Moving Away from Brokers and Towards Shippers to Increase your Rate Per Mile

Once owner operators move away from brokers toward direct shippers, their truck rate should increase 15+% on average since there is no broker to pay. There is no middleman.  The carrier has absorbed the broker’s money. The shipper pays the same or just a little less, but not much. Though it’s easier to follow the load board by calling brokers to find freight – it’s not as lucrative.

Instead of reacting to the market, why not be proactive and secure it yourself with the shippers directly? You add so much more value to the proposition vs. going through a broker and you increase your chances of securing consistent freight vs. just one load.

If you know the actual bill rate and not just your truck rate, you can negotiate with confidence and actually come up on your rate and down on the shipper rate that he or she has been paying and it’s a win-win for both you and the shipper.

For example; If you were charging the broker $1.60 per mile, the broker on average adds .30-.35 per mile for his or her cut, he or she will charge the shipper $1.95 per mile. In this example, you could now save the actual shipper money and charge them less and still make more money.

Let’s say, you charged the shipper $1.85 per mile and make another .25 per mile vs what you were making. You just grew your bottom line by 15 to 20% on all your loads depending on the lane and you actually reduced the shipper’s freight cost at the same time.  

Besides the freight savings, the shipper would probably receive better service because you can control that. You would be talking to the shipper directly. You could text check calls and tell him or her exactly what’s wrong if a problem arises. You have a vested interest in telling the shipper the truth and the shipper knows that because both you and the shipper know the real goal is to secure ongoing freight and not just one load.

Please contact us for shipper leads once you identify what kind of shippers you want to haul for.  We can layer multiple filters and get very surgical based upon commodity types, zip codes, revenue size, etc.