MENU
SEARCHGross margins and revenues were down for freight brokers in the third quarter of 2019, but cost reductions and lower rates allowed them to stay profitable.
Gross margins and revenues were down for freight brokers in the third quarter of 2019, however, cost reductions and lower rates still allowed them to stay profitable.
Source: DAT Solutions
Gross margins and revenues were down for freight brokers in the third quarter of 2019, but cost reductions allowed brokers to stay profitable, according to a report from DAT Solutions.
Gross margins were down to 16.1% for freight brokers in the third quarter, down from 16.8% in the second quarter, but they were up compared to the 15% margins of a year ago. Margins remained healthy due to lower spot market rates, which lowered the cost of transportation for brokers.
Operating profit was at 32% of net revenue, beating Q2 results by 7%, but was down 18% compared to the record highs experienced during Q3 of 2018. Cost reductions supported the bottom line, according to DAT, due to brokers cutting labor and non-labor expenses.
The quarterly average load count has remained mostly steady in 2019, with load counts decreasing by just 1% compared to the second quarter. As with most of these metrics, load counts peaked in Q3 2018 at 7% higher than Q3 2019.
Overall, brokers averaged $77 of profit per load, only 2% down from the previous quarter, but 14% below the highs of Q3 2018. Revenue per load averaged $1,511 in the most recent quarter.
DAT’s benchmark data is drawn from the TMS systems of nearly 100 freight brokers and 3PLs with average 2018 revenue of $13.8 million, a 16% increase compared to 2017. Prior year results, as well as the current report, have been re-stated as of the first quarter of 2019, to exclude outliers.
As fleets adopt artificial intelligence for routing, maintenance, and load matching, new security risks are emerging. Learn where the vulnerabilities are and how to put the right controls in place.
Read More →
The long-awaited registration system promises a single portal — and tighter fraud controls.
Read More →
CargoNet reports fewer supply chain crime events to start 2026. But losses hold steady as organized crime shifts tactics toward impersonation schemes and high-value goods.
Read More →
Heavy Duty Trucking is searching for forward-looking leaders at trucking fleets as nominations for HDT’s Truck Fleet Innovators 2026. Deadline is May 15.
Read More →
Cargo theft rings plant operatives as drivers inside legitimate, fully vetted carriers, then execute coordinated thefts that look like a traditional straight theft from the outside.
Read More →
A modest sequential increase capped the strongest quarterly performance in years, signaling continued freight momentum in early 2026.
Read More →
More than 300 carriers across 26 states have been sent to collections as the Ohio Turnpike cracks down on toll evasion and delinquent payments.
Read More →
The American Transportation Research Institute will examine driver coaching, regulatory impacts — including the "Beyond Compliance" concept —and weather disruptions that shape trucking operations.
Read More →
Fleet Advantage's Brian Antonellis says it's time for fleets to get back to the fundamentals of good maintenance practices. And that includes replacing older, inefficient equipment.
Read More →
Load matching for flatbed, lowbed, oversize and overweight loads can't be automated like basic van freight, but Truckstop.com is adding more high-tech tools to help.
Read More →
