Brokers operate in the trucking industry taking valuable profits from the very carriers that are performing the services that make them rich while the carriers get poorer. Yes, that is a run on sentence but it is how WE feel. That said, The brokers share of the freight revenue comes off of the top of the carriers pay. In many cases, the carrier is hauling broker freight at a rate that is below the carriers costs. This means that the carrier is paying to haul freight. This is not the intent of the shipper, this is the design of the modern day broker.
These revenues come in handy to carriers for an great number of accessional expenses like liability, in the event of an issue,. While brokers are involved in the shipment, they force carriers to waive a number of governmental rights. Doing so leaves the carrier at the mercy of the broker, shipper and courts.
Our government has invested thousands of hours and a few decades writing the laws that protect the shipper and carrier. Brokers do not have any of these because they are an unnatural phenomenon in trucking. Brokers force you to waive these rights so that they will be protected ands sometimes they require that carriers extend unnecessary expenses and assurances to the shipper.
EXAMPLE 1:
It is hereby understood that this load is moved under THE CARRIER, as per the terms set forth above andestablished in the Broker Carrier Agreement, binding carrier under it's CONTRACT authority and THE BROKERR (MC #2). Carrier agrees that it will not re-broker or re-assign this load to any other carrier. Carrier understands that charges may be incurred if delivery does not occur according to the terms set forth above. This agreement waives THE CARRIERS'* rules, tariffs and/or liability limitations. I certify that the above information is accurate, reasonable and correct.
Example 2:
11. CHARGES: In order to be eligible for reimbursement charges for detention, labor and other unforeseeable costs must be approved by BROKER in writing at the time they are incurred. In addition receipts must be provided. Carrier agrees that BROKER‘s charges to its customers are confidential and need not be disclosed to Carrier. Carrier specifically waives any rights it may have under 49 CFR §371.3.
Example 3:
Carrier agrees that Broker's charges to its customers are confidential and need not be disclosed to Carrier. Carrier waives any rights it may have under 49 CFR §371.3 or any related or successor law or regulation.
Summary: All of these waivers deal with the broker hiding how much money they are making on the transportation. WHY? We all know, because there will be a mutany when it is discovered.
The causal carrrier of OODCCO has bever been shy about his feelings on brokers. Here are tswo real examples.
Incident 1:
Week of 10/7/2023 - Broiker calls at 5PM, after dispatch has gone home and owner answers the phone.
Carrier: Can I help you?
Broker: Yes, this is blah from blah and I wanted to know if you have a truck that can run 2 molds from Roseville MI to Kentucky tomorrow.
Carrier: What are you offering?
Broker: We are trying to be around $850.
Carier: Dude, Don't ever call us again . . for anything. Loose our number. Disable us in your system. If you have the balls to call us with a die move with unlimited liaboiity and you want it done for $2 a mile. F#$% Off. Don't ever call us again.
The next morning, the carrier owner noticed the load in the system at $1,900 for 315 miles.