Supporting Small Carriers and Owner Operators in a Volatile Freight Market
According to recent data from the Federal Motor Carrier Safety Administration (FMCSA), small carriers and owner-operators constitute the majority of the transportation industry in the United States. The data shows that fleets with one to six tractors account for 86% of total carriers, while those with 7 to 19 tractors make up another 9%. These small fleets provide over 30% of the industry's available power units. However, despite their prevalence in the market, smaller carriers and owner-operators are the most vulnerable during market downturns due to their limited budgets and smaller operations. They struggle to cope with losses and safeguard their bottom lines compared to larger carriers, which are better equipped to handle volatile market conditions. The current market conditions, combined with the increasing expenses of operating and maintaining a truck, have created a difficult situation for small companies.
As a result, it is crucial for shippers and brokers to have conversations with their owner-operators and small carriers to keep their trucks moving so they can continue to provide capacity in the transportation industry. When a large percentage of carriers go out of business, the impact is felt not only by the carriers themselves but also by shippers, brokers, and end consumers. This is particularly true for smaller shippers and consumers living in rural parts of the country who rely on small carriers for capacity in smaller regions.
To keep freight moving and maintain strong partnerships through market shifts, MegaCorp Logistics has partnered with Trucker Tools for years, using their suite of tools to provide consistent load opportunities to small carriers and owner-operators. Trucker Tools' carrier relationship management platform enables brokers to track shipments, book loads digitally, automate negotiations, and engage new carriers who may be a good fit for their networks. Brokers and shippers can reduce the negative impacts of a volatile market by providing as many load opportunities as possible, including daily truck sheets, spot load opportunities, or creating awareness to capacity platforms like Smart Capacity.
In turn, carriers can focus on building stronger relationships with their shipper and broker partners by providing consistent, high-quality load coverage while complying with visibility requirements and being proactive about communicating disruptions and delays. When shippers, brokers, and carriers work together, each member of the trio can thrive despite the ups and downs of the freight market. The plethora of driver support tools available in the Trucker Tools app can also relieve some of the mounting pressure on shippers, brokers, and carriers alike, paving the way for a more collaborative future.
