Some of the results actually shocked me, while others didn’t. But here are the results:
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1)
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What percentage of profit do you think a Broker aims for? |
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Percentage
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| 10% |
 |
25.0
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| 14% |
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0.0
|
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| 18% |
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0.0
|
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| 20% |
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50.0
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| 25% |
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0.0
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| 26% or more |
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12.5
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| Whatever they can get away with |
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12.5
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| Other |
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|
The fact of the matter is – a lot of the larger, more recognized companies aim for anywhere from 10% to 14% profit. But, if you want to get in the good graces of your boss, you shoot for at least 18%.
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2)
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Do you think Brokers are paid a FSC? (Fuel Surcharge) |
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Percentage
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| Yes |
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62.5
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| No |
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25.0
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| I don’t know |
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12.5
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|
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Again – this just depends on the company. A lot of companies just charge a per mile rate which generally includes a fuel surcharge.
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3)
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Do you think a Broker takes advantage of drivers if they are in an area where there is an abundance of drivers? |
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Percentage
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| Yes |
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87.5
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| No |
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12.5
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|
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I think that is pretty relevant that if you are a salesperson (so to speak) and you know you are one of few people to sell the product you showcase in a certain area, you are going to try and make the biggest profit you can.
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4)
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Do you know what Power Only is? |
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Percentage
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| Yes |
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75.0
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| No |
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25.0
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I was really shocked to find out so few people knew what Power Only was!! Look for an article to follow up on this one!
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5)
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Do you think Brokers make more money off of Power Only loads or loads they broker to a carrier who has their own outfit (truck and trailer)? |
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Percentage
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| Power Only |
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40.0
|
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| Carrier with their own outfit (tractor & trailer) |
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0.0
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| Not sure |
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60.0
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Brokers definitely make more money on Power Only. Again, another thing for an upcoming Power Only article.
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6)
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What do you think the biggest disadvantage of going thru a Broker is? |
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|
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Percentage
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| No FSC |
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0.0
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| Amount of money they pay |
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75.0
|
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| Other |
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25.0
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| - No guarantee of anything! Actually getting paid, actual pay on load, actual conditions of PU/Del, |
| - It’s fine if they’re the only broker, but the problem comes when they double broker stuff. |
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This I think is a personal opinion more than anything.
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7)
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On average, how quickly do you think a broker pays a carrier? |
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Percentage
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| Within 24 hours |
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0.0
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| Within 48 hours |
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0.0
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| Within 15 days |
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40.0
|
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| Other |
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60.0
|
|
|
| - Within 30 days |
| - month or more |
| |
By law – you are supposed to be paid within 15 days of the company receiving your freight bill
(c) Length of credit period. Unless a different credit period has been established by tariff publication pursuant to paragraph (d) of this section, the credit period is 15 days. It includes Saturdays, Sundays, and legal holidays.
But anymore a lot of larger companies offer a “quick-pay” program that pays you within 48 hours of them receiving your signed BOL’s from the load you deliver.
And the last question:
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Is there anything you would like to add? |
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- the broker charges to the customer should be viewed by carrier or lease operator
OR
shipments should have codes applied to them and the codes have rate amounts, this way a carrier or lease operator would then now how much a load should pay, and then add any accessorial charges
OR
pay a line haul rate equal to the fuel,
no FSC and then add any accessorial charges |
| - There are good brokers, and there are bad brokers, just like there are good drivers and there are bad drivers. The best way to work with a broker is to find one “good” one and try to work with him or her exclusively. This prevents extortion by a broker that “doesn’t care about you”. |
| - Strongly suspect some brokers are taking 15-25% PLUS as much of the FSC they can get away with |
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So there are the thoughts and opinions of some people. What are yours?
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I’ve never understood why we need a broker in today’s world. It’s outdated and many lazy people are getting rich.
If a business ships with UPS or FedEx, they may have a line of credit, but they pay for the freight charges up front. Of course, that’s a different world, but the concept of paying for delivery before the truck takes it is not an absurd idea.
If you look at a website like uship.com, you can see that there is more than enough technology to set up a bid system with credentials for shippers and receivers in place. Most shippers are looking for a very cheap deal with that site, but when someone really wants something shipped fast and safe, they are willing to pay. Why do we need brokers when systems like this are so easy to build and maintain?
If the government gets in the game, any idea of a free market is out of the question. Right now, the free market is being disrupted with the legal need for brokers who have very little interest in the shipping process and assume very little risk.
The bidding system could include safety ratings as well, to a broker (that cares about their load) that is something that is important – so I think it should be when booking a load as well. I think I would rather pay a driver more and KNOW the load is going to get there and arrive safely then to make a 40% profit margin by hiring some Joe Icantdrive guy that has a low safety rating and more of a chance of either falling off of the load or not making OTD.
A bidding system would be a good idea. Then you could include your own FSC too. Great idea!
While a bidding system has its merits, ultimately shippers want to deal with people. They don’t want their freight and its proper handling to become a tracking number in a faceless, paperless and impersonal system. It would be like putting your trucks PM out for bid on a computer system. Would you really let Company X service your truck because they came back with the best price and are qualified by criteria that you have no control over. You want to deal with people you know and trust. If there is a problem, you want to be able to pick up the phone and know the person you’re talking to has your best interest in mind. And seriously, are you willing to pay that kind of money up front before the work is done.
Actually some of what you think people will not want is actually already happening. Think I’ll go write about it!!
[...] this was something brought up as a response to the Transportation Broker Survey Results, I thought I would elaborate on something that I do know to be [...]