What about load boards that exclude brokers and include shippers and carriers only?

You're talking about excess freight. Say for example Acme company ships 100 loads per week and has one (probably 2, 3 or more) carrier who covers those 100 loads every week. They tell the carrier a couple of weeks in advance, look we're gonna have 110 two weeks from now, can you cover those? Carrier says sure. Possibly the carrier can cover all of them or perhaps maybe they can't so the loads get passed off to partner carriers or posted on loadboards. The shipper is paying this carrier fair or possibly even premium rates to cover the 100 loads. These extra's are going on a loadboard to "who knows what" kind of service or carrier will potentially be covering them. They're not going to pay premium rates for that. They've got plenty of time to shop it so why should they? Besides most potential shoppers view the load as a backhaul, or "bonus money" on top of a good load they dropped off nearby, plus others who will haul it for next to nothing.

It's an extra spot market load that will, 9 times out of 10, move for nothing. There's no real reason to cover these loads at solid rates when they have time on their side. These are the kinds of loads shippers will likely be shoveling off on you, without the help of brokers... ....in other words they're going to be looking for value, low cost, to move these loads. Now perhaps these loads sit on the board until the last day, and maybe the end receiver needs the product by a certain date.. At that point whatever it takes will move the load to get it shipped out the day before it's needed. I'm not on the "brokers' team" here just pointing out the obvious. It seems your point here is to improve rates by cutting out the broker. It's just not going to happen. The only way rates will go up on loads like this is when their feet is to the fire and the load has to go, and then they will possibly pay above contract rates to get it going.

Now granted, there are shippers out there who may seek out smaller carriers for better service and pay said carriers good rates.. Get out there and beat the bushes to find those companies, how do you think brokers do it? This may be an overly simplified view of things but I don't think it's too far off the mark. Why in the world would a company shipping product waste resources on seeking carriers to work with directly when they already have carriers, or non-asset based logistics providers, they work with who have the resources and people who are specifically devoted to this task?

 

Great Points.But the real issue is the ''needy'' and ''desperate'' drivers out there pulling this cheap freight..Many O/O can drive a truck but many are very very stupid when it comes to the whole business aspect..Brokers and Agents make a wonderful living off these dumbed down no balls O/O's...I see this everyday and it just drives me nuts..

The reason i see it is because i was one of them at one time..Somedays i wonder if i still am.

 

Hmm, cut out the Broker so the Owner Operator can wait 60-90 days for their money from the shipper. I know a few brokers on a personal level and I can tell you that you are wrong if you think that bring in over 25% off loads. Maybe you don't realize the amount of money and risk the broker takes to make sure the carrier is paid in 30 days.

IF you cut out brokers a lot of shippers would have to do a ton of extra work, hire more shipping staff etc and the shipping rates would go down anyways.

"The grass is ALWAYS greener on the other side of the fence.... And when you get there you have to mow it too!"

 

Brokers are no different than drivers. Glad to brag about the times they might make 50% then not so quick to point out times when they got hammered. It does happen. What I don't get is, someone has to be paid to deal with covering loads... ....securing carriers to cover the freight be it the direct shipper or a broker. There is always a cost associated with that. Eliminating the broker doesn't magically make that cost disappear. It just means the direct shipper takes "the middle man's cut" to cover their extra costs. Now what difference does it make who gives the freight if you get rates that make you happy? I'm sure this makes me a broker's best friend here or whatever... ...ask some of the ones I deal with daily what they think about that lol. Yesterday @ 5pm I landed a co-brokered load of roll stock paying $1,350 on 302 miles. I was pleased with that rate. Should I be mad that I didn't get it direct from the shipper for the $2,700 that the shipper paid the brokers to move this load? Now do you see how that defies logic?

 

So let me see if I get this straight. If someone is telling me something different than what someone is telling you. The person I am speaking with is lying and the person you are speaking with is telling the truth.

Got it. Guess I will just throw out my financial reports of all the public brokers that show that none of them are making better that 15% margin.

I am glad to learn that all of them are committing fraud so that they can collectively lie to the O/O who can't tell the difference between a 10-Q and an Arby-Q.

But armed with this little bit of knowledge I think I will run out and start a brokerage business. Sounds like easy money.

 

Chris, you are talking trucking logic. It is not based in real world reality. And chances are that load you covered was at a loss or maybe $50.

And BTW, those fat margin loads don't last long unless there is a relationship between customer and broker (and you never had a chance at the freight in the first place). Because someone will come along and cover it for a 10-15% margin.

What scares me about 15% margins as a starting point on loads is that all it takes is a couple losers to be running at less than 10% margin.

 

I put my money on the original broker lost money, the co-broker in return for helping to cover a difficult load made a $50 or $100 fee, or who knows?? They certainly didn't make 25%. The brokers are so competitive they better be sure they can make money locking themselves in at a certain rate, cause after the hammer drops a few times, all of a sudden they realize a little late they best get with the times or go out of business. I compare it to owners who play the same averages game, selling themselves short by bridging gaps with ridiculous cheap loads... ....sooner or later that catches up with them. And the original broker he, without those drivers, he can't even hope to make money many times. He's competing with a gazillion others who try to play averages. Some better than others but they all sell themselves short.

Sent from my droid using Tapatalk 2

 

There are some really fat margins on some loads, for instance, I booked a load today at a really nice rate, and the bonus was that it was taking me right where I needed to be for next week....

I had to cancel it when the broker called and changed the dates.

I really hated to do that, it was paying north of $3 (on more than just a few hundred miles.... mileage was in the mid to high teens)

Saw it being double brokered for just a little over $2

That is a reality based fact.

Brokers are necessary.

Double, triple, quadruple brokering is not.