Brush Pass Research: 7.8% Fewer Brokerages Than a Year Ago

According to data from Carrier Details and Brush Pass Research, freight brokerages have faced a contraction for the seventh consecutive month, signaling a significant trend in the industry. Here's the breakdown:

• Ongoing Decline: The number of active freight brokerage authorities fell by 7.8% compared to the previous year, equating to 28,438 active entities.
• Two-Year Comparison: This count aligns with the total from two years prior, yet it's still a 21% increase from January 2021.

The trend over the past three months shows consistent declines: -7.4%, -6.1%, and now -7.8%, as the freight industry grapples with an ongoing recession spanning 22 months. Before the pandemic, the number of brokerages stood at 21,229, representing a net increase of 33% to date.

However, these net figures don't capture the full picture of the industry's volatility. In the two years from January 2020 to December 2022, there were 25,000 new authorities activated, yet only 9,700 remain active, pointing to a high turnover rate.

The future trajectory of active brokerage authorities by the end of 2024 is heavily dependent on the recovery of the freight market.

Source: Brush Pass Research