brokers. It significantly increases the difficulty during competition for customers as well as freight, and it drives down actual margin dollars, if we look at it from a pure numbers perspective. From a personal standpoint, I dislike it because it puts me in the spot of hitting you guys in the bottom line, too. The amount of times I get, "but you were paying X" for freight that I relatively consistently run makes it suck. And a not insigificant portion of my freight is price sensitive. If my customers' competitors are getting the freight moved for cheaper, my customers then start looking and that's not beneficial to anyone.

 

Name one LARGE broker that went bye bye.

 

Read any of the below to see the layoffs/bankruptcy, all from this year.

Uber Freight lays off as many as 50 brokerage employees

Freight broker Surge Transportation files for Chapter 11 bankruptcy

Coyote Logistics restructures, lays off unspecified number

C.H. Robinson lays off 300 employees

https://www.cnbc.com/2023/01/11/flexport-to-lay-off-20percent-of-its-global-workforce.html

 

I didn't ask for layoffs and restructuring, did I?

 

Well, Surge is one big broker that went bye bye

 

Never heard of that one.

 

Not exactly a small broker.

 

Also restructuring, BTW. Not out of business.

Still waiting, folks!

 

I'm sure you are trying to make a point, I just cant seem to figure out what it is.