Carriers should be brokers and brokers should be carriers

Sounds crazy but as online dispatch tools get easier to use and the functionality gets more and more encompassing it just makes sense.  Let’s look at why this insane idea makes perfect sense.

Carriers first. Carriers build relationships with shippers.  These relationships are strong and there is trust.  I have spoken to many leased on driver that even will bring their customer base with them when they work for a new company.  There are times when the carrier is not in the right place to cover freight for a particular shipper.  Maybe they are on the road or on a maditory restart.  If the carrier had a broker authority they would be able cover this freight and build on a relationship with the shipper.  Chances are the trucking company might already know other companies in the area that could have covered the freight with little effort.

So it makes sense to build a network of people,that you already know to cover business you already have.

Second for a freight broker the stepping stone into becoming a carrier is the shipping relationships they already have and lanes that they can put together. In logistics it is the triangle theory that I like the most.  If you can make profits on 2 lanes you can back haul the third leg if you have to.  Freight brokers have the business and know the cost.  If they are able to make money simply marking up the freight then why can’t they buy a truck and hire a driver to cover the freight and make even more money.  The business is there so why not expand and put some dedicated driver on it.  Especially when you can find 2-3 lanes that are profitable and put them together.

As consolidation continues in the trucking industry I have a feeling that we will see the freight brokers and truckload carriers coming together to form profitable partnerships.

Trulos dispatch software supports this idea and we have build our system to accommodate a truck line with leased on drivers company drivers and also brokered carriers all in one system. Manage customers and calculate carrier payments in just about every imaginable way.  If you want it we can build it is our motto so ask and we will see if we can make it happen.