More trucking brokerage is coming from third-party logistics firm ADS Logistics, which primarily services the metals industry.
“Portions of the metals industry have been anxious in the past about ‘brokerage’ due to potential concerns about delivery reliability and liability coverage in the absence of a direct trucker relationship,” stated Tom Eatinger, vp & gm for Homewood, IL-based ADS’ Area Transportation division. “However, we’ve demonstrated the ability to provide reliable brokered loads through our managed services over the last several years, so we think we’ve successfully mitigated customer perceptions and concerns relative to brokerage.”
Faced with the increased shortage of qualified drivers and the reduced number of available driving hours as a result of hours-of-service regulations, ADS has increased its dependence in recent years on the brokered portion of its fleet, said Eatinger.
“Rigorous background checks and careful management of insurance coverage are key to responsibly moving brokered freight,” he said. “The results have been rewarding, with more and more customers recognizing that brokerage is a creative way to increase capacity when managed properly.”