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Another negative is technology’s ability to nearly eliminate the need for any face-to-face contact. Deals can be sealed by phone and contracts sent via email or fax. But building relationships between shippers and carriers is still paramount to operating a successful brokerage, Lund says. “In many ways, technological advances hinder relationship building as the relationship gets broken down into data inputs and outputs. We work hard to teach our employees that relationships and high service levels are more important than the technology.”

The Shifting Role of 3PLs
The ongoing dearth of trucks and drivers has triggered an influx of third-party logistics providers, or 3PLs, to manage services for all or part of a customer’s supply chain management. Many are separate firms handling various outsourced transactions, but some larger brokers have added 3PL services to their portfolio. “In my opinion, there’s always going to be a need for the spot market truck broker, but I see the use of technology and 3PL services taking on a bigger role in the future,” comments L&M Transportation’s Devine.

“The biggest brokerage firms continue to refine the specialization within their teams, going away from the old cradle-to-grave broker to be truck specialists, account managers, data input teams, and track and trace teams,” says Doug Stoiber, a recruiting consultant with Ag1Source in Hesston, KS, and a former supply chain executive with L&M Transportation Services.

Lund believes medium and large brokerages have changed significantly as they have been asked to offer more and more services. “Larger brokerages now offer services that include transportation management system (TMS) software, load consolidation, bid management, warehousing, long range pricing, managed services, scheduling software, EDI (electronic data interchange), contingent cargo insurance, international transportation, intermodal services, and LTL (less than truckload) and small package transportation,” he says.

While there is no shortage of 3PLs, the produce industry offers specific challenges. “Hauling produce does pose different problems than hauling dry freight, but done correctly 3PL services can be very beneficial,” Devine says.

Lund agrees, explaining that the company’s TMS system was built specifically for produce shippers. “Most TMS systems can’t handle the multi-pick, multi-drop, multi-change orders that happen regularly with produce shipments. Because we ‘grew up’ in the produce world, we’re able to offer services on a large scale that are appropriate to the produce industry.”

As the role of truck brokers and 3PLs evolve and the industry contracts, top notch service becomes key to long-term success. “The backbone of the produce transportation business will continue to be truckload shipments,” Devine contends, “and some brokers are going to stick with this bread-and-butter service while leaving the rest—LTL, pool distribution, and the like—to the competition.”