TCP quarterly BES concludes that trucking companies have reduced the usage of Broker freight services nowadays.
On by comparing today’s statistics with May’09, when 65% of the carriers were using brokerage services today only 14% of the carriers are using brokerage services.
Sources say that carriers have stated seeing their own volumes and rate increase which lead to this significant decline in the brokerage services.
Moreover, people who wish to ship their vehicle raises more question about the viability of the asset-light brokerage model that depends upon someone else owning the truck, carrying all the risks, and receiving very little reward.
Smaller carriers are more dependent on brokerage freight services than large carriers.
Over 88% of the larger carriers have reduced the usage of brokerage whereas only 77% of the smaller carriers are reporting less use of brokerage services .
If the larger brokerage companies are going to rely on the smaller carriers, it is expected that 20% of the small carriers will be leaving the industry in the next 18 months.
Richard Mikes, TCP Partner, further notes that "the future of non-asset based brokers is being debated in the transportation industry as more carriers are also offering brokerage services in an environment of tight capacity."