Originally published at: TQL faces federal lawsuit over broker transparency dispute - FreightWaves
Pink Cheetah Express LLC, a small Kissimmee, Florida-based motor carrier, alleges that TQL has flouted a 2023 Department of Transportation order mandating compliance with federal broker transparency rules.
We are a carrier and broker. We do a 20% on 90% of our loads. We do have a few times that we get to 25% once and a while but not often. I Believe that a company that takes half of what they are offered as a rate to cover the load i wrong. The carrier is some at fault for taking the load, but in Florida it is next to impossible to get a good paying load out, knowing that there are companies getting a higher rate out of Florida and pocketing half is a proble.
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As someone who has been an O/O, dispatcher, and broker, I think this issue is really a non-issue. I agree that brokers who take exorbitant margins on a regular basis should be penalized. However, without transparency, how would one know? Why is it important for businesses to mandate transparency? I don’t believe it is. Many brokers quote for long-term contracts, expecting to break even or average a 15-20% margin over the contract term. This may require taking a loss or breaking even on some loads during peak season, while at other times making what some might call an exorbitant margin of 30-40%. A carrier demanding transparency only sees a snapshot, missing the whole picture in context.
In no other industry is it required to disclose the profits made on a particular item or service. Do we require Walmart to disclose how much they make on each item you purchase? Should your accountant, who works only one hour a month but charges you a monthly $300 fee, be required to disclose their profits as well?
Since becoming a broker, I’ve seen many carriers think that acquiring freight requires no effort by the broker. They do not take into account the many unpaid hours spent acquiring a customer. Sometimes tens of hours and or months are required. The definition of a broker is someone who provides a service for someone who chooses not to do it themselves, or alternatively, a person or entity who arranges transactions between a buyer and a seller for a commission. A carrier is not required to use a broker!
In my opinion, it’s more important for a carrier to know their numbers. Understanding your real operational, personal, and financial liability costs is the only way to make informed decisions about rates. No two carriers have the same numbers! What may be a good rate for one carrier might be a bad rate for another carrier with the same equipment. This knowledge is key to being a successful carrier—not worrying about what margin a broker made or didn’t make. You can’t be successful if you’re focused on what you already left on the table.
I worked for TQL for 15 years in IT. Their employee turnover rate in sales was around 50%. A lot of people couldnt make it in sales so they either let them go or they quit. If you didnt play by the rules, or question things, you got let go. It used to be a great place to work in IT, but the stress level gets to you after a while and your health suffers. The owner had a way of motivating everyone but when they kick you out, there is no severance even for someone that had 15 years with them. They’re still using my software to invoice their customers, so ive been told. Im making $0 from that deal. If i had a nickel for every invoice that program spit out…