It seems that truck load brokers are on the rise. These professionals are intermediaries between shippers and freight services. They find and match the two groups, making a commission from doing so. No matter what the current economic conditions, it is quite obvious this segment of the transportation market continues growing.
Why is the Truckload Brokerage System Expanding?
The truckload (TL) brokerage system continues to expand to such an extent it is impossible to ignore. The reasons behind the growth of such operations are varied. Three major factors driving it impressively forward are:
1. Shippers have to find a way to manage capacity even when the market fluctuates
2. Technological advances that favor TL brokers – often called truckload “Uberization”
3. Increased stress on compliance with federal trucking regulations as they exist and evolve
As more and more brokers enter the transportation arena, shippers find themselves with increased options. This, together with economic shifts, provides shippers working with brokers a better chance to obtain rates that are more favorable from the carriers.
Who Benefits from Using Truck Load Brokers?
While large corporations have the power to obtain benefits from transportation companies and brokers alike, smaller companies do not. They can usually gain from working with a truckload broker. Large companies have substantially larger cargo loads and, therefore, can generally rely on volume rates for discounts, small businesses with sometimes less than full loads (LFL) cannot. By turning to truck load brokers, smaller businesses can often obtain a reduction in their shipping costs.
Working with brokers reduces the time spent in searching for the best deal possible. A broker will handle all the details, finding your company the most efficient, timely and cost-effective way to ship your goods. In other words, truck load brokers are there to take over the worries shipping entails and let their clients get back to what they excel in – producing parts, components and other items for shipping.
