How Much are Brokers Charging Shippers for Loads? Here is an Example....

[PreacherRich]

Been shopping shipping rate quotes. Keep in mind the rates quoted are LTL and NOT expedited Expedited should be substantially more. Things may be a little jumpled because I copied and pasted from a few different sites. I quoted a 2000lb, 2 pallet, 257 mile run. Standard Cargo Van load....

Broker # 1
Start Location: 49686, Traverse City, MI (Business with Dock or Forklift)
End Location: 48216, Detroit, MI (Business with Dock or Forklift)
Item info: Class: 70 - Weight: 2000lbs
Book Your Service Online Now!

Shipment Weight 2000 pounds
Dimensions 48.00in x 40.00in x 36.00in
Distance 257.80 miles
Freight Classes 70.00


Davis Cartage Company
Less-than-truckload
1 business day
$187.85

UPS Freight
Less-than-truckload
1 business day
$277.88

Vitran Express
Less-than-truckload
1 business day
$288.84

Pitt Ohio Express
Less-than-truckload
2 business days
$348.85

Saia Motor Freight
Less-than-truckload
2 business days
$368.88

USF Holland
Less-than-truckload
1 business day
$377.86

Estes Express Lines
Less-than-truckload
1 business day
$388.78

Estes Express Lines Guaranteed Standard Service
Less-than-truckload
1 business day
Guaranteed *
$457.75

YRC Freight
Less-than-truckload
2 business days
$478.87

Con-way Freight
Less-than-truckload
1 business day
$487.74

Old Dominion Freight Line
Less-than-truckload
2 business days
$488.86

Panther Deferred (LTL) - FQ
Less-than-truckload
2 business days
$1,588.77

Pilot Freight Services- Economy
Less-than-truckload
5 business days
$1,678.88

Broker # 2
Shipment Criteria
Start Location: 49686, Traverse City, MI (Business with Dock or Forklift)
End Location: 48216, Detroit, MI (Business with Dock or Forklift)
Item info: Class: 70 - Weight: 2000lbs
Book Your Service Online Now!

Shipment Weight 2000 pounds
Dimensions 48.00in x 40.00in x 36.00in
Distance 257.80 miles
Freight Classes 70.00


USF Holland
1 business day 306.74

Vitran
1 business day 340.09

Old Dominion Freight Line 2 business days 380.64

Pitt Ohio Express **Guaranteed Transit Time** 2 business days 380.77

R + L Carriers
1 business day 382.45

R + L Carriers **GUARANTEED DAY DELIVERY BY 5PM** 1 business day 433.86

SAIA Motor Freight
2 business days 456.50

UPS Freight
1 business day 461.67

Estes Express
1 business day 469.76

Pitt Ohio Express
2 business days 473.19

R+L Carriers **GUARANTEED DAY DELIVERY BY NOON** 1 business day 495.17

Fedex Economy
3 business days 498.96

Central Transport
1 business day 522.14

Fedex Priority
1 business day 524.66

Old Dominion **GUARANTEED DAY DELIVERY BY 5PM** 2 business days 538.58

UPS Freight **GUARANTEED DAY DELIVERY BY 5PM** 1 business day 547.48

You Crate - Cube 46” x 49” x 50” Inside Dimensions 1 business day 554.14

You Crate- Tower 46” x 49” x 80” Inside Dimensions 1 business day 554.14

Flatbed Partial Up To 12ft 1 business day 597.45

YRC Freight More InfoLTL (Less-Than-Truckload)
2 business days 617.16

Panther 9ft Cargo Van
1 business day 653.32

YRC ***GUARANTEED DAY DELIVERY BY 5PM*** 2 business days 657.00

YRC ***GUARANTEED DAY DELIVERY BY 12:00 Noon*** 2 business days 787.47

Panther 24ft Straight Truck 1 business day 871.08

Flatbed Partial 12 to 24ft
1 business day 995.75

53FT Dry Van Full Truckload 1 business day 1012.35

48ft Flat Bed Truck
1 business day 1327.67

“Inside Delivery" (Silver Service) 1 business day 2920.59

“Inside Delivery & Unpacking" (Gold Service) 1 business day 3133.76


UPS Freight - Standard Rate
U.S./Canada Rate Estimate
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Origin ZIP Code 49686
Origin Service Center CAD- CADILLAC, MI

Destination ZIP Code 48216
Destination Service Center DTR- DETROIT, MI

Service Standard (days)**
1

Class Weight PER CWT Charges
70 1000 $49.83 $498.30
70 1000 $49.83 $498.30

Total Weight: 2,000 Gross Charges: $996.60
Arrival Notification :
$41.00
Fuel Surcharge : 32.3 %:
$321.90
Total Charges: $1,359.50 USD

 

[PreacherRich]

Just thought you might like to know...

 

[highway star]

You've quoted what trucking companies would charge to move the freight. A broker is someone that would handle setting up the shipment for the shipper and that charge would be in addition to what the trucking company charges.

 

[Rocketman]

Rich, I couldnt tell if you were claiming any kind of discount rate? Discounts for regular customers can be 80% or more. I got a quote from Fedex Ground once and they gave me 60% discount just for asking. It was kind of funny, somebody told me to ask for it. Sure enough, the lady I talked to was quoting me this huge price and trying to sell it, but as soon as I asked for a discount...boom, the rate dropped by 60%...lol.

 

[PreacherRich]

Rich, I couldnt tell if you were claiming any kind of discount rate? Discounts for regular customers can be 80% or more. I got a quote from Fedex Ground once and they gave me 60% discount just for asking. It was kind of funny, somebody told me to ask for it. Sure enough, the lady I talked to was quoting me this huge price and trying to sell it, but as soon as I asked for a discount...boom, the rate dropped by 60%...lol.

Yeah, these are base online quotes off broker web sites. Just google "freight rate quotes" and you will find a bunch of them.

The last quote listed was from UPS Freight and their regular customers likely would get a huge discount. (Like they give the brokers above)

Again they are LTL not Expedited they are next day or 2 and 3 day delivery. Just playing online while hanging out a Denny's in Franklin, KY. Thought it was interesting.

 

[ATeam]

Did you note, PreacherRich, what highway star said in post #3? It seems to me that you are quoting rates off carrier web sites, not "broker web sites." It is an important difference.

Freight brokers and motor carriers are both active in the transportation industry but they are distinctly different entities operating under different kinds of authority.

 

[PreacherRich]

Did you note, PreacherRich, what highway star said in post #3? It seems to me that you are quoting rates off carrier web sites, not "broker web sites." It is an important difference.

Freight brokers and motor carriers are both active in the transportation industry but they are distinctly different entities operating under different kinds of authority.

Freightquote.com and freightcenter.com are 2 different sites who give you a search engine to search rates, they also post on the bid boards. They have a discounted rate per mile with the carriers quoted above and then add their fees for those carriers on Non-Expedited freight. Though they list the different carriers they are brokers. Each list different rates for the same trip with the same carrier.

 

[x06col]

However inexperienced, I admire your search for the "already roasted goose". I'm convinced, one day you'll find a kilt goose, or a dressed goose, or, one or the other. But.......you'll have to do way more than jes look rates up on the net to find the goose of your choice.

 

[purgoose10]

Well as a certified Master Freight broker I can tell you thats not how brokers works. Way to much info to explain here with way to many veriables. One quick note that brokers do not call trucking companys to get a rate. 99% of the carriers are already licensed brokers so for them to broker a load to another broker would be breaking the law. I did not say it isn't done just that it's illegal. Someone acting on behalf of a carrier is an agent for the carrier, another story. Brokers have their own customers and the rates are negotiated with that customer. This is not cardinal rule, there are exceptions to every rule but generally speaking that's how it's done. Now you ask, Well how come we haul for UPS or Schneider (who are brokers)? Thats called logistics. Your hauling for the logistics side of that carrier. Confused?

 

[PreacherRich]

However inexperienced, I admire your search for the "already roasted goose". I'm convinced, one day you'll find a kilt goose, or a dressed goose, or, one or the other. But.......you'll have to do way more than jes look rates up on the net to find the goose of your choice.

Wasn't really looking for anything other than what I would get charged to ship 2 pallets at 2000lbs. Thought the information was interesting enough to share. Your positive encouraging posts always make me smile. Have an amazing day!

 

[PreacherRich]

Well as a certified Master Freight broker I can tell you thats not how brokers works. Way to much info to explain here with way to many veriables. One quick note that brokers do not call trucking companys to get a rate. 99% of the carriers are already licensed brokers so for them to broker a load to another broker would be breaking the law. I did not say it isn't done just that it's illegal. Someone acting on behalf of a carrier is an agent for the carrier, another story. Brokers have their own customers and the rates are negotiated with that customer. This is not cardinal rule, there are exceptions to every rule but generally speaking that's how it's done. Now you ask, Well how come we haul for UPS or Schneider (who are brokers)? Thats called logistics. Your hauling for the logistics side of that carrier. Confused?

I guess I probably do get confused quite often. But as a shipper if I am looking for a quote to ship my 2 pallets to Detroit and this company handles the logistics and assigns my load to one of these carriers or puts it on a bid board isn't that brokering?

SAFER Web - Company Snapshot FREIGHTQUOTECOM INC INC

SAFER Web - Company Snapshot FREIGHTCENTER INC INC

 

[ATeam]

Well as a certified Master Freight broker I can tell you thats not how brokers works. ... Confused?

Many readers would be interested to learn how brokers do work; what authority they operate under, what their relationships are with shippers, carriers, load boards, drivers, where their activities overlap with other entites in transportation, etc. Talk of such things has increased in the Open Forum in recent months but I'd love to see a introductory piece that paints the big picture and presents the basics to people like me who do not use brokers but are interested in this topic.

Do you know of such a piece or pieces that can be read online?

If not, would you care to write one?

If not, would you (or other willing readers) care to help me write one? I'm thinking of something comparable to Introduction to Expediting but about half the length or even a 1,000 word piece that presents the basics without going into the details that get confusing.

 

[purgoose10]

I guess I probably do get confused quite often. But as a shipper if I am looking for a quote to ship my 2 pallets to Detroit and this company handles the logistics and assigns my load to one of these carriers or puts it on a bid board isn't that brokering?

SAFER Web - Company Snapshot FREIGHTQUOTECOM INC INC

SAFER Web - Company Snapshot FREIGHTCENTER INC INC

Your statement that someone is handling the logistics of your two pallet shipment is just that, they are doing the logistics of the move, but they are not a logistics company, they are a freight company in this case. All your doing is calling carriers for a quote (they quote all day long) then you make the decision who your want to handle the shipment whether by price or speed of shipment or both. Also the value of the freight. It's crazy to ship say a sofa same day for $4 bucks a mile, its just a waste of money. But on the other hand if something like a part for an assembly line has to be there to get the company up again well thats a priceless commodity.
Also when the company gives you a quote they do so by the class of the freight. They go by say your discription of the commodity, like Machines, Motor, Computer etc. Reusable freight again say machinery is going to be used again and again and has a lasting value whereas fireworks, it used on time, bang it's gone and won't be used again so it's cheap. We were talking of the Ammo truck going into Mexico. Cheap freight, why once used it's gone. Thats the value now nothing else. It has a security value but not lasting value.

 

[purgoose10]

Many readers would be interested to learn how brokers do work; what authority they operate under, what their relationships are with shippers, carriers, load boards, drivers, where their activities overlap with other entites in transportation, etc. Talk of such things has increased in the Open Forum in recent months but I'd love to see a introductory piece that paints the big picture and presents the basics to people like me who do not use brokers but are interested in this topic.

Do you know of such a piece or pieces that can be read online?

If not, would you care to write one?

If not, would you (or other willing readers) care to help me write one? I'm thinking of something comparable to Introduction to Expediting but about half the length or even a 1,000 word piece that presents the basics without going into the details that get confusing.

That is a hard thing to do but I will think about it. It's like trying to write a book about Expediting. People have done it but never put any meat to it. I'm old fashioned when it comes to trucking. It's difficult because it's easy to get confused and also to put in print and be accurate about what it is your trying to convey. Most owner operators are uninformed about what they are doing. I'm not saying they aren't good operators I'm just saying when they lease on with a carrier, all they want is to make money. They aren't looking down the road. When a broker gets a load and someone takes the load they want to complain about not making money. Well the broker also have a business to run and one question always comes up but not many look at and thats the art of negotiating. I promise that most operators that run for a company that are doing well is because they have reached the middle ground with their dispatchers. They do a good job for them and visversa. They know the money involved and not every load will be good so to set a flat rate and not budge is really not a good thing because they don't know in most cases what's going on behind the scenes.
I think it would be good if during the Expo or some of the other events they would have these questions not only answered but maybe have someone explain what the function of each have in regards to this industry. "Broker" what is it? Logistics and the expediter and so on and also to touch on Authority, value of freight vs the rates. A lot of things to learn that can't be learned in 1 day. It's good information and the average operator will never use most of that information but it's a good thing to know because you never know in this business. Little things like ever notice when times get hard they start building warehouse everywhere. The big thing 5 yrs ago was next day shipping, now everyone is doing next day and its a common thing. Anyway, I can go on and on about this subject. It's fun for me to figure out what the next guys doing and beat them to the punch. I love this business.

 

[PreacherRich]

Your statement that someone is handling the logistics of your two pallet shipment is just that, they are doing the logistics of the move, but they are not a logistics company, they are a freight company in this case. All your doing is calling carriers for a quote (they quote all day long) then you make the decision who your want to handle the shipment whether by price or speed of shipment or both. Also the value of the freight. It's crazy to ship say a sofa same day for $4 bucks a mile, its just a waste of money. But on the other hand if something like a part for an assembly line has to be there to get the company up again well thats a priceless commodity.
Also when the company gives you a quote they do so by the class of the freight. They go by say your discription of the commodity, like Machines, Motor, Computer etc. Reusable freight again say machinery is going to be used again and again and has a lasting value whereas fireworks, it used on time, bang it's gone and won't be used again so it's cheap. We were talking of the Ammo truck going into Mexico. Cheap freight, why once used it's gone. Thats the value now nothing else. It has a security value but not lasting value.

I really respect your experience and knowlege but I think a couple things were misunderstood. The original post showed one quote from UPS Freight (their base online rate) All the other rates that you are looking at come from two website and they are indeed freight brokers. That is why I encluded the Safer links. It is more a lead generation tool then a true "book your shipment now" type of system. I received a call today from one of these brokers wanting to know how much I would be shipping in the future and letting me know that the more I ship the more discounts I could get with them. They simply take your load information and take the rates they have negotiated with several carriers for a shipment of that weight and distance and add their margin to it. If a customer is ready to ship they can book it right there on the spot. This is only possible with LTL and Truckload that is NOT expedited. Most brokers do build relationships with the shipper and then bid their freight for them and handle the loads. There are many brokers out there who use the internet to generate leads and develop new customers that way. It actually is a pretty interesting model.

I guess what intrigued me about the whole thing is that if people are willing to pay that type of money for a non-expedited shippment how much are they actually paying when they have a true expedited shipment that needs to be picked up today and delivered direct. I guess that was the point of the whole post actually. I apologise for not explaining myself properly with the initial post.

 

[Opel2010]

Again they are LTL not Expedited they are next day or 2 and 3 day delivery. Just playing online while hanging out a Denny's in Franklin, KY. Thought it was interesting.

I tried several times to get some LTL freight for my van (1-2 pallets). They (the brokers) were offering me irresistible prices, like $500 for a run from Carrizo Springs, TX to Miami, FL or even "better", $400 from LA to Chicago, just because it was LTL and they were not in rush...

 

[purgoose10]

Bokers won't generally ship LTL with someone they don't know. The reason? A lot of shipments have been left by the wayside because the driver found something after he loaded the LTL. There are other reasons but that's the biggest.
Combining LTL shipments is an art. Some experienced owner operators, especially refrigerated operators know how to do this. It is still widly done in the produce industry. Actually there is still good money to be made doing it, it just takes planning and patience.
Carriers have 5 days to move LTL. Some shippers still use carriers for rolling warehouses, especially the end of the month or quarter.