Home > Forum > Broker Freight, Helpful Or Harmful

Broker freight, helpful or harmful

Aug 04, 2016 at 11:33 AM CST
+ 4
This morning I recieved an email from a broker that I have done lots of work for in the past but have fallen away from them lately because they seem to have gone by the way of being just a common broker worried about their own bottom line with no reguard for the rolling stock that hauls their loads. We use respectable brokers to help us out in our day to day business to try and get from point b to point c. We normally have most of our trips planned pretty tight and stay busy due to the fact that we offer our customers the best service possible. As I was stating, one of the brokers we used quite often has seemed to have gone away from fighting for rates that the trucks who haul them can make a living on to jsut taking whatever is offered to them even if it does figure out to be 1.32/mile! As a dispatcher of a small fleet of trucks I know what amount we need to run to make a living and keep the lights on. If you do not have an idea how much you have to make to stay afloat then you are just prolonging the inevitable. I know everyone out here needs to make money, brokers and rolling stock owners and there could be enough money here for both if we work together to make sure that our rates are up where we can sustain our businesses!

I hear this on a weekly basis, "fuel is down so you can haul for less"! Fuel is a major part of trucking but is not the sole part of the game. Our insurance jumped this year again, cost of tires is not going down, cost of upgrading equipment does not go down, drivers wages have to stay healthy or we will lose the drivers and last but not least office staff still needs to be paid. I know there needs to be brokers out there, I know some customers would rather work with brokers than direct with a carrier but with that said we ALL need to make money. I for one can guarantee that my trucks and drivers will do their part to get your product from point A to B safe and timely and now it is time for the brokers to do their part and make sure the trucks and drivers make money too! We are all in this together so let's act like it!!!!

Thanks
Keith Kemper
ET Trucking.
Replied on Thu, Aug 04, 2016 at 11:46 AM CST
+ 4
Good statement. The problem is that most don't care if you make money, they only care if they make money. Hence we are over the working together willingly and now into the working together by force part of my statements over the past few years. Only the strong will survive, there are shippers, brokers, and carriers falling by the wayside each and every month.

We have slimmed down our fleet and only run profitable runs, the answer that we now give the shippers and brokers that want our trucks at the lower rates and seem to still think they deserve the service they desire. When their tit is in a wringer and they call us, we now respond in like kind that it is not our problem.

Until the herd continues to be thinned down, the shippers and brokers will continue to offer cheap rates. Our advice to all is to make sure that you charge enough to get your truck back to the house when you leave out, or just don't leave.
Replied on Thu, Aug 04, 2016 at 11:56 AM CST
+ 2
That is a very good point! I know that we have a hand full of year round accounts that keep us busy. We have good rates on them but with any part of the trucking industry there are slow times and we need to keep our drivers making a living. We only take what we can handle. We don't take everything that is offered and try to make dollar on it like other companies. I think that trucks will get weeded out fast as there just is no way to keep going when all you can do is make the payments at the end of the week. If you do not make enough to fix your truck and provide for your family then there is no sense doing the job! You are right that the strong will survive and we will be one of the survivors!
Replied on Thu, Aug 04, 2016 at 04:03 PM CST
+ 14
It really tickles me to read things like this. Yeah I am one of those scum sucking brokers that every one loves to hate. I understand what you are saying about cheesy rates being offered but, you need to look at this from a little different perspective. My crew in here fights like hell every day for rates, for detention, and all the things the drivers say they need. Never minded a good fight and I still don't. However, as a broker I get calls daily from (oh shudder) TRUCKERS that ask me,(a lowly scum sucking broker) if I know of anything out of a certain area because they are stuck and can't find a way out. "I don't care what it pays, I just need to move. If the wheels are turning I am making money" I used to work with a fertilizer company years ago that made the statement "We don't care if we lose a dollar a ton on every ton we sell, we will make it up in volume!" Pardon me but BULLSHIT!!!! IT DON'T WORK THAT WAY!!! As an independant owner operator you damned well better know that your cost of operation is or you will end up just like that fertilizer company I mentioned, a distant memory. IT AIN'T ALL BECAUSE OF BROKERS. When the TRUCKS start having sense enough to say NO to cheap freight, this mess will straighten out. It won't take very long to happen if there was some way to get enough TRUCKS to say "hell no, i won't haul for that" Heaven knows I have said that thousands if not millions of times, both when I owned equipment and had hired drivers and now since I went full time brokerage. As a Trucker, you hold all the power. You own the truck, you have the power of negotiation, you decide if a load will move or not, not the broker. I don't drive the truck, YOU do. GET OVER YOURSELVES and treat your truck like a business, or you will be driving a company truck real soon for one of the megas. NUFF SAID. Now, do what usually happens on this forum and tear me apart. I got a brand new package of Band Aids.

Replied on Thu, Aug 04, 2016 at 04:10 PM CST
+ 2
I don't believe you will need Band-Aids for telling the truth.
Replied on Thu, Aug 04, 2016 at 05:14 PM CST
+ 1
so do the brokers think we can haul for free if they give us the fuel? I told that to one and when he did not reply .
Replied on Thu, Aug 04, 2016 at 07:32 PM CST
+ 1
Well put Duane
Replied on Fri, Aug 05, 2016 at 09:17 AM CST
+ 1 - 1
The first line of defense, if it comes through a broker, is the broker! You have a calculator just like I do and if it does not pay then tell them to looke elsewhere. That is what it will lake to make this work! I have had direct shippers call me with rates and I tell them no way in hell then look on a load board and low and behold there they are with a broker name behind it and a rate 1-2 dollars per ton below what was offered direct. Is that my fault as a operator of trucks? Hell no! We do our part by passing on hundreds of cheap loads per week! I also did not say all brokers are bad and I also said they are needed because some shippers like to use a broker. I am talking about the type of broker that gets an email from a shipper, which I also get, and they just copy and paste the email on their letter head and resend it with the cheap assed rates they want to pay. These are the types that make me mad! I would say if you can look yourself in the mirror and not feel guilty about what you are doing then you are fine.


Replied on Fri, Aug 05, 2016 at 10:33 AM CST
+ 2
I WILL TRY THIS AGAIN. IF YOU LIKE THE RATE...HAUL IT. IF YOU DONT LIKE THE RATE...DONT HAUL IT AND MOVE ON. IT'S THAT EASY PEOPLE. THERE IS NO NEED TO BE RUDE TO PEOPLE. THAT'S WHY OUR WORLD IS THE WAY IT IS BECAUSE OF CRUDE AND RUDE PEOPLE. GOD BLESS ALL OF YOU.
Replied on Fri, Aug 05, 2016 at 01:08 PM CST
chase, what is rude is saying no and then for the next two or three days you get called on the same load and rate over and over. I guess no only means something when the broker says it.
Replied on Fri, Aug 05, 2016 at 01:29 PM CST
Quote: "chase, what is rude is saying no and then for the next two or three days you get called on the same load and rate over and over. I guess no only means something when the broker says it."

IF YOU DONT WANT SOMEONE CALLING YOU THEN TELL THEM TO STOP. IF THEY DONT LISTEN THEN BLOCK THEIR NUMBER. I GET CALLS ALL THE TIME I DONT WONT AND TELL THEM TO STOP CALLING. EASY FIX
Replied on Fri, Aug 05, 2016 at 01:37 PM CST
Who is being rude Chase? At least when someone calls I anser the phone and don't beat around the bush. The question was posed in a simple manner of why can you as a broker not put pen to paper and figure out what is a good rate? It is an easy process and the rates still seem to be slipping. It's not because we have brought our rates down. You can not deny that there are some brokers that are only in the game for the quick dollar. As far as I am concerned this is a legitmate question and I have not read one rude comment out here.
Replied on Fri, Aug 05, 2016 at 01:40 PM CST
+ 1
Also there is a reason why you don't see our name on the load board. We take what we can handle with our own trucks! We are out here to make a living and are not looking for the fast buck.
Replied on Sat, Aug 06, 2016 at 12:39 PM CST
Quote: "It really tickles me to read things like this. Yeah I am one of those scum sucking brokers that every one loves to hate. I understand what you are saying about cheesy rates being offered but, you need to look at this from a little different perspective. My crew in here fights like hell every day for rates, for detention, and all the things the drivers say they need. Never minded a good fight and I still don't. However, as a broker I get calls daily from (oh shudder) TRUCKERS that ask me,(a lowly scum sucking broker) if I know of anything out of a certain area because they are stuck and can't find a way out. "I don't care what it pays, I just need to move. If the wheels are turning I am making money" I used to work with a fertilizer company years ago that made the statement "We don't care if we lose a dollar a ton on every ton we sell, we will make it up in volume!" Pardon me but BULLSHIT!!!! IT DON'T WORK THAT WAY!!! As an independant owner operator you damned well better know that your cost of operation is or you will end up just like that fertilizer company I mentioned, a distant memory. IT AIN'T ALL BECAUSE OF BROKERS. When the TRUCKS start having sense enough to say NO to cheap freight, this mess will straighten out. It won't take very long to happen if there was some way to get enough TRUCKS to say "hell no, i won't haul for that" Heaven knows I have said that thousands if not millions of times, both when I owned equipment and had hired drivers and now since I went full time brokerage. As a Trucker, you hold all the power. You own the truck, you have the power of negotiation, you decide if a load will move or not, not the broker. I don't drive the truck, YOU do. GET OVER YOURSELVES and treat your truck like a business, or you will be driving a company truck real soon for one of the megas. NUFF SAID. Now, do what usually happens on this forum and tear me apart. I got a brand new package of Band Aids. "

AMEN and AMEN.

Recently I had another small fleet owner chop hell out of the rates from a good mutual customer. Customer in turn wanted me to match rates.

I didn't call my competitor, instead I loaded up and went to his office.

I tried to explain HIS cost tell him the rates he submitted were gonna screw up a good thing.

His reply was "at least my trucks are moving". I think the bottom feeders are under the wrong impression that moving a truck at a loss will somehow produce a profit.
Replied on Mon, Aug 08, 2016 at 08:42 AM CST
I've been on vacation for 10 days or so and I see not much has changed. I would think it would be easy making a buck as a broker excepting lower rates when there are two bottom feeders lighting up the other phone lines wanting to move their trucks at any price. Have you never heard the impatience in a brokers voice? If you don't want it the guy on the other line will take it? Still thinning the herd. It could take a long time.
Replied on Mon, Aug 08, 2016 at 01:48 PM CST
Quote: "I've been on vacation for 10 days or so and I see not much has changed. I would think it would be easy making a buck as a broker excepting lower rates when there are two bottom feeders lighting up the other phone lines wanting to move their trucks at any price. Have you never heard the impatience in a brokers voice? If you don't want it the guy on the other line will take it? Still thinning the herd. It could take a long time."

WALK A MILE IN A BROKERS SHOES AND THEN TELL ME HOW EASY IT IS. i HAVE BEEN A DRIVER, AN OWNER OPERATOR AND A BROKER. i HAVE ALSO BEEN A SHIPPER AND RECIEVER WHEN I RAN GRAIN ELEVATORS AND RETAIL FERTILIZER PLANTS. I EVEN MERCHANDISED A LITTLE IN MY TIME. NONE OF OF IT IS EASY. YOU WORK FOR EVERY DIME YOU EARN. NO GUARANTEES IN ANY BUSINESS THAT I KNOW OF. YOU AND YOU ALONE ARE RESPONSIBLE FOR YOUR SUCCESS. IT DOES AMAZE ME THOUGH WHEN I GET A CARRIER OR A DRIVER CALLS ME AND ASKS ME,"CAN YOU GET ME OUT OF THIS AREA? I DON'T CARE WHAT IT PAYS, I JUST NEED A LOAD" . THE LANES I WORK, DON'T WORK LIKE A LOT OF THE MORE LOCAL LANES DO. VERY SELDOM CAN YOU GET A TWO WAY RATE ON ANYTHING. CONTRARY TO POPULAR BELIEF, A BROKER DOESN'T SET THE RATE. THE MERCHANDISER OR THE SHIPPER DOES AND THAT IS WHAT YOU HAVE TO WORK WITH. YOU WOULDN'T BELIEVE THE NUMBER OF TIMES I HAVE TOLD MERCHANDISERS OR SHIPPERS THAT THEIR RATES ARENT WORKABLE. HAD ONE TODAY THAT TOLD ME HE KNOWS HE IS OFFERING A LO BALL RATE, BUT TRUCKERS ARE SILLY ENOUGH TO TAKE THEM SO WHY SHOULD HE NOT POCKET THE EXTRA MONEY. THIS WAS A SHIPPER GUYS, NOT A BROKER. WHEN TRUCKERS FINALLY GET IT THRU THEIR HEADS THAT THEY HOLD THE POWER ON FREIGHT MOVEMENTS, THIS RATE MESS THAT WE HAVE WILL COME TO AN END VERY QUICKLY. "NO" IS A VERY EASY WORD TO SAY BUT IT IS TOUGH TO SAY IT WHEN YOUR BUSINESS IS SINKING DUE TO LOW RATES. NO ONE I EVER KNEW GOT OUT OF A HOLE BY DIGGING HIMSELF IN DEEPER. THE THINNING OF THE HERD CONTINUES, YES, BUT IT WON'T TAKE MUCH LONGER. 3PLS AREN'T HELPING MUCH FROM WHAT I HAVE SEEN. WE HAD AN INCIDENT WHERE A 3PL CHOPPED A RATE OF MINE FROM UTAH TO MICHIGAN $50/TON. THATS RIGHT $50/TON LESS. YOU CAN'T BLAME THE SHIPPER FOR TRYING TO TAKE ADVANTAGE OF THE RATE SAVING, BUT THEY ARE OPENING THEMSELVES UP TO A TREMENDOUS PROBLEM WHEN THE 3PL CAN'T COME THRU WITH THE TRUCKS.
Replied on Mon, Aug 08, 2016 at 03:30 PM CST
Quote: "WALK A MILE IN A BROKERS SHOES AND THEN TELL ME HOW EASY IT IS. i HAVE BEEN A DRIVER, AN OWNER OPERATOR AND A BROKER. i HAVE ALSO BEEN A SHIPPER AND RECIEVER WHEN I RAN GRAIN ELEVATORS AND RETAIL FERTILIZER PLANTS. I EVEN MERCHANDISED A LITTLE IN MY TIME. NONE OF OF IT IS EASY. YOU WORK FOR EVERY DIME YOU EARN. NO GUARANTEES IN ANY BUSINESS THAT I KNOW OF. YOU AND YOU ALONE ARE RESPONSIBLE FOR YOUR SUCCESS. IT DOES AMAZE ME THOUGH WHEN I GET A CARRIER OR A DRIVER CALLS ME AND ASKS ME,"CAN YOU GET ME OUT OF THIS AREA? I DON'T CARE WHAT IT PAYS, I JUST NEED A LOAD" . THE LANES I WORK, DON'T WORK LIKE A LOT OF THE MORE LOCAL LANES DO. VERY SELDOM CAN YOU GET A TWO WAY RATE ON ANYTHING. CONTRARY TO POPULAR BELIEF, A BROKER DOESN'T SET THE RATE. THE MERCHANDISER OR THE SHIPPER DOES AND THAT IS WHAT YOU HAVE TO WORK WITH. YOU WOULDN'T BELIEVE THE NUMBER OF TIMES I HAVE TOLD MERCHANDISERS OR SHIPPERS THAT THEIR RATES ARENT WORKABLE. HAD ONE TODAY THAT TOLD ME HE KNOWS HE IS OFFERING A LO BALL RATE, BUT TRUCKERS ARE SILLY ENOUGH TO TAKE THEM SO WHY SHOULD HE NOT POCKET THE EXTRA MONEY. THIS WAS A SHIPPER GUYS, NOT A BROKER. WHEN TRUCKERS FINALLY GET IT THRU THEIR HEADS THAT THEY HOLD THE POWER ON FREIGHT MOVEMENTS, THIS RATE MESS THAT WE HAVE WILL COME TO AN END VERY QUICKLY. "NO" IS A VERY EASY WORD TO SAY BUT IT IS TOUGH TO SAY IT WHEN YOUR BUSINESS IS SINKING DUE TO LOW RATES. NO ONE I EVER KNEW GOT OUT OF A HOLE BY DIGGING HIMSELF IN DEEPER. THE THINNING OF THE HERD CONTINUES, YES, BUT IT WON'T TAKE MUCH LONGER. 3PLS AREN'T HELPING MUCH FROM WHAT I HAVE SEEN. WE HAD AN INCIDENT WHERE A 3PL CHOPPED A RATE OF MINE FROM UTAH TO MICHIGAN $50/TON. THATS RIGHT $50/TON LESS. YOU CAN'T BLAME THE SHIPPER FOR TRYING TO TAKE ADVANTAGE OF THE RATE SAVING, BUT THEY ARE OPENING THEMSELVES UP TO A TREMENDOUS PROBLEM WHEN THE 3PL CAN'T COME THRU WITH THE TRUCKS. "

I'm not pounding on you Duane. Read what I said. When you have willing players melting your phone lines asking you to move their trucks at any price...
Replied on Mon, Aug 08, 2016 at 03:31 PM CST
Quote: "I'm not pounding on you Duane. Read what I said. When you have willing players melting your phone lines asking you to move their trucks at any price..."

DIDN'T THINK YOU WERE. MERELY STATING A COUPLE FACTS. I JUST TYPE LOUD
Replied on Wed, Aug 10, 2016 at 09:48 AM CST
+ 1
I think everyone has missed the point and if you guys are calling yourself SCUM SUCKING then the accusations must be accurate! It is human nature for shippers to low ball EVERYONE, broker or carrier! I turn down HUNDREDS of offers of cheap freight daily because it is plain and simply CHEAP FREIGHT! It annoys me when I turn down these loads and then see them on the load board by the standard brokers that just chase others freight and try to get a buck off the top or more. If you are offended by my post then you must be doing what was said but if you work hard and fight for the trucker then I have no problem with you. We use brokers and if we find dependable, respectable brokers we will show our loyalty to you and the respect that is deserved.

I feel that this subject NEEDED to be brought up! I believe that in my 30+ years that there has been a loss of respect, not only for the trucking industry but also inside the trucking industry! Back when I started driving rate cutting was rare. We all worked together and if someone had something good and they could not haul it all they looked to other trusted trucking companies for help. Now days if you show someone where your loads are they are going behind your back to try and take them from you! It has happened to me personally 4 times in 6 years but we ended up with 3 of the 4 back because of service!

Ok brokers in the hopper business, do you want to work with respectable companies that will have your back as much as you have theirs of would you like to be the scum sucking bottom feeders you refer to yourselves as? All I am saying is if we work together we can ALL make money but not if you just take athe rates that are offered! I know how much my trucks have to make to turn a profit and it is more than the 1.32/mile offered on some loads!

Good day and be safe out there!
Replied on Wed, Aug 10, 2016 at 01:41 PM CST
+ 1
Quote: "I think everyone has missed the point and if you guys are calling yourself SCUM SUCKING then the accusations must be accurate! It is human nature for shippers to low ball EVERYONE, broker or carrier! I turn down HUNDREDS of offers of cheap freight daily because it is plain and simply CHEAP FREIGHT! It annoys me when I turn down these loads and then see them on the load board by the standard brokers that just chase others freight and try to get a buck off the top or more. If you are offended by my post then you must be doing what was said but if you work hard and fight for the trucker then I have no problem with you. We use brokers and if we find dependable, respectable brokers we will show our loyalty to you and the respect that is deserved. I feel that this subject NEEDED to be brought up! I believe that in my 30+ years that there has been a loss of respect, not only for the trucking industry but also inside the trucking industry! Back when I started driving rate cutting was rare. We all worked together and if someone had something good and they could not haul it all they looked to other trusted trucking companies for help. Now days if you show someone where your loads are they are going behind your back to try and take them from you! It has happened to me personally 4 times in 6 years but we ended up with 3 of the 4 back because of service! Ok brokers in the hopper business, do you want to work with respectable companies that will have your back as much as you have theirs of would you like to be the scum sucking bottom feeders you refer to yourselves as? All I am saying is if we work together we can ALL make money but not if you just take athe rates that are offered! I know how much my trucks have to make to turn a profit and it is more than the 1.32/mile offered on some loads! Good day and be safe out there!"

I inserted "scum sucking" in there because that is the general concensus of brokers on this forum. I turn down a multitude of people in a day because their rates are tooo thin to make it work for my guys. We run around 50 trucks nationwide and about all of them are complaining about low rates and sometimes the sitting still because i refuse to book a cheeeeep load for them unless they absolutely insist on moving. That has happened a time or two in my career. I like you have well over 30 years in this business from multiple sides of this business and I agree that there is a serious loss of respect for anything that has to do with this business. As i have also said many times before, if it is too cheeep pass it up. I have many many trucks call me every day asking for loads out of certain areas. I can tell them what loads are going for in and out of certain areas but it is up to the TRUCKER to decide whether he wants it or not. When the TRUCKER tels me to find him something so that he can move to hopefully a better place, of course I am going to take some margin. I am risking not getting paid, not the Trucker. He gets his money whether I get paid or not. If that offends you then I am sorry. Walk a mile in my shoes for a little while and you will see that you and I are out for the same thing. Decent rates and a fair time frame for payment. That hasn't changed here whether I was merchandising, hauling for hire, or paying employees. It all works out the same. My guys get paid before I do. As for back stabbing and rate cutting, yeah I fight that nonsense on a daily basis. I have ticked more than one merchant or shipper off because i am a stubborn bull headed old dutchman that refuses to do thing cheeeep. If that offends you, sorry again. From your statement it appears to me that we have a lot in common. It is still YOU that is responsible for your own well being. YOU live and die by the decisions YOU make as do I.

Replied on Thu, Aug 11, 2016 at 08:41 AM CST
Well Duane I guess my point is that I know if you do not take the loads offered to you, as a respectible broker, there will always be someone who will because in the governments infinate wisdom made everyone become a broker. It opened the door to anyone with a computer and a telephone to come in and try to turn a quick buck! I don't blame anyone who has been in this business for a long time for this mess, I blame government first and foremost and second I blame the quick buck brokers who could care less if the truck makes money as long as they do. You are exactly right abut not taking loads that are cheap and yes it is your job to offer them to your guys but if you hold fast on priciple and don't haul for less than minimum wage things should get better! I would suggest to you that is someone wants you to book cheap freight just to get rolling, that you suggest to them that they purchase at least 5 more trucks and hire drivers so they can go broke as fast as possible and leave the trucking to the people who can figure out what it costs to run.

Once again I will say that it is human nature for any shipper to want to move their product as cheap as possible so the weight is put on the shoulders of the broker and carriers bidding the jobs to assure that some money can be made.

Also I would like to point out that out of the replies on this subject I have not seen a reply from one of the companies that we all know are doing what I said! All the replies come from established companies. Believe me guys I am with you in this fight! We need to get this figured out before everyone get driven out of business and all that is left is swift and jb hunt. I already saw Werner and many other refer companies pulling hoppers.
Replied on Thu, Aug 11, 2016 at 06:28 PM CST
Quote: "Well Duane I guess my point is that I know if you do not take the loads offered to you, as a respectible broker, there will always be someone who will because in the governments infinate wisdom made everyone become a broker. It opened the door to anyone with a computer and a telephone to come in and try to turn a quick buck! I don't blame anyone who has been in this business for a long time for this mess, I blame government first and foremost and second I blame the quick buck brokers who could care less if the truck makes money as long as they do. You are exactly right abut not taking loads that are cheap and yes it is your job to offer them to your guys but if you hold fast on priciple and don't haul for less than minimum wage things should get better! I would suggest to you that is someone wants you to book cheap freight just to get rolling, that you suggest to them that they purchase at least 5 more trucks and hire drivers so they can go broke as fast as possible and leave the trucking to the people who can figure out what it costs to run. Once again I will say that it is human nature for any shipper to want to move their product as cheap as possible so the weight is put on the shoulders of the broker and carriers bidding the jobs to assure that some money can be made. Also I would like to point out that out of the replies on this subject I have not seen a reply from one of the companies that we all know are doing what I said! All the replies come from established companies. Believe me guys I am with you in this fight! We need to get this figured out before everyone get driven out of business and all that is left is swift and jb hunt. I already saw Werner and many other refer companies pulling hoppers."

It's the governments fault???
Replied on Thu, Aug 11, 2016 at 09:12 PM CST
Quote: "It's the governments fault???"

Without a doubt yes it's the givermint's fault. Deregulation ruined transportation. It's odd we curse Shaneequa and Juan for taking government handouts then on the other hand we support logistics corporations and mega trucking companies for doing the same thing even more by sucking up our tax dollars.
Replied on Fri, Aug 12, 2016 at 08:33 AM CST
Quote: "Without a doubt yes it's the givermint's fault. Deregulation ruined transportation. It's odd we curse Shaneequa and Juan for taking government handouts then on the other hand we support logistics corporations and mega trucking companies for doing the same thing even more by sucking up our tax dollars. "

Interesting concept. Would you mind expanding on that comment please. I know deregulation did some interesting things but I guess i wasn't aware that it allowed for a subsidization of the brokerage business. I see the mail every day in here and I don't remember seeing any subsidy checks from Uncle Sam. If you want to get ticked about subsidies, how bout the volume of money that goes to subsidise the railroads. If you have an address of who I can contact to sign up for a subsidy, I would be more than happy to check it out and report back my findings.
Replied on Fri, Aug 12, 2016 at 09:40 AM CST
I think this was the point he was trying to make Duane.

on the other hand we support logistics corporations and mega trucking companies for doing the same thing even more by sucking up our dollars by paying us far less than what we are really worth. The system is rigged so that only the Mega Corporations (Shippers, Brokers, and Carriers) alike can seem to get ahead. They continue to write more and more regulations to make it harder and harder for the small business owner to compete. Yet the ATA screams about creating a level playing ground, The recent bond increase did not benefit all the small brokers that I used to work with, these were honorable people just trying to make an honest living, and most of them were like you Duane they used to drive. So deregulation of rates ended up making rates fall, but now we have over-regulation of business along with the cheap rates it is a matter of time before the smaller carriers and brokers will be gone.
Replied on Fri, Aug 12, 2016 at 10:03 AM CST
Quote: "I think this was the point he was trying to make Duane. on the other hand we support logistics corporations and mega trucking companies for doing the same thing even more by sucking up our dollars by paying us far less than what we are really worth. The system is rigged so that only the Mega Corporations (Shippers, Brokers, and Carriers) alike can seem to get ahead. They continue to write more and more regulations to make it harder and harder for the small business owner to compete. Yet the ATA screams about creating a level playing ground, The recent bond increase did not benefit all the small brokers that I used to work with, these were honorable people just trying to make an honest living, and most of them were like you Duane they used to drive. So deregulation of rates ended up making rates fall, but now we have over-regulation of business along with the cheap rates it is a matter of time before the smaller carriers and brokers will be gone."

You're right Alfred. Mom & Pop got the boot. I can truthfully say I was never fleeced by an independent broker but I've been fleeced many times by a cut rate ass mega.

Duane I hope your ignorance of the money flow is a tongue in cheek move just to check my blood pressure.

If you're an independent brokerage AND pay your bills my hat is off to you. If you're part of an investment group you know full well what I'm talking about.
Replied on Fri, Aug 12, 2016 at 10:20 AM CST
+ 1
Quote: "You're right Alfred. Mom & Pop got the boot. I can truthfully say I was never fleeced by an independent broker but I've been fleeced many times by a cut rate ass mega. Duane I hope your ignorance of the money flow is a tongue in cheek move just to check my blood pressure. If you're an independent brokerage AND pay your bills my hat is off to you. If you're part of an investment group you know full well what I'm talking about."

The only investor in this operation is myself and the independants that trust me to make the right decisions to make their living. When you think about it, that is one hell of a responsibility. This operation would be nowhere fast if not for my guys doing their thing and me doing mine. Yeah it kind of was a jab just to see where you were coming from on that. I don't disagree that de regulation fouled up the works back in the day. I also don't disagree that the over regulation spree that our illustrious government has went on is choking the daylights out of independants like me. (I would have capitilized INDEPENDANT, but everyone says I type too loud and sound angry all the time.) I am angry. Angry about the way this industry has went in the past 30-40 years. Lo ball rates, non payment, all the goodies that everyone yells about. I may be a bit of a dreamer but I still believe WE have the power to say enough is enough. The only problem is getting enough people to see it the same way. I don't know if the power of the vote holds the same clout as it did back when I was a kid, especially in light of the election tampering found in this years primaries, but if every registered legal voter would exercise that right and raise a little hell about the way things are, maybe things would straighten out. Who knows.
Replied on Fri, Aug 12, 2016 at 10:36 AM CST
+ 1
First on this bond. Do you not remember all of those shady brokers that we had.. Where it was haul this load.. You did and they disapeared and were history with all of your money? And when you did deal with a reputable one.. You were paid at the end of the load..
Second when we were regulated.. The trucking company would broker loads.. It was 10%..and what you picked up was their regular customer and they couldnt cover the load themselves.. And most of the time those loads were to get you back home to be able to take care of your customer and pick up their loads..
Third... Then came along deregulation.. And people who may have been in traffic at a company and went out on their own.. AKA brokers..
Fourth.. And when the truck picked up the load.. They were paid 50% of the agreed upon price.. And when the load was delivered they got the remaining 50%..paid that day.. Not 30..60...90 days latter... What ever happened with that one? What ever happened with the broker sending a copy of his bill to the trucker? That still is the law if trucker requests it.. But most dont because they dont want to be blackballed by the broker..
The only brokers that there used to be were produce brokers... And trucking companies.. You had YOUR OWN CUSTOMERS.. And the rate normally paid well enough that you could get home and still turn a profit. What ever happened to loop miles in the AG business?
Replied on Fri, Aug 12, 2016 at 11:16 AM CST
And the rate normally paid well enough that you could get home and still turn a profit. What ever happened to loop miles in the AG business?

Get on it brother, all good and valid points.
Replied on Fri, Aug 12, 2016 at 12:15 PM CST
Quote: "The only investor in this operation is myself and the independants that trust me to make the right decisions to make their living. When you think about it, that is one hell of a responsibility. This operation would be nowhere fast if not for my guys doing their thing and me doing mine. Yeah it kind of was a jab just to see where you were coming from on that. I don't disagree that de regulation fouled up the works back in the day. I also don't disagree that the over regulation spree that our illustrious government has went on is choking the daylights out of independants like me. (I would have capitilized INDEPENDANT, but everyone says I type too loud and sound angry all the time.) I am angry. Angry about the way this industry has went in the past 30-40 years. Lo ball rates, non payment, all the goodies that everyone yells about. I may be a bit of a dreamer but I still believe WE have the power to say enough is enough. The only problem is getting enough people to see it the same way. I don't know if the power of the vote holds the same clout as it did back when I was a kid, especially in light of the election tampering found in this years primaries, but if every registered legal voter would exercise that right and raise a little hell about the way things are, maybe things would straighten out. Who knows."

We're on the same team Duane . I salute you sir, we need more of your type operation, and Jeff is right about it too.

I keep threatening myself to go ahead and retire but end up staying one more year. When I started years ago the bad brokers and bad truckers were known and advertised by word of mouth. Soon the crooks didn't have any business.

I'm just as disgusted with these new generation rate cutting know nnothing truckers as I am with gypo mega brokers so it balance out in my world

Replied on Fri, Aug 12, 2016 at 12:56 PM CST
Quote: "And the rate normally paid well enough that you could get home and still turn a profit. What ever happened to loop miles in the AG business? Get on it brother, all good and valid points. "

Alfred in the early 70s we pulled stinking fresh pack chickens to Chicago and Detroit for about $2--$2.25 a mile. What would that convert to in today's market ? Im afraid to try giving a guess.
Replied on Fri, Aug 12, 2016 at 04:13 PM CST
Quote: "Alfred in the early 70s we pulled stinking fresh pack chickens to Chicago and Detroit for about $2--$2.25 a mile. What would that convert to in today's market ? Im afraid to try giving a guess."

I ran it from 1978 at $2.00 per mile and today it would be $7.39 per mile.

Here is the link for those of you that think I am full of it.

http://www.usinflationcalculator.com/
Replied on Fri, Aug 12, 2016 at 04:54 PM CST
Quote: "Alfred in the early 70s we pulled stinking fresh pack chickens to Chicago and Detroit for about $2--$2.25 a mile. What would that convert to in today's market ? Im afraid to try giving a guess."

Just went back and looked at a rate sheet from 1978 that an old timer gave me. It was an easy flatbed load with just some straps.

Load paid $1359.00 for 1243 miles, $1.09 per mile

The old timer made 70% as an Owner Operator (Lease Operator in those days), .76 per mile

Here is what each party should be making today.

Carrier: $4.03

Owner Operator/Lease Operator: $3.06

So can anybody explain what is wrong with this picture?

Why are rates in the toilet like they are? Because they can, plain and simple.

Here is my rule of thumb: Take your cost per mile and add $1.00 to that and that should be your minimum rate to run at.

Another member of the Independent Carrier Group told me that his rule of thumb was to charge per mile what the price at the pump was for diesel. I will be damned that works too. So if you don't have the smarts to figure out your CPM and are too stubborn and prideful to get your ass out of that truck. Use the oldtimers method and you will be fine. By the way he was talking all miles just like I am.

Can any brokers or shipper prove that this is way toooooooooooo much money? Hell no, you all know that you should be paying the rates that I have shown, but you are just addicted to the drug like most of the truckers. We by and large have a nation of drug addicts, that have been fooled into believing they gotta go, gotta go. Just where in the hell are all you folks going to? I for one grew tired of that lifestyle and decided to do things my way instead of societies way. This takes an open mind to see the opportunities that abound around you, and know how to take advantage of them. I had a broker today acuse me of not having an open mind, well I hate to tell her, but I refuse to have an open mind to being taken advantage of and being lied to all the time. I think she thought she was Killery for a moment.
Replied on Sat, Aug 13, 2016 at 01:01 AM CST
+ 2
I know that the only credibility I have is the amount of years and times ive posted on this forum ,but my Mc number is less than 200000. I've hauled for Duane. He pays on time Everytime. He is upstanding as they come. One of the short comings of our modern times is the lack of earned relationships. I hope I have earned respect from Duane and a few others. Profit aside things like that have true meaning to me and my outfit. Long story but Duane reached out to me thru this forum and helped me through a tough time. He didn't need to or have to, but he did and I'm grateful. Actually all of the brokers that have contacted me through this forum have been people I take pride in working for.

Art Pfluger
Replied on Sat, Aug 13, 2016 at 11:00 AM CST
Most forget that brokers a getting hit by the big brokerage they work for. A broker gets a hundread doller margin. The company takes 75%. Leaves broker with $25. Also broker doesnt see commision until he gets above what the company is paying him. its not sallary plus commision. its cover your sallary and then you get commison. Plus no commision until the broker pays off his draw for the companie he works for. I would rather sit at a computer and move 15 to 20 loads a week and sleep in my own bed then be on the road thats for sure. No ones getting rich off any frieght unless you land Major player. Some lands do pay. go buy a reefer and haul from cali to colordo. 1000 miles. make yourself 3400. And yes ive called plenty of trucks and have been told 5000 for 200 miles. Dont forget some companies cant and wont deal direct with owner opps or small trucking companies. They are two big and spread out across the us. Only large trucking companies can get that frieght until brokers came along and took and it put it out on the free market for you. get rid of brokers and you get rid of guys that can open up a can of frieght to the market that before only major frieght liners had. Not sure about bulk stuff i work for a big brokerage we stay out of this stuff. no money in it. Some take a stab at it here and there. Van Reefer flatbed. Top profitability is Reefer. And goes dont forget about commodity brokers. They buy from someone and sell to someone else. use a frieght broker and probably never lay eyes on the actual product themselves. They send there load list to 4 or 5 brokerages and boom truckers get paid bottom doller on that freight now. And yes they comodity broker takes a cut out of the friehgt two. now you have three guys making a living on the same dollar. I could loose my customers tommarow the owners son might graduate college and become a broker. A trucker could wreck and have a claim. The companie could go out of buisness. A small companie that use to tender you frieght coudld get aquiredby a big and now its tendered from cooperate. This the way the freight game works. The winners adapt
Replied on Sat, Aug 13, 2016 at 11:18 AM CST
Quote: "Most forget that brokers a getting hit by the big brokerage they work for. A broker gets a hundread doller margin. The company takes 75%. Leaves broker with $25. Also broker doesnt see commision until he gets above what the company is paying him. its not sallary plus commision. its cover your sallary and then you get commison. Plus no commision until the broker pays off his draw for the companie he works for. I would rather sit at a computer and move 15 to 20 loads a week and sleep in my own bed then be on the road thats for sure. No ones getting rich off any frieght unless you land Major player. Some lands do pay. go buy a reefer and haul from cali to colordo. 1000 miles. make yourself 3400. And yes ive called plenty of trucks and have been told 5000 for 200 miles. Dont forget some companies cant and wont deal direct with owner opps or small trucking companies. They are two big and spread out across the us. Only large trucking companies can get that frieght until brokers came along and took and it put it out on the free market for you. get rid of brokers and you get rid of guys that can open up a can of frieght to the market that before only major frieght liners had. Not sure about bulk stuff i work for a big brokerage we stay out of this stuff. no money in it. Some take a stab at it here and there. Van Reefer flatbed. Top profitability is Reefer. And goes dont forget about commodity brokers. They buy from someone and sell to someone else. use a frieght broker and probably never lay eyes on the actual product themselves. They send there load list to 4 or 5 brokerages and boom truckers get paid bottom doller on that freight now. And yes they comodity broker takes a cut out of the friehgt two. now you have three guys making a living on the same dollar. I could loose my customers tommarow the owners son might graduate college and become a broker. A trucker could wreck and have a claim. The companie could go out of buisness. A small companie that use to tender you frieght coudld get aquiredby a big and now its tendered from cooperate. This the way the freight game works. The winners adapt"

TQL makes more than $100 a load. I called them on a load a while back that other brokers were peddling. They were the lowest rate out of 3. Original load paid around $1200. Other brokers were around $950-$1050. TQL came in at $750. Since I knew where the original load originated from I called them direct and they said they would pay me $1200 for the load. So if TQL only makes $100 on a load where did the other $450 go?
Replied on Mon, Aug 15, 2016 at 09:38 AM CST
This is a good discussion and I have enjoyed reading all of the responses!

First off, as I stated before, I have not seen one post from any of the brokers I have in mind when I originally wrote this post. I think that all responses came from "OLD SCHOOL" truckers like myself who were out trying to make a living trucking and then found themselves in an office. I have been in this business for around 30+ years and have seen a lot of changes. I have gone from watching my brother, who I idolized as a kid and who taught me to drive at the age of 14, go from hauling one way grain from the dakotas to Duluth and making a damn good living at it to deregulation where the rates took a total dump and now the brokerage thing. I have seen through all the posts some interesting comments and most I agree with and some I don't. I agree most with the fact that we have our own customers and we take what we can handle. Sometimes our customers just have too many loads they need hauled and we can not handle them all so we need some help. I think in the 6 years I have been behind this computer I have posted things on load boards 10 times or less. Now with everyone having to have a broker license just to get a little help covering their customers loads it now cost A LOT of money for a bond to hel ensure that the customers that I personally have forged a bond with get their loads covered. It is my belief that if government would stay out of our business that things would operate jsut fine. I know that self policing in this industry happens and if we were to be able just do out thing without govenment making up new rules to follow then we would be better off. You all know perfectly well that if you haul a load for a carrier and you don't get paid that you will never haul for them again and you damn sure will tell all your friends about it! Like I said before, I find it hard to pay for a 75,000 dollar bond when we only list maybe one or two loads per year.

Thanks for the different points of view. I think that the reputable brokers will do just fine in this world because they are needed but I also think that the bottom feeders will continue to try to skim a little cream off the top.

Thanks again and have a GREAT and safe day!

Keith Kemper
ET Trucking