Freight Brokers may want to start driving part time.
With the demand for more truck drivers owners of trucking companies can now be more picky about who they haul for. The age old cry of freight brokers are crooks may be coming to an end as technology progresses. With demand for drivers and internet technology maturing in years to come the freight broker may be a job position of the past such as a “wheel maker” or “spear maker”. While wheel and spear makers are still needed with automation there just not in high demand.
The trucking industry is taking some hard hits.
We’re hearing it everywhere. CNN recently published a story about Cheetah trailers and how Chinese companies are violating it’s copyright design on their own trailers. Cheetah trailers haul shipping containers. Chinese manufacturers simply buy one, study it, mass produce it and start exporting them cheaper. They’re also made cheaper but that’s another story. New HOS regulations are hitting truck drivers hard. If you can’t driver you can’t make money and if you can’t make money driving why bother? What’s left is the fleet owners, small trucking companies and the owner operators. Put a broker in the middle of all of this combined with internet technology and what do you get? You get smaller companies that have the ability to network with buyers, manufactures and anyone else that needs transportation.
A new dawn is being born.
The oversize and heavy haul industry have already dumped the freight broker. In fact, from inception trucking company owners realized the liability was simply too high. A broker with a $10,000 bond (or even $50,000) isn’t much to hang your hat on if the shipment costs $55,000 to ship. Not only that the broker want’s everything he/she can get which is $5,500 at 10% or $6,600 at 12% which are both claimed industry standards. That’s a WHOLE LOT OF MONEY! So in the case of dry van shipments let’s say that number is 90% less or the line haul is $5,500. Well $550 or $660 is still a WHOLE LOT OF MONEY! What is going to happen next inevitably is the trucking companies will have to crunch the numbers in between profit and inflation and combined with technology that need will be met. Good-bye brokers. It’s inevitable. Trucking companies are continue to look for more and more direct customer freight.