A recap of Tucker’s data-driven 30-minute analysis and Q&A regarding the trucking market’s past year and looking forward to the year ahead.
2023 was a challenging year for many in the trucking industry, but as with any difficult period, there are lessons learned and key takeaways that will help us prepare for the coming new year. In a recent webinar held on December 14th, 2023, Jeff Tucker, CEO of Tucker Company Worldwide, shared insights into navigating the road ahead
Amidst today’s highly cyclical truckload market, shippers are faced with the challenge of constructing robust transportation networks that can weather the storms of capacity crises. As the market’s volatility continues to rise, the need for shippers to strategically allocate their lanes becomes increasingly apparent. This is where the idea of shippers awarding 50% or more of their lanes to great brokers comes into play. This shift in strategy not only enhances scalability but also fosters resilience in the face of market fluctuations.
The 50/50 Volume Standpoint
In the realm of transportation, data is king, and balance is key. The prevailing wisdom has often leaned toward relying heavily on carriers (“asset-based providers”) to fulfill capacity needs. However, a shift has been occurring over the past decade, emphasizing the significance of balance between carriers and brokers. For the first time in modern history, over 50% of all drivers today drive for fleets who control on average 5 trucks! You simply cannot depend upon large carriers to support business in good times and bad. Understanding this data then, the magic formula lies in the 50/50 volume standpoint – a strategy that might seem unconventional but holds transformative potential. This balance ensures that the shipper leverages the strengths of both brokers and carriers, maximizing its flexible and adaptable transportation network.
Seeing Beyond Low-Volume Lanes
For shippers to truly capitalize on this approach, they must understand a crucial element: not just any 50% of lanes will suffice. It’s not about relegating low volume lanes to brokers; it’s about embracing a strategic blend. The goal is to empower brokers with substantial lanes, and here’s why: when the market shifts and the need for scalability arises, brokers armed with high-value lanes become integral. The carriers underwriting the broker lanes see the shipper as a critically important customer and will give added capacity to the shipper as soon as the large asset-based carriers begin rejecting tenders. Big carriers are rejecting loads sooner in market swings, and in higher percentages because (a) their biggest customers demand their attention as other carriers leave them struggling, and (b) large carriers begin offering more of their capacity to the spot market, where rates are higher, and returns are lush. With brokers ingrained into your volume, they and their smaller fleets can scale up more seamlessly as the big carriers begin their rejections.
Creating Significance in the Eyes of Carriers
Shippers who hesitate to award a sizable portion of their lanes to brokers will find themselves facing dwindling tender acceptance rates from carriers sooner in the next market swing, and paying spot prices to gain that needed capacity. If brokers are entrusted solely with low-volume lanes, then the carriers who are supporting that business only see low-volume, sporadic business and thus do not view the shipper as a significant investment. However, by awarding 50% of the volume to carriers and 50% or more to brokers, shippers establish themselves as key players, increasing the likelihood of their freight being prioritized.
The concept of allocating 50% or more of lanes to brokers isn’t just about numerical distribution; it’s about perception. By entrusting brokers with high-value lanes, shippers convey that they consider brokers as valuable extensions of their logistics strategy. This shift in perspective can lead to increased investment from carriers and brokers alike, enhancing the overall efficiency of the transportation network.
Strategically Building Resilience
In a market that ebbs and flows, resilience is a shipper’s most potent weapon. The concept of awarding lanes based on both price and service is instrumental in fostering this resilience. Shippers should conduct quarterly mini-bids on all lanes where service falls below their Key Performance Indicators (KPIs). Following these steps will ensure shippers can navigate the cyclical nature of the market more effectively.
Navigating the Unpredictable
In an era where the transportation landscape is characterized by its unpredictability, shippers must embrace innovation. Shippers who adopt a 50/50 volume allocation strategy position themselves to navigate these cycles more effectively. If you want scale and flexibility, the carriers your broker uses needs to feel the weight of you, the shipper, as its customer too. By recognizing brokers as partners who can contribute to scalability, flexibility, and resilience, shippers can forge a path to success, even in the face of market volatility. The time to act is now – to build a future-proof transportation strategy that will weather any storm.
Contact us today, and let’s discuss how Tucker can assist you with all your shipping needs.
A recap of Tucker’s data-driven 15-minute analysis of the freight market today, trends you should be aware of, and what it all means for YOU!
In the recent webinar held on Thursday, July 13th, Jeff Tucker, CEO of Tucker Company Worldwide shed light on the significant decline in the number of drivers between May 2022 and the present. Using data from QualifiedCarriers.com, Jeff unraveled the narrative behind the loss of over half a million drivers.
Save the date for Tucker Company Worldwide’s next market update webinar on Thursday, September 21st, at 12 PM EST. We look forward to seeing you there!
While the US domestic trucking market balances supply and demand, the situation is markedly different at the US-Mexico border. With a surging U.S. demand for Mexican manufactured goods and produce, there has been a significant increase in the volume and value of shipments from Mexican factories and farms to the United States. Furthermore, there exists a noticeable difference in available capacity between the U.S. market and cross-border operations. In this blog, we explore the resilience of cross-border trucking and why Tucker Company Worldwide is the ideal partner for your cross-border shipping needs.
Resilience in Cross-Border Trucking
Recent reports highlight the remarkable resilience and growth observed in cross-border trucking. The rise of new manufacturing enterprises in Mexico, fueled by nearshoring initiatives, is set to further enhance the flow of cross-border freight in North America. Tesla, a renowned Texas-based automaker, has emerged as a significant contributor to this trend by announcing its ambitious plan to construct a $5 billion electric vehicle manufacturing plant near Monterrey, Mexico. This strategic move serves as a catalyst for the ongoing boom and expansion within the Mexican market.
Why Tucker Company Worldwide is Your Best Choice for Cross-Border Shipping Needs
Recognizing the escalating demand, Tucker Company Worldwide has significantly invested in cross-border truckload freight services by applying more of our best-in-class, highly competent service offerings into this growing market across the US-Mexico and Canada borders. With our team of highly skilled industry experts and extensive experience in freight services, you can trust Tucker to deliver your shipments reliably and efficiently, ensuring peace of mind throughout the entire process.
Navigating the Complexities of a Borderless Supply Chain
At Tucker, we understand the complexities of establishing a borderless supply chain, even when markets are interconnected by land. Our deep knowledge of global trade regulations enables us to expedite the movement of products across borders, minimizing delays and streamlining processes for our clients. We are committed to helping businesses that rely on international trade make informed decisions by providing exceptional cross-border shipping services.
Tucker’s Comprehensive Northbound and Southbound Service Offerings
Tucker Company Worldwide offers an array of services to cater to your cross-border shipping needs, providing comprehensive solutions tailored to your specific requirements. Here are some key aspects of our service offerings.
Experience and Expertise
With over 62 years of experience in the industry, Tucker brings a wealth of knowledge and expertise to every cross-border shipment. Our team is well-versed in the intricacies of the USMCA Free Trade Agreement, ensuring compliance and smooth operations for your international trade activities.
Network and Resources
We have established a strong network of carrier connections, enabling us to efficiently manage your cross-border shipments. We recognize that the right carrier can make all the difference in driving and ultimately determining the overall success of your project. That’s why we follow a rigorous selection process to ensure that our customers are paired with the best possible carrier for their specific shipping needs. In addition, our warehouse and inventory management capabilities ensure that your goods are handled with the utmost care and precision.
Technology and Tools
Tucker leverages advanced technology and tools to provide 100% in-transit shipment visibility. With our advanced digital and GPS-based truckload visibility system, we maintain constant communication with our carriers at every stage of the transportation process. This enables us to ensure the timely and secure delivery of your goods. Our high level of visibility empowers us to proactively address any issues, including security breaches, as soon as they arise. This real-time tracking capability not only enhances security but also enables you to stay informed about the progress of your shipments at all times.
Customer Service and Support
We take pride in offering exceptional customer service and support to our clients. Our dedicated team, along with your licensed customs broker, or one of our partners, is always available to assist you with your freight transportation needs. We understand the importance of effective communication and have a team of bilingual representatives who are fluent in multiple languages, further enhancing our ability to serve our clients. Whether you have questions, require guidance, or need assistance with your shipments or customs procedures, we are here to help. Our commitment to providing 24/7/365 shipment support ensures that your concerns are addressed promptly and effectively.
Customs Compliance and Classification
Tucker Company Worldwide understands the importance of customs compliance when it comes to cross-border shipping. We conduct thorough audits, including physical inspections of goods against invoices, and review characteristics and composition for pre-classification purposes. Our comprehensive customs compliance analysis guarantees that your shipments meet all necessary requirements. Additionally, we prioritize cybersecurity to ensure the confidentiality and integrity of your data and transactions.
With the remarkable resilience and growth observed in cross-border trucking, coupled with the increasing demand for manufactured goods and produce, we are fully equipped to handle your shipping needs. Our extensive experience, expertise in global trade regulations, and commitment to customer satisfaction make us the ideal choice for navigating the complexities of a borderless supply chain. From our comprehensive service offerings to our advanced technology and dedicated customer support, Tucker is here to ensure the reliable and efficient delivery of your shipments across the US-Mexico and Canada border. Experience the difference with Tucker Company Worldwide and unlock the full potential of your cross-border logistics.
Contact us today, and let’s discuss how Tucker can assist you with your cross-border shipping needs.
The freight transportation industry is facing a significant challenge due to the widespread occurrence of illegal activities such as unauthorized double brokering, unlicensed and unbonded dispatch services finding loads for carriers, and in other cases, outright fraud. In many fraudulent schemes, the parties involved steal funds owed to carriers with no intention of providing the agreed services, and in some cases, they aim to defraud and steal the cargo. Unfortunately, with the current market’s abundant capacity and many companies struggling financially, more bad actors are emerging.
Whether you deal with a carrier directly, or a broker, shipments are at risk. What your transport partners do, and how they operate, makes all the difference. Having arranged pharmaceutical shipments valued at millions of dollars for decades, without ever experiencing a lost load, we’re experts at avoiding fraud and bad actors.
So, what’s double brokering? It’s the practice in the freight transportation industry where a carrier takes on a load and then brokers it out to another carrier, often multiple times, without informing the shipper (or the broker with whom it contracted). This unlawful activity can have severe consequences for your business. It is said that double brokering scams result in industry losses of over $100 million each year. To avoid the costly risks associated with these illegal activities, it’s essential to stay vigilant and proactively plan for potential risks.
The TIA, Transportation Intermediaries Association, created the flow chart below that depicts the “life cycle” of double brokering and the players involved in the transactions. Since the implementation of MAP-21 in 2012, TIA members have been reporting instances of double brokering to the Federal Motor Carrier Safety Administration (FMCSA). By the end of 2021, the FMCSA had informed TIA that tens of thousands of reports specifically about ”double brokering” existed in the National Consumer Compliant Database (NCCDB). If this is something you’ve encountered, you can file your complaint with the NCCDB.
When accidents or cargo loss and damage occur, double brokering gets messy fast, potentially leaving you exposed to legal jeopardy. Tucker takes pride in the carrier relationships we’ve built, the software we use, the ISO-9001:2015 certified quality process we have in place, and our unique forensic dispatch approach that combine to make Tucker an exceptional choice to avoid scams, theft, loss, and potential legal jeopardy.
Where Tucker Comes In
It is imperative that you stay ahead of the game in order to prevent any negative consequences associated with double brokering. To minimize the risks, you should partner with an experienced logistics provider who prioritizes taking the necessary measures to prevent the occurrence of such incidents. At Tucker, we take the proactive steps outlined below to detect fraudulent activity and prevent costly mistakes associated with double brokerage. The capacity specialists on our team are trained to identify scammers and prevent them from being authorized to transport our customers’ critically important shipments.
Forensic Dispatch
One of the most important ways to avoid double brokering is to communicate clearly and consistently with all parties involved in the shipment. In the trucking industry, many mistakes can happen during the vast amount of communication flow between the parties.
Tucker’s Forensic Dispatch process is designed to engage the parties with whom we speak, by inserting just a few minutes of critical, didactic, and intelligently designed questions to confirm each carrier’s ability to meet service requirements and reconfirm those requirements at certain points in time up to delivery. Communication and questions take place at two levels; with carrier office personnel and directly with drivers. Tucker personnel continually cross-checks all parties’ answers to confirm their full understanding of service requirements. We have established a thorough communication process with all parties involved in a shipment to verify the identities of the companies with whom we work. This helps us detect potentially fraudulent activities and take appropriate measures, including reporting any suspicious incidents.
Trust, but Verify – Carrier Relationships Combined with Compliance Data
Another vital step in preventing double brokering is carefully choosing, and continually monitoring, motor carriers. At Tucker, we have a meticulous process for selecting and assigning carriers, because we recognize that successful carrier selection is crucial in driving and potentially determining the overall success of a project. We seek to use carriers with whom we have a relationship, and whose service levels are exceptional. Even so, we trust and verify. Carriers are evaluated daily for compliance, such as safety rating, out-of-service (OOS), operating authority, and other criteria to ensure important data aren’t missed before it’s too late. Our tools, processes, and training have been meticulously designed to proactively discover bad actors, imposters posing as legitimate carriers or even the good carrier friend who occasionally slips up.
Using Technology to Improve Freight Security
Technology is another crucial tool in preventing double brokering. By utilizing our technology, we can not only simplify the process of connecting with carriers and verifying their performance and location, but also enhance the security of your freight. Our digital, GPS-based truckload visibility enables us to stay in touch with our carriers throughout the entire transportation process and guarantee the timely and secure delivery of your goods. This level of visibility permits us to promptly address any problems, including security breaches, as they arise.
You Can Trust Tucker
Double brokering is a serious issue that can have significant consequences for your business. To ensure your peace of mind and protect your brand reputation, it’s crucial to partner with a trusted company that takes proactive steps to prevent such illegal activities from happening. Our extensive 62 years of industry experience and active involvement in committees and associations have earned us a strong reputation for providing secure and reliable freight solutions for high-value industries. We are proud to serve industries like life sciences and government, where the safe and timely delivery of high-value, high-security freight is critical. With Tucker, you can rest assured that your freight is in safe hands and will arrive at its destination securely and on time. We have the software and know the signs to avoid double brokering, and our unique approach to doing business allows us to say “you’re safe with us”.
Contact us today, and let’s discuss how Tucker can help your company avoid this rampant scam.
A recap of Tucker’s data-packed 15-minute analysis of the freight market today, trends you should be aware of, and what it all means for YOU!
On Thursday, May 4th Tucker Company Worldwide CEO Jeff Tucker was joined by Senior Transportation Analyst at Bloomberg Intelligence, Lee Klaskow, to discuss the current state of thefreight market. The discussion focused on what is currently happening, where we have been, where we are now, and where we may be heading. The insightful conversation provided valuable information that can aid you in navigating the current market conditions.
You don’t need to be an expert in logistics to choose a reliable third-party logistics provider (3PL). A good 3PL provider can improve the efficiency and cost-effectiveness of your operations.
Keep in mind the following five factors when choosing your next 3PL provider.
1. Reliability
Reliability is crucial when choosing a 3PL provider. To ensure on-time delivery of your shipments, you must have access to a high level of customer service so you can stay informed about the status of each shipment and receive assistance if needed. In the event that something goes wrong or there is a shipment that is time-sensitive, your preferred 3PL provider should have the ability to assist you with a quick solution 24/7/365. Additionally, your preferred 3PL should be quality-managed. A 3PL that is ISO-certified will be able to meet and exceed the expectations of its customers and stakeholders on a consistent basis.
2. Reputation
Choosing a logistics provider requires consideration of the provider’s reputation in the industry. It is likely that the reputation of the provider you select will have an impact on your own reputation. A 3PL who hasa stellar reputation will contribute greatly to the success of your business and assist in establishing your brand in the marketplace. Verify that your 3PL is reputable by seeking out positive reviews, testimonials, and long-term business relationships.
3. Area of Expertise
Although some freight brokers claim to handle all types of freight, the truth is that no single provider can handle it all. It is common for 3PL companies to specialize in specific types of logistics, such as certain industries, modes of transportation, regions they serve, or combinations of these factors. For instance, Tucker Company Worldwidespecializes in a wide range of transportation services, including temperature-controlled, truckload, flatbed, heavy haul, and project cargo, specializing in seven different industries. It is important to ensure that your shipments are aligned with the expertise of the 3PL provider you have selected.
4. Technology
To ensureseamless supply chain logistics, real-time data sharing and timely responsiveness are essential. It is imperative that the 3PL provider has the technology to provide you with real-time information. The visibility provided by this technology can assist with tracking, ordering, and forecasting. The use of this technology will enable you to see near-real-time location data, better predict arrival times, and gain a greater understanding of transport in general.
5. Relationships
Choosing a logistics provider requires taking into consideration the existing relationships that the company has established in the industry. A 3PL with a strong network of carrier connections is critical to ensuring consistent and exceptional customer service for 3PLs. Without a trustworthy group of go-to partners, you may be forced to settle for unfavorable carrier rates.
Are you ready to get started?
Over the past 62 years, under three generations of family leadership, Tucker has been a leading name in North American freight transportation. Tucker Company Worldwide takes great pride in moving high-touch, high-security freight in industries where reputation and track record are paramount. We have helped transportation professionals for some of the world’s top brands ensure the safe, on-time delivery of their freight. Since 1961, we have grown to be experts in seven industries:Life Sciences & Healthcare Products, Food & Beverage, Oil & Gas, Renewable Energy,High Value, Government, and Cross-Border. We are committed to ensuring the safety and security of our customers’ products, which is why we go the extra mile to ensure every shipment is handled with the utmost care. Behind this commitment is ourISO 9001:2015 certification. Whether your shipment is oversized, delicate, high-value, or hazardous, you can trust Tucker to manage it, using carefully designed procedures to get the job done right.
Logistics services that set Tucker apart. Let’s talk about how Tucker can simplify your logistics and drive your business forward—contact us to get started.
