It is not broker transparency problem we are facing. It is broker responsibility. How many times have a carrier heard " oh the customer did not approve detention " it is the broker we work for, not the customer. Hence responsibility has to be enforced
They have a separate agreement with the shipper. There is no responsibility to be had when the shipper has only given them limited options if any at all.
@@NormVW2013 Never happening if you own only one truck with one trailer. Been there - TRIED that. Two shippers offered me way less money that the broker was paying me to haul those same shippers' loads.
I’d be curious what percentage of people crying about transparency had a truck and authority prior to 2021/2022? I wonder how many went out and overpaid for equipment in 2021 or 2022 to jump into the owner operator game? I wonder how many were even trucking back in 2008 when everything crashed? The people who’ve been through all this a time or two before aren’t whining and wanting the government to help them negotiate better.
Stock brokers and real estate brokers both have caps and transparency requirements. What if they were allowed to operate like freight brokers as it is said in the name of a free market? The fact of the matter is that a capitalistic free market has regulation and oversight to prevent agreigous abuse that can cause catastrophic disruption to the system. Even carriers submit to regulation and oversight,freight brokers should not be an exception. Scarcity(supply & demand) is permitted in a free market system but not collusion or monopoly(Brokers banding together to manipulate prices).
Freight brokers are essentially a carriers sales department, and sales always gets paid more with less overhead costs, and every business is supposed to have a sales department. If you’re not selling your services direct to the shipper as much as these freight brokers do day in and day out. Then they have the right to name their price.
Capitalism's end goal isn't a free market, it's a market in which it's controlled for the maximum profit of a corporation. In this scenario, who is the beneficiary of that control? Brokers only have ~20% of the freight in the market, leaving 80% being handled by other means. Massive trucking companies control much of the contract and LTL market. Smaller outfits and owner/ops have very limited power in comparison. So you could cap brokers at some arbitrary percentage profit, but you're only impacting a small portion of the industry. If the percentage of profit is too small for most brokers to survive then all that will happen is the freight will consolidate into a smaller percentage of brokers/big carriers, driving rates down further. If the percentage is high enough for brokers to survive then you've likely just maintained status quo in the limited market that you're dealing with. It's not your small brokers or trucking companies that have "banded together" to control the pricing, you need to look higher up than that.
@@dangranot5703 You got it. Many brokers and the trucking companies who use them will never see the big contracts and big revenue that the largest companies get. I'm a LTL team driver. First trip of the week, Atlanta to Salt Lake. 1900 miles Lead trailer 15k pounds $8300 revenue Rear 10k pounds $4300 revenue Our dock supervisors have a $5 per mile revenue goal per freight lane.
15 years on the spot marked so far (1 truck - 1 reefer, OTR) here.....my thought process is quite compatible with yours. Navigated/negotiated the industry for 13 years through ups and downs quite successfully making decent living and beyond, but these last 2 years...WTF! Sorry, but I don't see the light at the end of the tunnel for "a little guy" any more. It's not just brokers...it's kinda everything. The whole rigged system...playground constantly being tilted more and more against us. Went through 2 complete overhauls, new transmission, brand new reefer trailer, accidents damage repairs, long down times, maintenance, you name it...never a problem of financial nature. And now for the first time trying to figure out how to afford 18 new quality tires...are you kidding me!? Time to retire I guess.
In the same boat, My Pete is breaking my balls, then my brake hub on my trailer brakes and my brakes fell out, let me say that again my brakes fell out, lucky a passer bye flagged me down and it saved a rim and tire
@@snappingfingers8786 Sorry to hear. What you described, looks to ma as poor preventive maintenance...it is worth (wisely) spending the money on it, trust me. It will save you money on the long run in so many ways and keep you in business. Imagine the trouble you would have been in if two wheels fell off and killed someone? You definitely don't want that in your life. If you can't afford keeping your equipment in some at least close to top condition (the vital stuff), then this business is not right for you. You can't successfully run a warehouse business with a leaking roof that you can't afford to fix, right?
@@truckingwithnose Thanks. Not sure if it's worth it though. Sooner or later we'll have to accept same fate as dinosaurs. Times change, technology, everything changes, AI...most of us 'little guys' will be gone regardless of the industry. Been optimist whole my life, yet, in a strange way I'm glad I won't live much longer to watch a handful of rich people owning the world. Free market (without some serious regulations that don't exist at this time) doesn't work...works only for the ultra rich while the rest of us are joining the hunger games in ever growing numbers. Good luck to the new generations.
seek professionals support not some very cool and semi-knowledgeable guy on TH-cam. Personally, I gather information on TH-cam but verify with Stacey Macken . If it doesn't align with her report, I avoid getting involved. This way i've been able to save a lot of money while making a lot of money
Getting advice from financial advisors, like Stacey Macken , can be a smart move to reshape your portfolio. She has the expertise to help you make informed decisions.
Her technical analysis is excellent and hid interpretation/projections of the market is so accurate I sometimes ask myself if she is human haha. Point is, Stacey is the perfect trader to follow for advise and daily signals.
I've talked with brokers about this before, and they literally flatly saved some people are able to haul it cheaper. The reality is that some of these carriers are not negotiating the rate at all. They don't hire anybody to negotiate it for them, they don't negotiate it themselves they just accept what's there. And it has the knock-on effect of driving down rates for everyone else
Hellooo Miranda, I hope you're wrong! 😄 I have struggled through 2023 driving other people's trucks, including dump-truck. So here in 2024 I have decided to put my truck back on the road after 15 month shut down. I leased back onto my previous carrier (who I still really like). The difference for me is my truck payment is fairly small, and I Haul primarily HazMat. I do appreciate your perspectives and I wish well for your business in this year. Chin-up, summer is coming. Hat-down serious, winter will come again. Take care! John O.
Would it be possible to create a volunteer trucker-run brokerage organization, and compete head to head with the brokers? By setting lower, fixed percentages, and basically being a non-profit (fees pay salaries and expenses to run it), could you undercut the brokers while still keeping more profits for the drivers? It would take a lot of work and energy to do, but just possibly it could fight the tide of ever-lower prices, and you could charge a small subscription fee, with any extra profits going back to the truckers. If so, I would recommend Amanda as the founding president!
In any other industry, if another company has a lower bottom line than you do we say you got out competed. I don't understand why this is any different. There are some outlier issues like detention. Legal authorities need to come down hard on brokers who never pay the driver or double broker. Might be a good idea to limit the number of boards a load can be placed on to. Chargev the brokers if they send a truck to a shipper who's already sold that load. As far as i know, none of that falls under the transparency argument. I think truckers are fighting for the wrong things here.
Every market works best with transparency. This industry needs this in order to have accurate price discovery. The price is what matters per load. Hidden pricing by the broker needs to have light shed on it.
When the market was high, no broker was losing money because they were forwarding the cost to end consumer. But, now the market is down they are still making more money by holding more profits from truckers.
You're really smart. Had to google this, 😀 Totally agree with your assessment. Broker caps are needed. INSANE brokers making 40,50, even 25% from taking NO.RISK.AT.ALL! "Metacognition is, put simply, thinking about one's thinking. More precisely, it refers to the processes used to plan, monitor, and assess one's understanding and performance."
When you haul for landstar, their rate is 30%. You know it, they know it, the shipper knows it, it’s transparent. If you don’t like the rate, get some direct shipper clients. Brokers hide their rates because they take 50%, it’s dirty, it’s crooked.
Broker transparency is like playing poker except the broker’s cards are face up and yours are face down. It’s a lot easier to bet knowing what’s in the other’s hand. What if you were required to show the broker all your true costs?
They don't care. We are not in this industry to gamble. We are in it to make a profit and not have to work in an office or warehouse with people breathing over our shoulders.
@@coreysmith2196Brokers are in the market to make a profit, too. You want to negotiate with them for rate but make them show everything while you do not.
The idea of Concerning oneself with how much another business makes is a waste of time! Plus it’s just outright anti business, and in my opinion anti what American stands for. Really everyone asking for transparency just can’t compete out in the free market and is begging the government to fix their poorly ran business.
I have to agree that the responsibility falls on the carrier. As carriers, we just have to start asking for more compensation for loads based on our CPM. The brokers will adapt to the higher CPM. The shipper then has to remain strong on their cost to ship. The brokers will feel the pinch. As they feel the pinch between the shipper and the carriers, they will have to take less of a percentage. Just my 2cents.
It's all the driver fault, has nothing to do with brokers or shippers. As long as there are dumb drivers willing to haul for pennies, then brokers will not pay more. The keep taking rates below cost to operate is getting out of control at this point.
Broker transparency is needed because we dont have any bar to let people in that open trucking companies. Having said that it would help the noobs figure out a fair price & help us that understand what lanes should pay to be profitable, because the noobs wouldn’t move a load for $1,800 knowing the broker is getting $4,000,thus setting PRECEDENT(Which is what the noobs do,listen to key words when you talk to brokers,you name a price & they say "Yeah i got it done for less than that" "The highest i have paid is")note they are not saying that they dont have the money,its just that they found a couple suckers that didn't know better & they took those loads for cheap,so they arent going to pay you fairly because they will roll the dice that another noob will come along not understanding what the numbers should be. So she said we still have 35% new carriers out here,plus we have alot of desperate and stubborn people out here. The only thing that could shift the price is to KNOW you are being screwed. Thats why broker transparency is needed. People will lock a number in their head that a broker deserves 10%-15% of a load for answering the phone & make better decisions.
I completely disagree on the risk for each party. The Broker is the one going out and finding the customer. we are the ones doing the work. If somebody doesn’t like it, go try and find a direct customer to haul freight for and see how hard it is. He will then understand how much time energy and money goes into finding customers.
Most of the freight out there is direct loads to the carrier. The spot market is the leftover from that. So brokers are not needed in the industry. The work is actually done when the freight moves A to B not when it’s posted on the load board.
I don't think the analogy with the supermarket margins works because the customer of the carrier is the shipper, not the broker. We need to know the broker margins since truckers don't know what the shipper price is and thus don't know what their top line should be. The broker is just a middle man that doesn't need to be there.
Just because you know what the broker makes doesn't change anything. I'm not a broker, but I know theirs more to it than sitting in a chair. They had to solicit and compete for that freight. They have risk and price it high to minimise the risk. Your thot process is correct otherwise. The unfair feeling is just competition and business.
If running a brokerage was so easy, why isn't every MC# double authorized as a carrier and brokerage? It's because there is a level of difficult work that has to be done in order to achieve success in a brokerage, that most truck side individuals do not understand, and do not have a readily available way of acquiring that knowledge. So not only are brokerages run and their competitive edge against carriers and other brokerages, they are also competitively advantaged in their overall knowledge of freight on both sides (truck and customer sides) and they leverage that to gain a profit.
@@dustinsimpson3684 never said it was easy at all. I’m saying if the carrier are so concerned with competing against Brokers they’ll have to have their own brokerage and see the perceived advantages for themselves
knowing your cost per mile is your starting point. cost per mile( everything you pay for your trucks. lot, buildings, phone, internet, fuel truck maintenance, repairs, cost for office and personal, driver pay, insurance, .etc. Until you figure that out you can't know how much you need to make a profit. now you know what you need for a load and whether or not to accept that rate.
I am 100% against broker transparency because once an excuse makes it across the line, the free market in all industries will be at risk. Play the business game the way it was meant to be played without changing the most fundamental aspects of business.
Please address the idea that broker transparency will lead a race to the bottom. If everybody knows what the shipper is paying for the load then the load will be undercut to lowest possible price by megas and companies that break the law.
@truckercarlson9081 - the shipper shrugs off the broker share, so the seller won't care if the broker shares .ore with trucking. The buyer will also pay the same either way. So the buyer and seller are agnostic on the broker vs trucker split. To buyer and seller it's all lumped into the same transportation cost.
@blairm9000 the current broker will get outbid when the contracts up and lower the price of the load. The shipper doesn't care who hauls the freight (most of the time) and will sign with the cheapest broker. No need to jump through all those hoops to get to the bottom line. Also, your assumption that the shipper shrugs off the brokers share is way off base because they don't want to pay a huge surcharge to the broker when they know the load can be moved for so much less.
I agree with you why should a company make as much money as another company when they do not take any rest I was on a load board the other day there’s a load they posted it for $2500 going from Calgary Alberta to Allentown Pennsylvania your fuel cost were about 1730 that left you roughly 770 if you had to hire a driver paid him $.50 a mile you owe him 1162 I do believe which means you would have to take just under $400 out of your own pocket to deliver that load. I’d be pissed off if I knew about it if I was the one that was pay the broker to have it shipped and the broker was making 2500 to
I believe broker transparency is necessary, but not on its own. It should be capped at a 20% profit cap on each load booked by the broker. This will an incentive to the broker to negotiate a rate that is profitable for them cost effective for the customer and the carrier can have profitable rates all at the same time.
Brokering, Co Brokering....... is a part. BUT ALSO ALWAYS SOMEONE HAULS EXTREME LOW RATES..... BE FAIR and share.... all want the $$$$$ And your choice what you accept. YOU Need to keep yours up. Don't live over your income adjust as need. BE SAFE🍀
Using the store analogy is a moot point because most if not all states have laws on a minimum and maximum allowance of mark up percentage on groceries and if they fail to fall in that window, they can get fines from the state and sued by customers. That means there's regulations protecting customers from being ripped off. There is No regulation on brokers because we are not paying customers for these loads. The ONLY party that truly has the power to push for broker transparency is the customer that is paying for the shipment that is getting ripped off by these brokers. The carriers have no power to it aside from banding together and raising the cost of transportation in unison
Here is what I don't understand, how would you even enforce broker transparency? Self reporting? Government audits? How? I don't know how to resolve this but here is an alternative idea. Cap broker cut to predetermined percentage, you will still have an auditing issue but that is one way to stop the whining over this.
A broker is equivalent to a sports agent the sports agent is transparent with the athlete when securing a contract and they are capped at %5 of the contract negotiated my thing is if there is no deception what is there to hide? Realistically if everyone is being honest the price the customer pays to move the load shouldn’t be a secret.Brokering is strictly profit driven it wasn’t designed to help truckers.They have regulations on certain fish and types to prevent overfishing then tell me why isn’t there regulations on the profits a broker can take off a load it’s basically the same thing but one is regulated and one not make it make sense brokers are driven by greed and with no regulations in place it’s a steal all you mean they care more about fish rather than 1000’s of truckers losing money to deceptive brokers it’s obvious the fmcsa is bs and they are against us regardless if we know our costs per mile who wants to leave money on the table
If the market is free, all parties are entitled to make whatever they are able to. It is up to carriers to do business with brokers that don't pay well.
Too many carriers have no idea about broker transparency and will never ask. Cheap freight is easy to cover. Brokers don't have to work hard to book freight.
Brokers take substantial margins, if a owner operator isnt concerned about maximize his margins/profit he damn well should care what a broker margins are. Really?
Ok, lets try the middke ground approach; so if we had 100 percent transparency across thr board - ie shippers, brokers, receivers, etc- and a good relationship with our brokers that we truckers cultivated we could tell our broker "don't give me any freight from acme corp bc their rates are too low" . How exactly is that a bad thing? More information is more power to make better decisions. Im all for 100% transparency.
@@MrNoSolo Isn't that the exact argument you're using against brokers right now? So now it becomes nobody should know carriers real costs because then they wouldn't be able to make additional profit on some loads? Weird how that works.
Hello! I hope you are doing well. I wanted to tell you that I am a follower of your channel and I really appreciate the content you share; it has been very enriching and has helped us better understand the business. I would like to tell you that my husband and I are starting our own business. However, we are encountering difficulties with the requirements of one of the brokers I had previously worked with as an assistant in another company. This particular broker is excellent and specializes in teams, but requires us to have 60 days of active authority. The problem is that to activate our DOT and MC, our truck must be insured. As you know, to insure the truck we need an initial payment of $5000 and a monthly fee of $2000. In summary, to meet the 60 days that this company requires of us, we would need to have $9000 available. Therefore, I wanted to ask for your advice on what to do in this situation to prevent our business from facing financial difficulties before we even start. Do you know of other companies that work with teams and have more flexible requirements or what do you recommend to do ? I greatly appreciate your help. Thank you!
While I work with shippers directly, it's always by accident. There are several reasons I stick to the spot market- first it gives me a chance to keep the finger on the pulse of what is happening in the market. Second, I have been pretty lucky with the loads, although that requires triple the work, but what can you do. And finally, it's time. In order to properly start looking for shippers, I need to give something up to free up time. The only thing I can give up right now that will not affect my company or family is this channel, but I am not going to do that. And I am BAAAAAAD at delegating...unfortunately.
@@TruckingMadeSuccessfulthe market is horrendous. We've found less than 3-5 trucks and you will have a hard time keeping up with a shipper and the rates we've come across haven't been worth it.
Ok, transparency seems like a slippery slope to me. Are you willing to share all of your margin information with others in the same manner you would ask the brokerage? If it's so lopsided, why don't you start a brokerage and skip the risk? Why was transparency not an issue when we were making good money? What stops you from developing direct relationships with companies that need your services and under cutting the broker directly?
I agree on both fronts. First i think it is my business to know my numbers, but at the same time I believe that there should be some sort of measure in place to stop these inevitable booms and busts. This cycle has been going on to long and will continue if nothing is done. I think caps are more effective, in that case if the broker wants more charge more.
Two points. I think if we trucking companies knew what the shipper paid , it opens a line to under cut the broker. Two even though the broker doesn't assume most of the risk, they do get loads. We can get are own loads, but it's a hassle with phone calls and Payment.
No I asked me but here’s my thoughts. Do we go into a store and ask what’s your mark up, before I buy this… no we don’t. However it should be a cap on the percentage that they can keep.
It's hard not to overthink some things. I think sometimes you just can't find all the answers. I think a lot of the loads vary the products vary the weights vary so therefore the price may very. And then you get a bad broker on top of that
Mortgage brokers have to disclose what they make on points on a loan on the good faith estimate. Truck brokers should need to disclose at least what percentage of the total load price they are making. This would give an idea to the trucking company. The actual amounts may have variables but the gross percentage gives an idea of profit without needing to disclose other factors.
Is your mortgage broker also doing the Pre-sale inspection? Are they doing a termite Inspection? Are they searching the MLS for listings that meet your desired layout? Are they negotiating on your behalf to provide an offer to the seller? Are they reaching out to their contacts to get info potential other bids for a house you like? Are they doing walk throughs with you of properties to show you what they look like? Are they coaching you through the home buying process? Notice how all these things are done by different parties and they all charge a service fee of some kind. If you want to assign a cap to Brokers that's fine, but you need to understand the multitude of things that brokers do. And if we gave them 5% for each Major service performed, they could be anywhere from 25% -35% margin. 1) Signing up a customer to receive loads from and coordinate schedules for freight using sales tactics and building a personal relationship with the customer 2) Provide market analysis and quotes to the customer to ensure market competitiveness and up to date pricing on a per load basis or time period basis (weekly, monthly, quarterly) 3) Verify and maintain a network of carrier's meeting set safety and professional standards to ensure safe transit of freight, book a truck with agreed rate and coordinate details from ick to drop 4) Finance the load payment from the customer to the truck with variances between payment timelines 5) Maintain a customer and their success against constant competition soliciting your customer. All of those tasks could be delegated out to different companies who could all take a 5% cut- totaling 25% taken for "service fees". The fact that all these separate but equally crucial parts are done by one company does not mean that the services provided are not done to a high degree and deserving of their cut.
@@dustinsimpson3684 I was a mortgage broker over 20 years. The effort of the broker doesent mean anything anymore. Now its down to a transactional fee not worth it anymore but lenders still make the interest but invest the money in the house. Load brokers are a non asset based service. All found money with no needed buildings or loans to give the load to the trucking company compared to a mortgage loan.
As usual, I agree with everything that you said. When you look at the risk involved and labor required, brokers earning more than 10 or 15% seems disproportionate to the effort involved. I also wonder in the end if brokers are really necessary ? Before the Internet came along, 30 years ago if you wanted to book a vacation you would do it typically through a travel agent. This person would coordinate all the aspects of your travel and collect a fee for putting that plan together. Well with the Internet, you don't really need travel agents anymore although they still exist in smaller numbers. With technology being what it is, do we really need brokers? Could carriers not communicate directly with shippers on an Internet platform to complete business?
If it were as easy as you say, every MC would have customers for their freight needs, and the brokers would disappear. But it isn't that easy, and your not taking in to consideration the work done on the broker side, which is also apparent in the first 2 sentences above. You can't mandate a percentage when operating costs are not fixed across brokerages. Just like you can't cap a truck's earnings to $1.80/mile when some outfits would not break even at that mileage. For context see below to better understand the brokerage's responsibilities in a load. Brokers work the financial transaction, as well as sell themselves to customers, and all the work involved in the operational side of working a load. So let's give the broker 5% for each of the parts of a load they work-> 1)Signing up a customer to receive loads from and coordinate schedules for freight, 2) Provide market analysis and quotes to the customer to ensure market competitiveness, 3) verify and maintain a network of carrier's meeting set standards to ensure safe transit of freight, book a truck with agreed rate and coordinate details from Pick to drop, 4) finance the load payment from the customer to the truck with variances between payment timelines, and finally 5)they maintain a customer and their success against constant competition soliciting your customer. All of those tasks could be delegated out to different companies who could all take a 5% cut- totaling 25% taken for "service fees". The fact that all these separate but equally crucial parts are done by one company does not mean that the services provided are not done to a high degree and deserving of their cut.
@@dustinsimpson3684 thank you for taking the time to explain all of that. I truly appreciate it. That said, I am still not sure why their role is so vital. It is an added layer of bureaucracy that ultimately raises costs to the shippers, which trickles down to higher prices for the consumer.
@@dandavenport4565 let's use that same logic on the carrier side.. I'm not sure why a carrier needs to hire an outside dispatch service when they could just hire someone within. I don't understand why carriers use factoring companies when they could just hire somebody from within. I just have both of those. Things are more efficient in some situations when outsourced as opposed to in-house
Back to a Company driver again. It is not going to improve for years and years, unless brks are tamed. Without any risks, their risk is computer virus or computer hack, whereas oo lose their truck, trailer and even their life. 😢
Interesting, I am in KY. Yesterday near Louisville 11pm plenty of parking. Today near Bowling Green, it’s 11:46pm still available parking. Never before at this time here in my memory
Not for nothing, but have you ever considered sitting down with a couple of brokers on your channel and actually discussing the issue, or the market as a whole? There's a lot that goes into this subject that I've never seen you touch on, and I've followed your channel for ~2 years now. Based on all the comments I've read during that time, a lot of carriers that have only worked the spot market have a very limited understanding of not just the brokerage side of things, but how customers, shippers and receivers operate within the industry. To be blunt, your discussion on how the broker/shipper side of things works is not accurate. I know it wasn't meant to be fair, but accurate would be nice. A good discussion could help carriers not only understand what they're dealing with, but also give them a glimpse into what it would take to build their own business outside of the spot market. And maybe you can yell at a broker, or two. 🙂
Why all industry brokers has fixed rates? In trading, real estate ect... and we still talking about that Obviously brokers bought all in fmcsa, otherwise that would be made decades ago
I remember 2021. Hot shots demanding rates Full size flats and steps were getting. Carriers were in the driver's seat. Carriers have to quit taking freight from brokers that screw them over. I took 1 load from a carrier that starts with a T and ends in a L. Got screwed over... I said never again. Shippers are called constantly from carriers wanting to haul their freight. If a carrier knows the brokers rates, what stops them from contacting the shipper directly, & offering to haul the freight cheaper.
Dishonest people have to be force to show what's truth when you don't know what's in the load how do you keep the greed from taking it out of your pocket ,if you both know who is getting what and agree with it then who is to blame when it is all said done.
But no brokerage is asking a carrier what their fixed and variable costs per mile are. Because the way a carrier sets up their business is irrelevant to the brokerage. So why is it that a carrier needs the ability to see a brokerages service fee? It doesn't change what the carrier receives at the end of the day. The rate is negotiated and agreed upon by two independent parties.
@@dustinsimpson3684 When you have no Idea what the pie is then how do you know that you are or are not getting a fair deal people are not honest especially when it regards money show money then divide, what's so hard if we are being honest only reason to hide the numbers is to decieve.
Compensation for risk is built into the rate. Not worth a race to the bottom. Always a no when handing the gov't more market influence/control is on the table. Transparency won't save anyone
Dear why won't aquire freight brokerage mc authority with carrier mc number and improve profit for trucks, you excellent brokerage as well dispatcher . Dear go next level logistics ladder
And you say that brokers all they do is sit by the computer and make calls. Then why not open a brokerage and get customers for your own trucks and keep all the profits just makes logical sense to me.
I think with transparency we can negotiate better and realistic rates I don't think is fair that they make most of the money when we takes all the risks and work for penny's
Exactly Miranda we take all the risk the broker is just a middle man amd like a real estate broker or car dealership we all know the manufacturer recommended price or the procentage a realestate broker makes by selling a house !!! Only in trucking theres no transparancy and offcourse brokers dont like it because they know they wont make those margings . The game is in their favor no risk with endless profit posibilities !!!
Brokers should be capped with a 5% max realtors have a cap and other brokers do too and truckers also have a cap in the amount of hours you can work a week a day and seems like we are over regulated the risk for the motor carrier is incomparable to the one a broker takes some people say Broker Transparency it’s a race to the bottom but we’re already at the bottom?
Nobody is asking their real estate broker to cover the transaction cost of a home for 60 days between payment and receipt of funds. Meaning the truck wants 30 day pay and customer wants 90 day. Brokers work the financial transaction, as well as sell themselves to customers, and all the work involved in the operational side of working a load. So let's give the broker 5% for each of the parts of a load they work-> 1)Signing up a customer to receive loads from and coordinate schedules for freight, 2) Provide market analysis and quotes to the customer to ensure market competitiveness, 3) verify and maintain a network of carrier's meeting set standards to ensure safe transit of freight, book a truck with agreed rate and coordinate details from Pick to drop, 4) finance the load payment from the customer to the truck with variances between payment timelines, and finally 5)they maintain a customer and their success against constant competition soliciting your customer. All of those tasks could be delegated out to different companies who could all take a 5% cut- totaling 25% taken for "service fees". The fact that all these separate but equally crucial parts are done by one company does not mean that the services provided are not done to a high degree and deserving of their cut. Also, nobody tells a driver they can only work a set amount of hours in a day, they are only told how many they can operate the truck in transit. That driver can call companies on their non-driving time, they could build relationships with customers near their desired living area, they can email and cold call a few hundred businesses per day to get in a position to bid on contracts and future freight, they could book their own load for the next day, they could build and submit invoices for themselves, they could do preventative maintenance on their equipment, they could process their taxes for their business, they could file business documents to state, local, and federal governments, they could washout and clean their trailer and truck. All of these things above are not confined to Hours of Service, and yet many if not most of the above items are outsourced by a carrier to a different group. Maybe it's a dispatch service, a tax professional, an equipment service center, a business manager, an MC# filing company, a Truck wash and service center, Carriers may not like brokerages and the margin they make on a load, but they rarely seem interested in discussing the margin that is squeezed from them for the items listed above. If there was a SUPER LOVES that did everything listed above for a driver with one single line item for charges labeled "Service Fee" the carrier would be irate at how much was being charged to them since it all goes to one group, they would scream about how much they are being screwed over for someone who doesn't even touch or see the freight, but because standard procedure is to use multiple companies for the tasks above, a carrier may not like how much goes out the door, but they pay that price regardless because it is necessary to sustain their business model around the work they choose to put in. But when it's a broker we think they should get a flat fee and suck it up. If it were that simple, get your own brokerage authority.
A percentage of what? The total paid by the customer? What impact does a truck have on a customers agreed upon rate with a carrier. If you are the truck, and I am the broker, I would happily go 30/70 or even more to the truck if the truck made any difference on the customer rate, but they don't. A truck gets it from A->B, but the brokerage is the services added party that drives rates up. If a carrier could provide the services added part of the job better than a brokerage they would and the load would be carrier direct.
@@dustinsimpson3684 A percentage of what customer is paying. At least you know you are not getting ripped off by the brokers, but then again numbers can be forged. And how a truck doesn’t have a diff on rates? If you stop hauling cheap freight eventually brokers will have to ask customers to pay more. In the end it all comes down to how you look at it, you can say I don’t care what broker makes as long as I making profit, that’s true too but having an option of not getting ripped off by broker is not a bad thing too.
Again or not again. Broker transparency should assume responsibility and imply an action against unfair and or unethical business practice. Hence transparency alone without leverage doesn’t add much to the fair and ethically adequate dollar value of the load. We as humans did some notable progress through past sanctuary and implemented CSR into business practices so why tracking and brokerage specifically should be an exception?
You talk about brokers and what they make ....cause you ain't making money now you need to blame someone. If its just a few buttons and a few calls you would of done yourself, so just get your license and get your own clients, then you would see what we make.
frustrating there’re slots of carriers that will take cheap loads I don’t know if they make any profit or not but they do I’m frustrated how long can we say that what the hell is going on?
How about this? Somebody makes an app that connects spot freight to spot carriers fuck the brokers we do not need them. They are a cancer in this industry.
@trevorvancamp3354 yrs, but it started out as an app supposed to pair truckers and shippers just like ride share pairing riders and people with cars. But Uber rideshare company takes too much from the driver of car just like they do with the truckdriver and shipper. I don't use them either because of that
Broker transparency is a race to the bottom. In business there is no such thing as fair. So you think that the shipper is going to give you more money because you know the rate. Well you’re wrong. You should have been prepared for this downturn happens all the time.
I use to listen to Kevin years ago. Every damn thing I've used he recommended was garbage. From his accounting to truck analyst gauge. Complete junk. Kevin is nothing but an arrogant big mouth.
Saying that it would usher in a race to the bottom for rates is a lie. It would allow drivers to know what brokers take the highest percentage and allow drivers to refuse pulling their loads, causing those brokers to go out of business.
That's entirely false. If you had two identical loads available which would you choose? 1) customer paying $6,000 for a load. Broker earns $3,000. Truck earns $3000 2) Customer pays $4500 for a load. Broker earns $1700. Truck earns $2800. You're picking option 1 every day of the week. You don't actually care what the broker makes. You want to make the most money possible per load or per mile or per day. You like the idea of broker transparency bc it justifies your anger when the market is down, but it doesn't affect your cost per mile or profit margin knowing their side at all.
How would broker transparency change the fact that it’s way too easy to get operating authority and there would still be an over saturation of trucks trying to run the spot market freight? You could have a load paying the broker $5000 and being offered for $4500 but if there are 100 trucks in an area with 5 loads then the truckers would still knock the rate down to get the load in their truck.
I hauled a round bailer last week for $900. The broker said that's the most he can do. The receiver said he paid $1500 to have it delivered. What can you do? The broker was ready to deny the load and give it to someone else. I was going in that direction, I wanted that load!
There's so many brokers in the comments section and all of you are ingesting their justification of why they deserve to make more without investing. Brokers are colluding with mega corporations to weed out the small trucking companies and O/O's
Simple answer, remove brokers entirely and have shippers put up their own stuff. I don't really see any reason today why we have any brokers at all. Remove them and it's going to be much better for all of us, except brokers.
I’ll say it again. Cap them at 15%!!!! With the current prices of things the rates shouldn’t be so low!!! Someone is making a lot of money!! $4 a gallon diesel and under $2 a mile rates ?? Pure insanity!
Pretty dangerous road to go down asking for the government to cap how much one business can make because I’m sure you wouldn’t want that to happen to you.
@@bradj7900 you’ve got a great point.. Realtors have a cap on their commission. Sure a lot of other businesses have caps too. Never seen this industry in this shape before. In the past when fuel went up so did the rates.. putting a cap on brokers of 15% would be a good experiment for a couple years. See what happens
@@bradj7900agreed. I’m scared to reach to the government for anything. They’ll probably fuck it up, and charge us for it. That being said, we’re already getting screwed by the government and the least they can do is regulate the side of trucking that isn’t regulated that works against the actual workers.
@@B0RN2RACE100 It would be easier to do away with factoring and quick pay than to try and regulate brokers. It would raise the bar for entry if everyone had to have 45 days of money to run on while they wait for their money to start coming in. You wouldn’t have near as many people buying trucks and getting authority when times are good if the investment was a lot more than it currently needs to be.
Brokers are already required to show carriers what a load pays, but only if the carrier requests such info. If you ask the government to cap the profit of one entity in an industry, you are opening the door to cap the profit of the rest of the industry. As a carrier, I don't want the government dictating how much I can profit on any load.
Brokers do not need caps. They are SALES PEOPLE AND SALES MAKES MONEY FOR ALL BUSINESSES!!!! No sales. No business. Build out a sales strategy for your trucking company! And stop relying on brokers to do it for you. Do you want to make 100s of calls a day, send 100s of emails a day to get access to 10s, 100s of loads per day or week or month? Then go do it yourself! What’s the problem? Smh just get out this business!
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It is not broker transparency problem we are facing. It is broker responsibility. How many times have a carrier heard " oh the customer did not approve detention " it is the broker we work for, not the customer. Hence responsibility has to be enforced
They have a separate agreement with the shipper. There is no responsibility to be had when the shipper has only given them limited options if any at all.
Lets shorten the process. Trucking companies need to learn how to go direct to shippers. PERIOD.
@@NormVW2013 Never happening if you own only one truck with one trailer. Been there - TRIED that.
Two shippers offered me way less money that the broker was paying me to haul those same shippers' loads.
I don't care what the brokers are making, my bottom line matters, don't haul cheap freight
You hauled a $2k load. The broker sold the load to the shipper for $4500.
@@marqueswilsonn does 2k pay the bills with a profit????
@@snappingfingers8786 you have a slave mindset.
I’d be curious what percentage of people crying about transparency had a truck and authority prior to 2021/2022? I wonder how many went out and overpaid for equipment in 2021 or 2022 to jump into the owner operator game? I wonder how many were even trucking back in 2008 when everything crashed? The people who’ve been through all this a time or two before aren’t whining and wanting the government to help them negotiate better.
Simple. Ain’t it?
Stock brokers and real estate brokers both have caps and transparency requirements. What if they were allowed to operate like freight brokers as it is said in the name of a free market? The fact of the matter is that a capitalistic free market has regulation and oversight to prevent agreigous abuse that can cause catastrophic disruption to the system. Even carriers submit to regulation and oversight,freight brokers should not be an exception. Scarcity(supply & demand) is permitted in a free market system but not collusion or monopoly(Brokers banding together to manipulate prices).
Freight brokers are essentially a carriers sales department, and sales always gets paid more with less overhead costs, and every business is supposed to have a sales department. If you’re not selling your services direct to the shipper as much as these freight brokers do day in and day out. Then they have the right to name their price.
Capitalism's end goal isn't a free market, it's a market in which it's controlled for the maximum profit of a corporation. In this scenario, who is the beneficiary of that control? Brokers only have ~20% of the freight in the market, leaving 80% being handled by other means. Massive trucking companies control much of the contract and LTL market. Smaller outfits and owner/ops have very limited power in comparison. So you could cap brokers at some arbitrary percentage profit, but you're only impacting a small portion of the industry. If the percentage of profit is too small for most brokers to survive then all that will happen is the freight will consolidate into a smaller percentage of brokers/big carriers, driving rates down further. If the percentage is high enough for brokers to survive then you've likely just maintained status quo in the limited market that you're dealing with.
It's not your small brokers or trucking companies that have "banded together" to control the pricing, you need to look higher up than that.
@@dangranot5703 You got it.
Many brokers and the trucking companies who use them will never see the big contracts and big revenue that the largest companies get.
I'm a LTL team driver.
First trip of the week, Atlanta to Salt Lake.
1900 miles
Lead trailer 15k pounds
$8300 revenue
Rear 10k pounds
$4300 revenue
Our dock supervisors have a $5 per mile revenue goal per freight lane.
This is the only correct response.
Collusion is a crime and it's happening right under our noses.
15 years on the spot marked so far (1 truck - 1 reefer, OTR) here.....my thought process is quite compatible with yours.
Navigated/negotiated the industry for 13 years through ups and downs quite successfully making decent living and beyond, but these last 2 years...WTF! Sorry, but I don't see the light at the end of the tunnel for "a little guy" any more. It's not just brokers...it's kinda everything. The whole rigged system...playground constantly being tilted more and more against us.
Went through 2 complete overhauls, new transmission, brand new reefer trailer, accidents damage repairs, long down times, maintenance, you name it...never a problem of financial nature. And now for the first time trying to figure out how to afford 18 new quality tires...are you kidding me!?
Time to retire I guess.
Hang in there bro
In the same boat, My Pete is breaking my balls, then my brake hub on my trailer brakes and my brakes fell out, let me say that again my brakes fell out, lucky a passer bye flagged me down and it saved a rim and tire
@@snappingfingers8786 Sorry to hear. What you described, looks to ma as poor preventive maintenance...it is worth (wisely) spending the money on it, trust me. It will save you money on the long run in so many ways and keep you in business. Imagine the trouble you would have been in if two wheels fell off and killed someone? You definitely don't want that in your life. If you can't afford keeping your equipment in some at least close to top condition (the vital stuff), then this business is not right for you.
You can't successfully run a warehouse business with a leaking roof that you can't afford to fix, right?
@@truckingwithnose Thanks. Not sure if it's worth it though.
Sooner or later we'll have to accept same fate as dinosaurs. Times change, technology, everything changes, AI...most of us 'little guys' will be gone regardless of the industry. Been optimist whole my life, yet, in a strange way I'm glad I won't live much longer to watch a handful of rich people owning the world. Free market (without some serious regulations that don't exist at this time) doesn't work...works only for the ultra rich while the rest of us are joining the hunger games in ever growing numbers.
Good luck to the new generations.
@@verko5292 I just had a PM and today out of nowhere the wheel seal started leaking, trust me I have done everything and just went backward
Lately i got interested in financial market but have no idea on how to go about it. How does it work please..
seek professionals support not some very cool and semi-knowledgeable guy on TH-cam. Personally, I gather information on TH-cam but verify with Stacey Macken . If it doesn't align with her report, I avoid getting involved. This way i've been able to save a lot of money while making a lot of money
Getting advice from financial advisors, like Stacey Macken , can be a smart move to reshape your portfolio. She has the expertise to help you make informed decisions.
Her technical analysis is excellent and hid interpretation/projections of the market is so accurate I sometimes ask myself if she is human haha. Point is, Stacey is the perfect trader to follow for advise and daily signals.
I am surprised that this name is being mentioned here, I stumbled upon some of her clients testimonies on CNBC news last week..
Sincerely speaking. I will continue to trade and stick to Stacey Macken daily signals and guides as long as it works well for me.
I know a broker that sits on a yacht in the Gulf of Mexico, fishes every day, while raking in the cash. If his truckers only knew.
I've talked with brokers about this before, and they literally flatly saved some people are able to haul it cheaper. The reality is that some of these carriers are not negotiating the rate at all. They don't hire anybody to negotiate it for them, they don't negotiate it themselves they just accept what's there. And it has the knock-on effect of driving down rates for everyone else
Hellooo Miranda, I hope you're wrong! 😄 I have struggled through 2023 driving other people's trucks, including dump-truck. So here in 2024 I have decided to put my truck back on the road after 15 month shut down. I leased back onto my previous carrier (who I still really like). The difference for me is my truck payment is fairly small, and I Haul primarily HazMat. I do appreciate your perspectives and I wish well for your business in this year. Chin-up, summer is coming. Hat-down serious, winter will come again. Take care! John O.
Would it be possible to create a volunteer trucker-run brokerage organization, and compete head to head with the brokers? By setting lower, fixed percentages, and basically being a non-profit (fees pay salaries and expenses to run it), could you undercut the brokers while still keeping more profits for the drivers?
It would take a lot of work and energy to do, but just possibly it could fight the tide of ever-lower prices, and you could charge a small subscription fee, with any extra profits going back to the truckers.
If so, I would recommend Amanda as the founding president!
In any other industry, if another company has a lower bottom line than you do we say you got out competed. I don't understand why this is any different. There are some outlier issues like detention. Legal authorities need to come down hard on brokers who never pay the driver or double broker. Might be a good idea to limit the number of boards a load can be placed on to. Chargev the brokers if they send a truck to a shipper who's already sold that load.
As far as i know, none of that falls under the transparency argument. I think truckers are fighting for the wrong things here.
Every market works best with transparency. This industry needs this in order to have accurate price discovery. The price is what matters per load. Hidden pricing by the broker needs to have light shed on it.
When the market was high, no broker was losing money because they were forwarding the cost to end consumer. But, now the market is down they are still making more money by holding more profits from truckers.
I like the way you think. I’m definitely subscribing
We don’t demand the butcher tell us what he paid for the steer when we buy the steak.
You're really smart. Had to google this, 😀 Totally agree with your assessment. Broker caps are needed. INSANE brokers making 40,50, even 25% from taking NO.RISK.AT.ALL!
"Metacognition is, put simply, thinking about one's thinking. More precisely, it refers to the processes used to plan, monitor, and assess one's understanding and performance."
When you haul for landstar, their rate is 30%. You know it, they know it, the shipper knows it, it’s transparent. If you don’t like the rate, get some direct shipper clients. Brokers hide their rates because they take 50%, it’s dirty, it’s crooked.
Landstar has pricing power! They are a billion dollar company, you cannot compare a small carrier pricing power to theirs.
Our beloved leader told us that the system was is rig but do we liste😮n no we want to throw him in jail just for telling us the truth .
Broker transparency is like playing poker except the broker’s cards are face up and yours are face down. It’s a lot easier to bet knowing what’s in the other’s hand. What if you were required to show the broker all your true costs?
They don't care. We are not in this industry to gamble. We are in it to make a profit and not have to work in an office or warehouse with people breathing over our shoulders.
@@coreysmith2196Brokers are in the market to make a profit, too. You want to negotiate with them for rate but make them show everything while you do not.
The idea of Concerning oneself with how much another business makes is a waste of time! Plus it’s just outright anti business, and in my opinion anti what American stands for. Really everyone asking for transparency just can’t compete out in the free market and is begging the government to fix their poorly ran business.
The broker should take as high a rate as they can. The broker can get down to something you can’t. Get the shipper to answer the phone.
I have to agree that the responsibility falls on the carrier. As carriers, we just have to start asking for more compensation for loads based on our CPM. The brokers will adapt to the higher CPM. The shipper then has to remain strong on their cost to ship. The brokers will feel the pinch. As they feel the pinch between the shipper and the carriers, they will have to take less of a percentage. Just my 2cents.
It's all the driver fault, has nothing to do with brokers or shippers.
As long as there are dumb drivers willing to haul for pennies, then brokers will not pay more.
The keep taking rates below cost to operate is getting out of control at this point.
Broker transparency is needed because we dont have any bar to let people in that open trucking companies. Having said that it would help the noobs figure out a fair price & help us that understand what lanes should pay to be profitable, because the noobs wouldn’t move a load for $1,800 knowing the broker is getting $4,000,thus setting PRECEDENT(Which is what the noobs do,listen to key words when you talk to brokers,you name a price & they say "Yeah i got it done for less than that" "The highest i have paid is")note they are not saying that they dont have the money,its just that they found a couple suckers that didn't know better & they took those loads for cheap,so they arent going to pay you fairly because they will roll the dice that another noob will come along not understanding what the numbers should be. So she said we still have 35% new carriers out here,plus we have alot of desperate and stubborn people out here. The only thing that could shift the price is to KNOW you are being screwed. Thats why broker transparency is needed. People will lock a number in their head that a broker deserves 10%-15% of a load for answering the phone & make better decisions.
I completely disagree on the risk for each party. The Broker is the one going out and finding the customer. we are the ones doing the work. If somebody doesn’t like it, go try and find a direct customer to haul freight for and see how hard it is. He will then understand how much time energy and money goes into finding customers.
Most of the freight out there is direct loads to the carrier. The spot market is the leftover from that. So brokers are not needed in the industry. The work is actually done when the freight moves A to B not when it’s posted on the load board.
I don't think the analogy with the supermarket margins works because the customer of the carrier is the shipper, not the broker. We need to know the broker margins since truckers don't know what the shipper price is and thus don't know what their top line should be. The broker is just a middle man that doesn't need to be there.
Just because you know what the broker makes doesn't change anything. I'm not a broker, but I know theirs more to it than sitting in a chair. They had to solicit and compete for that freight. They have risk and price it high to minimise the risk. Your thot process is correct otherwise. The unfair feeling is just competition and business.
Only way to beat the broker is to cross over to the other side and start a brokerage
If running a brokerage was so easy, why isn't every MC# double authorized as a carrier and brokerage? It's because there is a level of difficult work that has to be done in order to achieve success in a brokerage, that most truck side individuals do not understand, and do not have a readily available way of acquiring that knowledge. So not only are brokerages run and their competitive edge against carriers and other brokerages, they are also competitively advantaged in their overall knowledge of freight on both sides (truck and customer sides) and they leverage that to gain a profit.
@@dustinsimpson3684 never said it was easy at all. I’m saying if the carrier are so concerned with competing against Brokers they’ll have to have their own brokerage and see the perceived advantages for themselves
knowing your cost per mile is your starting point. cost per mile( everything you pay for your trucks. lot, buildings, phone, internet, fuel truck maintenance, repairs, cost for office and personal, driver pay, insurance, .etc. Until you figure that out you can't know how much you need to make a profit. now you know what you need for a load and whether or not to accept that rate.
I am 100% against broker transparency because once an excuse makes it across the line, the free market in all industries will be at risk. Play the business game the way it was meant to be played without changing the most fundamental aspects of business.
Please address the idea that broker transparency will lead a race to the bottom. If everybody knows what the shipper is paying for the load then the load will be undercut to lowest possible price by megas and companies that break the law.
The gross won't change, IMHO, but would force a more market driven sharing of each load revenue.
@blairm9000 how did you come to the opinion that gross wouldn't change in a cutthroat business like trucking?
@truckercarlson9081 - the shipper shrugs off the broker share, so the seller won't care if the broker shares .ore with trucking. The buyer will also pay the same either way. So the buyer and seller are agnostic on the broker vs trucker split. To buyer and seller it's all lumped into the same transportation cost.
@blairm9000 the current broker will get outbid when the contracts up and lower the price of the load. The shipper doesn't care who hauls the freight (most of the time) and will sign with the cheapest broker. No need to jump through all those hoops to get to the bottom line. Also, your assumption that the shipper shrugs off the brokers share is way off base because they don't want to pay a huge surcharge to the broker when they know the load can be moved for so much less.
I agree with you why should a company make as much money as another company when they do not take any rest I was on a load board the other day there’s a load they posted it for $2500 going from Calgary Alberta to Allentown Pennsylvania your fuel cost were about 1730 that left you roughly 770 if you had to hire a driver paid him $.50 a mile you owe him 1162 I do believe which means you would have to take just under $400 out of your own pocket to deliver that load. I’d be pissed off if I knew about it if I was the one that was pay the broker to have it shipped and the broker was making 2500 to
I believe broker transparency is necessary, but not on its own. It should be capped at a 20% profit cap on each load booked by the broker. This will an incentive to the broker to negotiate a rate that is profitable for them cost effective for the customer and the carrier can have profitable rates all at the same time.
Brokering, Co Brokering....... is a part. BUT ALSO ALWAYS SOMEONE HAULS EXTREME LOW RATES..... BE FAIR and share.... all want the $$$$$ And your choice what you accept. YOU Need to keep yours up. Don't live over your income adjust as need. BE SAFE🍀
I agree with you.
Using the store analogy is a moot point because most if not all states have laws on a minimum and maximum allowance of mark up percentage on groceries and if they fail to fall in that window, they can get fines from the state and sued by customers. That means there's regulations protecting customers from being ripped off. There is No regulation on brokers because we are not paying customers for these loads.
The ONLY party that truly has the power to push for broker transparency is the customer that is paying for the shipment that is getting ripped off by these brokers.
The carriers have no power to it aside from banding together and raising the cost of transportation in unison
Ms. Info once again I think you!!
Here is what I don't understand, how would you even enforce broker transparency? Self reporting? Government audits? How? I don't know how to resolve this but here is an alternative idea. Cap broker cut to predetermined percentage, you will still have an auditing issue but that is one way to stop the whining over this.
A broker is equivalent to a sports agent the sports agent is transparent with the athlete when securing a contract and they are capped at %5 of the contract negotiated my thing is if there is no deception what is there to hide? Realistically if everyone is being honest the price the customer pays to move the load shouldn’t be a secret.Brokering is strictly profit driven it wasn’t designed to help truckers.They have regulations on certain fish and types to prevent overfishing then tell me why isn’t there regulations on the profits a broker can take off a load it’s basically the same thing but one is regulated and one not make it make sense brokers are driven by greed and with no regulations in place it’s a steal all you mean they care more about fish rather than 1000’s of truckers losing money to deceptive brokers it’s obvious the fmcsa is bs and they are against us regardless if we know our costs per mile who wants to leave money on the table
If the market is free, all parties are entitled to make whatever they are able to. It is up to carriers to do business with brokers that don't pay well.
Makes me laugh. When these carriers come out with, I don't care, but when you can't even get a fair rate, you should care
Broker transparency would mean less money for brokers, but not necessarily more money for truckers. Better for shippers and the economy.
1000% right
Too many carriers have no idea about broker transparency and will never ask. Cheap freight is easy to cover. Brokers don't have to work hard to book freight.
They did all the hard work up front by selling their services on behalf of carriers who don’t have sales in their operations.
Let's hear your vent process! You make me laugh!!; ..👍
I am against it simply because it’s a free market.
Brokers take substantial margins, if a owner operator isnt concerned about maximize his margins/profit he damn well should care what a broker margins are. Really?
Ok, lets try the middke ground approach; so if we had 100 percent transparency across thr board - ie shippers, brokers, receivers, etc- and a good relationship with our brokers that we truckers cultivated we could tell our broker "don't give me any freight from acme corp bc their rates are too low" . How exactly is that a bad thing? More information is more power to make better decisions. Im all for 100% transparency.
So brokers and shipper will then push for a law of transparency of real carrier cost? Hence forcing the real race to the bottom.
@@MrNoSolo Isn't that the exact argument you're using against brokers right now? So now it becomes nobody should know carriers real costs because then they wouldn't be able to make additional profit on some loads? Weird how that works.
Hello! I hope you are doing well. I wanted to tell you that I am a follower of your channel and I really appreciate the content you share; it has been very enriching and has helped us better understand the business. I would like to tell you that my husband and I are starting our own business. However, we are encountering difficulties with the requirements of one of the brokers I had previously worked with as an assistant in another company. This particular broker is excellent and specializes in teams, but requires us to have 60 days of active authority. The problem is that to activate our DOT and MC, our truck must be insured. As you know, to insure the truck we need an initial payment of $5000 and a monthly fee of $2000. In summary, to meet the 60 days that this company requires of us, we would need to have $9000 available. Therefore, I wanted to ask for your advice on what to do in this situation to prevent our business from facing financial difficulties before we even start. Do you know of other companies that work with teams and have more flexible requirements or what do you recommend to do ? I greatly appreciate your help. Thank you!
What's preventing you from cutting the broker out of the deal altogether and negotiating your rates directly with the shipper?
While I work with shippers directly, it's always by accident. There are several reasons I stick to the spot market- first it gives me a chance to keep the finger on the pulse of what is happening in the market. Second, I have been pretty lucky with the loads, although that requires triple the work, but what can you do. And finally, it's time. In order to properly start looking for shippers, I need to give something up to free up time. The only thing I can give up right now that will not affect my company or family is this channel, but I am not going to do that. And I am BAAAAAAD at delegating...unfortunately.
@@TruckingMadeSuccessfulthe market is horrendous. We've found less than 3-5 trucks and you will have a hard time keeping up with a shipper and the rates we've come across haven't been worth it.
lots of ❤❤❤ Angel Miranda
Ok, transparency seems like a slippery slope to me. Are you willing to share all of your margin information with others in the same manner you would ask the brokerage? If it's so lopsided, why don't you start a brokerage and skip the risk? Why was transparency not an issue when we were making good money? What stops you from developing direct relationships with companies that need your services and under cutting the broker directly?
I agree on both fronts. First i think it is my business to know my numbers, but at the same time I believe that there should be some sort of measure in place to stop these inevitable booms and busts. This cycle has been going on to long and will continue if nothing is done. I think caps are more effective, in that case if the broker wants more charge more.
Direct shippers bypass the scumbags
Two points. I think if we trucking companies knew what the shipper paid , it opens a line to under cut the broker. Two even though the broker doesn't assume most of the risk, they do get loads. We can get are own loads, but it's a hassle with phone calls and Payment.
No I asked me but here’s my thoughts. Do we go into a store and ask what’s your mark up, before I buy this… no we don’t. However it should be a cap on the percentage that they can keep.
It's hard not to overthink some things. I think sometimes you just can't find all the answers. I think a lot of the loads vary the products vary the weights vary so therefore the price may very. And then you get a bad broker on top of that
Mortgage brokers have to disclose what they make on points on a loan on the good faith estimate. Truck brokers should need to disclose at least what percentage of the total load price they are making. This would give an idea to the trucking company. The actual
amounts may have variables but the gross percentage gives an idea of profit without needing to disclose other factors.
Is your mortgage broker also doing the Pre-sale inspection? Are they doing a termite Inspection? Are they searching the MLS for listings that meet your desired layout? Are they negotiating on your behalf to provide an offer to the seller? Are they reaching out to their contacts to get info potential other bids for a house you like? Are they doing walk throughs with you of properties to show you what they look like? Are they coaching you through the home buying process?
Notice how all these things are done by different parties and they all charge a service fee of some kind. If you want to assign a cap to Brokers that's fine, but you need to understand the multitude of things that brokers do. And if we gave them 5% for each Major service performed, they could be anywhere from 25% -35% margin.
1) Signing up a customer to receive loads from and coordinate schedules for freight using sales tactics and building a personal relationship with the customer
2) Provide market analysis and quotes to the customer to ensure market competitiveness and up to date pricing on a per load basis or time period basis (weekly, monthly, quarterly)
3) Verify and maintain a network of carrier's meeting set safety and professional standards to ensure safe transit of freight, book a truck with agreed rate and coordinate details from ick to drop
4) Finance the load payment from the customer to the truck with variances between payment timelines
5) Maintain a customer and their success against constant competition soliciting your customer.
All of those tasks could be delegated out to different companies who could all take a 5% cut- totaling 25% taken for "service fees". The fact that all these separate but equally crucial parts are done by one company does not mean that the services provided are not done to a high degree and deserving of their cut.
@@dustinsimpson3684 I was a mortgage broker over 20 years. The effort of the broker doesent mean anything anymore. Now its down to a transactional fee not worth it anymore but lenders still make the interest but invest the money in the house. Load brokers are a non asset based service. All found money with no needed buildings or loans to give the load to the trucking company compared to a mortgage loan.
Brokers carry the risk that there are no loads to profit from
How said that American democracy is for everyone?
Interesting subject Miranda!
As usual, I agree with everything that you said. When you look at the risk involved and labor required, brokers earning more than 10 or 15% seems disproportionate to the effort involved.
I also wonder in the end if brokers are really necessary ? Before the Internet came along, 30 years ago if you wanted to book a vacation you would do it typically through a travel agent. This person would coordinate all the aspects of your travel and collect a fee for putting that plan together. Well with the Internet, you don't really need travel agents anymore although they still exist in smaller numbers. With technology being what it is, do we really need brokers? Could carriers not communicate directly with shippers on an Internet platform to complete business?
If it were as easy as you say, every MC would have customers for their freight needs, and the brokers would disappear. But it isn't that easy, and your not taking in to consideration the work done on the broker side, which is also apparent in the first 2 sentences above. You can't mandate a percentage when operating costs are not fixed across brokerages. Just like you can't cap a truck's earnings to $1.80/mile when some outfits would not break even at that mileage. For context see below to better understand the brokerage's responsibilities in a load.
Brokers work the financial transaction, as well as sell themselves to customers, and all the work involved in the operational side of working a load. So let's give the broker 5% for each of the parts of a load they work-> 1)Signing up a customer to receive loads from and coordinate schedules for freight, 2) Provide market analysis and quotes to the customer to ensure market competitiveness, 3) verify and maintain a network of carrier's meeting set standards to ensure safe transit of freight, book a truck with agreed rate and coordinate details from Pick to drop, 4) finance the load payment from the customer to the truck with variances between payment timelines, and finally 5)they maintain a customer and their success against constant competition soliciting your customer. All of those tasks could be delegated out to different companies who could all take a 5% cut- totaling 25% taken for "service fees". The fact that all these separate but equally crucial parts are done by one company does not mean that the services provided are not done to a high degree and deserving of their cut.
@@dustinsimpson3684 thank you for taking the time to explain all of that. I truly appreciate it. That said, I am still not sure why their role is so vital. It is an added layer of bureaucracy that ultimately raises costs to the shippers, which trickles down to higher prices for the consumer.
@@dandavenport4565 let's use that same logic on the carrier side.. I'm not sure why a carrier needs to hire an outside dispatch service when they could just hire someone within. I don't understand why carriers use factoring companies when they could just hire somebody from within. I just have both of those. Things are more efficient in some situations when outsourced as opposed to in-house
Back to a Company driver again.
It is not going to improve for years and years, unless brks are tamed. Without any risks, their risk is computer virus or computer hack, whereas oo lose their truck, trailer and even their life.
😢
Interesting, I am in KY. Yesterday near Louisville 11pm plenty of parking. Today near Bowling Green, it’s 11:46pm still available parking. Never before at this time here in my memory
Not for nothing, but have you ever considered sitting down with a couple of brokers on your channel and actually discussing the issue, or the market as a whole? There's a lot that goes into this subject that I've never seen you touch on, and I've followed your channel for ~2 years now. Based on all the comments I've read during that time, a lot of carriers that have only worked the spot market have a very limited understanding of not just the brokerage side of things, but how customers, shippers and receivers operate within the industry. To be blunt, your discussion on how the broker/shipper side of things works is not accurate. I know it wasn't meant to be fair, but accurate would be nice. A good discussion could help carriers not only understand what they're dealing with, but also give them a glimpse into what it would take to build their own business outside of the spot market. And maybe you can yell at a broker, or two. 🙂
Yes, this is something I am thinking about
Why all industry brokers has fixed rates? In trading, real estate ect... and we still talking about that
Obviously brokers bought all in fmcsa, otherwise that would be made decades ago
I remember 2021. Hot shots demanding rates Full size flats and steps were getting. Carriers were in the driver's seat. Carriers have to quit taking freight from brokers that screw them over. I took 1 load from a carrier that starts with a T and ends in a L. Got screwed over... I said never again. Shippers are called constantly from carriers wanting to haul their freight. If a carrier knows the brokers rates, what stops them from contacting the shipper directly, & offering to haul the freight cheaper.
This is the owely industry that they tell you what you get.l like tell a dr. This what l will gave you
Dishonest people have to be force to show what's truth when you don't know what's in the load how do you keep the greed from taking it out of your pocket ,if you both know who is getting what and agree with it then who is to blame when it is all said done.
But no brokerage is asking a carrier what their fixed and variable costs per mile are. Because the way a carrier sets up their business is irrelevant to the brokerage. So why is it that a carrier needs the ability to see a brokerages service fee? It doesn't change what the carrier receives at the end of the day. The rate is negotiated and agreed upon by two independent parties.
@@dustinsimpson3684 When you have no Idea what the pie is then how do you know that you are or are not getting a fair deal people are not honest especially when it regards money show money then divide, what's so hard if we are being honest only reason to hide the numbers is to decieve.
Compensation for risk is built into the rate. Not worth a race to the bottom. Always a no when handing the gov't more market influence/control is on the table. Transparency won't save anyone
I agree with you young lady
Dear why won't aquire freight brokerage mc authority with carrier mc number and improve profit for trucks, you excellent brokerage as well dispatcher . Dear go next level logistics ladder
I am not interested in becoming a broker at the moment
Just make TQL show what they're getting on loads
And you say that brokers all they do is sit by the computer and make calls. Then why not open a brokerage and get customers for your own trucks and keep all the profits just makes logical sense to me.
I think with transparency we can negotiate better and realistic rates I don't think is fair that they make most of the money when we takes all the risks and work for penny's
Maybe everyone needs to run some miles in ( The Truckers ) shoes ! Then they would want to join ( The Trucker ) strike - sanctions too ! 😊
Exactly Miranda we take all the risk the broker is just a middle man amd like a real estate broker or car dealership we all know the manufacturer recommended price or the procentage a realestate broker makes by selling a house !!! Only in trucking theres no transparancy and offcourse brokers dont like it because they know they wont make those margings . The game is in their favor no risk with endless profit posibilities !!!
Brokers should be capped with a 5% max realtors have a cap and other brokers do too and truckers also have a cap in the amount of hours you can work a week a day and seems like we are over regulated the risk for the motor carrier is incomparable to the one a broker takes some people say Broker Transparency it’s a race to the bottom but we’re already at the bottom?
Nobody is asking their real estate broker to cover the transaction cost of a home for 60 days between payment and receipt of funds. Meaning the truck wants 30 day pay and customer wants 90 day. Brokers work the financial transaction, as well as sell themselves to customers, and all the work involved in the operational side of working a load. So let's give the broker 5% for each of the parts of a load they work-> 1)Signing up a customer to receive loads from and coordinate schedules for freight, 2) Provide market analysis and quotes to the customer to ensure market competitiveness, 3) verify and maintain a network of carrier's meeting set standards to ensure safe transit of freight, book a truck with agreed rate and coordinate details from Pick to drop, 4) finance the load payment from the customer to the truck with variances between payment timelines, and finally 5)they maintain a customer and their success against constant competition soliciting your customer. All of those tasks could be delegated out to different companies who could all take a 5% cut- totaling 25% taken for "service fees". The fact that all these separate but equally crucial parts are done by one company does not mean that the services provided are not done to a high degree and deserving of their cut.
Also, nobody tells a driver they can only work a set amount of hours in a day, they are only told how many they can operate the truck in transit. That driver can call companies on their non-driving time, they could build relationships with customers near their desired living area, they can email and cold call a few hundred businesses per day to get in a position to bid on contracts and future freight, they could book their own load for the next day, they could build and submit invoices for themselves, they could do preventative maintenance on their equipment, they could process their taxes for their business, they could file business documents to state, local, and federal governments, they could washout and clean their trailer and truck. All of these things above are not confined to Hours of Service, and yet many if not most of the above items are outsourced by a carrier to a different group. Maybe it's a dispatch service, a tax professional, an equipment service center, a business manager, an MC# filing company, a Truck wash and service center, Carriers may not like brokerages and the margin they make on a load, but they rarely seem interested in discussing the margin that is squeezed from them for the items listed above. If there was a SUPER LOVES that did everything listed above for a driver with one single line item for charges labeled "Service Fee" the carrier would be irate at how much was being charged to them since it all goes to one group, they would scream about how much they are being screwed over for someone who doesn't even touch or see the freight, but because standard procedure is to use multiple companies for the tasks above, a carrier may not like how much goes out the door, but they pay that price regardless because it is necessary to sustain their business model around the work they choose to put in. But when it's a broker we think they should get a flat fee and suck it up. If it were that simple, get your own brokerage authority.
There's only one me : ( The Trucker ) strike - sanctions ! Yeah ! L.O.L. 😊
How about instead of negotiating on rate we negotiate on percentage?
A percentage of what? The total paid by the customer? What impact does a truck have on a customers agreed upon rate with a carrier. If you are the truck, and I am the broker, I would happily go 30/70 or even more to the truck if the truck made any difference on the customer rate, but they don't. A truck gets it from A->B, but the brokerage is the services added party that drives rates up. If a carrier could provide the services added part of the job better than a brokerage they would and the load would be carrier direct.
@@dustinsimpson3684 A percentage of what customer is paying. At least you know you are not getting ripped off by the brokers, but then again numbers can be forged. And how a truck doesn’t have a diff on rates? If you stop hauling cheap freight eventually brokers will have to ask customers to pay more. In the end it all comes down to how you look at it, you can say I don’t care what broker makes as long as I making profit, that’s true too but having an option of not getting ripped off by broker is not a bad thing too.
Broker transparency rules are in place for a reason. What we should be asking is why doesn't the government enforce the rules on this?
Again or not again. Broker transparency should assume responsibility and imply an action against unfair and or unethical business practice. Hence transparency alone without leverage doesn’t add much to the fair and ethically adequate dollar value of the load. We as humans did some notable progress through past sanctuary and implemented CSR into business practices so why tracking and brokerage specifically should be an exception?
HEY thanks!!!!! LEEEETTSSSSS GOOOOO!!!!!🎉🎉🎉
You talk about brokers and what they make ....cause you ain't making money now you need to blame someone. If its just a few buttons and a few calls you would of done yourself, so just get your license and get your own clients, then you would see what we make.
frustrating there’re slots of carriers that will take cheap loads I don’t know if they make any profit or not but they do I’m frustrated how long can we say that what the hell is going on?
How about this? Somebody makes an app that connects spot freight to spot carriers fuck the brokers we do not need them. They are a cancer in this industry.
They did. It's called Uber freight.
@@fredahlberg7193 isn’t Uber freight the broker? Never used Uber freight
@trevorvancamp3354 yrs, but it started out as an app supposed to pair truckers and shippers just like ride share pairing riders and people with cars. But Uber rideshare company takes too much from the driver of car just like they do with the truckdriver and shipper. I don't use them either because of that
Broker transparency is a race to the bottom. In business there is no such thing as fair. So you think that the shipper is going to give you more money because you know the rate. Well you’re wrong. You should have been prepared for this downturn happens all the time.
I use to listen to Kevin years ago. Every damn thing I've used he recommended was garbage. From his accounting to truck analyst gauge. Complete junk. Kevin is nothing but an arrogant big mouth.
Trucking is not free market. Being told when I can and can't drive isn't free market
Broker transparency is like the grocery store disclosing how much they pay for their products they sell
Rutherford is speaking of mindset, not reality.
Saying that it would usher in a race to the bottom for rates is a lie. It would allow drivers to know what brokers take the highest percentage and allow drivers to refuse pulling their loads, causing those brokers to go out of business.
Nothing stopping them from refusing loads now.
That's entirely false. If you had two identical loads available which would you choose?
1) customer paying $6,000 for a load. Broker earns $3,000. Truck earns $3000
2) Customer pays $4500 for a load. Broker earns $1700. Truck earns $2800.
You're picking option 1 every day of the week. You don't actually care what the broker makes. You want to make the most money possible per load or per mile or per day. You like the idea of broker transparency bc it justifies your anger when the market is down, but it doesn't affect your cost per mile or profit margin knowing their side at all.
@@dustinsimpson3684Screaam this from the hill tops!! Exactly!! Transparency is NOT the answer. Or even the ISSUE. Supply and Demand!
How would broker transparency change the fact that it’s way too easy to get operating authority and there would still be an over saturation of trucks trying to run the spot market freight?
You could have a load paying the broker $5000 and being offered for $4500 but if there are 100 trucks in an area with 5 loads then the truckers would still knock the rate down to get the load in their truck.
Welcome to the exploited spirit of American capitalism……
I hauled a round bailer last week for $900. The broker said that's the most he can do. The receiver said he paid $1500 to have it delivered. What can you do? The broker was ready to deny the load and give it to someone else. I was going in that direction, I wanted that load!
1st...why do people do this 🤣
haha I have no idea
Prove their Subscribed & 🔔 is on
@@ukayhemi6385 lol proving it to who?? I don't mind it ijs
There's so many brokers in the comments section and all of you are ingesting their justification of why they deserve to make more without investing. Brokers are colluding with mega corporations to weed out the small trucking companies and O/O's
She’s right, 2021 was a heck of a year. We showed brokers no mercy.
Thank you. The market dictated that too. Brokers/shippers needed carriers more than ever during that period.
Simple answer, remove brokers entirely and have shippers put up their own stuff. I don't really see any reason today why we have any brokers at all. Remove them and it's going to be much better for all of us, except brokers.
@fuelgauges
I’ll say it again. Cap them at 15%!!!! With the current prices of things the rates shouldn’t be so low!!! Someone is making a lot of money!! $4 a gallon diesel and under $2 a mile rates ?? Pure insanity!
Pretty dangerous road to go down asking for the government to cap how much one business can make because I’m sure you wouldn’t want that to happen to you.
@@bradj7900 you’ve got a great point.. Realtors have a cap on their commission. Sure a lot of other businesses have caps too. Never seen this industry in this shape before. In the past when fuel went up so did the rates..
putting a cap on brokers of 15% would be a good experiment for a couple years. See what happens
@@bradj7900agreed. I’m scared to reach to the government for anything. They’ll probably fuck it up, and charge us for it. That being said, we’re already getting screwed by the government and the least they can do is regulate the side of trucking that isn’t regulated that works against the actual workers.
@@B0RN2RACE100 It would be easier to do away with factoring and quick pay than to try and regulate brokers. It would raise the bar for entry if everyone had to have 45 days of money to run on while they wait for their money to start coming in. You wouldn’t have near as many people buying trucks and getting authority when times are good if the investment was a lot more than it currently needs to be.
Brokers are already required to show carriers what a load pays, but only if the carrier requests such info. If you ask the government to cap the profit of one entity in an industry, you are opening the door to cap the profit of the rest of the industry. As a carrier, I don't want the government dictating how much I can profit on any load.
As a shipper, I have the ability to deal directly with the carriers and it's saved our company tens of thousands of dollars.
If only more shoppers and buyers had this same thought process, trucking would be great again 🤠
Brokers do not need caps. They are SALES PEOPLE AND SALES MAKES MONEY FOR ALL BUSINESSES!!!! No sales. No business. Build out a sales strategy for your trucking company! And stop relying on brokers to do it for you. Do you want to make 100s of calls a day, send 100s of emails a day to get access to 10s, 100s of loads per day or week or month? Then go do it yourself! What’s the problem? Smh just get out this business!