How much or so does a broker keep of a load? Ive only dealt directly with a shipper on a few occasions and the rates i was given from the shipper sucked also , another reason i ask is beacuse i realize that the broker is given a certain amount from the shipper and its the brokers job to broker the load and keep as much as possible, i called about a load from Point A to Point B and he said he can go as high as 1300$ and i said i would do it or 1375$ and the broker acted like i just robbed him , so i just said no thank you, just wondered do they keep a majority of the load or how does that work?

 

I've asked a few of the brokers that we deal with a lot. Most say they work within a 20% profit range of the total load. So if the load is $1,000.00 the broker CAN get as much as $200.00 but it's up to them if they decide to give the carrier a cut of his take. Many will IF they know the carrier well and they know the load will get done right. Others want their percentage and won't budge, usually it's between 10 and 15% in those cases. These are just the ones I've dealt with, it may not be the same at every company.

 

The range varies greatly from broker to broker and load to load. Your definition of the brokers' job is not correct. A broker is supposed to be an intermediary, bringing together shippers who want to move freight for a certain price and carriers willing to move it for that price. For this service they should receive a commission, either a flat fee or percentage. Unfortunately, almost all brokers define their job just as you have. This is not the definition of a broker but a middleman. Somebody who buys something as cheap as he can and sells it for as much as possible.

I think the bulk of brokerages probably clear somewhere in the neighborhood of 10-20%. But that is a gross average. The amount a particular broker may make on any given load might vary from a loss to 200+%. I have worked with one broker who keeps a flat fee...by far my favorite. Unfortunately, I think they're getting squeezed out by the bottom-feeders.

 

In regard to this, i just want to trow in some numbers.
I'm leased O/O. I get 72%+100%FSC. For 28%, company provides me with trailers, insurance, base plates and permits, and paid road and fuel taxes.
I also got paid any job related expenses, that extra(lumpers, scales...etc)
And i got paid next week, no matter what.

It's all customer loads(i don't haul brokers), so i know nobody else, is taking a cut.
And broker is taking 20%, just for couple faxes, and phone calls...!? :x

Can't blame them tho...it's all truckers fault! :P

 

You, my friend, are the beneficiary of a company bringing efficiency to the marketplace. The funny thing is, a broker, no matter what the industry, is supposed to improve the efficiency of that market. That's kind of the whole point of their existence. The surest bet I could possibly make would be that if the freight market learned to operate without brokers, the efficiency would skyrocket.

 

There are brokers who get from 10-50%. Most of the better brokers will be on the lower end of that scale.

 

yeah its not the % thhey take that keeps loads down...its when they give the load from broker to broker....and each one takes a cut.
Ive often wondered why they do that....I mean dont they know thats killing the rate? Quess they dont care as long as the other guy moves it?

 

You've got it!

 

yeah i never knew that was so wide spread, but it happened to me yesterday i picked up a load for exel logistics/transportation and top of the bills said the carrier was schneider, when the broker i called was exel?

 

I hauled a load from Lafarge in Buchannan NY as a TMC company driver, and TMC is dedicated from there taking a large portion of the local short haul freight. My paperwork listed the carrier as Dedicated Contract Services/JB Hunt. I wondered if TMC brokered it out and then when my other load cancelled and they dug this on up they had to get it back again, having had two companies take 20% from it, since it didn't even pay $1.00 per mile.