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Are brokers overpaying? — #WithSONAR

Carriers making money off brokers this week

As 2021 starts, freight markets remain tight and capacity is still strained post-holiday season. 

Luke Falasca and Kyle Taylor start off the first episode of 2021 with a look at the high volumes of freight shippers still have to move; they poke fun at the memes that surrounded holiday package delays and the delays that are still continuing. 

They say that there are slow indications of volumes trending down, but when compared to where volumes were this time the past few years, volumes are still high. 


Falasca says the volumes coupled with tender rejection rates still hovering around 25% means freight loads are moving into the spot market — good news for carriers because it drives up rates. 

Carriers are excited about this because it means brokers will pay more to get those loads picked up, meaning more money in the carriers’ pocket. 

But Taylor and Falasca say that this spot market reliance is volatile because waiting too long can mean a broker overpays once the rate goes down a few days later. 

They say that there is a slight delay on load boards when it comes to reporting trends, but brokers can get wise to where the market is heading and adjust accordingly to either spend more or save more. 
You can find more #WithSONAR episodes and recaps for all our live podcasts here.


Kaylee Nix

Kaylee Nix is a meteorologist and reporter for FreightWaves. She joined the company in November of 2020 after spending two years as a broadcast meteorologist for a local television channel in Chattanooga, Tennessee. Kaylee graduated from the University of Oklahoma in 2018 and immediately made the Tennessee Valley her home. Kaylee creates written summaries of FreightWaves live podcasts and cultivates the social media for FreightWaves TV.