We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Subscriptions
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • The Logistics of Defense
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Subscriptions
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • The Logistics of Defense
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Broker survey shows record load volumes in second quarter as net operating profits jump
transportation

Broker survey shows record load volumes in second quarter as net operating profits jump

August 10, 2018
DC Velocity Staff
No Comments

U.S. freight brokers experienced a solid second quarter as load volumes surged to record highs and net operating profit jumped, according to a survey published today of 100 decent-sized brokers by spot market load board operator DAT Solutions, LLC.

However, gross margins, or the revenue left after paying for the costs of purchased transportation, came in at a somewhat disappointing 12.8 percent as brokers grappled with a powerful jump in spot, or non-contract, rates during the quarter, according to the company's data.

Purchased transport costs for dry van services, the most common form of truck trailer, is up 37 percent since the second quarter of last year. Margin compression may continue to be an issue for brokers should rates remain elevated for the rest of the year, DAT said.

Net operating profit, defined as profit after expenses, taxes, depreciation and amortization, rose 23 percent in the quarter compared to the same period in 2017. This indicates the brokers involved in the survey exercised effective cost controls to more than offset the higher transportation expense, DAT said.

It helped that the surveyed brokers moved 38 percent more loads in the quarter than they did in the 2017 period, setting an all-time record in the process. Load volumes rose 18 percent from strong first-quarter levels, while revenue per load last quarter also surged, the firm said. The volume strength and vigilance on costs explained why net operating profits were so much stronger, on a percentage basis, than gross margins, DAT said.

Eileen Hart, DAT's vice president of marketing and corporate communications, said today in an e-mail that brokers she's spoken with are very satisfied with their current financial situation, and that they are adding staff to keep up with demand. "I don't hear many complaining about margin compression, because they understand the reasons behind it," Hart said.

The 100 brokers surveyed had an average gross revenue of $19.5 million. Gross revenue is revenue before purchased transportation costs.

Transportation Trucking Truckload Vehicle & Trailer Equipment & Services
KEYWORDS DAT
  • Related Articles

    Robinson gets caught in buy-sell squeeze as second-quarter truckload net revenues plunge

    Amazon's shipping spend continued to rise in second quarter as volumes climbed

    XPO blows away second-quarter estimates; LTL operating ratio at lowest point in decade

Recent Articles by DC Velocity Staff

ProMatDX: Facility design in the age of “new” commerce

ProMatDX: Finding sustainable warehouse solutions

ProMatDX 2021: Welcome to Industry 5.0

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • A look into the future of robotics

  • A primer on warehouse robots

  • Exotec Skypod System Adopted by Gap Inc. to Optimize Returns Process

  • Roadrunner Freight bolsters LTL capabilities with $50 million in new backing

  • Truck driver availability tightens to three-year low, ACT says

Now Playing on DCV-TV

Eb277b97 c776 48f1 98e6 6591f2fc98c2

Are you Considering Using Automated Guided Vehicles or Autonomous Mobile Robots in your Facility?

DCV-TV 4: Viewer Contributed
Flooring is one key component that should be considered for optimal robotic performance on elevated platforms. Gloss, texture, wear, and the condition of the floor can all effect the ability of the robot to run at its peak operating levels. Learn how ResinDek flooring can solve these issues.

FEATURED WHITE PAPERS

  • Special Report: Supply Chain Trends in Retail & Consumer Goods

  • Fortify Your Operational Resilience

  • Cold Storage Automation: Leveraging Advanced Technologies to Meet Increasing Demand

  • The modern warehouse: Maximizing productivity and capacity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing