Sinister, I know each driver wants to get what they feel is the right amount of money for each load. They just simply take the offer or reject it. The Broker is doing all the negotiating, not the driver. I am wondering if each driver is doing the math, for each load, fuel, wear and tear on truck, ect. and the most important thing a profit. If all is met, case closed. Everyone is happy.
You say the Driver.. I know you really mean the Carrier takes the deal. TBH freight is won by relationships with the customer more then pricing does in most cases. As for most local LTL customers as a Broker it is very hard to complete with direct carriers.
Myself if a customer calls with an ltl load, I have pricing I have in place FROM the LTL carriers which they have agreed to take. I just set it up through them and make very little. The reason being is the drivers who service that customer from the local LTL company have built such a good re-poor with that customer, it is hard to complete as a broker. That being said.....
In reality most Carriers are Brokers...and you will find if you do the research that 99% of all freight moved world wide is through a Broker first... even if that broker is a Carrier.
Now if that LTL customer(or any for that matter) requires additional requirements that the Carrier will not provide...well it's is a totally different game. This is where I can shine as a Broker and possibly something Drivers don't consider as they bring everything down to what price the truck is actually getting.
For example let say a customer requires additional storage of the product before it is ship to the final customer. Maybe there is breaking down of pallets or just needs lead time to match overseas shipment etc. I as a broker can provide these services when a carrier may not. It is called Logistics for a reason and not JUST Trucking.
When you are dealing with larger companies they require more services from there Logistics providers then the Carriers are willing to handle.
Another example and this is my Niche actually... I did this as a Carrier and now I do it as a Broker.... Dealing with Freight Forwarders... you know the guy's who ship stuff worldwide by every mode of transportation. Truck,Rail,Ship, and Plane whatever...
Well they own none of those things it is all brokered out to various carriers.
What I excel at is moving Heavy Machinery,oversize loads and the like. Which requires allot of TLC.. and I am extremely efficient at it and my pricing reflects it... the edge I have is I did this as a carrier first, I know what it take s to do it.
The THING most carriers refuse to do is well 2 things actually one being taking the time to pressure wash the equipment as it cannot be placed on any ship with any kind of dirt on it. The other thing is breakdown of the actual equipment.. such as an Excavator which would have to have the boom and bucket removed for the majority of ship board shipments. This may sound extreme but it is not uncommon for shippers and consignee's to require additional services from there Logistic providers.
This is why the 3PL's or 3rd Party Logistic Providers control the majority of freight that moves world wide.
Next time you move a shipment for Sears look at the BOL and see who actually shiped it... I bet you will find it was Menlo Worldwide Logistics as they have 100% of Sears business no matter who actually moves the freight.
I know as driver's most of you see things as it relates to the bottom line, and it seems that truckers get screwed and they do I am not saying it is a fair system. I will say this Brokers and 3PL's are not going away any time soon....welcome to the new Global Economy.
