Executive Briefings

Challenges Facing Transportation Brokers

As new government regulations intensify the transportation capacity crunch, non-asset-based brokers will be even more hard pressed to find equipment for their customers, says Mike Williams, chief operating officer at Sunteck Transport Group. That could weed out fly-by-night operators that sometimes give the industry a bad rep.

The Comprehensive Safety Analysis 20120 is a Federal Motor Carrier Safety Administration regulation designed to make highways safer. What's that have to do with non-asset-based transportation brokers, since they don't own any vehicles? It means they will have to be more attentive to how they select carriers to serve their customers, Williams says.

Truck capacity is already tight now, and the expectation is that the new regulation, usually referred to as CSA 2010, will constrict the supply of vehicles even more. "We believe that makes the job of the intermediary even more critical for the supply chain," Williams says.

He feels that Sunteck can attract quality carriers, but recognizes that some brokers do not enjoy a good reputation in the industry. "It seems that the customer community continues to have reluctance to deal with non-asset-based brokers." He says that's based on the well-founded belief that some brokers are small-time and fly-by-night.

He feels a program to reward carriers that perform to expectations - and conversely, penalize those who underperform) is necessary. Sunteck has such a program, but it takes more than that to differentiate yourself in this industry, says Williams. "The concept of performance excellence requires discipline to execute and deliver value-added services and systems to your customers. Yo need to have the ability to attract and retain the highest quality asset providers, whether they are carriers or warehouse operators, and have strategic relationships with them in place."

To view this video interview in its entirety, click here.

The Comprehensive Safety Analysis 20120 is a Federal Motor Carrier Safety Administration regulation designed to make highways safer. What's that have to do with non-asset-based transportation brokers, since they don't own any vehicles? It means they will have to be more attentive to how they select carriers to serve their customers, Williams says.

Truck capacity is already tight now, and the expectation is that the new regulation, usually referred to as CSA 2010, will constrict the supply of vehicles even more. "We believe that makes the job of the intermediary even more critical for the supply chain," Williams says.

He feels that Sunteck can attract quality carriers, but recognizes that some brokers do not enjoy a good reputation in the industry. "It seems that the customer community continues to have reluctance to deal with non-asset-based brokers." He says that's based on the well-founded belief that some brokers are small-time and fly-by-night.

He feels a program to reward carriers that perform to expectations - and conversely, penalize those who underperform) is necessary. Sunteck has such a program, but it takes more than that to differentiate yourself in this industry, says Williams. "The concept of performance excellence requires discipline to execute and deliver value-added services and systems to your customers. Yo need to have the ability to attract and retain the highest quality asset providers, whether they are carriers or warehouse operators, and have strategic relationships with them in place."

To view this video interview in its entirety, click here.