TransCore says results from its newly released 2009 Broker Benchmark Survey show gross margins declined slightly for freight brokers in 2008 as a result of volatile market conditions.
Almost 500 freight brokerage companies and third-party logistics providers completed the second annual survey, which asked about company operations, revenues, margins and sources of business. Survey respondents reported that profit margins averaged 15.8 percent, a 5 percent decline from last year’s average of 16.6 percent.
As part of the survey, brokers offered insights about their strategies for coping with the turbulent business environment: 39 percent had not changed their business practices in 2008; 31 percent cut costs; 30 percent cut jobs; and 13 percent did both.
According to the survey, some companies added sales people or agents, improved operational efficiency, tightened credit controls and/or enhanced customer service. Broker-carriers were more likely to resort to layoffs, while nonasset-based brokers were more likely to continue current practices, cut costs or add sales personnel.
To download the survey, click here.
