Do brokers know their back offices can increase profit margins by reducing carrier costs?

Feb 06, 2020 at 09:38 AM CST
When rates soared and capacity tightened in 2018, brokers recognized the value of building stronger relationships with their carriers. However, when capacity loosened in 2019, carriers lost pricing power and many of those relationships ended when hundreds of trucking companies went out of business. The current freight recession has caused many brokers to make changes to prevent further erosion of their carriers. Some have responded by identifying carriers they believe are critical to servicing their customers, and they’ve given those carriers the right of first refusal on matching loads. To increase carrier loyalty, other brokers have taken steps to improve their carriers’ cash flow.

Feb 06, 2020 at 09:38 AM CST

When rates soared and capacity tightened in 2018, brokers recognized the value of building stronger relationships with their carriers. However, when capacity loosened in 2019, carriers lost pricing power and many of those relationships ended when hundreds of trucking companies went out of business. The current freight recession has caused many brokers to make changes to prevent further erosion of their carriers. Some have responded by identifying carriers they believe are critical to servicing their customers, and they’ve given those carriers the right of first refusal on matching loads. To increase carrier loyalty, other brokers have taken steps to improve their carriers’ cash flow.