Load Board Truths and Myths

Are you saying that the load boards (DAT specifically) under or over price the lane rates? If so how do you gauge if a broker is ripping you off on a load or not without accurate data?

 

That "lane rate" tool that is on DAT that gives an average rates for flatbed at like $2.35 per mile. Well if it's a 100 mile run and the broker says it's paying $250-$300. I can bet from experience the shipper is paying $500-$600

 

DAT doesn't under or over price any lane or any load for all that matters.

They don't control what a broker posts on their board. The lane rate, so-called averages, comes from data fed to them. Most of that data comes from factoring companies.

 

In addition, I know for a fact that lots of brokers post loads they don't even have under contract. I'm just not talking about double or co-brokering situations either.

There's one guy that posts all kinds of "from and to" loads on a particular lane I run. Every time you call, that load just got covered...but he does have a different load available.

I called DAT to complain about it, you think they actually care?

 

Nope

 

Are shippers generally aware of what the broker pays the carrier? Along those lines would a broker enabling a shipper to pay less for loads be more likely to get accepted by these shippers?

 

Is that what you plan to do? Cut the rates? Haul for less?

 

Ewww no I'm just curious

 

None of my shippers know what I pay the carrier. If a carrier told the shipper I would instantly ban them from ever hauling again. I would see it the same as back solicitation and at the least a lack of trust.

Nothing good can come from the shipper knowing your margins. It’s already a race to the bottom, we don’t need it accelerated. Besides, shippers don’t understand many things so they may think they are getting screwed when they really aren’t.

 

The answer is yes, many shippers are currently moving freight to 3PL's because the spot market is down. But, what about contract rates established with carriers? Doesn't matter much to the big boys, those contracts are mostly one sided and in favor of the shippers.