Freight brokers post solid Q3 results, despite lackluster margins

Posted: 31 Oct, 2018 by Steve Blair


Categories: Best Practices and Benchmarks

Tags: Broker


Freight brokers posted solid revenue gains and good cost controls in the third quarter, for a sharp increase in net operating profits. Gross margins averaged 13.1% in Q3, which is disappointing, but still the best quarterly result so far this year.

This report is derived from the monthly financial results of more than 100 freight brokerage companies. Their 2017 average annual revenue of $19.5 million has risen 70% in the first nine months of 2018, year over year, putting them on track to exceed $33 million for the year. 

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A 13.1% average gross margin in Q3 was the best quarterly result this year. Meanwhile, spot market rates stabilized for dry van freight in the third quarter, so the brokers' total revenue per load was flat compared to Q2, while profit per load rose 10%. 

 

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