Under $2/mile loads with $6/gal diesel.

What happens when broker A posts or shows his rate then broker B undercuts him?

This is a never ending battle and again I say it’s us the drivers driving down rates

 

I see it differently. Joe’s Logistics is moving a lot if fright for someone. Brad’s Logistics offers a trucker $500 to book a load from you out of the place you move hundreds of loads a week. For $500 I’d find out exactly what you’re getting paid and all the sudden my foot is in the door.

 

Many drivers panicking to take anything to pay for their $250,000 new Freightskakers they got last year.

 

So you are worried about competition.
This is your legitimate concern to worry about someone wanting to steal your customers but this is the part of the game.
It would be your skill to persuade your customer that you are that much irreplaceable that no matter what they offer, you are still their carrier.
In fact, transparency in your example would not prevent the undercutting from occurring but it would only facilitate it, which may or may not be good, depending which side of the barricade you are on.
Certainly, the principle of the free market consisting in providing customers with the best service for the cost satisfying both parties in optimum way, would still remain intact.

 

Everything you just said could also be said about how you negotiate with the broker, regardless of knowing what he’s getting. You’re dealing with the broker, not their customer. So it would be up to you to sell your services to the broker and convince him why he should pay you more no matter if there’s someone standing behind you that will do it cheaper. And if you can’t come to an agreement satisfying both you and them then the free market still remains intact, right? I feel it’s foolish to think that knowing what the broker gets will somehow equate to truckers running the spot market getting more money. If this transparency crap ever happens and if I were a broker the first thing I’d do is revamp my software. I’d make it a bidding process like Uship. Throw loads on way ahead of time and watch the rates get driven down before the deadline hits and see who “wins” the load. Or the rate will simply get driven down at the contract level once everyone starts undercutting each other and the shippers find out what the load will move for.

 

Are you going to provide your operating cost to the broker?

 

And I’m not worried about competition. I will simply challenge you to give examples of when regulations helped anything in this industry in the long run.

 

I don't see transparency as a solution to poor rates but more as an argument in a carrier's ability to assess the market potential. However, this could be powerful leverage in rates negotiation under favorable circumstances.
Why did DAT offer shipper to broker rate databank for $200 (?) more?
Obviously, that info has its value.
To me it is no braner, If I am to vote for transparency, I say yes.

I can't seem to be convinced that it could somehow kick me back.

 

And sadly I know quite a few good ol boys who think they know the system and haul for those same cheap rates. Don't want to listen and will never learn

 

Never. Or may be, if he asked me politely.