New year, new schemes. Kind of like new year, new me, but for shady characters who are hoping to level up their games this year. Fraud is a billion-dollar industry and it’s truly just a matter of when it happens to you. For brokers looking to not fall victim in 2024, we’ve got some tips and tricks for you.
Hard passes:
Carriers operating with inactive or revoked authority/carriers operating with newly issued authority.
Excessive or recent insurance changes.
Multiple changes in the owner of the motor carrier number in the past few years.
Inconsistency.
Pushy verifications.
Negative reviews.
The most important thing is just to trust your gut. If something seems too good to be true, it is. If carriers are fine at first but become cagey when you ask follow-up questions, maybe keep asking or hang up the phone. Most carriers have no problem answering professional questions about their business — well, most legit carriers at least.
Market Check. This week’s SONAR market is the behemoth in Southern California, Ontario. Capacity is loosening a little, a trend that should be seen in most markets as January gets into swing. January traditionally is a quiet time for the freight markets, especially following peak retail season, and this year it’s anticipated to be one of the bleaker Januaries in terms of freight rates. Outbound tender volumes are down 6.3% week over week, and outbound tender rejections are down 160 basis points in the same time frame.
Some volume will return to the market as everyone returns from the holiday, but it’s likely to remain a quiet January. Take care of carrier relationships and work with them when possible on rates as there is far too much supply in the market compared to demand.
Who’s with whom? Everyone’s favorite near and offshore staffing company, Lean Solutions Group, has sets its sights on Mexico. Given the rise of nearshoring in Mexico and companies looking to set up shop quickly, Lean Solutions’ doubling down on Mexico is a natural progression. It’s hard to find a 3PL or freight brokerage that hasn’t used the service, and as more shippers expand into Mexico, not everyone can afford to set up offices there.
In a FreightWaves article by Noi Mahoney, Daniel Agamez, Lean Solutions Group senior vice president of operations, said, “We see Mexico as a land of opportunity as huge companies have had major success operating out of Mexico. The Mexican market itself has strong ties and relationships with the U.S. business industry; therefore, we now offer our clients the opportunity to have their logistics workforce located in the same country, offering the possibility of direct logistics management where their supply chain begins.”
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Editor: Mary O'Connell