The business of freight brokering in the trucking industry | Rig Hauler

The business of freight brokering in the trucking industry

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The business of freight brokering in the trucking industry Photo Credit: nessrider12

Freight brokers refer to individuals or organizations that act as a mediator between companies that require shipping services and authorized motor carriers. This year, many freight brokers are due for a yearly bond renewal towards the fourth quarter. Despite the challenges faced by the industry this year, freight brokers are steadily increasing. According to statistics, every year the number of registered freight brokers increase by 1,000, and if this trend continues, there will be approximately 18,000 registered freight brokers by the end of 2017. This increase can be attributed to the increase in the freight that needs to be moved. As per the predictions by the American Trucking Associations, the freight industry is expected to grow by 2.8 per cent this year, and by 3.4 per cent per year through 2023. Naturally, this means that the number of brokers will continue to grow as well.
Brokers are equivalent to shippers and they are expected to be familiar with legislative requirements related to freight movement.
The new food safety regulations are an example of the requirements that brokers should be aware of. This is essential for renewing their licenses. Freight brokering services such as those offered by Uber can present challenges to the existing freight brokers. These brokers are preparing themselves by teaming up with each other and trying to improve and automate how they operate.

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