US FREIGHT BROKERAGE MARKET- GROWTH, TRENDS, AND FORECAST (2019-2024)

The Market is segmented by Service (LTL, FTL, and Others), and by End-use (Manufacturing and Automotive, Oil and Gas, Mining, and Quarrying, Agriculture, Fishing, and Forestry Construction, Distributive Trade, and Other End Users) - Growth, Trends, and Forecast (2019-2024)

Market Snapshot

brok_mar_sum
Study Period:

2015-2024

Base Year:

2018

CAGR:

>6%

Key Players:

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Market Overview

The freight brokerage industry is the middle man of the shipping industry. Freight brokers provide a service by linking customers with shippers and trucking companies. According to industry sources, the penetration of U.S Freight brokerage in the total freight market is significantly increasing. US trucking industry is facing driver shortage. It has an adverse effect on the businesses like brokerages, which rely of carriers. This kind of scenario forces the freight brokers to quote more price to the shippers, which will eventually lead the latter to choose another broker for a reliable pricing. There has been a trend in the US freight brokerage where E-commerce players are trying to capture the market. Amazon launched its freight brokerage platform. The online service is currently in beta verspon in New Jersey, Connecticut, Maryland, New York, and Pennsylvania, which enables shippers to get instant quotes and match with a freight service. Amazon isn't providing capacity on its own vehicles as part of the platform, but rather is brokering access to trucking partners on its network. Amazon’s vast experience in transporting merchandise internationally translate into an edge in the freight brokerage market, which potentially enable it to offer more competitive pricing than rivals or a more streamlined experience.
Many devices and apps are being integrated in the trucks to solve the visibility issue, which collects some useful data. The data enable 3PLs to help shippers optimize shipment schedules with regard to cost and help carriers utilize their assets more efficiently. Technology integrated companies are playing a major role in the market. For instance, since Uber Freight’s public launch in the United States in May 2017, the group have contracted with over 36,000 carriers that in aggregate have more than 400,000 drivers and have served over 1,000 shippers, which includes global enterprises such as Anheuser-Busch InBev, Niagara, Land O’Lakes, and Colgate-Palmolive. The US remains as the leader of computer chips manufacturing industry. Around 44 billion dollar worth of semiconductors are exported from the U.S. every year, which makes them America's fourth leading manufacturing export after cars, airplanes and refined oil. Despite of decreased market share of US on a global scale, the U.S. chip production has steadily grown over the years. Many companies are actively involved in this niche segment, which focuses solely on the freight brokerage of silicon chips. Freight brokers serve two distinct customers in this sector, manufacturers of the chips, and the buyers of the chips who are processor manufacturers.
 

Scope of the Report

A complete background analysis of the US freight brokerage market, which includes an assessment of the sector and contribution of sector in the economy, market overview, market size estimation for key segments, key developments and emerging trends in the market segments, market dynamics, and key freight statistics are covered in the report.

By Service
LTL
FTL
Others
By End-user
Manufacturing and Automotive
Oil and Gas, Mining, and Quarrying
Agriculture, Fishing, and Forestry
Construction
Distributive Trade (Wholesale and Retail Segments, FMCG included)
Other End Users (Telecommunications, Pharmaceutical, etc.)

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Key Market Trends

Integration of Technology and Growth in Licensed Brokers

The tech-enabled services offers prominent opportunities for the freight brokers to provide transformational value to the market. Companies like Transfix, Convoy, Uber Freight, and Loadsmart use different algorithms to match several carriers and loads based on origin, destination, price, type of load, and timing. Traditional brokerage results in delays or issues with a shipment, but they are hard to analyze. With digital freight booking, the brokerage maintain a detailed record of every load, minute by minute in some cases. 
To tap the growing opportunities in this sector, traditional players are entering the market with huge investments.  Some traditional players have entered into the digital space. J.B. Hunt has its Carrier 360 platform and C.H. Robinson has Navisphere. A lot of the other carriers starting to adopt these technological capabilities. Carrier 360 and Navisphere are also highly automated and handle billions of dollars’ worth of freight. While many brokers and third-party logistics providers have invested to increase app functionality and technology utilization, Uber has aggressively positioned itself as the technology-enabled disruptor. Furthermore, as per the industry sources, the total number of licensed freight brokers active in the US market have been increased significantly over the years. Even as the trucker shortage still looms large, freight brokers are increasing at a steady pace. A total of 17,723 active licensed brokers were registered as of Aug 2017 in the United States. 
 

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Spotlight on U.S. Trucking Sector

The trucking industry in the United States worth hundreds of billions of dollars. Trucks moves morethan 70% of all the freight in America. In 2017, 10.77 billion tons of freight transported by trucks. 2018 was a robust year for the trucking industry, which saw record-setting levels of freight-haulage demand, and driver pay as freight tonnage levels reached a 20 year high. A protracted U.S.-China trade war and additional tariff increases threaten business conditions for trucking. Trucks are the main transportation for most foreign goods arriving at the large West Coast ports in Los Angeles, Long Beach and Oakland. Higher tariffs mean fewer ocean shipments, less port activity and the need for fewer drivers to haul that freight to distribution centers.

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Competitive Landscape

The US freight brokerage market is moderately fragmented in nature with the presence of large regional players, global players and small and medium sized local players with a few players who occupy the market share. C.H. Robinson dominates the industry, followed by XPO Logistics, and Hub Group/Mode Transportation. The freight brokerage market is top heavy. Some top 8 to 10 firms account for more than one third of the total gross revenues. Brokers need to be more dynamic since there has been few changes in the industry in terms of safety standards. One such was the new food safety rules, part of the US Food and Drug Administration’s Food Safety Modernization Act (FSMA). Brokers are considered equivalent to shippers and need to comply with the same requirements shippers are subject to.
As far as technology integration is concerned, new entrants (Convoy, Uber Freight, uShip, etc.) are trying to gain significant market share by offering price transparency, online load boards, and freight marketplaces for booking freight via mobile apps, with the goal of removing human interaction in the freight booking and payment process. As per the industry sources, neither Convoy nor Uber Freight yet possesses even one percent market share of the truckload brokerage industry, and more than 60% of industry is composed of relatively small players, presenting an opportunity for technology disruption and consolidation that has been attractive for venture capitalists, who poured nearly USD 3 billion dollars into freight tech companies in 2018.
 

Major Players

  1. CH Robinson
  2. Total Quality Logistics
  3. XPO Logistics Inc.
  4. Echo Global Logistics
  5. Worldwide Express

* Complete list of players covered available in the table of contents below

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Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET OVERVIEW

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

    3. 4.3 Porter's Five Forces Analysis

    4. 4.4 Industry Value Chain Analysis

    5. 4.5 US Logistics Industry (Overview, Trends, R&D, Key Statistics, etc.)

    6. 4.6 Key Government Regulations and Initiatives

    7. 4.7 Insights on Freight Rates

    8. 4.8 Technology Snapshot (Digital Freight Brokerage, IoT, etc.)

    9. 4.9 Qualitative and Quantitative Insights on US Customs Clearance Sector

    10. 4.10 *List not Exhaustive

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Service

      1. 5.1.1 LTL

      2. 5.1.2 FTL

      3. 5.1.3 Others

    2. 5.2 By End-user

      1. 5.2.1 Manufacturing and Automotive

      2. 5.2.2 Oil and Gas, Mining, and Quarrying

      3. 5.2.3 Agriculture, Fishing, and Forestry

      4. 5.2.4 Construction

      5. 5.2.5 Distributive Trade (Wholesale and Retail Segments, FMCG included)

      6. 5.2.6 Other End Users (Telecommunications, Pharmaceutical, etc.)

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration, Major Players)

    2. 6.2 Company Profiles

      1. 6.2.1 CH Robinson

      2. 6.2.2 Total Quality Logistics

      3. 6.2.3 XPO Logistics Inc.

      4. 6.2.4 Echo Global Logistics

      5. 6.2.5 Worldwide Express

      6. 6.2.6 Coyote Logistics

      7. 6.2.7 Landstar System, Inc.

      8. 6.2.8 Schneider

      9. 6.2.9 SunteckTTS

      10. 6.2.10 GlobalTranz

      11. 6.2.11 J.B. Hunt Transport, Inc

      12. 6.2.12 Hub Group

      13. 6.2.13 BNSF Logistics LLC

      14. 6.2.14 KAG Logistics, Inc.

      15. 6.2.15 Yusen Logistics (Americas) Inc.*

    3. 6.3 Other Players in the Market

      1. 6.3.1 England Logistics, Inc., ROAR Logistics, Convoy, Transfix, DHL Group, NEXT Trucking*

      2. 6.3.2 *List not Exhaustive

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. APPENDIX

    1. 8.1 GDP Distribution, by Activity and Region

    2. 8.2 Insights on Capital Flows

    3. 8.3 Economic Statistics-Transport and Storage Sector, Contribution to Economy

    4. 8.4 External Trade Statistics-Export and Import, by Product

    5. 8.5 Insights on Key Export Destinations

    6. 8.6 Insights on Key Import Origin Countries

    7. 8.7 List of Prospective Clients for Logistics Service Providers

  9. 9. DISCLAIMER

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