It’s essential to understand industry trends in order to make informed decisions about your freight brokerage business. Developing a comprehensive freight brokerage business plan is crucial in this rapidly growing industry, with more and more businesses entering the market every day. However, the profitability of the industry is highly variable and depends on a number of factors including market saturation and upcoming trends. In this article, we’ll take a look at the freight broker industry statistics to help you better understand the landscape.
How Many Freight Brokers Are There?
According to the most recent data from the United States Census Bureau, there are 7,853 freight brokers in the United States. However, this number is likely to be closer to 17,000, as many businesses operate without registering with the Census Bureau. The freight broker industry is concentrated in a few states, with California, Texas, and Florida home to the majority of businesses.
Average Net Profit Margin
The freight broker industry is profitable, with an average net profit margin of 5.4%. Net profit margins are calculated as earnings before interest and taxes.
Growth Potential
The freight broker industry is expected to grow significantly in the next few years, with a projected growth rate of 5.2% per year through 2028, This growth is driven by many factors, including the increasing popularity of e-commerce and the expanding global economy.
Trends to Watch
There are a few key trends that you should be aware of if you’re operating in the freight broker industry:
- The rise of e-commerce is leading to an increase in demand for freight transportation services.
- The globalization of the economy is resulting in more businesses needing to ship goods internationally.
- The development of new technologies to watch, such as blockchain and drones, is likely to have a major impact on the freight broker industry in the years to come.
Who do Freight Brokers Usually Work For?
The vast majority of freight brokers (70%) are self-employed and work independently. However, there is a significant minority that work for larger companies, such as freight brokerages (17%), trucking companies (8%), and logistics firms (5%).
What Services Do Freight Brokers Provide?
Freight brokers provide a variety of services to their clients, the most common of which are arranging transportation (78%), providing quotes (51%), and tracking shipments (50%). Other services that freight brokers often provide include booking cargo space (32%), arranging insurance (30%), and handling customs paperwork (27%).
Who Is the Biggest Freight Broker?
The freight broker industry is highly competitive, with many large and well-established companies vying for market share. The three largest freight brokers in the United States are C.H. Robinson Worldwide, Total Quality Logistics, and Coyote Logistics.
What Are the Most Profitable Freight Brokers?
The most profitable freight brokers are those that have a niche focus and are able to tap into high-value markets. For example, companies that specialize in shipping perishable goods or dangerous materials tend to be more profitable than those that ship standard commodities.
What Are the Fastest Growing Freight Brokers?
The freight broker industry is growing rapidly, with many new businesses entering the market every year. The fastest-growing freight brokers capitalize on emerging trends and offer unique services that appeal to their target market.
What Are the Most Popular Freight Brokerage Software Solutions?
There are many software programs that freight brokers use to manage their businesses. The most popular software programs are Truckstop, McLeod Loadmaster, and CarrierWeb. These programs help freight brokers track shipments, find trucking companies, and book cargo space.
What Are the Best Cities for Freight Brokers?
There are many great cities for freight brokers, but some stand out more than others. The best cities for freight brokers are those that have a high concentration of businesses, a strong economy, and good transportation infrastructure. Some of the best cities for freight brokers include Los Angeles, Chicago, and Atlanta.
What Are the Worst Cities for Freight Brokers?
There are a few cities that are not well-suited for freight brokers. These cities tend to have a weak economy, high crime rates, and poor transportation infrastructure. Some of the worst cities for freight brokers include Detroit, Cleveland, and Memphis.
Conclusion
The freight broker industry is a highly competitive and rapidly growing industry. The most successful freight brokers are those that can capitalize on emerging trends and offer unique services that appeal to their target market. The three largest freight brokers in the United States are C.H. Robinson Worldwide, Total Quality Logistics, and Coyote Logistics, with a combined market share of nearly 30%. The most profitable freight brokers are those that have a niche focus and are able to tap into high-value markets. The best cities for freight brokers are those that have a high concentration of businesses, a strong economy, and good transportation infrastructure. Some of the best cities for freight brokers include Los Angeles, Chicago, and Atlanta.