broker fees

[tknight]

I know no one like to chat about their pay, but does anyone know what the average % that a broker adds to the shipping bill, as in freight charges to thecustomer is x and the broker adds ? %. I was just wondering, not having thoughts of becomeing a broker, just wondering what the savings is to the customer if they go with an independant trucker 0/0 on a load.

tk

 

[greg334]

Yep it is a super secret thing to ask about people's money.

It all depends what they collect.

One example, I know of a customer who shipped a pallet of parts from here to South Carolina for BMW.

The billed rate was $3.50 a mile from the broker.

It went out to several carriers and brokers, one broker who picked it up, put it on a few load boards with the intent to pay out $2 a mile.

The lowest bid came in at $1.50 a mile.

The driver got $1 a mile for the load.

Another example, a customer calls a famous carrier and asked for a rate quote - $2.65 a mile. They agree to it and the carrier then ships the order to another division which bills the first one at $2.10 per mile. The offer to the truck is 60% of that - $1.26. The 55 cents is what is considered an arrangement fee and is not part of the bill which the driver sees.

 

[CharlesD]

I'm more interested in getting the money the broker is getting rather than offering discounts.

 

[idtrans]

I agree Charles it's all about the $ ! That's why we are all out here !

I'm more interested in getting the money the broker is getting rather than offering discounts.

 

[Jefferson3000]

Instead of offering to do that load cheaper than the $3.50 per mile that the other guy quoted, why not offer what a small carrier has to offer: less red tape. Tell them you'll do it for the same rate, but give a direct line to whoever is behind the wheel, and then call him (before he calls you) every 3 hours with a position update, call him when you arrive and when you pull away with the POD.

 

[nightcreacher]

unless you deal with the shipper direct,there isnt any way to tell how many times the pay on a load has been cut.If you find a load and it meets your pay requirements,thats all that matters.If you need $3.00 mile and you get $3.00 mile,sure it be nice to get the whole 5 bucks,but whats better,sitting another day,or running for the money you need