Transport Capital Partners Q3 2011 Business Expectations Survey finds that 81% of carriers have become less reliant on load brokers over the past three months. Only 15% have used them more.


This contrasts to the first quarter of 2009 when 65% of carriers reported using brokers more frequently. Overall, smaller carriers report having used brokers more often than have larger carriers.

Lana Batts, TCP Partner, notes that "the preference of the public markets is for asset light firms, but in a capacity-tight environment, having the direct control of the trucks may finally result in truck owners receiving the rates they expect for the investment risk they incur."

Richard Mikes, TCP Partner, further notes that "the future of non-asset based brokers is being debated in the transportation industry as more carriers are also offering brokerage services in an environment of tight capacity."

Forty percent of all carriers surveyed said they get less than 5% of their freight from spot market loads - a number that has increased only slightly since the second quarter of 2010. However, half of larger carriers (over $25 million in revenue) get less than 5% of their revenues from spot loads compared to less than 20% of the smaller carriers. Furthermore, two-thirds of smaller carriers depend upon 6-25% of their revenue share from spot loads.

"The plethora of readily available sites via the web is enabling smaller carriers to compete in the spot load market for its scarce equipment," Mikes notes.

TCP believes the current economic environment is dampening freight outlook resulting in less new investment in truck capacity, click here to see graphs from this week's new release.

For complete details and graphs, click here.

More information is available at TCP's website.