Carriers start to turn away from broker services

As the trucking industry is trying to tighten capacity, a new report found that carriers are trying to steer away from broker services.

A recent survey from Transport Capital Partners (TCP) found that 87 percent of careers used less broker services during the first quarter of the year, according to Trucking Info.

Additionally, the survey found that 40 percent of trucking respondents suggested that broker services accounted for less than 5 percent of their total revenues. Only 25 percent of carriers are still dependent on brokers for more than 16 percent of their incomes.

Analysts of the survey told the news provider that this is a significant turnaround from where the trucking industry was last year.

"This is a dramatic turn-around since May of 2009, when two-thirds reported using more brokers," Richard Mikes, a TCP partner, told the news provider. "Obviously the freight supply demand balance has shifted dramatically to the carriers, and they are using their capacity to serve the needs of their long term customers."

Individuals who are thinking of getting into fleet management may want to determine exactly how much they need broker services.

By Mark Priest

Carriers start to turn away from broker services

Wednesday, April 20th, 2011