More Carriers Using Brokers Than in 2011, TCP Study Says

About 33% of motor carriers used freight brokers in February to obtain higher-priced freight, a study from Transport Capital Partners said. During the same month in 2011, about 11% trucking companies turned to brokers.

Carriers are using brokers because the spot market is paying more than contract rates, the study said. TCP also found that 34% of larger carriers — those with at least $25 million in annual revenue — used brokers, compared with 28% of smaller carriers.

The study also determined that motor carriers turned to brokers because their own rate increases are too small to cover increasing costs and it is difficult to renegotiate accessorial charges.

TCP said that, despite carriers’ using more brokers, the amount of freight they secure in the spot market remains small, with 47% indicating it is less than 5%.

Only 2% said they were getting more than 36% of their freight from the spot market.