How are Brokers NOT to blame?

Ok. I'm not looking to start a cult here. I'm throwing out options for problems that have been CLEARLY addressed on this forum over and over again. Why does it keep coming up if there's been a solution? I'm just offering one possible solution here and one cause for all the back and forth, tit for tat drama over rates.

Check out this article: Why Your Relationship May Be Stuck in a Frustrating Tit-for-Tat Pattern

It's context is not exactly specific to trucking but relationships are all the same...even within this forum.

Would you agree brokers and carriers have trust issues? Can we ALL agree on that? If so, how do we move forward given that knowledge?

 

Thank you for carrying on the conversation. I've been thinking rate calculation has been the root cause of rates being taken so low. I have taken a low rate before just to get home (like maybe 3 times - since 1995). I totally understand how that happens. That's why I don't judge or hate carriers that do. However, I've never taken the stupid kinds of rates that are on the load boards right now. I find it offensive and wanted to know if other's are offended. If so, will this lead to carriers "sticking" it to the brokers next year? If carriers are looking forward to gouging brokers again, is that cycle healthy? If not, is there anything that "we" professionals in the industry can do to make a change? See where I'm going here?

I see a problem and I'm asking others in the biz for feedback to have a discussion. Thanks for bringing up contract rates. I will say from the data I have reviewed, contracts rates are way up! This has been great for longevity...for some.

Also, you bring up new authorities. I am so torn here. There HAS to be some standards implemented here. I want folks to be free to get into a truck, but at the preservation of those that have put in the time (paid their dues) to have a solid, reliable business in place and continue to operate so that folks can eat. Could preservation of owner/operators be linked to national security in your mind? If so, would it behoove the regulators to implement a better strategy that would increase the amount of time it takes to obtain authority? Thereby reducing the surge of new and departing carriers? Thereby reducing the dramatic swing in rates?

Again, I'm asking for a discussion here. I'm not crying over the rates. But how are we all to blame, and more importantly, is there something we can start doing to help change things down the road...I know nothing we discuss is going to change for me. I'm not asking these questions because I need more work and can't get it...as some seem to think. I take loads when I need to go purchase things for my farm. Guess what, I get paid to go buy stuff and most of the time, the rates I get paid also cover what I buy to haul back. So, I'm not in any trouble of losing my company anytime soon. I own everything out right and do most of my own maintenance. I don't have to take cheap rates because I have a steady stream of income outside of trucking.. More importantly, I don't haul cheap freight because I know it's not good for the next guy.

That said, I did have to research ALOT to determine what would be an appropriate rate to charge brokers or shippers when they call. I've tried to share this knowledge merely to help the next guy. Maybe even strike up a conversation that brokers could watch to see where carriers are getting their rates from so they can do a better job of relaying our needs to the shippers so when they take on a new client, they are in a better position to know what their client can expect...realistically. That just seems like a win for everyone...to be on the same page. Not everyone will want to do that, but they don't matter to anyone but themselves anyways.

 

Great point! Check this out: IF you have a method of calculating your rates, you can then view "average market rate" data and compare whether or not the lane you are researching will be profitable to you BUT more importantly you'll have a reference to know when those lanes may become profitable again.

For example, I'll attach more data from a chart I provided earlier. It shows the difference between a loadboard average rate and what I need to move in that lane. I DO NOT reduce my rate to go into some "cheap market." However, I do not increase my rates to go into FL either. If a broker or shipper calls me to move a load, chances are I tell them I'm too expensive for them or that they'll be happy to hear what I'll go for. This is my attempt of not screwing the next guy by taking rates willy nilly.

This data is not up to date, as FSC is calculated here but changes daily, as do my rates.


When you look at the difference between my rate and the market rate, you can see what lanes would be profitable for me to seek loads.