The freight brokerage sector has seen disruption during the last few years. We experienced a freight recession in 2019, but three years later, the brokerage environment changed to a bull market.
Due to this shift, which was fueled by unusual customer demand, the sector is now more competitive than ever. Amidst labor difficulties and recent widespread lockdowns in 2020, traffic soared as customers flocked back to the excitement of in-person shopping. Demand for commodities and transportation services increased dramatically, overwhelming capacity and exceeding projections. As a result, we observed the emergence of new trucking firms and freight brokerages across the nation in an effort to expand capacity and profit from the emerging industry. The demand for shippers to use brokerage services today is greater than ever before, and the booming industry is offering both brokers and shippers great prospects.
Seek New Opportunities in a Growing Industry
Although degrees in supply chain management are in great demand and are becoming more and more common, graduates of these programs frequently have little to no expertise in the brokerage sector despite being well-versed in supply chain management. We’re currently observing a trend of people entering the brokerage market right out of college due to how profitable and opportunity-rich it is. As a result, many institutions have changed their focus to providing information to college students about the brokerage profession and its potential.
Company-sponsored training schools are adding a certificate program in freight brokerage to their logistics education offerings. The objective is to familiarize students with the company’s routine procedures and culture, provide them practical experience, and simplify the onboarding and training procedures should they decide to work with us after graduation.
Shippers Get Lower Prices and Better Service
Limited supply and labor shortages require even more competitive rates for shippers. In order to differentiate themselves in a crowded industry, brokers must continually deliver their skills to provide consumers service that is exceptional. It goes without saying that now is an excellent moment for shippers to work with freight brokers.
Simple value proposition: brokers can help shippers save time and money. Shippers may be more effective and concentrate on their core businesses by utilizing a smart brokerage partner rather than having to evaluate their own carriers and look for capacity each time they get an order to complete. Given the severe workforce shortages, this efficiency is extremely important.
When it comes to choosing the best brokerage partner, shippers have several options. It can be challenging for shippers to be certain that they are working with a strategic broker who is a suitable fit for their particular business in this highly competitive freight market.
In Conclusion
The present economic climate has produced incredible prospects for brokers and carriers alike, making now the ideal moment to start a career in logistics. Brokerages in this competitive market have a rare chance to get to know shippers and develop relationships with them at a time during which they are eager to profit from fresh, valuable, and affordable alliances.
If you are interested in having a great logistics partner, United Alliance is ready to provide exceptional services at appropriate rates. Feel free to contact us.