GAME OVER for Freight Brokerages? The Startling Truth You Need to Know!

Game Over for Freight Brokerages? The Startling Truth You Need to Know!
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Join Ronen in this eye-opening video as he delves into the pressing question: Are Freight Brokerages on the brink of extinction? With a surge in news articles reporting closures, bankruptcies, and layoffs within the industry, Ronen explores the critical factors contributing to this alarming trend.
Don't miss out on understanding the challenges that are hitting Freight Brokerages the hardest and uncover the compelling reasons behind their struggle for survival. Get ready for a deep dive into the current state of the industry, as Ronen breaks down the forces shaping the fate of Freight Brokerages in this must-watch exploration.
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📚 Chapters
00:00 Introduction - Are Freight Brokerages Going Extinct?
00:29 What is a Freight Broker and what is their Role?
01:50 Asset Based Carriers VS Freight Brokers
02:48 Why you Should NOT use a Freight Brokerage
03:04 Manufacturing Plants are Becoming Smarter
04:23 Carriers Have Become Smarter
05:15 Asset Based Carriers can Outperform Brokerage Rates
05:29 Personal Relationships
08:20 Kick Backs are Becoming Less Frequent
08:59 Conclusion - Understanding the Pressure Freight Brokerages are Experiencing
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[@moose6144]

If I was a manufacturer, and I got burned by one broker, where they didn’t pay the carrier for the load, and I had to pay them again, that carrier would get the rest of my business that broker and all other brokers would be kicked to the curb, and I really think a lot of these manufacturers have realize Deal directly with the carriers you’ll get better service because now you’re dealing directly with the person that is delivering and picking up your load

[@NorthAmerican-Trucking-News]

True!

[@ChrisL-oz4lp]

If I was a manufacturer, I'd ship my widgets by rail at 70cpm delivered to my warehouse for final mile.

[@TheSnackAttackingSnorlax]

Seems like there’s money to be made if brokers are really taking 40%. Go direct to owners and offer 75% of what the brokers are charging. Both sides win.

[@moose6144]

@@TheSnackAttackingSnorlax what you do is you go to the shipper or receivers and let them know that you will deliver their freight for them and give them a rate per mile. Don’t take money out of your pocket because that’s where you’ll go out of business.

[@Krieghandt]

Now you have to have someone in-house to manage carriers. Since the Eighties companies were out sourcing non-core elements, hence freight brokers. But out sourcing always has a price.

[@michaelmillerii6640]

A brokers job is to steal as much money from the trucker..

[@NorthAmerican-Trucking-News]

That's one way to look at it 👀

[@danielclem8404]

Wrong! You’re just working with the wrong brokers, my guy! That really is a dumb and unfair statement. You can say the same thing about Carriers AND Customers. Stop working with Brokers that don’t care about you!

[@barryweaver8833]

I don't think you understand the business overall. Stick to shifting gears.

[@rickaitkins6539]

​@@barryweaver8833 It is absolutely a solid fact the most brokers have been gouging and causing truckers to go out of business!!!! Brokers do not understand, respect and care about all the costs of owner operators!

[@tdc9136]

Dude, all this happened 2007. I got caught up in it and as a carrier got a couple customers out of the deal but eventually they will go back to using brokers.

[@chaoswarriorbr]

For a while it does seem that the freight market needs to be streamlined. We have all the technology available to directly connect drivers-carriers-shippers or directly drivers-shippers, yet people use phone calls and brokers still. All the "extra fat"/"dead weight" needs to go so truckers can go back to actually earning a proper living and shipping cost don't explode.

[@codym7960]

if you havent learned by now technology only lowers your worth. if you think the answer is technology to by pass the brokers rates would fall even faster then they already are. the first cut a manufactor always makes is transportation ... and if they are going to be directly connected to hundred and thousand of carriers they will see carriers are even more easy to manipulate then brokers...

[@chaoswarriorbr]

@@codym7960 Your view reminds me of the worker hating on the machines in the 1st Industrial Revolution. Very narrow minded! Platforms to negotiate rates directly is the way out, but people need to pressure the goverment to enforce the laws against irregularities. They're even commiting fraud in the e-logbooks, not to mention bad CDL schools and ither things that just pump out clueless drivers accepting very low rates and being a nightmare on the roads, truck stops, etc.

[@codym7960]

@@chaoswarriorbr you have no clue what your talking about and are very narrow minded... what is your position in the transportation / logistics . i highly doubt your an o/o or small/mid size fleet owner with your mindset

[@daciefusjones8128]

@@codym7960 not if you know how to use the technology. and if you don't then you should just work for someone who does.

[@Craig6844]

@@chaoswarriorbr its the super carriers lobbing congress to keep fuddling the labor market with cash/free training then allowing foreigners to have CDL's. that is what is keeping wages low and shit work conditions.

[@TomStans]

Broker is an absolutely useless entity, a call-center with an access to the loadboards and options to "post a load". A bunch of sales dudes.

[@FreightBrokers]

If they are so useless then why don’t small carriers go direct to shippers? Shippers certainly appear to like and value brokers because year over year, decade over decade they control more freight. Facts are facts my friend. You may not like brokers and that fine but the value of brokers is indisputable!

[@FreightBrokers]

40% profit margins are bullshit and NOT the norm. Fact is full truckload profit margins are an average of 15%. It’s easy to research, just look at the financials of publicly traded brokers and it shows gross margins. See CH Robinson and other big brokers. Of course there may be some brokers gouging but it’s NOT the norm!

[@TomStans]

says the guy with username FreightBrokers lol The reason small carriers don't go directly to shippers is because all the brokers are blocking the way :)) But it's ok. How's the bond thing coming up, btw?

[@soul_reaper9935]

@@FreightBrokerslol, said the broker 😂

[@yudipersaud7911]

Brokers exist because second economy carriers can't afford a sales team

[@akichler]

Brokers are a absolute necessity. Because the only way you can run a successful business is to have customers. The problem is that there's to many people in the Trucking business trying to get around that fact and do business with out any real customers. Which is a absolute recipe for failure. The real Trucking Companies know that for small carriers to have customers in every location that a load of customer freight lands is impossible and that's where freight brokers become absolutely necessary.

[@geurisramos1199]

Well said.

[@Prachka1]

Abundance of freight brokers is a direct reflection of carriers’ stupidity - aka stupid drivers. He is spot on.

[@klvAcosta]

@@ajsrc9399and?

[@2fuzy]

Truckers are always their own worst enemy and that is by design

[@ugliestgorilla9006]

I feel like this guy is way better than the mother trucker show .

[@quinton337]

no he's not he doesn't support truckers getting paid overtime

[@cbylsma626]

He is lol, his information is based on real time experiences not commenting on week to month old situations... that and the fact He operates a trucking company helps!

[@Knightrem]

Not trying to gear your videos to be "viral content" and actually being interesting helps.

[@bobwilliam2634]

@quinton337 Any law dealing with overtime/hourly pay for OTR would sink small fleet owners who only have

[@blackthunderbolt3699]

Seems like the market is correcting it self 🤔 only if we could go back to manual transmission and this industry will be awesome 👌

[@AL-Boogie.]

Not one lie spoken in this video. Well said sir!!!💯💪🏿

[@ArmandoPerez-tj7bc]

If I am paying top notch as a shipper to move my freight, the last thing I would want is the driver to be getting cents on the dollars and caring very little to move a load that is putting them closer to shutting down. I think a more automatized system that brokers load could potentially be a middle ground but at lower upcharge of 5-10%. But also this automatized system scares mw too because Uber despite having technology automatize everything is still a losing proposition for drivers and the company.

[@trucking9850]

Amen.

[@IRISH4486]

Brokers are nothing more than used car salesmen.

[@604h22a]

Oh so useless scumbagss

[@Panelson74]

Come on don't put us in with that lot.

[@danielclem8404]

I would bet 100% that you’re a shitty driver with an ignorant statement like that!

[@ORIGINALLANDEROS]

Used cars need parking lots to sit in before they're sold. Much freight is moved without brokers.

[@dangillen4759]

I've been doing this for 25 years and brokered loads always have something undesirable about them. The shipper does pallet exchange which means you have to go find a pallet yard and buy some pallets to exchange, or you have to put your trailer in three different doors in three different buildings in their complex to get loaded, there's often some BS nonsense that goes along with the Load.

[@daciefusjones8128]

that's why the carriers don't take them unless they get a lot of good loads from them. some times you have to get nasty with brokers just to get your money. I started in 1974 and its always been like that.

[@jamieburkett358]

Great video and very valid points. Another important point is liability. Going with an asset based carrier that you know and understand means you know who has your freight and what their safety standards are. In a litigation world, lawyers will follow the money and that will be back to the manufacturer if they are hiring brokers and carriers with low safety standards. Ensuring you are going with quality asset backed carriers that have robust safety standards is becoming more and more important.

[@Prodigal1]

Landstar is a non asset based carrier and they are solid financially. We need less trucks out there, too. Too many inexperienced and foreign born drivers brought over hear on work visas and financial grants by our government pushed by brokers and big shippers under the myth of a driver shortage. Supply and demand is out of whack. Need fewer brokers and fewer (fly by night ) carriers hauling cheap freight!

[@NorthAmerican-Trucking-News]

Well said!

[@coldfusion5153]

@@Prodigal1there are no work visas for drivers .. the ones you see are resident immigrants

[@Prodigal1]

@@coldfusion5153 there shouldn’t be CDL’s granted to non citizens nor to those who cannot speak and understand English (the official language of the United States). They are a hazard on the road. I don’t care where they come from if the are or become US citizens and can speak, read and understand the language well enough to read signs and communicate then I have no problem with them. All the Euros out here now in their Volvos didn’t just magically appear here.

[@raashonaziz]

​@@Prodigal1❤

[@domingofernandez4359]

I keep loving this channel more and more. Thank you for always keeping us in the loop.

[@NorthAmerican-Trucking-News]

We're glad you're enjoying our content! You're welcome!

[@blade990]

When I drove hazmat for a small mom and pop carrier, we only used brokers for backhauls towards our contracted "real" loads. Brokers tended to be more hassle than benefit, but we also needed to source revenue to cover hundreds of miles of road

[@carrollbridges9341]

As brokers screw truck drivers and companies the effect of the loss of trucking companies going out of business and drivers losing the jobs and get the Government cracking down on brokerage companies this is the fallout. There is not an industry this economy hasn't affected and if it hasn't been at ur door yet it's coming.

[@danielclem8404]

I wish I had a dollar for every shitty driver and Carrier I have dealt with.

[@ciromartinez211]

As a cross-border asset based carrier & freight broker I can tell you right now that delays at the border are not reimbursable. If your main business is cross-border freight you then know that the import and export process takes time, sometimes theres a long line at the border or you can be sent to secondary inspection, xrays etc... this is all random selection. If you become a carrier that wants to charge regular detention for crossborder freight, you won't last because you will become the least favorite option.

[@NorthAmerican-Trucking-News]

I wish there was more of a process for it though, so you know what to expect

[@Lobos222]

Shipping has it, demurrage and despatch. Point is, nothing is impossible, but some things needs national or international regulation to get into place. Otherwise not doing the "correct\moral" thing would become a competitive edge. That said, I actually think the biggest issue for trucker income is truck supply. When supply is high, price is low. Only thing that will change that is more people leaving the bis and in turn lowering supply of transport again.

[@donmunro144]

If they weren't crooks, they wouldn't have to worry. But when you're taking 40% to make a couple phone calls.

[@mackeejack6731]

I caught a conversation with my neighbor who’s a broker. He had been drinking a bit and went on about how he hated his job and was aware of how he had to screw over drivers.

[@michaelangelofishing2534]

I think 3pl providers will always be needed and I Don’t agree with this when you choose an asset based carrier your limited to resources and capacity, if you have a trustworthy and reliable 3pl provider that will not let you down and that you have a good relationship with is the way to go, asset based carriers are good to service specific lanes but if your a high volume shipper that’s needs service all acrosss the board, you need a trust worthy and reliable 3pl

[@Nick-zj8mp]

This needs to go viral!!!!!!

[@sword-and-shield]

Lets hope they all get replaced by an app, removing the middleman rip off, billions to redistribute to carriers, drivers, shippers, receivers and finally consumers.

[@NorthAmerican-Trucking-News]

😗😗😗

[@asbestosfiber]

It's an old school middleman thing I thought most of those went out long ago. The people who survived were the ones that realized they needed to add value, not just get money for being in the middle.

[@sooperhuman]

Thank goodness. I hope all brokers go completely out of business around with the huge trucking companies that went in cahoots with them to mess up the transportation industry for small trucking companies.

[@shaneshoemaker7064]

When 75% of the trucking companies are 10 or less trucks, most not having a sales team, how will you fill backhauls? Are going to make contact with every manufacturer near every delivery location. How will you do that? Don't forget to run credit checks on all shippers. Plus remember most manufacturers payment terms are 30-90 days with the larger manufacturers wanting you to extend 90-180 credit terms... Factoring companies don't touch the larger ones.

[@ChillyWill-dd7nq]

10-12% is average do occasionally higher profits happen yes but also sometimes brokers lose money as well

[@TheBigOrangePumpkin]

I wish all this brokers go the way forever , and this direct customers open there eyes and continue dealing with the direct carriers

[@milehigh-ghost7286]

"Asset based" carriers should include any carrier with enough insurance to cover the load.

[@atlantistruck]

Aka mega carriers they can be brokers themselves

[@akichler]

The problem is today that because truck drivers think they are so smart that can run a Trucking company running off the load board's of broker freight and be successful by bypass all the rules of business, a business without customers is destined to fall. You can only run in the margins for so long, and now that so many are failing it must be someone else's fault, brokers, bankers, DOT, FMCSA, it can't be me.and what I am doing.

[@jjvigilante]

A dream come true situation, absolutely hate these middle men, brokers, auto dealers, etc. etc. and all these slicky Rickies alike, f em with passion

[@csway1]

Freight brokers or forwarders as the were called across the pond went extinct in the 80s. So the trucking companies or warehouseing companies got the work.

[@ashtonc5239]

Great video , time to take over.

[@jface6356]

This is the brokers last round. I think AI 🤖 will do away with them in the next 3-5yrs.

[@BarmyBarmy-et6fp]

Probably sooner, closer to 3-5 months than 3-5 years. Technology just moves faster and faster like a freight train.

[@codym7960]

You might hate brokers but I guarantee you that ai will squeeze your balls even harder and the sad reality is when it does it only going to be going to a huge corporation and not providing a living for another person

[@BarmyBarmy-et6fp]

@@codym7960 true but gotta admit brokers by and large have it comin to them.

[@ipodtouch470]

In that case the ai is now the broker and they will not work for free. You still have a broker on your hands.

[@lllllRBlllll]

Shippers need to know that their shipments are going to make it to the destination safely and on time. Brokers can't even screen carriers well enough to avoid getting double-brokered. How can they make sure they're providing a good and consistent service this way? Shippers don't only care about the rates. Sometimes they don't want their product hauled by some jalopy driven by a driver with a bad attitude and even worse hygiene. It's a bad first impression of the product and its only worse when if it gets damaged in transport or is late because the crappy equipment failed. Service and consistency matter.

[@NorthAmerican-Trucking-News]

All good points!

[@YolkSandwich]

Thanks for the information

[@NorthAmerican-Trucking-News]

Welcome!

[@ntwdequiptrans4023]

The reason why shippers use brokers is because they don't want to deal with the communication with the carriers and drivers and all the problems. They also can't handle 100+ carriers directly without hiring a large staff. Technology is helping replace some freight brokers for day to day lanes I agree but the specialized moves will always need freight brokers.

[@docvalvo3903]

Great job!!!!

[@anthonydurenberger1214]

You did a great job explaining well done

[@NorthAmerican-Trucking-News]

Glad it was helpful!

[@malikokojie1405]

If the carrier doesn't get paid my the broker, they will go yo thr freight brokers surety bond and collect. So im not sure what hes talking about regarding having to go back to the shipper and collect. That's fake news. Also the industy average of freight broker GPM % is 13-15%. Sure will there be loade here and there when you make 20-50% sure. But there are also times when you lose large %'s because loads need to get covered. On average its about 13% - 15%. The reason brokers will never stop being used is because more than 90% of trucking companies are small with less than 15 trucks. When when they drop a load on you or have truck issues which happens every day. These medium to small carriees cant make sure its revocved. A broker can. Also, traffic managers have a lot of things to do. They dont want/have the time to baby sit these carriers. Freight brokers arent going anywhere because this will always need to be a manual industry.. theres too many moving parts. Uber freight failed.. keep that in mind. Capacity is low, but a good broker will make it work, drivers will either have to take losses on freight or stop trucking because they dont handle this business correctly. If anyone should leave the industry its the dispatchers.

[@BigFatPuerco]

Freight got deregulated years ago and took good paying union jobs… Walmart was happy and the independent truck driver lives in his truck…

[@outintheadirondacks]

There is NO reason these brokerage firms should be taking the percentages that they are to do what they do, there’s no reason they should be taking that much money out of the pockets of the people doing the physical labor, Cut out the pencil pushers and button crunchers and apply this format in any industry we can and this will start making things a little better a cross the board. North America has a big problem with desk wealthy people, brokers are a prime example. I for one, will not miss the 2 a.m call waking me out of a dead sleep from someone speaking broken English wondering if their load is going to get there on time.

[@renegadetx2001]

“Also this company has an active authority.” Don’t downplay the video. The man’s on point regardless.

[@jorgelara6165]

The game must to be fair for broker and carrier, transparent charge to the shippers and fix by law % for broker. Invoice directly from carrier to shipper

[@codym7960]

are you prepared to tell broker or shipepr your cost so you get paid a flat rate % profit on your work ? you all pushing for this will regret it because it will alway be someone cheaper cost then you and that is who will have the freight just learn to stand up for yourself and you would be way better off . i know i wouldn't be doing this crap if my rate profit rate was capped .

[@axelguzman8408]

Im a freight broker and a carrer i like the way you explain everything

[@joemama127]

Alot of people seem to get it misunderstood. Shippers don't let brokers mark up there loads 30%. If they do it's because of past performance and relationship they have built over years of rapport. Carriers as well will not be able to get a new customer(shipper) and get paid a high rate per mile. The industry is oversaturated with both carriers and brokers. The weak carriers and brokers need to close doors IMO. This will fix a lot of issues in the industry.

[@NorthAmerican-Trucking-News]

That's an interesting take. Most people believe that only the brokerages should be closed

[@andrewrussell3679]

Some broker should go to prison! Because they are a thief! Do they know how hard it is and how much money it cost we the truck drivers to deliver a load while they sitting in their office and paying us nothing while we do the hard work? SMH They should all be closed down that Drivers can breathe properly.

[@bigbuck4438]

It isn't sad the brokers are feeling the heat. They were happy to do it to us...makes sense they aren't too far behind us. BTW, I'm trying to cover my costs and make something for my time. It doesn't mean I'm greedy. Funny how they do the same thing but say truckers are greedy. They turn every load into a car deal. There's no loyalty... It's such a shitty game. I could do the best job, be ahead of schedule, communicate with them etc,...and the next week I call them to see if they have anything in that lane again. If they don't need me, they hardly have a minute for me. They're very unprofessional most of the time.

[@Solodolobell]

This is very true I experience rude and dismissive brokers every morning when trying to find loads for my truck.

[@Ilikebread10]

Yup and once they think your somehow being rude to them they'll try to blacklist you lol

[@davidlane256]

I’ve always thought that there should be something like the stock exchange for loads and truckers. You can check how much any stock is daily on your phone. Or if you’re a big company, hire your own drivers, like Walmart does

[@lagdrasil3309]

So in relation to the manufacture having a carrier list. What is the legality of a broker agreement having statements saying the carrier, shipper, and receiver are not allowed to contact the carrier, shipper, or receiver after discovering them through the brokered load. Is that kind of statement normal in the industry? And is it legally binding? I’m asking from a company driver perspective, I’ve seen variations of it on a couple of BoL or emails

[@edshuman3137]

Awesome information

[@NorthAmerican-Trucking-News]

Thanks for watching!

[@weisisnice]

@ET Transport - I was a little surprised to see that you did not mention the financial security which a freight broker has to maintain in order to be an active freight broker. This would either be the $75,000 freight broker surety bond or a $75,000 trust fund. This financial security is in place for this purpose: To pay shippers and carriers on legitimate invoices when the broker fails to make payment. You don't need to make a payment a second time. You would just need to make claim on the surety bond which is on with the FMCSA.

[@bayardpelton7650]

Not defending brokers but he is pushing a narritve toward asset based carriers

[@truckingwithnose]

If the broker ghosts everyone that 75k bond will be ate up quick if it exceeds the 75k and several carriers will have to go after the customer to get paid that’s surety bond is peanuts compared to the 1m and 100k thats mandatory for a carrier

[@amels4620]

A carrier or independent owner operator could get a surety bond. A broker is useless!

[@finalout99]

That 75k is nothing if it’s a shell of a brokerage to rob carriers blind. I see and hear you on the point you are making and in my opinion too low. It should be at 250k. I know that’s easier said than done but just my two cents.

[@KayKay0314]

How difficult would it be to create a freight brokerage that works on a flat per/mile commission? Think of a stock brokerage company like Fidelity, Schwab, etc. The brokerage is there to be "market makers" between companies wanting to ship a product (the bidder) to the carriers wanting to ship that product. A good brokerage would also show the bidder a rate per mile (where miles are actual miles based on roads and not straight line miles) based on carriers available, the load type and weight and also consider the overall route: expected weather, expected traffic, route complexity (like mountains), posted speed limits and average cost of fuel along the route. The bidder puts in their bid and then carriers put in their asking price. If the ranges intersect, the broker selects the mid-point of the intersection between the bid and lowest asking price, closes the deal and gets their fixed per/mile commission. Otherwise, the difference in bid/ask is shown to each party as a spread. To keep things from getting corrupt, everyone can see the bid/ask of the "winning" transaction including the factors that were considered.

[@theboringchannel2027]

freight BROKER and mortgage BROKER both head to meet the dinosaurs. They both offer very little in the equation.

[@michaelu2007]

Gentlemen, keep in mind asset based trucking companies charge the most money. That is why the shipper likes to use brokers to get a lower rate at the end of the day shipper dictates what he is going to pay not the truckers.!

[@michaelu2007]

As a broker myself, a lot of logistics and shipping managers do like getting gifts so this is not 100% accurate. This is just his opinion because he doesn’t have the time for it but if you want to send a Vegas trip to a logistics manager/shipping manager I’m pretty sure they will take it.

[@michaelzma9102]

Excellent info

[@NorthAmerican-Trucking-News]

Glad you liked it!

[@ayushtyagi2538]

I’m a broker but now market is very tight. Their not much margin we only make $50-100 per shipment. It’s very difficult to find reliable carriers because of increasing frauds and I can say that my company always make payments on time we have a very good MC. Not all brokers are same.

[@mikesis1905]

Thank you

[@NorthAmerican-Trucking-News]

You're welcome

[@dannyalbin7241]

One of the first questions I ask when going to drive for a company is what kind of freight they haul and if they go through brokers. If they do I won't drive for them

[@NorthAmerican-Trucking-News]

It's good you know what your dealbreakers are and stick by them!

[@davidnorris1539]

With inflation high and freight brokers pushing loads out cheap as they can and the carriers can’t afford to haul with fuel high, makes it hard for the carriers to move load with the percentage gets cut by the broker

[@kristoffMR]

Brokers are like the irs on friday stealin money from your paycheck!

[@troycopeland5156]

Great informative video you just gave 1 million truck drivers hope again

[@NorthAmerican-Trucking-News]

We appreciate your feedback!

[@lowtechderrick]

Older gentleman after 45 - I love it! Lucky I'm 49 and driving a fuel truck then I guess...

[@bonshwananon7269]

Asset based broker. Carriers are in their nature asset based. Brokers can be asset or non asset based. If you own your truck with your own authority you should open your brokerage authority as well to legally solicit freight.

[@bartfolivero4850]

Brokers are also the big BOSS Of every owner Ops 🤷🏾‍♀️

[@NorthAmerican-Trucking-News]

Hmmm

[@publicname515]

How much does the broker make per load? Do they aim for a set fee or a cents per mile?

[@jerseycowboy1]

So if Broker go exstinct...will it make it easier to be an O/O and just book your own loads? If that is the case, would it make sense to run under your own authority?

[@user-nu8tp9vp1q]

Good job

[@jonathansmoak2339]

I've delivered some WCW wrestling tickets to customers for the sales rep on a few occasions way back in the day. 😅

[@nukumbafrazier2722]

It's not sad to see asystem crumble that takes advantage of so many hard working people. May the universe continue to recompense all who take advantage of others.

[@cdinnetz]

I think the term is "wine and dine". I'm sorry you don't have time to build relationships, but that is what is going to hold industries together. When you have no relationships, you will be alone in the end. Relationships are the most valuable part of any industry.

[@NorthAmerican-Trucking-News]

Fair point.

[@kimbehne2226]

It has to do with economics, manufacturing costs are rising . Manufacturers are forced to cut out parasitic loads ie freight brokers to keep profitable.

[@publicname515]

What type of manufacturing plans are these ?

[@ILHillbilly67]

Businesses also pay less overall due to the direct deal with carriers.

[@jim-zx7gz]

I wasn't aware the shipper was still responsible for freight charges if the broker doesn't pay . There are some good legitimate brokers that do a very good job. Continental brokerage in Portland Oregon had good paying loads with fast pay. C H Robinson.....some agents good....some super cheap and terrible

[@georgiapatriot4575]

I've run the spot market for the last 2.5 years. In the current market, every broker I interact with would rather have a random carrier run the load for $X than have a know reliable carrier run the load for $X+a bit. I've run my own businesses for almost my entire adult life and am great at building business relationships. My observation is brokers aren't currently looking for relationships.

[@BarmyBarmy-et6fp]

@@georgiapatriot4575 brokers are middle men. So you work for a middle man for 2.5 years? Wow! You not a business owner.

[@georgiapatriot4575]

@@BarmyBarmy-et6fp Give it a rest. Go back to your mommy's basement and eat another hot pocket.

[@vendingdudes]

​@@BarmyBarmy-et6fpseriously? Explain the difference between retail and wholesale then. LOL

[@whatsupcolorado3866]

Love you bro!!! Keep up the great work.

[@NorthAmerican-Trucking-News]

Appreciate it!

[@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!

[@BombillaShooter]

Dammit Ronin! It’s “wine and dine”!! Love you but BRO!! 😂

[@davec1610]

Haha! Came to the comment just for this! Cringing!!

[@MICH43LZ]

get rid of the slithering snakes

[@lionhead1193]

Great 🇯🇲👊🏾

[@bankergeorge]

Just be a jamaican with a name like lionhead lol

[@imperfectbeliever8127]

In all honesty the fuel companies are who is making the lion share of the money. They(meaning mega-carriers and fuel companies because they get kickbacks and discounts on the fuel). They have brokers and carriers squabbling over rates and it really doesn't matter if fuel prices aren't controlled. A 2400 dollar load means nothing if it costs 1200 in fuel to get there. Why else would a carrier you lease your truck to require you to only fuel at the most expensive truck stops if you use their fuel card? The mega-carriers who are all brokers themselves by the way and the large fuel companies are squeezing out the small carriers and the small truckstops. Its the same hustle as the drug game on the streets. They use the little corner hustler to take all the risks and all the heat while all the money filters to the top. And if the little guy gets forced out or eradicated from the game then one less person moving up and requiring a larger piece of the pie.

[@NorthAmerican-Trucking-News]

Thanks for sharing your insight on the situation!

[@Panelson74]

Yeah and that little lawsuit a while back shed some light on it, was the Pilot guys, I do not remember.

[@austiningram7725]

Want to know why you DONT want to use an asset based carrier? 1. An asset based carrier will not be cheaper than a brokerage. That "20-30% markup is us filtering 15 carriers to find Habibi that will take it for $300 cheaper than everybody else. So essentially our quotes would come in the same, or even cheaper! 2. What happens when a carriers asset breaks down, or gets stuck at a previous receiver? and now the load needs to be repowered, or recovered? Now the shipper has to scramble last minute to find another truck, with a brokerage company the shipper would never even know there was an issue in the first place! 3. As soon as the spot market goes up, you will move your assets to the load board where you can make way more money, leaving the shipper scrambling for coverage. -Brokers are swallowing up more market share year over year. We are not going extinct. The title of this video is not true.

[@l.wilson3484]

This guy and most people commenting here hate brokers and they are enjoying the suffering. Some brokers are crooks but tons of brokers move freight at very fair markups. Brokers prevent asset based carriers from price fixing. That’s what this guy is probably wishing for

[@ms1914]

And all this time I thought it was “wine and dine” 😂

[@NorthAmerican-Trucking-News]

Haha...

[@anthony1636]

Only find Brokers in the USA & Canada. In Europe you either work directly to the Customer. Or you Sub-Contract to another Transport Company. There used to be Brokers who worked from a small office and would often rip you off. Much better now either working direct or Subbing from a major transport company.

[@1337flite]

I'm not in the industry or eveb live in the US, but why did manufacturers even start using brokerages? I can understand a small manufacturer might use a broker, but why would a large manufacturer use them?

[@deluxetransport3208]

Asset based carriers is also the means to put small carrier companies out of the way for larger companies. Meaning, if you're not 5-10 or more trucks strong, you're going down too. So, I agree with the comment of properly insured carriers should qualify.

[@georgiapatriot4575]

Yes, I agree, but you mean "asset based BROKER"--all carriers are asset based.

[@njgiant1]

Does he own the 5 to 10 trucks or is he still making payments because he might not make it either I own my truck and trailer it’s ok not as good as I would like it I’ve bought my 2018 in 2017 I own it now title in hand 2019 trailer title in hand 🫣

[@BarmyBarmy-et6fp]

@@georgiapatriot4575 there is no such thing as an asset-based broker. Brokers are middle men. The only assets they have are keyboards and corded phones.

[@johncalvo1743]

@@BarmyBarmy-et6fp No, some brokers have a logistics side, and vice versa.

[@HaiderAli-mt9oz]

Hey there! Great video, really got a good grasp of the trucking industry. 😊 Just a thought - ever considered outsourcing your customer service reps to places like Pakistan? We've got awesome call center services here. The idea is that the call center can hook you up with dedicated reps on a monthly retainer plus commission. Makes things smooth, and the manufacturers pay you directly. Just throwing it out there! 🚚✨

[@thakshankn4286]

@ET Transport What are the requirements to open a freight brokerage in Canada?

[@NorthAmerican-Trucking-News]

We'll consider this topic for a future video!

[@thakshankn4286]

@@NorthAmerican-Trucking-News Just a quick question. If a Canadian brokerage is operating and wants to move loads from Canada to US would they still need to register for a MC#?

[@thefemininecfo]

Wine and dine

[@Hattricks68]

It’s actually WINE AND DINE 😂, not fine and dine 😂, here in the STATES it’s called SPIFFS if you like to keep it undercover.

[@benjaminlee8891]

Isn't it hard to go direct with just one truck and trailer even if we run team ?

[@justdriving3692]

I don’t understand why they are going broke, I have recently been starting to find out what they get on there cut and every load that I have done where I find out what they’re getting is between $500 and $1000 off of my Load so I don’t understand why they are going broke

[@richl2723]

The term is " wine & dine" :)

[@truckdriver_8469]

Be smart enough to get direct contracts with the shippers and bypass the brokers. The broker is just the middle man. Go straight to the source.

[@NorthAmerican-Trucking-News]

Yup! This way definitely is definitely better

[@zack1388]

Yes but shippers have other job n busy, let's say they trying to reach out to you but somehow you are not available. It could be you already have a load. Then shipper needs trying yo reach out another individual carriers ??? How this makes sense whrn brokers could have handle this overhead. Same if Carrier trying to reach out shippers for load. We not sure when load is ready. Broker synch all this, that's why the business need them. I see people missing how the framework work for all efficiently They just mad at brokers cos there is less money om market this days... pls blame it on something else

[@yourfriendlyneighborhoodic128]

1:50 the problem is the shipper never paid the carrier the first time, the broker stole it.

[@drewgonzo3530]

I work aa a shipper. I have been seeing a few fright brokers go broke and out of business. I notice these other brokers like Champion and Universal brokerage companies. Bring in more drivers that are taking these loads for low pay. Most of these drivers are foreigners and speak no english. Can't read or communicate in english. I'm Hispanic and these drivers speak languages from around the world. How they obtain a CDL license is a mystery.

[@ericmendez5815]

Ive never ever seen seen a broker get a load anywhere on time

[@NorthAmerican-Trucking-News]

They are always clueless

[@sal0630]

Wtf is “fine & dine?” It’s “wine & dine,” genius. And the reason those relationships used to mean something it builds a relationship on rapport, and trust. You trust you can rely on that partner to get the job done. You get what you pay for. Keep taking the lowest bids. Eventually you’ll get burned enough times & you’ll wake up. THAT is why these brokers are going out of business. It’s called integrity. Look it up.

[@dannydivine7699]

What is "Fine & Dine", the term is "Wine & Dine"

[@MichaelSmith-sj7mp]

You are so funny 😂😂with the FINE AND DINE😂😅😊 ITS WINE AND DINE BRO😊

[@maurice8824]

Let's face it either freight broker or real estate broker...they are crooks that need to be taught a lesson....the hard way!

[@lucaspowell9527]

The parasites of the trucking industry are going out of business. Glorious