New Armstrong report addresses carrier/freight broker mix

Ever-evolving logistics management business models have driven significant change in the Domestic Transportation Management (DTM)/Freight Brokerage landscape, says Evan Armstrong, president of Armstrong & Associates, Inc. (A&A). In a new report he notes that affordable IT, economic forces, and governmental regulation has transformed the industry.

“The marketplace looks a lot different today than the ‘one person, one phone’ days of the past,” he adds.

While very fragmented, the market has fostered the rapid growth of many new entrepreneurial entrants such as Coyote Logistics, Echo Global, and TQL. This report details the growth of specific DTM/Freight Brokerage operating models and winning business practices, discusses broker roles and compensation, explores customer and carrier relationships, typical gross margins, and highlights recent DTM mergers and acquisitions activity.

Perhaps the most important aspect of the report is that quantifies what is winning in an increasingly competitive market and what forces have driven change.

Included in the report is detail and commentary on recent M&A activity and A&A’s exclusive Top 100 DTM/Freight Broker list.

Logistics Management will be examining these trends in a feature for our November print edition: Managing the right carrier/freight broker mix