TransCore releases first broker benchmark industry report

A TransCore survey reveals that brokers' gross margin averaged 16.6 percent. (TransCore 2008 Broker Benchmark Survey graphic)

The Trucker News Services

6/2/2008

PORTLAND, Ore. — TransCore has released the findings of its first annual broker benchmark survey based on customer feedback. The data offers an industry overview with benchmarks focusing on broker operations, business and financials, as well as staffing. This research is the first in a series that will be released throughout the year by TransCore to share relevant information with its constituencies, the company said.

“Staying abreast on the latest industry information is essential to the success of brokers,” said David Schrader, vice president, Freight Business Services, TransCore. “We commissioned this research to help the broker community make the most informed decisions possible to improve operations. We are thankful to those that participated and will continue to offer similar business intelligence as an industry resource.”

Survey findings include:

Average monthly freight bills		Types of loads moved
Brokers who are carriers		Gross margins per TL load
Quick-pay services for carriers		Job responsibilities
Key broker company expenses		Employee benefits

Responses were generated from a variety of companies. Nearly half (47 percent) have five or fewer employees, and are predominantly self-employed. Of those, 48 percent exclusively provide broker services, with an additional 28 percent classified as broker/carriers. Throughout the past three years, 45 percent averaged $1 million to $5 million in revenue. Study highlights revealed that carrier and personnel account for 82 percent of operating costs and almost half attribute approximately 75 percent of overall costs to carrier expenses.

Analysis further indicates that TL loads comprised a majority of responders’ businesses (78 percent), with gross margin averaging 16.6 percent. Most loads originated from long-term relationships with suppliers. A large number of responders (75 percent) indicated that they expect intermodal shipments, which are now just five percent of the average load mix, to increase or remain flat in 2008. It was also shown that 64 percent of those surveyed have health insurance and 45 percent offer retirement or pension plans.

The entire report is available on a complimentary basis at www.3sixty.transcore.com or (800) 529-7634.

Survey was based on 26 on-line questions posted Feb. and March 2008. A total of 594 U.S. brokers responded, with 312 completing the entire survey. Participants ranged from self-employed brokers with 10+ years experience to new brokers in large, well-known companies.