
Originally Posted by
merrick4
One final thought GMAN, I did sign up for the CH Robinson board and am just waiting for my password to get finalized. Are they known to be purveyors of cheap freight? I plan on reading their SEC financials to see what I can glean from that. I'd like to know their profit margins.
Merrick, CH Robinson does have a reputation for only having cheap freight. However, I have hauled freight for $3/mile for them. I have also been offered freight as low as about $1.50/mile. They can pay well, depending on how badly they need to move the load and where it is located. I have met those who only haul CH Robinson freight and seem to be happy. They have a section for "hot loads" you can access when you get your password. You can post or check loads in a particular area. I don't rely totally on any broker. I don't haul a lot of loads for them. They seem to have more van and reefer loads than flat bed or step deck freight. You need to understand how CR Robinson and some other large brokers work. They commit to a certain number of loads per day or week for a specified amount of money. The less they can pay a carrier to move a load, the more money they make. If they don't move it for the lower rate, they will raise it until it moves. That is why you need good negotiating skills. I have turned loads down only to have the broker call later to pay what I asked. They are not going to pay me $3/mile to take a load someone else will take for $1.30/mile. Some brokers operate on a flat percentage off the top for all of their loads.
I am not suggesting you only rely on a single broker. Some have been able to make that work, but most find it next to impossible. I think you can make something like that work more for a van or reefer than a flat or step deck.
You need to consider subscribing to one or more load boards. Getloaded.com and internettruckstop.com are two that I subscribe and have done well with them. I pay $25/month for one and $35/month for the other. There are some private boards, such as Landstar, Jones, Schneider, etc., which don't cost anything if you are set up with them. Schneider has a lot of van freight that they broker.
It doesn't take much time to post your truck on several load boards. Once you get a load booked and know when you will be in a certain area, you simply post your truck where you will be with the date you expect to be unloaded. I would caution you about booking too far out in advance. Things happen which can delay you and there is always a possibility someone will want to use your truck more than you want to haul their load. In other words, you don't want to book a load only to find out later that you could have gotten a much better paying load had you not committed on the cheaper load.
I am not sure how much you can really learn from reading CHR's financials. They could have shippers whom they work on a flat percentage. Besides, there are a number of ways in which to hide the numbers. Some brokers who commit to move a certain number of loads for a shipper also have a penalty clause in their contracts should they fail to move a minimum number of loads within a certain time frame. That is another reason a broker may be willing to pay more to move a load. It is cheaper to pay the truck more than the penalty with the shipper.
When all is said and done, it doesn't really matter what the broker makes as long as you get what you want or need. You should know your cost of doing business. You should have a target and minimum haul rate. Sometimes it is better to deadhead out of an area rather than hauling a cheap load. It can sometimes be better to sit for a day or two for a good paying load. I will usually not sit for more than a day unless I have some assurances that I will get a good paying load the next day or if I am putting a load together.