What's going on with Transportation business. Part 2.

Please watch this clip:

Delivery Same Day

http//youtube.com/shorts/bnRjn53-9RY?

If you did watched this clip, you understand that this year in Transportation and Logistics I called : The Year of Chasers.

And what I mean by that ? Shippers are chasing buyers, brokers are chasing shippers and carriers are chasing brokers.

Shippers are trying to cut their transportation costs by decreasing the rates. Brokers are still keeping their percentage and passing over the leftovers to truckers. And on top of that, we (the carriers and trucking companies) are experiencing the double brokering and the original shippers have no idea who delivers their product, unless the real professional broker will let them know. It's a mess.

As I said before, bad blood will eventually rivers itself out, but by then I believe, we are all trying to find new ways to attract new business and be attractive to our new clients. Here is what I got on my mind for a while so far.

I am subscribed to a few YouTube channels with a content about trucking, brokerages and transportation. And one of the questions I keep asking the hosts:

Why small trucking companies or owner operators do not look for direct shippers?

The answer I get - they do not have time, or they are not educated enough to understand the topic of communication 🙄.

However, many successful brokers, who teach about this, told me that 60% of their students are truckers! What a pickle eh?!

I guess, what I'm trying to say here, we need brokers, we do work with brokers all the time, however at this difficult times for truckers, to stay a flot and be able to run those miles, nevermind the profit, we will find our own shippers to whom we offer all services such as Booking the appointments, Dispatching the operators, Cross Border Operations and all other aspects without any costs to shippers.

Basically everything will be done in house of a trucking company or owner operator. And I belive, we will be competitive in pricing, since there is no more percentage will go to a middle man, there is no more risk to double brokering and the shipper will always know who hauls his freight, what equipment etc.

I understand, that major shippers, manufacturers and distributors have no desire to focus on their logistics, they got enough on their minds, that's why they need brokers to do that for them, however the small guys are always alert when it comes to savings, and by spending extra 5 minutes a day to search for the right trucking company or owner operator, might, just might, save them enough 💰 to invest back in their business.

Just look here, a simple example, shipper's average load will pay $1500 to broker, broker will pay $900-$1100 to a trucker, once a week load will save over $20,000 to a shipper a year by going to direct trucking company or owner operator. Easy math, right?

On the other hand, brokers can guarantee the load being shipped once it is on the loadboard due to over supply of trucks on the market. They are the Gods of loadboards nowdays and they mean business.

So, in this tough times for truckers, all I say: Be creative with your time on those truck stops and look for your own direct shippers!

And for shippers: Don't be afraid to talk to us, we are the truckers, can give you enough valuable information which will guide you to great savings on your transportation costs. Brokers, my favorite topic in this business: we are here for you, we always were and we always will be, just keep in mind, honesty and integrity will drive bad blood out, and eventually the market will be stable again, where we all be happy!

As this Goalie is chasing his goal, so we all are trying to be the keepers !