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Survey Looks at Brokerage Future

    A.T. Kearney's 2002 Freight Brokerage Survey has just been published. Over 100 shipper, carrier and broker perspectives were voiced.

Key learnings include:

• Freight brokers provide a key service in the truckload transportation market, providing value to both shippers and carriers- saves the administrative cost of shippers calling carriers to find capacity and serves as the marketing arm of many small carriers

• Shippers and brokers believe brokerage will have an increasing role in the future of freight transportation

• Both shippers and brokers expect the brokerage market to migrate towards "forward" contract services (i.e., transportation management services)

• Most expect the internet to play an increasing role in freight brokerage, largely at the expense of telephone and fax- however, most believe that the brokerage industry has few risks of future electronic disintermediation

• There is a differing view, however, among shippers and brokers as to the overall growth of brokerage services- nearly three quarters of shippers expect the market to use brokers the same as today, while 85 percent of brokers expect increases of 10 percent or more

• Shippers look to brokers to provide four key customer requirements: close relationships to anticipate and understand customer needs, high level of customer service, access to quality supply and low rates

• Among those four customer requirements, shippers believe broker performance could improve in two areas: access to quality capacity and customer service.

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