okay how much money you brokers make moving loads

My company runs about 60 trucks abd also has a small brokerage division. Since we are a small company, we all wear many hats. My primary job is over operations of the trucks, but I also help out on the brokerage side too.

When brokers bid freight, they are often locked in to their bids for 6 mos to 1 yr. This industry is very volitile and capacity and rates can have wide swings over very short periods of time. That means that sometimes brokers can do very well on a given load, or they can take a huge loss on that same load. All in all, I would say that a broker that consistently hit an average margin of 7-10% over their whole business is doing pretty good.

 

I think that your company and your brokerage division seems like you are one of the few that probably offers fair rates to carriers on your brokerage side. Many do not. I have seen on several occasions where they mistakenly put what the shipper paid for the load on the bill of lading. I can assure you that what I saw was 40%. I also understand that it's a business, and brokers compete with the charter to get the contract.But you were always gonna have guys hauling cheap loads. I have called on numerous occasions where a Load was posted on the board without an amount. When I call and find out it is a cheap load, I politely decline it and give them my offer. They usually say that's the best I can do, or offer a little bit more and I still declined to take the load. Half hour later the load will be gone because someone hauled it cheap.

 

My buddy moved his BMW down to Florida from western pa. Broker charged him a grand, $250 to the broker $750 cod

 

Who does?

 

$250 dollars for picking up the phone.

 

As I've said before, I average 10-20% a load. I don't have the exact numbers in front of me- not at the office, but when I turned my commission log in on Friday, I had netted 24,093 against about 144k in sales, or roughly 16.7%. I obviously don't keep all that, but it was a solid month for me personally. I've had better, and I've had worse.

 

Me lol

 

www.lanehoney.com

 

How accurate do you find the rate they show on certain lanes?

 

I don't know how they compile their data, I would think that info is kept under lock and key, but from my experience of searching a lane (their numbers) against what I was paid or even offered, at times I've seen a 50/50 split between broker and carrier and sometimes even higher with the broker keeping up to 70% that is if those numbers are legitimate that they post.

Case in point, a 110 mile load I was offered paid $700. When I looked up that lane on the site it said shippers were paying $2270. I took the $700 of course but if those numbers are accurate or somewhat close to reality, I just had to shake my head.