Arranging Haulage for Florida's Produce

Beilock, Richard · 1969 · Crossref

DOI: 10.32473/edis-fe540-2005

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Summary

This report examines the methods used to arrange truck haulage for Florida’s produce shipments, analyzing trends over a roughly twenty-year period from the mid-1980s to 2001/2002. The study addresses the persistence of intermediaries in the transportation market despite significant advancements in communication technologies, such as cell phones, fax machines, and the Internet, which theoretically could facilitate direct contact between shippers and carriers. The research aims to determine whether these technological improvements have reduced the reliance on truck brokers or if brokers have maintained their dominant role in securing loads. The analysis relies on data from two primary sources: the 1985/1986 Florida Driver Survey and a 2001/2002 Driver Survey. The latter survey was conducted between November 2001 and May 2002 at Florida Agricultural Inspection Stations located on interstate highways I-10, I-75, and I-95. Researchers interviewed drivers of 1,642 refrigerated tractor-trailers exiting the Florida Peninsula. The sample was geographically diverse, including drivers from all 48 contiguous U.S. states and eight Canadian provinces, with trip distances ranging from 100 to 3,347 miles and averaging 1,222 miles. This design ensures the findings are relevant to long-distance haulage throughout North America. The findings indicate that truck brokers remain the dominant method for arranging produce transport. In 1985/1986, 66% of drivers reported using brokers to secure loads; this figure remained high at 62% in 2001/2002. Contrary to expectations that technology would reduce intermediary costs, the average brokerage fee increased from 8% of the freight rate in the 1980s to 10–11% in 2001/2002. While direct contact between carriers and shippers/receivers increased from approximately 25% to 33% over the same period, the Internet had negligible impact on actual load acquisition. Although two-thirds of owner-operators reported seeking loads online, less than 1% of loads were secured through this method. Owner-operators were slightly more likely to use brokers than larger carriers, though the statistical difference was small. The significance of these results lies in the resilience of the broker model in the produce transportation sector. Despite the potential for direct negotiation facilitated by modern communications, brokers continue to provide essential services, including matching shippers with carriers and, in some cases, advancing cash or providing compensation for contract failures. The increase in brokerage fees suggests that brokers have not only maintained but potentially strengthened their market position. The study concludes that while the Internet may eventually transform load arrangement practices, its impact was minimal during the study period, and brokers remain the primary mechanism for organizing interstate produce haulage from Florida.

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• truck driver fatigue