Trucking Industry's Biggest Problem...Why It'll NEVER EVER Be Fixed
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- เผยแพร่เมื่อ 22 ก.พ. 2024
- Trucking Industry's Biggest Problem...Why It'll NEVER EVER Be Fixed
The trucking industry has a big problem on its hand and they're not interested in fixing it....
I know that may sound strange but I don't think they really have an interest in fixing it...
In today's freight broker training video Brandon will be discussing the the biggest problem in the trucking industry and why it will never ever get fixed...
Check this video out now...
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The problem is across the board: Too many brokers, too many carriers, deregulation, and too many foreigners being allowed to drive here in the US
First brokers compete with other broker to secure the freight, lowering the freight rates. Then the trucking companies compete to get the freight, therefore lowering rates again.
There’s not shortage of trucks they mean shortage of drivers for companies who want to dominate the industry
Right there’s no shortage
My loads rates have been cut by 60% because other truckers say they will take it cheaper to were it is basically unprofitable. I think this is also a problem with brokers undercutting each other. The trucking business is very expensive to be giving deals that don't make since.
Facts
Supply and demand. But let's be honest, your rates have been cut 60% from 2022, not from 2018. 2021-2022 was a crazy time for the industry where everyone was making bank, carriers and brokers. You could make more money as a truck driver than as a doctor. Now that rates have gone back to the norm, your profit comes from efficiency like it always has been.
The problem is BROKERS GREED! PERIOD
The problem is brokers!!! At of brokers are double brokering freight. The smaller brokers are going to large broker asking to sale freight. Now the loads are getting CUT twice before trying to sale it to owner operator. BOLS don't lie however, brokers do. Uber is selling a lot of their freight other brokers. Even Circle logistics due to their credit rating. However, let a owner operator sell a load to another carrier it's called double brokering. Brokers and FMCSA make the rules but still break them. Owner operator could start making brokers agreement
I think one of the issues is not maintaining financial stability as a small carrier.
This just in yesterday. A broker agent I have a good rapport with, Posts a load for 2400. While I was negotiating to get 2600, within 5min he said it was booked on their portal for 2250... Even he was baffled by this... And no, I can't get mad at the broker on this one.
Brandon, once again, you’ve nailed it brother. I’ve been telling carriers this for a couple years now. And like you, I believe it’s a fixable problem, but I don’t foresee it having any resolution until the carrier thins out
Let's all start now with a 4 day truck week. See if the rates will change......Jimmy Carter was a genius for lowering the cost for the consumer!
B, the FIX is the carrier knowing their cost to turn a profit, if I cannot profit on the load then the broker/shipper can keep it, JMO! GL!
When enough trucks get off the road and actual bussiness manufacturing goes up the rates will go back up and maybe further
You are totally right look at the airline industry....it is the same a pilot gets way more...if the government industry wanted safety for roads they would pay drivers extremely well... mandatory training and scale a driver up. No east coast loads for the first 4 years. Etc the government doesn't want the trucking issue fixed because then they would have to start cutting spending.... spending responsible...etc
This is why congress allowed drivers from Mexico to go further from the border. Congress is looking out the big corporations by increasing the cheap labor and driving the rates lower. They over regulate American drivers but do not require the same of some drivers from the southern border. Administrations from both parties are guilty of this. Basically drivers are under attack from their own country, because corporations want cheap prices to haul freight for increased profits.
If they go back 30 years, they will see that the rates have not changed. N yes, deregulation was adopted to keep the rates down.... We also have 4 time The amount of truck plazas or truck stops like we use to call them in the old day and can't fine parking after 5pm thats because ther are tooo many drivers. So, your points are correct
It is always interesting listening to your perspective and logic and applying it to this "trucking game.". I am sure your experience and wisdom is helpful to many that maybe struggling, but also hopefully leading them to the light at the end of the tunnel.
Truckers need to get off of the low value trucking plantation and create value for themselves learning new skills that are valuable in this market.
Brandon,you’re right!!Trucking is over saturated and it will continue,and that’s because without Trucking how will anyone survive but if you was to just live life according to what you need ,I think operating a trucking company can be sustainable regardless of the rates,there is no excuse for any business to fail,if everyone knew how to budget,everyone doesn’t know because if you spend less and save more you would be okay.just my thoughts about it.,even if you only break even is not bad,you are still in business,just stop the excessive spending that you know you really can’t afford because you will overspend and therefore put you out of business.Stop making everyone else rich but yourself.
some times smh some people do stuff when u don't have too big lots about our and your lots like certain laws when u don't have too when u have a lot also no bs
Brokers are a necessary evil to be 100% transparent. There is no way a shipping company can be cost-effective hiring on staff to communicate with every single trucker. The loads need to be sectioned out and divided so that each broker and Agent and dispatcher can keep in communication with carriers. It’s just a cost-effective, proven fact.
I am with you
Truth
don't get mad about what see about certain cities etc and ballotpedia no bs big lots
The brokers is mostly to blame your right more trucks rates go down but it used to come right back up been in the game since 2001 never seen it like this the shipper is paying more and sometimes the buyer pays the stores charge more why because getting to the store cost more as to why we pay more at the store when the shipper or buyer pays $2500 to ship something the broker used to give $2000 he keeps $500 when he has a lot of trucks he use to start at $1500 then you negotiate up now the same load the shipper is now paying $3000 because of inflation the broker now takes $2500 and post load for $500 and you can’t negotiate up because he telling he got plenty a guys that will take $400 shit TQL will slam phone in your ears if the hear the word can you come up on that
Carriers 🎉🎉🎉🎉😢😢 need to boycotting one State each month. Thing us carriers well control the sessions and freight lanes pay... Not the shippers, brokers or farmers. Take back control of freight because brokers need our equipment to haul goods 🎉🎉🎉🎉🎉🎉
I’m with u on this check my page out
These companies expect us to move their freight for free, basically. The way to fix the problem is simple to me. All drivers need to just stop driving. A lot of drivers refuse to stop driving out of fear of retaliation from their employers. They don’t realize that they have the power to get higher rates, better benefits, PTO etc. If all drivers stop driving for one day everything a society needs to function will cease. But shippers will try to play games at first. So then drivers need to turn that one day of no driving into a week or until we get signed agreements for the rates we deserve. Just stop driving and companies, government, healthcare, oil /gas will give us whatever we ask for. As drivers we have the most dangerous job and the lowest life expectancy. It’s ridiculous the way we are treated and yet we have the most important job! It’s time we’re paid our worth. Just stop driving. It’s the only way to get paid higher rates.
Good sh*t Brandon! Funny just finished watching this and unloading fuel at a fed ex,talked to a driver(class a)and was asking him if they’ve been busy…he said they’ve been slow since September! That they were also losing work because fed ex was using outside carriers that would move loads cheaper. Fed ex is doing smart business but the carriers? 😢 Anywho I sold my cascadia also because of how slow it got,back to being a company driver and got your course. Will be brokering in the next few weeks so wish me luck. It’s been a helluva journey from warehouse worker to moving the freight and soon to be brokering it. Gotta keep it pushing
Brokers were born out of Deregulation its been downhill ever since no driver standards and yes too many trucks !
THE SOLUTION is that the broker attached shipper invoice on rate Confirmation that will fix all the problems between low rates, double brokerage, scammers,etc because it will be impossible to do double brokerage since you have the paperwork staying whos the broker and rate so that also will create a organic way of how much is ok to brokers keep on their cut.
Brokers need to make money but it is not ok to broker keep 30-40% of the rate, and don't even talking when a broker co-broker a load and now they're keeping more.
I'm not saying to FMCSA determines how much a business should make but it should be mandatory that a freight broker attached customer invoice like the rest of the brokerage industry does
That wouldn't solve anything. Brokers make 75% on some loads, they lose $300 on some loads. As a trucker, are you going to run for a cheap rate on the loads I'm losing money on? No! So why would it work the other way around?
Unless they are completely awesome at their job, no broker is making 30% overall on their freight. We make 15%, and our bigger wins come from getting better rates from the customer, not getting cheaper rates from the carrier.
@BrandonH321 hahaha do you want me to show you screen shots from the loadboard with the same load broker posting it within $500 $800 $1,000 different the same load, tell me were to send the pictures so you can see that brokers start getting advantage in the first couple hours of posting a load then they start raising the price but if someone takes it they probably make 40% 50% on the load, the solution is that brokers attached shipper invoice and that will create a organic rate of how much is OK to brokers get paid per load but of course you don't like that because that will automatically eliminate you posting the load for cheap the first few hours, if carriers know how much brokers getting paid since the first, brokers won't be playing taking advantage of the situation, example, carrier call "hello I'm calling about this load, how much commission and how much shipper paying", broker discount the number and carrier desides if that works for them, and also will eliminate 100% double brokerage and scammers because it will show different numbers and names on shipper invoice BUT of course you don't want that because it will eliminate you getting 50% on some loads
@gabrielrojas5088 hypothetically, if I share my shipper invoice with you, and the shipper is paying me $2000 for a load that I'm paying you $2500 to run, are you going to give me that $500 back?
@BrandonH321 carrier that have been in business long time had moved loads that brokers aren't making profits in any particular load, everyone takes loads to make money and the load that doesn't pay enough to make profits people like me will leave it for the underground trucking that move everything for any paid, that been said when you make 40% on a cross country load and the engine blows in the truck hauling that freight, are you going to donate 20% of the 40% you just got ? Don't think so, so if you loose $500 dollar on a particular load that's on you for not doing your math on profits or maybe you're under bidding loads to be able to move it and them your bidding too load so that's on you and this doesn't have to do with anything about my proposal to fix the problem otherwise you just trying to make up stuff to keep it like that to be able to keep sneaking load probably giving to new MC's and keeping 40%60%
Nothing new here
The blockchains will eliminate brokers and stop them from stealing all the money on the front end.
That’s a weird take of in-context/ out of context and a misunderstanding of the economics of deregulation and the current trucking economic environment. Almost just talking to talk. 😮
I think its BROKERS
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might wanna pay attention too ballotpedia big lots no bs