Freight Brokers and Amazon

• Eugene Kim

 

ReutersAmazon CEO Jeff Bezos

Amazon may be taking steps to get in the freight transportation industry, but trucking companies don't seem too concerned about it.

The simple reason: Amazon's growing so fast, it can't handle everything by itself.

“They’re growing so dramatically that it’s hard for anybody to keep up with what they are doing in the marketplace. They need every truck they can get their hands on," Joey Hogan, CEO of Covenant, a trucking company that works with Amazon for expedited shipping, said on its earnings call Tuesday, according to the Wall Street Journal.
“Amazon’s trailer purchases are having little to no impact on our truckload segment,” another large trucking company called Swift Transportation was quoted as saying by the WSJ. “We currently operate several different facilities for Amazon across a variety of our suite of services and are excited about our potential growth with this partnership.”
The comments were made in response to questions about a recent report that said Amazon had bought thousands of trailers to ship products between its fulfillment and sortation centers. Although Amazon said it will continue to work with existing trucking partners, the move showed Amazon could take a bit out of the trucking business.
The trucking industry is massive. It generated roughly $650 billion in 2013, or roughly 84% of the entire US commercial transportation industry’s sales. Still, losing a customer like Amazon could put a huge dent on any company.
Amazon is clearly making moves to become a larger logistics company. In addition to the trailers, Amazon is reported to have registered for an ocean freight service, bought several airplanes, and tested drones for unmanned delivery. Baird Equity Research recently wrote, "Among other opportunities, Amazon has 'powerhouse potential' in the large transportation and logistics market, dominated by global enterprises such as DHL and UPS."

Interesting article.  The transportation industry is being affected by our changing marketplace just as is just about every other industry.  A key to being a valuable player in this economy is to stay informed and adjust when necessary.  As Amazon keeps growing they will need freight brokers to help keep their trucks full.   I teach my students the importance of understanding the market.  Come join us in our next class to learn how to be a successful freight broker or learn freight brokering online.  

Moving forward,

Jeff Roach
www.transportationtraining.com

Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.

What's a Freight Broker??

A freight broker is the guy in the transportation world who matches loads with transporters, goods with carriers, stuff with truckers...  A freight broker is a very important job in the transportation industry.  He/she is a middle man, but in a good way.  I think conventional wisdom thinks if we cut out the middle man we can earn more money.  That may be true in some industries but in the transportation industry the freight broker actually helps a lot with efficiency in the industry.

For example say there is a truck full of lettuce bound across the country to deliver the veggies to an area of the country who can't produce their own lettuce.  The carrier may not have a load to take back across the country.  If he rides empty that's a wasted trip.  That trucking company will often use a freight broker to find a load for the return trip. 

Freight brokers become very familiar with the lanes (or route) their carriers take regularly.  They are  very knowledgeable about the specific kinds of merchandise they move, the paperwork needed and the type of truck needed for that particular load.  Their knowledge is very helpful to them and their clients.

Individual freight brokers can work independently or as an agent of a larger freight brokerage.  The relationship is similar to that of a insurance agent or a realtor and the larger company they work under.

I have been in the transportation industry since I graduated college 30 or so years ago.  In that time I've worked in most all capacities in the industry, but mostly I've been a freight broker.  I started my own freight brokerage out of my garage.  I found great success, great customers and great business associates.  I started my freight broker training school to pass along some of the things I have learned along the way.  I now am privileged to meet some amazing professionals destined to do great things as freight brokers and freight broker agents.  

Moving forward,

Jeff Roach
www.transportationtraining.com

Top 3 Ways to Beat the Competition

Shari Waters shares some simple but brilliant ways to stay ahead in this tight economy environment.  She writes to retailers but the ideas are effective for the transportation industry as well. I edited this a bit

Top 3 Ways to Beat the Competition

By Shari Waters, About.com

http://retail.about.com/od/competition/tp/beat_competitor.htm?nl=1

It's inevitable that your business will have some form of competition. And while you can't control what your competitors do, you can minimize their impact on your business. Here are three ways to rise above the competition.

1. Reduce Expenses, Not Advertising

Take a look at your Profit and Loss statement, or itemize all of your expenses, and ask yourself how each line can be eliminated or reduced. Find out where you can cut back. A little here and a little there will soon add up. However, the one expense you do NOT want to reduce is advertising. In fact, many increase their marketing efforts during slower sales periods because there is more competition for fewer dollars.

2. Get Creative

Get creative and use unconventional marketing methods to distinguish your business from the competition. A unique marketing campaign attracts more attention and lands more sales. Also, look for some new untapped market you and your competitors overlooked. You may uncover a niche market you can dominate with little or no competition.

3. Provide Outstanding Customer Service

By going the extra mile to provide good service, outlast the competition. Make dealing with your company a memorable experience. People like to do business with those they feel comfortable and where they feel the owner truly cares about their wants and needs.

In our training course for freight brokers we teach how to build a freight brokerage and we give our students lots of inspiration.  A key element to success is staying encouraged.  I talk with professionals everyday looking for encouragement.  We are only a phone call away for any graduate who needs encouragement along the way.

 

Moving forward,

Jeff Roach

www.transportationtraining.com

Rookies and Pros

Both Rookies and pros get alot out of our training course.   Ricardo has been in the transportation industry for a decade and was pleasantly surprised by what he learned.  

"I have been in the transportation industry for over 10 years and I have to say I am so glad I took this course.  Excellent support, ALL QUESTIONS ANSWERED.  A great experience.  You have to learn as much as you can about what you do and this definitely gave a great boost to my career. " Richardo T.

Vita is new to the industry and this is what she said;

"Not only did this class assure me that I made a good investment in my future, but was able to deliver the material in an easy to understand manner.  The course was not over paced and never made me feel I was wasting time with my questions.  I would recommend the class and to other people interest in this field."  Vita P.

Freight brokering is a great career.  I have been in the industry for 3 decades now as a millionaire freight broker and as a trainer.  The job is fast paced and exciting.  The industry has changed but has always been a business that is in need.  No matter how the economy is going transportation of goods will never stop.  

We see a lot of building going on in Texas.  Building needs material so a great niche of the trucking industry right now is building materials.   

Come to one of our courses soon and learn that the sky is the limit with transportation training.

Moving forward,

Jeff Roach
www.transportationtraining.com 

BOGO Freight Broker Training

BOGO= Buy one, get one.  Buy one tuition get one for free.   Join us for our live Freight Broker Training Course and bring another for free.  Bring a friend, a spouse or a business partner and you can double your learning. 

Often freight brokering is a family business so getting two trained for the price of one is a great deal.  We will often have a husband and wife train along side each other.  Each benefits and each comes away with a different piece of knowledge.  Since our brains all intake information differently, we retain different bits.  Have you ever gone to the doctor with a friend of spouse?  As you discuss the appointment on the way home each heard different stuff--am I right?

So come to our training to learn how to be a prosperous freight broker, but don't come alone.  Learning is more fun and more efficient with a buddy. 

 My wife and I work together.  We see things very differently.  That can be challenging but it is also eye opening.  She sees things that need to be seen that I don't notice.  And vice versa.  Call us to sign up or just to ask questions. 214-206-1169

Moving forward,

Jeff Roach
www.transportationtraining.com

A Truck Driver’s New Job

Robert, a laid off truck driver, gave me a call. His wife had found Brooke Transportation Training blog while helping her man in his search for a new career.  She gave Robert the number. Robert called me to ask me a lot of questions about our freight brokers classes. We had a great talk.  Here is his story:

“I’ve been a truck driver for 19 years.  For the past 6 years I have been a contract driver for the post office driving a route between distribution centers in Virginia.  The post office stopped my route in March.  This is the first time in my life I have been laid off.  The first time I have applied for unemployment. I could get another truck driving job but I would most likely have had to move.  With my post office route my wife and I were able to move out to some acreage and buy some ponies.  As a freight broker I will be able to work out of my ranch, take care of my ponies and be with my family.

I found the freight broker online training course through my local community college’s partnership with the online education company (Ed2go) that administers the course written by Brooke Training.  I researched it online.  It was perfect.  I could do all my work from home.  I have 6 months to complete the course but my plan is to finish in 2 months, get started and still have 4 months I can go back and review some of the things in the course. 

And I won’t even have to pay for the course.  My unemployment contact gave me a grant application.  If approved I won’t have to pay anything back.  

Ideally I want to be an independent freight broker but realistically I know I’ll need to be an agent for an established freight broker.  They’ll help me with cash flow, legalities and other expenses.  It is a low cost business to start. 

It is a little scary, but I’m looking forward to my new career“

Ready for a change this year?  Take our course live or online.  Education is empowering.  To view our online freight broker training course click:  http://www.ed2go.com/career/training-programs/freight-broker-training or join us for the live course in Dallas, California, North Carolina or Florida www.transportationtraining.com.

Moving forward,

Jeff Roach

www.transportationtraining.com