This might get interesting?

So let say broker profit is capped,in a down market there’s more trucks then loads,who gets to decide who get loads and who dont?

 

It's against the law but you don't think trucking companies in a particular area running the same lanes/freight get together and "talk"? Big wigs from diff companies going out for lunch or a golf date. "Ok Johnny your company can have this or that and will take these guys in this area. Don't step into our territory and will stay out of yours. Some guy doesn't wanna play by the "commission's" rules send the goons in and bust a few knees.

It most deff happens. Perspective from the other side

1st hand exp with a few sand/water haulers in the area. One has SWN the other Cabot.

 

This right here is the problem with everything not being transparent.

I get what you are saying about brokers needing to be able to pay their bills. I am sure there is a certain amount of revenue that is a break even point for a brokerage.

But when we are looking at CH Robertson with the CEO himself making a 8.6 million dollars a year, not including any of their company profit, that's not trying to break even or just pay the bills.

So if a broker figures that hes getting less loads so now hes going to take 30 or 40% or 50% instead of his regular 10 or 15 or 20, he can still make the same amount of profit while the Carrier goes broke.

But don't take cheap freight is what they say!

So if the brokers have less freight and they keep more of the money and pay the Carrier less, where is all the freight that's not cheap?

It seems as though the brokers still make money but the carriers not so much.

 

Last I checked the whole point of being in business is to make money, not break, not just pay the bills.
You're back to wahhhhh they make too much and it's just not faiiiiirrr.

 

I hear what you are saying but the way that I see it the brokerage has a much higher margin with much less expense.

So if the broker cries that the truck made $1000 on a load, you could ask him if he has ever spent $500 for one tire.

And if you have to buy one from road service during the course of that load, between that and fuel most if not all of the money you made is gone.

The problem is the brokers don't nearly have that kind of expense.

The Carrier has to make money.

 

I don't recall saying anything about it being fair or unfair.

But if every broker has less loads and they take a higher percentage from those loads where are all the high paying loads for the carriers?

The broker can still make the same amount of money but the Carrier cannot.

Less loads+ brokers taking a larger cut= Carriers earning less.

Mathematics is not fair or unfair it is just accurate

 

Yes I agree.

 

So real estate is free? Office lease payments are free? Employees and insurance and benefits are free? I would dare to say a large brokerage has tens of thousands of dollars of overhead per week. Not to mention floating money to all the shoestring carriers on quick pay while waiting 60-90 days or more for their money.

And carriers don’t have to make money. If guys are running for less than their expenses that is their own fault and they don’t really deserve to be in business.

 

Money is relative.

Large brokerages make billions of dollars a year. There is expense involved in making obscene amounts of money.

Employees make them money.

They take an extra percentage to float the carriers money. It's a way for them to make even more money.

It's all relative.

Yes the Carrier does have to make money if hes going to continue.

When the CEO of the brokerage himself without any other profit to the brokerage makes 8.6 million dollars a year... When the net revenue for CH Robinson is 2.6 billion dollars in one year... yeah they can cry if I made money.

That is very laughable...

 

If a carrier is choosing to run a load for a loss then why do I care if he gets to stay in business or not? And really all the brokers are doing on a daily basis is doing what you’re trying to do in your thread about moving a truck. You asked what the least expensive way is. That’s really all the brokers are trying to find out day after day. Move their loads the least expensive way.