Ive always wondered

[marcel27208]

How much or so does a broker keep of a load? Ive only dealt directly with a shipper on a few occasions and the rates i was given from the shipper sucked also , another reason i ask is beacuse i realize that the broker is given a certain amount from the shipper and its the brokers job to broker the load and keep as much as possible, i called about a load from Point A to Point B and he said he can go as high as 1300$ and i said i would do it or 1375$ and the broker acted like i just robbed him , so i just said no thank you, just wondered do they keep a majority of the load or how does that work?

[S. L. Schrader Co]

I've asked a few of the brokers that we deal with a lot. Most say they work within a 20% profit range of the total load. So if the load is $1,000.00 the broker CAN get as much as $200.00 but it's up to them if they decide to give the carrier a cut of his take. Many will IF they know the carrier well and they know the load will get done right. Others want their percentage and won't budge, usually it's between 10 and 15% in those cases. These are just the ones I've dealt with, it may not be the same at every company.

[no_worries]

The range varies greatly from broker to broker and load to load. Your definition of the brokers' job is not correct. A broker is supposed to be an intermediary, bringing together shippers who want to move freight for a certain price and carriers willing to move it for that price. For this service they should receive a commission, either a flat fee or percentage. Unfortunately, almost all brokers define their job just as you have. This is not the definition of a broker but a middleman. Somebody who buys something as cheap as he can and sells it for as much as possible.

I think the bulk of brokerages probably clear somewhere in the neighborhood of 10-20%. But that is a gross average. The amount a particular broker may make on any given load might vary from a loss to 200+%. I have worked with one broker who keeps a flat fee...by far my favorite. Unfortunately, I think they're getting squeezed out by the bottom-feeders.

[solo379]

In regard to this, i just want to trow in some numbers.
I'm leased O/O. I get 72%+100%FSC. For 28%, company provides me with trailers, insurance, base plates and permits, and paid road and fuel taxes.
I also got paid any job related expenses, that extra(lumpers, scales...etc)
And i got paid next week, no matter what.

It's all customer loads(i don't haul brokers), so i know nobody else, is taking a cut.
And broker is taking 20%, just for couple faxes, and phone calls...!? :x

Can't blame them tho...it's all truckers fault! :P

[no_worries]

You, my friend, are the beneficiary of a company bringing efficiency to the marketplace. The funny thing is, a broker, no matter what the industry, is supposed to improve the efficiency of that market. That's kind of the whole point of their existence. The surest bet I could possibly make would be that if the freight market learned to operate without brokers, the efficiency would skyrocket.

[GMAN]

There are brokers who get from 10-50%. Most of the better brokers will be on the lower end of that scale.

[pepe4158]

yeah its not the % thhey take that keeps loads down...its when they give the load from broker to broker....and each one takes a cut.
Ive often wondered why they do that....I mean dont they know thats killing the rate? Quess they dont care as long as the other guy moves it?

[solo379]

Quess they dont care as long as the other guy moves it?

You've got it!

[marcel27208]

yeah i never knew that was so wide spread, but it happened to me yesterday i picked up a load for exel logistics/transportation and top of the bills said the carrier was schneider, when the broker i called was exel?

[Rawlco]

I hauled a load from Lafarge in Buchannan NY as a TMC company driver, and TMC is dedicated from there taking a large portion of the local short haul freight. My paperwork listed the carrier as Dedicated Contract Services/JB Hunt. I wondered if TMC brokered it out and then when my other load cancelled and they dug this on up they had to get it back again, having had two companies take 20% from it, since it didn't even pay $1.00 per mile.

[GMAN]

yeah its not the % thhey take that keeps loads down...its when they give the load from broker to broker....and each one takes a cut.
Ive often wondered why they do that....I mean dont they know thats killing the rate? Quess they dont care as long as the other guy moves it?

I have found that when a load is extremely cheap it is probably double or triple brokered. Schneider and others do work with other brokers to move freight. :evil:

[Dispatch_This]

There is a distinction between Co-brokering and Double (or Triple) brokering.

Co-brokering is widely used and an accepted practice among the big boys. The TIA provides a Co-broker Model Contract to it's members which can be found here:


http://www.tianet.org/docs/CoBrokerAgreement.pdf


The Preamble offers a pretty good overview

[LOAD IT]

How much or so does a broker keep of a load? Ive only dealt directly with a shipper on a few occasions and the rates i was given from the shipper sucked also , another reason i ask is beacuse i realize that the broker is given a certain amount from the shipper and its the brokers job to broker the load and keep as much as possible, i called about a load from Point A to Point B and he said he can go as high as 1300$ and i said i would do it or 1375$ and the broker acted like i just robbed him , so i just said no thank you, just wondered do they keep a majority of the load or how does that work?

A profitable brokerage needs to be in the 20% range at the end of the week to be profitable. I dont think a brokerage should take 20% off of every load as a rule of thumb. The broker needs to pay the truck a fair rate and make a profit. I used to dictate the rates and after a few years of haggling and getting hung up on, I decided to ask the carrier what he/she needs to do the run ( most dont know or want me to tell them my rate) but the key is negotiation. If a short haul pays $400 from the shipper, the broker shouldnt pay the truck $320, but if the carrier is satisfied with $320 then the broker is satisfied. If a longhaul load pays $6000 the broker shouldnt keep $1200, but why not, if he can get it moved for $4800. A lot of trucks dont gross $4800 in a week. My point is if all parties are happy then it doesnt matter what the broker gets. If you arent happy, then kindly say "no thank you" and hang up.

[marcel27208]

just read in a magazine where you have the right to order the sheet order whatever you call it that shows what the shipper pays the broker, im gonna ask a broker and see how that goes,,, from what i understand there is a rule to where they HAVE to give you the info

[LOAD IT]

just read in a magazine where you have the right to order the sheet order whatever you call it that shows what the shipper pays the broker, im gonna ask a broker and see how that goes,,, from what i understand there is a rule to where they HAVE to give you the info

Good luck getting that from a broker. A lease operator stands a better chance getting that info from his company.

[marcel27208]

i read where there was a FMSCA rule 39??? that said they legally have to provide the information?

[no_worries]

Yep, you have the legal right to request that information. If the broker refuses, you are within your rights to take them to court to compel compliance with the regulation. If you have to resort to taking them to court, you are also entitled to collect damages including court costs, legal fees, and any other reasonable cost, i.e., lost revenue.

It is your right to request that information...if you do, I wouldn't plan on hauling another load for that broker. Also Marcel, in your case, RR would have to make the request.

[GMAN]

I believe you are confusing someone who is leased to a carrier and paid percentage with someone who runs their authority. As far as I know, if you run your authority you are not legally entitled to see a copy of the rate sheet from the shipper to the broker. You both are in business and come to an agreement on a rate. While I think it would be a good idea to share that information, I don't know of any law which compels a broker to disclose that information to a carrier. If you are leased to a carrier, that is another matter.

[marcel27208]

ill get the info where i read that at 2morrow when i go back into the pilot, this says if YOU(doesnt specify you the carrier or you the driver) have the right to ask and receive the info from the broker within 3 years of the transaction, this doesnt mean that before you book a load you ask and recieve, doesnt really go into that detail of it. all i know it says you have the right to ask and they are legally suppose to provide the info

[marcel27208]

ok it says that if you are a carrier(so this means independent also)it says any motor carrier accepting transportation shipments from brokers.......