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The economic outlook for freight brokerages in 2023 is positive but turbulent. As more businesses emphasize supply chain efficiency to maintain smooth operations, demand for freight brokerage services is expected to remain strong. With increased competition and improved technology, freight brokerages will continue to provide businesses with competitive rates, reliable service, and faster shipping times.
The growing demand for globalized logistics and supply chain management services has driven the freight brokerage industry forward in recent years. Freight brokers arrange and negotiate the contracts between shippers and carriers, handle documentation, and manage transactions through the supply chain. This process helps to ensure that shipments are delivered on time and within budget. The increased demand for such services has allowed freight brokers to add value through cost-saving strategies and improved customer service.
According to Gartner research, professionals working with legacy paper products spend 50% of their time looking for misplaced information. This is a loss of $14,000 in employee time. At the same time, as much as 3% of a company’s revenue is spent on paper, printing, filing, and storing. This is even higher in the transportation industry. Exacerbating costs, a single 4-drawer cabinet costs $25,000 to fill and $2,000 to maintain each year.
Finally, knowledge workers making $30/hr will waste $4,500/year working with paper and 70% of businesses existing today would fail within three weeks if they had a catastrophic loss of their paper records.
In addition to the continued growth of global trade and e-commerce, the development of new technological solutions is likely to be a major driver of growth for freight brokerages in 2023. Transflo Workflow AI has already helped to reduce manual labor costs and streamlined business processes for many freight brokers. This technology is expected to continue expanding in the coming years as more companies become aware of the cost savings associated with adopting advanced technologies. In particular, the increasing adoption of blockchain technology could have a significant impact on the entire logistics industry, allowing for verifiable data tracking and secure payment methods.
As businesses become increasingly aware of the cost savings associated with freight brokerage services, more companies are likely to get involved in this industry in 2023. As competition increases and digital innovation continues to improve operational efficiency, prices could drop, and quality could improve. The digitalization of data will also lead to increased transparency between shippers and carriers as they negotiate rates as well as make it easier to track shipments throughout their journey.
Overall, the economic outlook for freight brokerages in 2023 looks very promising. With continued growth in global trade and advanced technologies becoming increasingly available, freight brokers are well poised to capitalize on these trends by providing shippers with cost savings, faster turnaround times, and improved customer experiences.
For more information on industry-leading software solutions for carriers, brokers, factors, and shippers, please reach out to us today!
