Shippers and Brokers Overlook Key Freight Costs
Tony Broyles, Director of Business Development at Overdrive Logistics, has a unique perspective on the freight industry, having worked on both the shipper and broker sides. He notes that understanding both ends of the supply chain is essential for success and building lasting relationships.
Broyles’ brokerage began seeing signs of a tightening freight market in November, months before most in the industry acknowledged the shift. He attributes the delayed recognition to a wave of logistics professionals who entered the field post-COVID and have no baseline for what a normal or tightening market looks like.
Broyles said that when rate pressure persisted through January and into February, his firm knew the correction was real. He cautioned that the old playbook of having multiple brokers bid against each other for the cheapest rate no longer works.
For shippers trying to secure capacity, Broyles recommends locking down contract rates now on high-service, appointment-sensitive lanes, while leaving flexible, low-frequency freight on the spot market. He warns against forcing contract rates onto loads that move only once a month, as this approach can burn carrier and broker relationships without delivering real savings.
Overdrive Logistics has built its model around long-term relationships, with its top 10 customers averaging roughly 19 years of tenure. Broyles argued that this relationship depth gave the brokerage pattern recognition that purely transactional shops lacked heading into the current cycle.
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The firm has implemented enhanced carrier vetting, including collecting photos of drivers’ licenses and images of drivers standing beside their cab door showing their MC number. They also use the carrier-vetting platform Highway and require a follow-up phone call to a validated number to confirm booking authorization.
Broyles noted that real-time, conversational vetting helps catch anomalies that automated systems might miss. He acknowledged that AI-generated identity fraud is a growing concern, but said that his firm’s approach helps combat freight fraud and cargo theft risks on load board postings.
They are committed to building strong relationships with their customers and carriers.
It is essential for the firm to stay up-to-date with the latest developments in the industry.
