With an expected industry growth of 4.33-percent between 2018 and 2022, this year presents challenges and opportunities for freight broking. As capacity tightens, and rates escalate, brokers are feeling the pinch more than ever before.
It’s possible to remain profitable, even in the face of industry challenges and a highly competitive business environment.
Industry Trends in Freight Broking in 2018
Various market innovations can help you improve your business. Here are a few of the top industry trends that freight broking need to pay close attention to in 2018.
Innovative Technology Solutions
Automation in freight cargo delivery, such as autonomous delivery vehicles is set to change the industry forever. These sorts of tech developments promise to improve operational efficiencies and provide a level playing field for smaller operators while offering shippers more options.
Amazon and Tesla are two companies set to dominate this space in the future, so brokers need to plan a strategy where these companies and autonomous tech will change the face of the industry as we know it.
The ELD Mandate and Tax Reform
The much-welcomed tax reform bill is expected to improve the availability of resources, giving brokers the opportunity to increase wages and capacity. Governments promise of rebuilding infrastructure across America will solve deficiencies in transportation. Brokers need to address their compliance with the new legislation.
The Impact of Rising Rates
Rising capacity demand means elevated freight rates. Some of the contributing factors to this issue are rising driver pay rates, as well as escalating fuel costs and a shortage of qualified drivers. Brokers will need to evaluate their supply chains for any inefficiencies and improve on areas such as dock-turnaround times and drop-and-hook.
Over the next 4-years projections show that 60,000 new trucks will enter the freight market. However, it’s important to note that even though these new trucks will provide extra capacity to the industry, there’s still a shortage of drivers to operate the fleets.
Protect Your Business
Stay ahead of industry trends and form a think-tank within your firm to analyze the potential pitfalls and opportunities of these trends.
The Junction LLC
As a leader in the transportation industry, we demand excellence from our entire team. Our team at The Junction LLC strives to deliver the best possible customer service and is driven by a desire to solve our customer’s toughest transportation and supply chain needs.
Our team is dedicated to serving our customers and will take the necessary action to deliver our customers’ products safely, efficiently, and on-time. This is our promise to you!
Nationwide Services include:
Trucking & Freight Shipping Services:
- Time sensitive shipments
- LTL (Less-Than-Truckload)
- FTL (Full Truckload)
- Flatbed LTLRGN (removable goose neck lowboy)
- RGN (removable goose neck lowboy)
- Maxi’s / A-Train / B-Train
- Heavy Haul
- Over Dimensional
- Dry Van
- Dry Van LTL
- Refrigerated LTL
- Power Only
- Our sister companies can also provide warehousing in our food grade facilities, cross-docking, and contract warehousing.