Quote:
Originally Posted by merrick4
Quote:
Originally Posted by GMAN
Something doesn't ring true in CHRBROKER32's posts. I find it difficult to believe that they would lose money on any load. They may not make as much money on some loads, but I really don't believe that they really lose money on them. I just can't see them taking money out of their pocket to move a load. They didn't get as big as they are by paying more to move a load than they receive. I could see them conceivably giving all of the profit to a carrier if they were in a really difficult bind with a big shipper and there was no other way to move the load, but don't see this happening as a standard course of business.
I got to say Gman this one surprises me. You are one of the people I follow every word very carefully and I could have sworn that you said kind of what the Ch broker said. If I'm not mistaken you mentioned that some of these brokers will be penalized for not moving a certain amount of freight so it's is cheaper to just move it for a loss even. Of course I could go back and check all 8,000 posts you've made, but I don't think I will do that. (of course probably doing that there's much I missed that I could learn).
But I could have misread what you wrote, but I do remember the penalty thing for not moving a certain amount of freight. I had never thought of that.
You are correct, Merrick. There are instances where a broker agrees to move a fixed number of loads a day or week and has a penalty in the agreement if he fails to move the shipper's loads as agreed. This guy made it sound like they lose money on loads all the time. I don't think that is the case. Perhaps I just took it wrong. If it comes down to it, they MIGHT have to take money out of their pocket to move a load, but that isn't likely. I think for the most part, they would give all of the money the load pays. It could happen, but isn't likely. They would certainly not be making the kind of money they post if they were paying so many carriers to move their loads. Some of these brokers will agree to handle all of a particular shippers needs at a fixed rate. The broker keeps the difference between what the shipper pays and what they can get a carrier to move it. If the broker agrees to move all of a shipper's freight at $2/mile and can find carriers who will take it for $1/mile, then they keep the difference. I don't think this is the way most broker's operate, but I have ran across a few who do. I have dealt with some who take a fixed rate or percentage, regardless of what the shipper pays. I think this is the most equitable way for a broker to do business.