Spotlight on the US freight broker industry

By Nye Longman
For a number of reasons, freight brokers have been enjoying increased revenue in the past year. The ongoing economic recovery is bringing an increase in...

For a number of reasons, freight brokers have been enjoying increased revenue in the past year. The ongoing economic recovery is bringing an increase in demand for trucking services. And the good news is that this trend is expecting to continue for several more years. A report by the American Trucking Association (ATA) predicts that by 2022, overall revenue in the trucking industry will increase by 66 percent, while tonnage will see a 24 percent growth.

Another reason for increased revenue is increasing logistics efficiency. The increased use of less-than-truckload (LTL), a territory reserved for freight brokers, means speedier shipments for shippers and more profits for brokers.

Entry into Freight Brokering

When the freight broker bond amount was increased to $75,000 in 2013, one rationale for the increase was to raise standards for freight brokers and, in retrospect, the strategy seems to have been successful.

It’s true that a small percentage of brokers were forced out of business. However, the remaining brokers were people with good credit and reliability in the industry. This in turn raised overall trust in freight brokers, so entry into the profession has eased a bit. And the numbers are proving it– the number of brokers has been steadily increasing since 2013, and this year is no exception. MyCarrierResources.com reports that in January there were 15,023 registered brokers, whereas in October the number had jumped to 15,916.

Todd Bryant, president and founder of Bryant Surety Bonds, takes a look at the American trucking industry over the past year through the lens of a freight broker – read the rest of his insightful piece in the March issue of Supply Chain Digital.

Follow @SupplyChainD and @MrNLon on Twitter.

Supply Chain Digital is also on Facebook. 

Share

Featured Articles

Supply chain shocks dampening investment, says Capgemini

Report from Capgemini Research Institute shows supply chain disruption is top risk to business growth, and that sustainability efforts are on the wane

Factory fire top supply chain disruption in 2022 - Resilinc

Report from supply chain mapping and risk company Resilinc shows that factory fires topped list of most common value chain disruptions in 2022

Logistics news roundup: Etihad Cargo, OneRail, last mile

Etihad Cargo grows China routes; US last-mile logistics giant OneRail makes key appointment; Complex logistics challenges in ROI & NI again in spotlight

Supply chain global news & views: Apple, Ukraine & Gartner

Supply Chain Risk Management

How tech can help SMBs build a resilient supply chain

Digital Supply Chain

Supply Chain Digital Show: Procurement burnout in spotlight

Procurement