The trucking and logistics industries are abuzz about potential deception in broker rates -- but is there merit to the controversy? And how can fleet owners protect themselves against unfair rates? Buckle up for today’s edition of The Inside Lane.
Inside today's newsletter
💰 Do brokers deceive fleet owners?💵 Equity in reimbusement rates📋 How to reduce maintenance costs🚗 GM recalls 66 electric vans🌨️ States' response to winter weather
Like this content? Sign up for The Inside Lane
The fastest route to fleet insights, straight to your inbox
By signing up to receive our newsletter you agree to our Privacy Policy. You can unsubscribe at any time.
Analysis reveals brokers' potential deception
Broker margins are a hot topic for the freight sector, with accusations that suppliers’ platforms enable deception and conceal data. In a market facing tightening profits, new analysis from DAT has highlighted where brokers get the highest margins and, although some stats have been debated, this could help carriers seek out the most profitable hauls.
What are the average margins for brokers? They’re variable. DAT’s study, based on customer-supplied data, suggests an average 13% margin across the entire sample. Flatbed brokers had a slightly higher margin (15%) than reefer (14%) or dry van (13%).
Which hauls have the highest broker margins? The data suggests contracted and short (<250 mile) hauls reap the highest income for brokers. Routes starting in New England were also high earners, though destinations had a much lower effect on the final rate.
🙂 GOOD DAY:
New rules protecting carriers have come into force this week. The FMCSA will now suspend brokers who fail or refuse to pay for services, and provide more information to carriers to help them choose trustworthy partners.
🙁 BAD DAY:
Severe weather is causing chaos for truck fleets. Eight states have waived drivers’ hours rules due to freezing conditions, including four focused on ensuring continued supplies of fuel.
Lorem ipsum dolor sit amets
Experts are urging businesses to reconsider how they reimburse drivers using their own vehicles for work, warning that the IRS-approved per-mile rate doesn’t accurately reflect costs.
Drivers can claim a flat rate of 65.5c/mile, which is expected to rise to 67c/mile during 2024. It’s prompted concerns about over-compensation and how this impacts employers' costs. The alternative Fixed and Variable Rate (FAVR) could offer a fairer solution for both parties.
Are you saving enough on maintenance costs?
With operating costs still rising and profitability tighter than ever for truck fleets, experts suggest taking a fresh look at maintenance program could help offset some of the increased financial burden.
This needn’t be challenging. FleetMaintenance suggests switching to advanced engine oils and using tire-tracking technology to boost efficiency. There are potential business opportunities for fleets with their own workshops, too.
Speed limits and emissions up for further regulation
Road regulations are evolving at an unprecedented pace, and there are several important changes potentially in the pipeline for truckers. Lawmakers are debating mandatory speed limits, tougher rules on greenhouse gases and other emissions, and side underride guards -- and not everyone in the industry supports the changes.
2024 outlook: Will rates remain volatile?
Acquisition news from PS Logistics
WEX upgrade: Mixed fleet options
GM recall: Electric BrightDrop vans
Quote of the Day:
“OOIDA supports a more formal collaborative process betweenfederal regulators, law enforcement and industry stakeholdersto identify, penalize and protect against [broker fraud].” - Todd Spencer, president of OOIDA, responds to the FMCSA’s final rule
Covering the most-important issues in trucking is what we do here at The Inside Lane and it has us inspired to create some content of our own. Soon you can expect to see original reporting, research and other must-read, original content included in this newsletter.
Have a topic that you think we should cover? Reply to this [email protected] to let me know.
