In Defense of Balance and Trust: Rethinking “Transparency” in Freight Brokerage

In recent years, the call for greater transparency within the trucking and logistics sector has grown louder. Proposed rules would require freight brokers to disclose their billing rates to carriers, effectively revealing the margins they earn on every shipment. On the surface, this might sound fair—after all, carriers face tough operating conditions and want assurances they’re being paid equitably. But if we step back and consider the broader implications, the issue is far more nuanced than it seems.

A Complex Web of Relationships

The trucking industry isn’t just carriers and brokers—it’s an intricate ecosystem that includes shippers, repair shops, insurance providers, fuel suppliers, and more. Each player specializes in a service that others find more efficient to outsource rather than manage in-house. For instance, many carriers rely on external repair shops instead of operating their own. They recognize that outsourcing allows them to tap into the shop’s specialized expertise and equipment. Yet, you don’t see carriers demanding a full breakdown of these shops’ costs and the exact margin they earn on parts and labor. Why? Because specialization provides convenience, efficiency, and overall value—benefits that outweigh constant scrutiny of another party’s profit margins.

Brokers serve a similar role. They connect shippers, who need reliable transportation solutions, with carriers, who depend on a steady flow of freight. Just as outsourcing truck repairs can reduce a carrier’s overhead, outsourcing load sourcing and coordination to a broker lets carriers and shippers focus on their core strengths. This value exchange is what brokers bring to the table.

The Market’s Fluid Nature

Transportation markets are inherently volatile. Rates shift daily based on capacity, seasonal demand, and broader economic conditions. When capacity tightens, carriers earn more; when it loosens, brokers may earn more. Healthy market dynamics allow both sides to thrive over time. Sometimes brokers make a 20% margin—other times they may even take a loss. These fluctuations help maintain balance in the ecosystem. The profit a broker earns on one shipment can offset a loss on another, ensuring they remain stable partners for carriers and shippers through market ups and downs.

If we start capping broker margins or enforcing immediate transparency of every transaction, we risk dismantling this delicate equilibrium. Rigid rules could force carriers into equally inflexible revenue structures, ultimately harming their adaptability and potential profitability. More mandated “transparency” might unintentionally lead to more instability, not less.

Trust, Not Turbulence

At its core, this debate hinges on trust—or a lack thereof. There are, of course, bad actors on both sides: some brokers have failed to pay carriers, and some carriers have left brokers with unpaid invoices. These aren’t arguments against the brokerage model itself; they’re reminders that unethical behavior must be addressed. The solution is to enforce existing laws and hold wrongdoers accountable, not to impose sweeping mandates that undermine the market.

Carriers deserve fair pay, respectful treatment, and reliable partnerships. Dispatchers, drivers, brokers, and shippers all play integral roles in this industry’s success. The goal should be to build enduring relationships, not to pit one group against another. Healthy market principles—where good relationships, consistent service, and solid reputations matter—have always been the industry’s backbone.

A Better Path Forward

Instead of forcing transparency through one-size-fits-all mandates, let’s encourage open dialogue. Let’s ensure unethical behavior is appropriately sanctioned within the current legal framework, rather than adopting policies that reduce everyone’s flexibility.

In an industry as interconnected and specialized as logistics, success depends on trust and partnership. By understanding the market’s inherent complexities and respecting the specialized roles that each party plays, we can maintain the integrity of the industry without sacrificing the dynamic, responsive marketplace that helps us all thrive.