transportationreport
BY MARK B. SOLOMON, SENIOR EDITOR
Space
invaders
Intermediaries have muscled in on the LTL market. Can they continue to wield
influence in a world of rationalized capacity?
TRANSPORTATION INTERMEDIARIES HAVE GAINED
more clout in the less-than-truckload (LTL) industry than
ever before, a movement that is changing the landscape for
all concerned.
Freight brokers and third-party logistics service providers
(3PLs) that also offer brokerage services have long been
involved in the LTL segment. However, their presence has
been small compared with the truckload category, where
there is far more freight to be booked.
In recent years, brokers have penetrated the LTL business
at a faster clip than they have the truckload market.
According to estimates from Milwaukee-based investment
firm Robert W. Baird & Co., LTL volume handled by bro-
kers roughly doubled between 2007 and 2011. Growth in
broker-handled truckload volumes rose at a more modest
pace during that period, the firm said.
