2023 Freight Market: How Brokers and 3PLs are Adapting to Meet Shipper Demands

Latest News / By Manifest Global Logistics

Published September 26, 2023

Remember those wild pandemic years from 2020 to 2022 when everyone was scrambling for trucks, and it felt like you had a better chance of finding a unicorn than available capacity? Yeah, those days are gone. Fast forward to 2023, and it’s like we’re living in an alternate reality. Demand has done a disappearing act, and there are more trucks than you can shake a stick at. The tables have turned, my friends.

So, what’s a shipper to do in this topsy-turvy world? Well, they’re not settling for anything less than consistent value. They want lower costs, dependable capacity, top-notch service, and technology that makes the whole shipping process as smooth as a jazz riff. It’s a tough crowd out there.

To meet this new challenge, brokers and 3PLs are going back to the basics while also giving technology a high-five. Doug Waggoner, the CEO of Echo Logistics, says it’s been a unique ride this time around. When times were tight, shippers relied on brokers to play matchmaker with truckers. But now, in this loose market, they’re thinking they can cut out the middleman and head straight to the carriers for a sweet deal.

Waggoner knows the game has changed. Shippers want brokers who are tech-savvy, analytical wizards, and integration maestros. They want real-time info on market prices, and they want you to find them a carrier at the right price for every single load. No pressure, right?

But here’s the kicker: freight brokerage is still a relationship business, especially now. Some folks want a touchless experience, while others are still clinging to their paper bills and whiteboards. To keep everyone happy, there’s gotta be a balance of tech and old-school personal touch.

John Janson over at SanMar is all about the long game. He sticks with a handful of trusted brokers, no matter the market’s mood swings. Sure, the phone is ringing off the hook with broker calls these days, but that’s just how it goes.

Economic Realities and Cost Optimization:

For Janson, it’s all about being proactive. If things go south, he wants to know pronto. Surprises? No, thank you. Broker tech is a big deal for him. Real-time tracking, automated notifications, and slick digital matching tools are must-haves. And when it comes to tech integration, it better be user-friendly because his IT team’s got their hands full.

Rock Magnan, the chief honcho at RK Logistics Group, says brokers have to wear two hats. They’ve got to make the shipper’s supply chain run like a well-oiled machine, and they’ve got to keep their carrier buddies in the green by lining up those steady loads. It’s not rocket science, but it’s gotta be done right, especially in these slack-demand times.

Shippers these days aren’t just looking for a truck hookup; they’re seeking supply chain wizards. Mac Pinkerton of C.H. Robinson knows this firsthand. He says a great 3PL can optimize supply chains, making them leaner and meaner, no matter the freight cycle.

Shippers are getting smart about their operations. They’re moving around production like chess pieces, trying to find the perfect spot. And as they shift, they need carriers in the right places. It’s like rearranging furniture before the big party.

And speaking of parties, the live load vs. drop trailer debate is back in town. Shippers are trying to find that sweet spot for efficiency. Drop trailer programs are making a comeback, and C.H. Robinson is jumping on that wagon.

Over at Ryder System, Kevin Clonch keeps it real. He says brokers need three things: capacity, flexibility, and the ability to scale up and down. But what’s really changed the game is visibility. Thanks to nifty tech, brokers can provide real-time info and spot problems before they become nightmares. The core value of brokers is still there, but tech has made life easier.

In this brave new world, brokers who’ve stayed cool, kept their carrier pals happy, and didn’t get caught up in the spot market frenzy are the ones surviving. Automation is the name of the game. The more you can automate, the more loads you can handle. But don’t forget, the personal touch and trust with carriers are still worth their weight in gold.

So, what does a broker mean to a shipper today? It’s not about quantity; it’s about quality. Shippers are pickier about who they roll with, and they want value and service above all else.

In the end, the freight market is back to basics, with a tech-savvy twist. Brokers are cultivating trust, using automation to their advantage, and proving they’re more than just middlemen. It’s still a relationship-based business, and that’s not changing anytime soon.