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Today’s truck brokers use technology to evolve, enhance, and expand services
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Looking ahead, Young sees both rising competition and consolidation. “Shippers’ use of domestic 3PLs has been evolving for several decades, and although intermediaries will continue to process more freight, the market is maturing. This means the 3PL landscape has and will become progressively competitive—more specifically, expect a large portion of the market to become more organized as the industry consolidates. Small brokers once limited in scope will increasingly gain access to a larger capacity base, stronger buying capabilities, and more sophisticated technology as they are gobbled up by acquisitive providers.”

Campano and Howard both agree, citing high costs for technology and the shrinking pool of owner-operators as major impediments for small outfits. “Carriers with less than five trucks, which represents a large percent of our base, are struggling to stay in business,” Howard confirms. “The move has been to larger fleets over the last decade.”

“Another trend to watch is the rising level of brokered LTL freight,” Young predicts. “The less-than-truckload industry is significantly smaller in size at approximately $35 billion, compared with the $300 billion plus full-truckload market. That said, brokered LTL freight appears to be on the rise as carriers are increasingly turning to brokers of scale to supplement freight opportunities, and brokers are actively seeking out avenues of growth and new sources of capacity.”

Concluding Thoughts
With over-the-road trucking still the produce industry’s primary mode of shipment, the miles are there for the taking for skilled truck brokers. Those who can use technology to boost efficiency, protect loads, build a network of reliable carriers, and offer top notch customer service will prosper both now and in the future.

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Dan Alaimo is a writer/editor specializing in the supply chain, technology, and marketing of food and related products.