Freight Pricing What the....????

wesward

Member
10
What is going on with the pricing of moving freight
Brokers trying to get rid of loads Ont to AB for dry load 2900?
Ont to BC for 4300?
LOL
Come on lets get real here
I thought were were to work to get freight to consumers so consumers can get products needed
cant do it for those prices, cant pay fuel, truck maintenance, drivers, truck payments, ect
 

MikeJr

Moderator
Staff member
30
There's quite a few threads on this topic of carriers undercutting eachother because they are looking to get home, reposition equipment, etc. There are a few threads also on the inverse, when there is a capacity issue (shortage) on a lane and carriers double the price over night. Brokers tend to complain that we can't sell the increase to our customers. Remember Chicago - Toronto TL March 2018? It was literally a 100% increase just about over night. But everyone was at the same price point, eventually the shippers understood it was a true market rate and accepted it. I actually had one customer close their IL plant and move elsewhere because of the cost of transport on the lane, of course what goes up typically comes down and no one ever listens to me, so...

If a rate doesn't work for you, just say no. If a rate doesn't work for a broker that they are getting from a carrier, they can contact more carriers to try and find a better deal (if one exists), if it's a market rate it was determined by the masses, not by you or me.

Keep well,
Mike
 

Nawk

Well-Known Member
15
Just had a client call with a TL GTA to the Omaha NE area.

We don't do a lot of that lane so we called a few carriers we know that regularly run to this part of the world...

Carrier A: 2800.00
Carrier B: 1700.00
Carrier C: 1800.00

All are premium carriers.

As a broker... how do we add a safe margin without being a pig (pigs get slaughtered).

I like Carrier A and have never had an issue with their service... are they 1000.00 better than Carrier B or C - no.

If I rate based on Carrier B or C and at the ship time they don't have capacity will Carrier A drop his rate? Hmmm maybe some... but in his world he needs 2800.00 so he may come down some... but not 1000.00 and risk losing his integrity.

Shippers are all about price these days and it sucks.

Brokers need to build strong relationships with their shippers... and show their shippers that a broker can be of value rather than just someone to hammer the carriers as low as they can.

"If you get the business on price... you will lose the business on price"

If your shipper is all about cheap... there will "always" be somebody cheaper than you are!
 

Freight Broker

Well-Known Member
30
So true.. but I wonder if anyone else out there is afraid to quote too low. That's my biggest fear.. quoting it too low and then getting the business and not being able to move it. I'm too high alot of the time.. which is fine.. someone else gets the job, and I move on to my next target. I notice more shippers bid out their freight nowadays..I don't waste my time on them as on some of them I can see how many bids go in and what they are.. Had one yesterday that had been open for bidding for a couple of days... 4200 bids posted.. so I guess to stand out I put in a super high bid.. what the heck..
 

Gord M

Active Member
15
Just had a client call with a TL GTA to the Omaha NE area.

We don't do a lot of that lane so we called a few carriers we know that regularly run to this part of the world...

Carrier A: 2800.00
Carrier B: 1700.00
Carrier C: 1800.00

All are premium carriers.

As a broker... how do we add a safe margin without being a pig (pigs get slaughtered).

I like Carrier A and have never had an issue with their service... are they 1000.00 better than Carrier B or C - no.

If I rate based on Carrier B or C and at the ship time they don't have capacity will Carrier A drop his rate? Hmmm maybe some... but in his world he needs 2800.00 so he may come down some... but not 1000.00 and risk losing his integrity.

Shippers are all about price these days and it sucks.

Brokers need to build strong relationships with their shippers... and show their shippers that a broker can be of value rather than just someone to hammer the carriers as low as they can.

"If you get the business on price... you will lose the business on price"

If your shipper is all about cheap... there will "always" be somebody cheaper than you are!
I love the sayings.............thank you!
 

Gord M

Active Member
15
Wesward: Simply say no to cheap freight, get your own customers, simple as that stop complaining and go get customers that pay or set yourself up with good brokers who pay a fair rate for the job you do.
The difference is many little carriers depend on the scraps falling off the table from the freight broker, these lazy carriers think there business is built around Freight Brokers. Go take the customers away from the crappy brokers or open a shoe store, maybe you will have more luck with shoes because if you are waiting to get rich quick from freight brokers.....................you should really look into the shoe business..........or a hot dog stand. Brokers are laughing at carriers, many make $1,000 a load because the carriers are to stupid or too lazy to go take the freight away, BTW since when did brokers pay a fair rate?.........and that's all i have to say about that Forest!
 

Freight Broker

Well-Known Member
30
.. how do you know many make $1000.00 per load? They tell you that? But I agree that it would be good for carriers and brokers to learn each other's business.. BTW.. I've got some loads that do pay very well.. i.e. if you've got a truck in Basingstoke England today that can pickup 9 skids for delivery in Newark, NJ, Rochester, NY and Windsor ON.. please let me know..
 

Pasha

New Member
2
Brokers are laughing at carriers, many make $1,000 a load because the carriers are to stupid or too lazy to go take the freight away,


Yup a broker/carrier posted this on the forum. Its always a pleasure and more fun to stay back and read and learn i love insidetransport
 
Last edited:

MikeJr

Moderator
Staff member
30
Pasha,
Hold up. A carrier posted that, not a broker.

Can we all grow up a little and stop the carrier vs. broker mentality? We have to both work together in order to grow our businesses, we are competition to each other but we also compliment each other and work together when required and go a great job of it.

For the record, I've looked up the past 4 shipment Gord M handled for me (my employer), we made between $125 and $175 per order on them, it's a far cry from $1000. Thank you Gord M by the way for doing a good job on those ones, much appreciated!

Lets get real, no one is making $1000 on LTL or TL Dry Van business, there's just too much competition out there, those kind of margins are not possible.

A distribution of 250 ltl shipments, specialty equipment, permits, added insurance, after hours tracing, show freight... That's where the larger margins are for BOTH the broker and all the carriers they give the business to.

Keep well,
Mike
 

loaders

Site Supporter
30
Hard to explain what got under Gord M’s skin regarding Nawk’s pretty much spot on post regarding rates. Perhaps there was a recent situation where he had to take a low paying load from a broker (probably on a Friday afternoon after his original load fell apart at the last minute) to get his equipment back home, or re-positioned. It is difficult to say whether he should be mad at the broker who gave him the load, or mad at himself for getting into a position where he was forced to take a low paying load. In any event, I have no problem with someone venting/ranting about perceived injustices in our industry, we all know there are many, however please make your case with as accurate information as possible, as opposed to tired, old cliches about the broker/carrier relationship. As Mike Jr so correctly pointed out, carriers and brokers need each other and as such, need to treat each other with a certain degree of respect and understanding. Deal with the good guys, ignore the bad guys whenever possible and life should be a bit better for all.
 

Pasha

New Member
2
As Mike Jr so correctly pointed out, carriers and brokers need each other and as such, need to treat each other with a certain degree of respect and understanding. Deal with the good guys, ignore the bad guys whenever possible and life should be a bit better for all.
[/QUOTE]


Very well said we APPRECIATE this attitude and mentality.
 

Freight Broker

Well-Known Member
30
I'm still trying to figure out what broker is making $1000.00 per load.. and equally.. why they'd be stupid enough to yap about it. If it was me I'd keep quiet about it and enjoy my good fortune. Most loads are in the 50.00 to 350.00 range...
 

Shakey

Site Supporter
20
I enjoyed telling a carrier that advised us last year they would not be taking any new brokers that this year we would not be accepting new carriers...............small of me but live by the sword die by it

Was at a large shipper RFP results in US this week, they saved 24.5% YOY, trucks took away significant volumes on domestic USA loads and was surprised even some up here.
 

Gord M

Active Member
15
Pasha,
Hold up. A carrier posted that, not a broker.

Can we all grow up a little and stop the carrier vs. broker mentality? We have to both work together in order to grow our businesses, we are competition to each other but we also compliment each other and work together when required and go a great job of it.

For the record, I've looked up the past 4 shipment Gord M handled for me (my employer), we made between $125 and $175 per order on them, it's a far cry from $1000. Thank you Gord M by the way for doing a good job on those ones, much appreciated!

Lets get real, no one is making $1000 on LTL or TL Dry Van business, there's just too much competition out there, those kind of margins are not possible.

A distribution of 250 ltl shipments, specialty equipment, permits, added insurance, after hours tracing, show freight... That's where the larger margins are for BOTH the broker and all the carriers they give the business to.

Keep well,
Mike
Hi Mike, its our pleasure. Our trucking side does a great job (no fault of mine) so hopefully you keep using us. I love the different points of view on these forums, i'm not always right but I always have something to say. :)
 

MikeJr

Moderator
Staff member
30
Lol,

I'm finding I'm not always right either (please don't repeat that to my wife). Thing is - no matter what my 14 years (and I'm still a rookie by some standards) in transport have taught me, there is always something new happening or a scenerio that I've not seen yet, or a new way to handle a particular situation that our team has yet to realize. It's part of the reason I read so much here, there's always more to learn!

Keep well sir,
Mike
 

Michael Ludwig

Well-Known Member
20
Pasha,
Hold up. A carrier posted that, not a broker.

Can we all grow up a little and stop the carrier vs. broker mentality? We have to both work together in order to grow our businesses, we are competition to each other but we also compliment each other and work together when required and go a great job of it.

For the record, I've looked up the past 4 shipment Gord M handled for me (my employer), we made between $125 and $175 per order on them, it's a far cry from $1000. Thank you Gord M by the way for doing a good job on those ones, much appreciated!

Lets get real, no one is making $1000 on LTL or TL Dry Van business, there's just too much competition out there, those kind of margins are not possible.

A distribution of 250 ltl shipments, specialty equipment, permits, added insurance, after hours tracing, show freight... That's where the larger margins are for BOTH the broker and all the carriers they give the business to.

Keep well,
Mike
MikeJr's right ... neither of us will survive without the other.
No one on this board can tell me they have a solid customer base everywhere they go, and have absolutely zero need for a load broker or interliner. If you are going to try and tell me that, I'm going to call you a liar.

As for the broker making $1,000.00 a load ... well, it used to happen back in the day. I seriously doubt that it happens any more. There is simply too much information available to everyone to allow that to happen.
 
Top