#1 Reason for no profit in auto transport. (my opinion)
For some operators it is in the broker’s pocket! When I got into car hauling, brokered loads were a small percentage of what we did. Then along came Central Dispatch and brokered loads really took off. It became easy to load a truck back from whatever outbound loads our auction reps could get their hands on. We could also fill out partial loads when needed. There wasn’t much profit in those brokered cars but it was better than losing money running with empty spots. Now I see that it is common for a small carrier to run 90% plus brokered loads! They simply get on Central Dispatch and try to put together a paying load. Of course it can be done but usually the really good paying loads have been cut to OK paying loads by the broker. There is always going to be the occasional trip that is a loss. It might be canceled cars, mechanical problems, or just the weather. These need
to be balanced out by the occasional “home run” load. If the “home run” loads are all destroyed by the broker you would have to eliminate all of the bad trips to make up for it. I know that there are a few good brokers out there that just take a modest percentage out of each load and pass the rest on to the hard working drivers. These are often the same brokers that pay on time. We all know that those kind of brokers are far outnumbered by the greedy ones!