When the freight broker negotiates a deal there many factors they consider; the cargo, the pick-up and destinations, etc. But the other factor is price. A shipper is looking for the best rate.
The carriers want to offer their services at a fair price. But the broker is the one who’s trying to make the sale. They don’t care about a carrier’s overhead cost.
Recently, it was estimated that brokers have caused the average load per mile rate to drop by a national average of $1.72! Don’t you wish the price of a value meal would drop that much?
2. They, as middlemen, cut trucking profits
So you see, not only are their deals dropping the price, because they are trying to make a sale, but they are directly affecting your profit margin.
If you take that figure, multiply it by 500 or 1000 miles, it really makes one wonder why anyone would use a freight broker.
Then consider how many trips your company makes in a year (when adding up all the vehicles in your fleet), wow!
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So in order to compete, prices must be lowered. They will go that far that in order to get the deal will offer the customer enormously low price and wait to find a desperate carrier that will take the load no matter what. How evil is that!!
