Broker liability will invariably change the transportation landscape, but it is still unclear as to what that means heading into the strongest shipping (volume) month of the year. Follow the Freightonomics Podcast Other FreightWaves Shows Learn more about your ad choices. Visit megaphone.fm/adchoices

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Freightonomics

# Full Transcript

**Podcast:** Freightonomics

## Participants

- **Brittany Chisinau** (FreightWaves)
- **Thomas** (FreightWaves)

## Transcript

me shortly will be Brittany Chisinau. As we break down the broker liability case and what that means for transportation, but we have an action-packed show full of topics to discuss today. You know, and it's, you know, most people don't know this, but June is actually the strongest shipping month of the year due to the combination of all the different commodities that are being shipped in the middle of the year.

There's not a lot of seasonal issue there. And you have all this overlap. You have industrial, you have produce, you have beverages, you have summer seasonal apparel, you have back to school that's getting ahead of things. You have all sorts of commodity shipping in the middle of the year that sometimes seasonally depress around the corner months. So like January, retail freight tends to drop off a good bit in January, whereas it's actually fairly active at the end of the year.

And that's some of the stuff that we're dealing with in the market, just as we're getting additional reasons to see that capacity is not going to be as plentiful as humanly possible. And Thomas, you're out at a conference, you're joining us live, coming in hot from the road.

One of the biggest questions I've been getting over the last several months, and I think I don't know that this is that shocking, but is how do I get more capacity? And it's like, we went through three years where capacity was so available. How much of this are you dealing with?

Oh, man. Well, at an event right now in Nashville, Motive, they're an ELD telematics visibility provider. One of the big words about that is gross negligence. And so when we're talking about these impacts in a post Montgomery world, the fleets themselves are the front lines. If they have a safety program, if they're using technology, they're coaching their drivers, they are going to be the ones that make or break your brokerage.

So when brokerages are asking, how do I get more carriers? It's kind of like thinking about when you're going down the grocery store, how do I get healthier options? Because right now we've had over the past few years, we had a lot of junk food. We had non-compliant carriers, we had carriers that were basically undercutting rates, not running safe operations. And so the big question moving forward is, well, how do I get them? First off, you got to pay them more. And secondly, I really hope you built your carrier book of business. Because right now, if you're trying to ask this question, how do I get more?

Oh, man. It's like I always tell a lot of our shipper customers is if you don't prepare for a market inflection before it happens, it's too late. You don't have any leverage at that point. So Thomas, let's get things started because this is all happening in a market that's already chaotic, in my opinion, like from a procurement standpoint. We h...

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Transcript

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Level of concern

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.