Thousands of Freight Brokers Continue to Close in 2024
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While the closure of Convoy and eventual relaunch under Flexport grabbed headlines last year, the industry has continued to contract in 2024.
Using data from the Federal Motor Carriers Association (FMCSA), TruckInfo.net found the following trends that through the first six months of 2024.
Freight broker closures have accelerated in 2024
In just the first half of 2024, there has been a net contraction of -7.38% while 2023 only saw a net contraction of -8.47% over the course of the entire year.
More closures are expected as the industry sheds excess capacity
While the industry has contracted by more than 4k brokerages since the peak in 2022, the total number of freight brokerages is up by 13% compared to the pre-pandemic boom. With no recovery in site, more closures are likely on the way.
5 states account for 50% of closures
While the top 5 states in terms of net contraction (CA, TX, FL, GA, IL) represent roughly 50% of the net contraction nationwide, those states represent less than 40% of the total brokerages across the country – meaning those states have been particularly impacted.
Methodology
The above data was sourced from the FMCSA’s database on operating authority. Only property freight brokers based in the United States were included in the analysis.
He now manages TruckInfo.net's content team and is a regular fixture at the Mid-America Trucking Show in Louisville.
