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-   -   Ive always wondered (https://www.classadrivers.com/forum/owner-operators-forums/29178-ive-always-wondered.html)

GMAN 08-25-2007 01:37 PM


Originally Posted by 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?


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 08-25-2007 03:51 PM

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 08-25-2007 04:02 PM

Re: Ive always wondered
 

Originally Posted by 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 :o , 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 09-02-2007 12:52 PM

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 09-02-2007 01:32 PM


Originally Posted by 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

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

marcel27208 09-02-2007 01:35 PM

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

no_worries 09-02-2007 02:14 PM

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 09-02-2007 02:32 PM

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 09-02-2007 03:22 PM

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 09-02-2007 03:32 PM

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


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