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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[Sorsby-LLC]

The sole reason a broker exists is because carriers/drivers have poor communication skills, lousy work ethic, and a lot of times have nobody holding them accountable to the contacts that they agree to.

Your typical driver/dispatcher/carrier is an asshole, with a very poor vocabulary and very bad social skills. They often show up late without notice. Sometimes by days. And with no reasonable excuse. Sometimes they show up days late with somebody else's freight mixed with your freight, like nobody notices. Then you have to follow your customer's request of not paying them at all. Which brings me joy.

The reason brokers exist is because carriers are so incompetent that they need a babysitter to hold their hand and threaten them with rate reductions if the standards they agree to in the contract are not met. Shippers don't wanna be burdened with having to chase and track down and argue with somebody who has the intelligence level of a grocery cart.

I know ya'll wish brokers would disappear and this video is an example of that sort of wishful thinking, but as long as you've got guys in these trucks playing with their own sh*t and farting out loud after they shake hands with the logistics manager of whatever mfg company they're delivering to or hauling for, brokers will be around and there will be a demand for brokers from *both* the carrier *and* the manufacturer.

I've heard of drivers getting pissy about having to wait 30 minutes to get loaded and throwing a pizza box with sh*t in it at the shipper. The sad truth, in summation, is that most carriers/dispatchers/drivers have the social skills and personal efficiency of a poorly behaved monkey in a zoo.

Most of them will always need brokers to hold their little baby hands throughout every step of a pickup/delivery. It is what it is. I don't make the rules, the economy and nature does.

[moose]

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

[tdc]

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.

[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.

[jamieburkett]

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.

[ArmandoPerez-tjbc]

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.

[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.

[dangillen]

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.

[michaelangelofishing]

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

[blade]

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

[ciromartinez]

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.

[mackeejack]

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.

[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.

[domingofernandez]

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

[ugliestgorilla]

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

[michaelmillerii]

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

[renegadetx]

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

[Prachka]

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

[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.