Who's getting the money ?

So if I am hearing you, you are leased onto a carrier, they tell you it is a load that they have a direct account with but it turns out they have gotten the load from a broker. I am assuming you have a percent of revenue deal with your carrier?

If that is correct then one of two things is happening. First, someone made an honest mistake when entering the information on the company board. Or Second, the broker and someone in your company have a side deal and are allowing loads to get booked with their drivers at a rate that allows the broker to make a killing.

I would question this with someone in your company. If it is the second, then that is fraud and it is in your and the companies interest to fire this person.

To enforce another point made. Brokers provide a service and one that many companies can't do without. They do not want to have the headache of managing the process that the broker is doing for them. But at the cut you described, I have talked with few companies that are comfortable with a broker keeping that much.

 

If this is the norm then I would start the process of looking for another carrier. This practice by carriers that pay a percent of revenue and have side deals with brokers is more common than I would have thought. It is even something that is taught by one of the larger broker schools. They tell you to become an agent for a larger broker and look for positions with carriers. The reason is that there are a lot of perks the broker can pass on if you let him have a good rate.

 

Its none of your business or any one else what the broker makes. You got what you asked for so be happy with it. Seriously, I doubt the broker just made that money, its the company that you are leased to that just took you for a spin.

Heres a bit of insight for those than have never been in the shoes of a broker. A shipper is not an idio t!! A decent size shipper will usually have anywhere between 15-20 brokers on hand and will BCC all of them when asking for a quote. Usually the lowest one gets the freight. If some of you still believe that a broker can pull off 15-20% off a load, those days are gone!

 

Truth is it probably came from a #PL or Logistics company, they took 20% then the broker they gave it to took 20%. Happens many times a day.

 

I agree with SpankingGT. Who cares what everyone else gets!!! If you cant make it on the rate you get then DONT PULL THE LOAD!

 

You're wrong Spanking GT, you can ask for and are entitled to an accounting of the load you take from the broker. Whether they follow the law is a different matter and if they do you will most likely never haul another load for them.

The info can be found here: http://www.fmcsa.dot.gov/rules-regulations/administration/fmcsr/fmcsrruletext.aspx?reg=371.3

 

Yep good info. as I opined, asking a question is not always that stupid, & maybe YOUR business to know.

 

Yes and no.....
I just hauled a military load....

Bennett had some and so did LS.....LS paid $600 more for the same load from the same point to point as did Bennett...


The real key is for the O/O to know their margins....

I don't care if a broker wants to pay someone $.30/M to haul heavy...I don't have to take that load....Someone will...Otherwise the brokers wouldn't put loads out paying the Bottom rates.....


In fact...I wish more O/O's would run cheap....Then Darwinism would takes it's course and those who know how to run effectively will make more money....Plain and simple.....