DAT (https://www.dat.com), Steve Blair – July 10, 2018
Monthly revenue rose 78% for freight brokers in May on a 41% increase in load volume, to set new records for those two metrics. Brokers achieved 23% net operating profit, a solid outcome that beat May 2017 results but fell short of April’s record levels.
Gross margins averaged 12.7% in May, down from 13.6% in April and 13.2% in May 2017. High demand and tight capacity continue push truckload rates higher, so margin compression could be an ongoing factor in the coming months.
Brokers moved 41% more loads in May, compared to the same month last year, to set a new record. Load volume rose 10% month over month.
This benchmark report draws data from an aggregate of more than 100 freight brokerage companies, whose 2017 average annual revenue of $19.5 million grew 26% compared to 2016. Average revenues for the group were 69% higher in the first five months of 2018, compared to the same period last year. To receive monthly updates in your inbox, subscribe to the DAT Broker Benchmark Report.