Broker Margins: Ikea vs. Convoy Lawsuit and What Convoy Was Being Paid By Ikea

So we all know that broker transparency is a huge issue because we all have the suspicion that brokers are taking huge margins into their pockets. So let's take a look at what Ikea paid Convoy, the closed down freight broker, compared to what the average spot rates were.
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[@Low_680]

Just got approached by a direct shipper to haul direct for them as the famous 3 letter broker raised the contract 200 dollars more and the reason is drivers are asking for more. So the new rate was 2400 from Ontario ca make to Stockton ca market. Shipper was nice enough to get the load # from the rat broker and after I looked for it on there board found it for 1000. I called to try and get info and get more in front of shipper and they advised the shipper is only willing to pay 1000 max. That’s more than 50%. The brokers excuse is shippers are paying lower but the shipper just told me they raised the rate. Smh

[@kristinchester380]

Exactly!!!! What in the F entitles a worthless broker to take MORE than the actual driver (with expenses) gets? It's a racket if I've ever seen one....plenty of info online about getting direct contracts....assemble a nice professional carrier packet for yourself and start requesting meetings with shippers in your area!

[@chrisbelsito4231]

The hell with transparency!!!! Regulate the brokers to a max of 10%!!!!! If they are caught pulling more of the load then brokers license is revoked or suspended for an amount of time!!!! Problem would likely be solved!!!!

[@gregoryhayes9760]

Should they limit carrier profit to 10% also?

[@B0RN2RACE100]

@@gregoryhayes9760carriers take the risks and do the hard labor.

[@chrisbelsito4231]

@@gregoryhayes9760 absolutely not!! You brokers been taking advantage of owner operators for years and years!!! 10% is fair enough for the brokers..

[@thedevilandhertrumpets4268]

more like 6%

[@WhoReallyCares917]

​@gregoryhayes9760 The average carrier profit is under 5 percent, so 10 percent would definitely an increase!!

[@bwxk3]

The word Owner Operator does mean nothing anymore. We all company drivers that let people tell us what there going to give us. Remember brokers don’t own no trucks……

[@gtathletics912]

Well some big trucking companies also have brokerages. They only want mega carriers in business

[@julianesparza8904]

This just goes to show .. there ripping off Owner ops ..Where's the OOIDA... FMCSA

[@ukayhemi6385]

They’re getting a piece of the 🥧

[@tv450578415]

We allow brokers to take a large amount of money by hauling the freight so cheap. We need to get together. We need to create a very strong organization that helps carriers and drivers fight back against Brokers. Shippers are paying enough money for everyone to live a decent life, but Brokers are so greedy, and they are destroying families. Stay away from TQL, Integrity, and JB HUNT they are the worst Brokers.

[@ericmendez5815]

Brokers do it because there thousands of foreigners who make $200 a day and their bosses can haul cheap freight and make a killing. 200 a day is a lot to send back to India

[@user-ov7fd9of5u]

As long as we got o/o willingly taking cheap freight this will continue, 2.50 mile is cheap freight 1.50 a mile you are giving your assets away not to mention your labor. If you take freight under 2 a mile you are out of business but you just don’t realize it yet. Lots of companies pay drivers 80-120k and don’t even ask you to pitch in for fuel, this is crazy. Brokers aren’t going to change because they don’t respect us and they shouldn’t because they have seen nothing from truckers to scare them. How would the teamsters of the 1950’s handle this situation? Truckers could bring this country to its knees in two weeks-we could make the Covid toilet paper shortage look like a walk in the park. But we won’t because we are to busy trying to undercut each other for the privilege of hauling some companies products with fuel we bought on a credit card we can’t pay off- if that is you park your damn truck and go get a job

[@ChampHTX]

Didn’t the Teamsters lose their little battle with Yellow? 🙄

[@ESAMDJ]

I had Illinois to Meriam KS as a dedicated with convoy last year for $1450 , which was around 480 miles . But in the spot market, when they have extra freight, the rate will start around $900 . Convoy was getting paid $1750 on this lane, according to the video .

[@kristinchester380]

OUCH to the spot market....and sincerely F those broker rats!

[@simonjusticier333]

At this point brokers are taking unfair advantages from the shippers/producers and eventually the carriers and consumers. This unregulated practice is inconsistent of a free market and if price gouging is a specific crime, so should market gouging and unchecked windfall profiteering.

[@sabartransportation4456]

“I’m losing money on this if I go more than $1.5/mile” *puts $3/mile in their pocket*

[@18_wheeler97]

I think these lawsuits will expose what these big brokers are really making. Thanks Miranda for the info.

[@user-ig9jq1nx9q]

My GOD!! Didn't know it was that bad, looks like direct shiper is the only way to make it. This is what we need to be concerned about .

[@ANDREASRIAL]

There's 0% honesty from the big players, the people who make less money at the end is the driver.

[@RomanVarl]

Thank you for the interesting information Miranda ))

[@vladkokhman4129]

I have read this news before, but as you start talking about it, i have to watch no matter what. Thank you for all u doing to us.

[@barelaw721]

I did a lot of loads from boling brook to most of the Midwest locations. I usually ran them for $3 per mile during most of 2023. Convoy rates were better than everyone else last year but I did assume they were contracted for 4-5 dollars per mile.

[@sergiotrucker3011]

Thats why its time to work directly with shipper, and get rid off middle man

[@dontucker5883]

START NOT USING brokers starting with the A's maybe 10 at a time for one month. there are thousands out there, hit them in the pocket like they do us. By the time we get to the C's the others will get the hint and rates should go up. but we must stick together and stand strong. Need someone smarter on this internet stuff than I am. lol I'm just an old O/O but I think this would work!

[@brandoncooper4868]

Your awesome thanks

[@superoffended6737]

Its called a market people!!! Ya cry about too much regulation but then yall want ooida or fmcsa to help u out. Its what the market will carry!!! If u werent willing to haul cheap freight then this wouldnt be an issue. Yall have to learn to sit when it doesnt pay to move!!!

[@sevendustlivelugones6510]

Exactly thank you

[@kristinchester380]

YESSSSSS exactly!

[@nskgraff]

Bolingbrook IL to Joliet 20 miles run they were paying 150 on average power only ikea

[@oleksandrpoliakov3531]

We are hauling IKEA at Landstar and the rates are the same as you posted for convoy some lanes are even better pay but we can see rates in our ratecon without transparency. I can't say the same for convoy or similar brokers so I can feel pain for drivers who haul it for spot market rates. Thank you for the info by the way.

[@rogerhouptjr154]

I love how you say LET’S GO

[@yellaboymike561]

When that broker transparency does pass, blame brokers and their greed lol

[@markray4327]

In household goods I don’t deal with brokers, there is already enough getting a piece of the pie as it is, however we booked a load for an Amazon employee recently from Oklahoma to Florida, the broker got 45% of that shipment and we didn’t find out about it till the deal was done. 😡

[@LogisticsWorldz]

"That's all I got in it" is a big lie folks. Stop taking cheap freight

[@michaelallen7230]

I think you said it right. You told them bye bye before they went bye bye because they were terrible to work with. That’s why they went broke. I did the same thing with them in 2022.. I actually told the broker to “kiss the northbound end of a southbound duck”. Love your content.

[@donnykincaid8133]

The whole thing is sick...

[@tsocity213]

Hey THANKS LEEETTTTSSSSS GOOOOOO!!!!!🎉🎉🎉🎉

[@user-ih4cr9vm8e]

When companies broker loads to themselves... that's a major issue for the contractor

[@backyardbandits1444]

Convoy paid me the best.Midwest area.Saying that they still owe me 1500$.Run a load for them the day before they shutdown.Still no payment

[@jackwadkinsjr1964]

If a broker don't pay you. The shippers responsible for the invoice convoy was closing down and it asked the shippers to pay the carriers direct

[@Thetruthalwayshurts]

Why are we surprised? Someone is still paying high freight cost. This is why prices on the shelves are still high.

[@johncalvo1743]

NO.

[@dangranot5703]

Contract rates always trail the market, whether it's up or down. We see this whenever we're comparing contract to market rates in her previous videos. With that said, even if freight rates are still high for some markets, way too may companies are still posting record, or near record, profits, which means their margins on the stuff we're buying off the shelf is much higher than their costs.

[@HaVoC_TX]

That’s what happens when anybody with a pulse can buy a truck. They don’t know anything about the truck they just know how to go in a straight line. This is what you get. I’m sorry but truck drivers the majority are not the sharpest tool in the tool shed.

[@bryan989898]

Hola, Miranda hope you are doing well.

[@jimmycagnee65]

There needs to be laws in place that mandate all brokerage firms and brokers must live in America and bar foreign companies from playing in our markets as well as a cap of 3 or 5% max on what a broker can make on a load. They can make their money by volume, they do not need to steal the money from the trucker, the trucker does 95% of the work he/she deserves the fair wage for that work.

[@Hattricks68]

Most IKEA loads are Dedicated with very STRICT APPOINTMENTS times usually in the middle of the night. O/ops may get a few Overflows that didn’t fit on the dedicated trucks. Not an ideal load for an O/op. Unless it’s paying $9.55 a mile 😂😂, but then of course FEDEX, SAIA, OLD DOMINION, R&L Carriers, BIG E ESTES, OR XPO LOGISTICS would get them.

[@supertruckertom]

They don't understand that most brokers don't even know those loads exist.

[@Hattricks68]

@@supertruckertom Maybe CH Robinson might get a few, but it’s probably extremely rare .

[@supertruckertom]

@@Hattricks68 Yep. I have been in LTL for most of the 34 years I've been working in the industry. Dock to Driver at Con-Way in the early 90's. At Big E now running coast to coast team. I got burned out on my downtown Atlanta liftgate route. This is gravy but we go unassigned extra next week. So who knows what's going to happen.

[@Hattricks68]

@@supertruckertom Absolutely 👍, I retired in Jun’2022 after 35 years! Con-Way Freight terminals was my favorite to drop & hook, you dropped on the in-bound Pad, drove around to the Out/bound Pad to pick up your Empty, E-Z P-Z, all except for Atlanta, they would never pull the nails up and always left the trailers dirty. Soon though XPO took over maybe that was the reason. Hey, remember to sign up for Medicare when you turn 65 or they’ll penalize your SS for life. They got me 🍼😩😲because I had no idea.

[@Hattricks68]

@@supertruckertom Gosh, I’ve only had to run Teams once with Yellow Freight in’98, from Chicago Ridge Illinois to Salt Lake City Utah @ 62mph, and I really hated it; the upside was those dudes could drive Man, that’s where I learned how to run mountains and Winter driving. You remember back then, IF THE ROAD ISN’T CLOSED,, THEN CHAIN UP AND GO. 😂. Stay Safe.

[@waltmiller]

I didn't have a chance to haul IKEA loads but last year in March, April my before tolls in North East and equipment payment net per mile was like $1.50

[@robertburns9440]

I've heard a good bit of these lanes were power only and drop and hook which would drive those margins down quite a bit. If that's true then this is all much ado about nothing.

[@younglife6877]

Every other industry where brokerages are used there is an insane amount if regulation, except the Trucking industry.

[@younglife6877]

Also KS > Joliet. IL I remember Convoy had the load posted for $755 LOL.

[@LrdsWrk]

Good information. It seems to me a lot of the respondents on here are like baby birds wanting fed. They don’t know/control their costs and they are leveraged to the hilt w/truck-trailer payments and who knows what kinda toys they’ve accumulated as well. Victim hood is a zero sum game. U can’t want every penny u can get then be outraged when some conglomo is taking every penny they can get. Look in the mirror Take accountability Get lean Control what you can control ✌️

[@creep132]

Crushing😍😍😍😍😍

[@1991Guru]

Simping

[@GERRI1]

@@1991Guru 😂😂

[@MChicago89]

Get lost

[@fugitive1205]

❤❤❤ Miranda but hate convoy

[@dannydivine7699]

It still boils down to over capacity, and drivers / carriers either being unable to communicate properly in the language of commerce, and there are still HUGE amounts of predatory practices happening between virtually all the player in the game. More regulation is NOT the answer to these problems!!!!! PERIOD STOP Nobody wants to here my opinions on the biggest factors to solving these issues, and I'm not in the mood to listen to people cry about the me being the mean guy on the internet either. Have a GREAT day everybody! Don't work below your costs firstly, and ABSOLUTELY stop working below your VALUE!!!

[@user-se3hj5hr1q]

Rates were awful like 1.80 OTR

[@blackthunderbolt3699]

It's driver's fault many shouldn't be owner op ,do know the cost of operation don't understand LTL nor don't understand profits margins nor mantance cost it's all on driver these covid owner op

[@GrimmCaptain]

I don't think brokers should have contracts with a shipper. For individual loads? Yes for small blocks of loads (10 or less)? Yes a full contract no. That is for carriers and if the carrier rejects them then the broker can have the load(s). This is what the brokers are for. Shippers can use a loadboard just as easily as a shipper.

[@andrewbateman7654]

Brokers shouldn't have direct contracts with shippers for the simple fact they have NO trucks to move the product, That is what carriers are. The industry needs to go to a total transparency concept with margins managed. Brokers have very little overhead and most of the liability is put on the carrier, owner/operator or Independent, but they seem demand and receive the largest percentage. Main reason my truck is parked and will remain parked until the shift back to the carrier's advantage, I refuse to be part of the problem and run my equipment into the ground so the Brokers can afford steak while I'm eating beans.

[@kristinchester380]

@@andrewbateman7654 also, not trying to sound ethnocentric, but so many foreigners come here and think they're doing great at less than $2 a mile because whatever country they came from they were lucky to make a few dollars per day before they came here. How do you fix that problem.....we can sit all we want....some clown will still take the darn loads :/

[@ChampHTX]

You can’t tell a shipper what they should do lmbo

[@DudeDude491]

Miranda❤️❤️❤️❤️❤️

[@periscope1368]

Making that much what ruled then out of business? Anyways brokers are evil

[@operationatdsnexpedited2682]

Convoy Brokerage should not get a dime of those 500k fron Ikea, everything should go to carriers, Convoy took millions in governmant loans and then 2yrs later they turn away pocketed all those million and close business...

[@javedsmith8515]

How many trucks do you run?

[@samwilliams9874]

I only got paid 4$ a mile once and it was from Swift.

[@stevenmiller6725]

4 bucks a mile really not that uncommon for Flatbed and reefer. Just need to be where the market is hot like Nogales in May or June for produce. Especially Fridays and weekends. Lots of vans so less likely but still happens.

[@luna-pw9ln]

Start March 11 24. Everybody everybody stay home. Don't pull no freight and then see what happens. Guarantee you, it will be on the news guarantee you. Let me put it in another way if you're load pays $1.50 and take away 50 cents for fuel . What are you left with $1? That's what you make and only $1.

[@ajaltholaya847]

It’s not just the broker’s transparency, it’s also the crooks at all government levels! It’s the common interest between rich brokerage companies and policy makers and regulators! Everyone involved has a piece of the pie! It’s all about money! Most officials nominate themselves because they know how the system works! All doors of corruption are open for them when elected! It’s better income, higher status, more power, easier to get away with!

[@luna-pw9ln]

I've been trucking for 43 years. If you wanna change, you need to strike. That is the only WA'. Thanks for change.

[@dangranot5703]

When were the contract rates negotiated vs when was the rate to the trucker compared? If the contracts were negotiated ~ a year prior but the rate being compared is recent, there will be a large disparity. I haven't seen that info anywhere and that's very relevant, especially considering how Convoy structured their finances and subsidized their rates. You have spent the last umpteen months comparing contract rates to the spot market and noting that those contract rates pay much better, which is a big reason companies are now pushing to get 1 or 2 year RFQ's locked in at the current very cheap rates. ~80% of the market is contracts, and regardless of what a lot of the commenters are saying, those contracts go to asset based FTL and LTL trucking companies, not just brokers. My guess is this will take another 6-12 months, but the spot market will see some gains as total carriers continue to decline and the new cheap contract rates come back to bite people in the rear.

[@Rassy636]

Brokers are just lying and telling us shippers are paying lower .. the same way they had spread the Bs of trucker shortage … Brokers are crooks

[@Trucking_With_Dave]

Stop asking daddy (gov) for more regulations! We have enough already! Y'all hate the brokers taking your money but love paying taxes to daddy 😅. Stop taking cheap freight and the brokers will have no choice but to pay more out of their earnings to carriers. Brokers know that out of every 10 carriers there are 8 willing to fight for the lowest rate out there.

[@user-xh8fq6mj8b]

Great work, but, I hope and pray that everyone can go Off Duty, at least one day per week. To : ( Remember the Sabbath day, to keep it ( holy ) ! God bless y'all ! ❤😊

[@shaneamundson1192]

The Sabbath was expressly stated in the Old Testament to be a sign of God's covenant with the Israelites only. The commandment to keep the Sabbath is the only one of the ten not stated in the New Testament of the New Covenant, which all modern believers are under.

[@danielk09]

I love your channel Miranda.

[@justal8559]

Why don't Carriers just form their onw Brokerage and solve this issue of blaming the Brokers once and for all? I have been screwed over so many times by Carriers because I trust people too much and take them at thier word, only to find out they had no intention of ever showing up to take the load at all Selecting a few lanes in a lawsuit and saying look at those margins, does not tell the whole story at all. It just enflames the old divide between Carriers and Brokers. The market needs both Carriers and Brokers, it is not one or the other. I am pretty sure no one told those Carriers that they better take this loads or else. Plus, to think that the market is controlled by just one side is again not in full disclosure. Shippers are not idiots and think oh I better pay what the Broker said. This is my humble opinion from a guy that has been on both sides of the equation.

[@NoName-mq1hd]

Hi, would love to connect with you. I think you are right.

[@barrydeklerk339]

I know I’m just one truck o/p but we decline everything under $2/mile, been staying busy. See loads out there for 88c/mile. I know $2 is by far not enough, but got to start somewhere. Truck and trailer paid in full and hardly making it. Something has to change. Seems like we can’t stick together, just look at the New York boycott…We can learn a thing or 2 from Canadian truckers and European farmers….

[@BuilditDestroyit-ri1ff]

“We got to stick together” then accepts $2 loads lmfao

[@ChampHTX]

Owner Ops/Small Fleets WILL NEVER EVER EVER EVER WIN against brokers. WHY? You have to commit to selling your services to shippers of all sizes 24-7 just like they do and they can do it at a faster rate. Secondly, what one owner op/small carrier needs is totally different from the next owner op/small carrier needs in terms of profitability. Owner Ops are completely delusional to think that another owner op or small carrier would be not compete with them on pricing just as a broker would outside of providing reliable service, because I damn sure would compete against you!!! Wake up. Business is SALES. You are already selling your services to brokers because it’s easy.

[@krashanb5767]

That's nothing special for short runs like these.

[@waynejohnson3714]

So beautiful

[@johncalvo1743]

Okay there, Simpy!

[@RomanEmpire16]

Convoy was always a scam you can tell by the rates they would post as well as Coyote scammers surrounding this industry for decades

[@ericmendez5815]

Dont haul the cheap freight! That means eating the bullet and going out of business to prove a point! If not shut up

[@danf6975]

2023 in April we did a two dollar a mile from Bolingbrook

[@anthonyh884]

No one forced you to take that cheap load, you willingly took it.

[@MChicago89]

They are ripping off every carrier on the market. People don’t realize that O/O make more money than owner of a small trucking company… I have to keep driving myself so the steering wheel holder can get his check. I’ve been working for free for the past two years, actually I owe more and more..

[@mr.b8372]

The end of the independents is near

[@EnterTuman]

Привіт чому Ріта не веде свій канал ?

[@TruckingMadeSuccessful]

She is taking a break and is focusing on work for now ☺️

[@joewatts9132]

I've yet to visit an ikea yet....oh I can't add anything to the conversation beyond that, sorry.

[@kristinchester380]

You don't need to visit a store, instead, we should all visit their google reviews page and let them know why you and your families will NEVER shop there because they undercut drivers wages by paying asinine amounts to worthless middlemen brokers!!!

[@joewatts9132]

I want to see how it looks and the layout.

[@elvissboh]

EVERYBODY EVERYBODY STOP DRIVING FOR CHEAP. IF EVERYBODY STAYS HOME FOR 7 DAYS THEN THE BROCKER WILL NOT HAVE NO ONE TO DRIVE THE LOAD AND THEN THEY WILL CALL YOU AND BEG YOU TO TAKE IT FOR 4 A MILE.

[@tv450578415]

Brokers are going out of business because they have their profit standards very high.

[@kristinchester380]

I wish that were true....

[@saifoloianoai4103]

This problem will never go away cause FMCSA won't do anything💯 to much evidence that Brokers are taking advantage of small carriers and owner operators, but no real solution but to regulate truckers more🤦‍♂️

[@sabasworldfamous]

you are repeating yourself. this is a decent 3 minute video.

[@sethers9922]

Yea but no one is going to complain about the -24%… and they don’t know what they paid the carriers or the service or software that is needed. It just baffles me how carriers don’t understand this. Broker transparency will accomplish nothing and carriers keep missing the ball on how to be successful

[@kristinchester380]

Brokers ONLY exist to handle larger shipper capacity where smaller carriers [allegedly] cannot guarantee it.....a broker is an unnecessary middleman at the absolute best and a low down dirty over-skimming rat at worst...NOT sorry!

[@jk6854]

Leave the Biden freight at the dock

[@sammyus2016]

You got what you got when you give your vote for slippy Joe.

[@shaneamundson1192]

Trump is just as bad. Both hate the Bill of Rights and are murderers for their roles in the so- called covid vaccine. Trump, through his Operation Warp Speed was responsible for putting people out of business in 2020 by paying state governments tons of money if they would shut down what Trump referred to as non-essential businesses, and paying states to mandate lockdowns and nasks. He is also the very person who is responsible for setting the precedent of mail-in voting He opened some very big cans of worms in 2020 that established some very bad precedents that will be used in the future to take more of our liberties. Amongst, those is the first gun control rule to be mandated through an executive order. (The bump stock ban.) Imagine what democrats will do with all these new levels of abuse power that Trump normalized in 2020. He is no friend of any kind of small businesses, workers or liberty loving Americans.

[@paulozeruga8454]

Every fool thinks Trump is going to fix their problems! Trump is not working for truckers he’s for big business and Russians probably as well

[@kristinchester380]

Fix all of our problems? No, but at least Trump has a lot more common sense then the senior citizen that can't remember what he's even talking about or which direction to walk most of the time!