Fingers crossed

Loads that have to go, will pay more. Other stuff, has a window, sometimes a week or more, no hurry. All depends on what’s available, and the amount of Trucks available. Supply and Demand. That’s all that’s needed. Rates get cheap enough, Carriers close the doors, Rates go up. Carriers expand, and New ones jump in, more Competition, Rates go down. It never ends. The Strong Survive. Basic Capitalism Free Market Principles. The failures, insure the Survival of the System. Makes it more Efficient.

 

Im sorry but the brokers are not making anywhere close to the 40% u claim they are making ... sure maybe on a load every once in awhile... but not a consistent basis.. U can look at the financials of all the public big name brokers and see what their really making

 

Just so we are all on the same page here, this is absolute crazy talk.

I work for a midsized brokerage (we run 1200ish full TL a week and 1000ish LTL), in my 7 years here we never come even close to 40% margins, our yearly average is about 12%, and the return on that after fixed costs comes out to about 2.5% return.

The hilarity in all of this back and forth is that carriers want to "pay" brokers for the services they provide as little as possible (by minimizing the margin% on a shipment) and brokers want to pay carriers as little as possible by . . . . well paying as little as possible.

The reality is that in our industry the market swings up and down, right now it is firmly back in the carriers favor and rates are heavily spiking upward, where a couple of months ago it was in the shipper/brokers favor and rates were really low. It would normalize to a year round rate if we didn't try and price gouge each other when the market was in our favor but both groups seem happy to take the other group to the cleaners when they can.

 

I've never known the Gov to say HI.....
Worst phrase ya wanna hear!

 

I know for a fact there are brokers that are taking 28% on some loads, I have to tell some of our agents who I'm leased to so they only take the 8% they're supposed to

 

Sure, and I know for a fact there are carriers that make $5.00 a mile on some loads, but I think we can both agree those are the exceptions and not the general state of rates for domestic truckload.

 

You're supposed to say it twice

 

The Industry has been taken over by 3pls. They do make a lot of money, for not having any assets. A Degree in Logistics can provide a very good income. Planning and scheduling, and hiring all the Dummies to do the Physical Work. Unfortunately the value of physical labor, isn’t recognized as very important. It will never change, unless People Demand it. When Working people have to apply for food stamps, and even encouraged to in Job Orientations, at Wal Mart something’s wrong. Very wrong.