Miami-based freight transportation and logistics services provider Ryder System Inc. said this week it is taking steps to expand its freight brokerage operations, with a new recently-opened Nashville-based office and plans to open two other offices in 2023.
Ryder officials said that adding these new locations are part of its strategy to grow its broader transportation service offerings, which include freight brokerage, transportation management, and dedicated transportation. Ryder now has freight brokerage offices in Nashville, Novi, Mich., and Forth Worth, Texas.
“In freight brokerage, we experienced just over 175% growth in gross revenue in 2021 as compared to 2020,” said Kevin Clonch, group director of transportation management at Ryder, in a statement. “With market fluctuations, sky-high transportation rates, a capacity crunch, and a driver shortage, shippers are turning to our logistics expertise, our asset-based solutions, relationships with vetted carriers, and our buying power to keep their goods moving. By expanding our freight brokerage operations, we also bolster our broader transportation solution, so we can offer our customers even more flexibility with additional lanes and hard-to-find capacity in tight markets, so they can take advantage of seasonal and market-related volume surges.”
Clonch told LM that Ryder is expanding into Nashville area to tap into the vast talent pool that continues to enter this market, as well as move its Brokerage offering into markets closer to some of its most critical customers and carrier partners.
“This presence will allow us to continue to expand our growing brand in the Brokerage space and will be a foundational office for us to service the Southeastern markets,” he said. “This market expansion strategy has been in the works for the past year as we have listened to our customers and carriers on their desire for us to be a closer presence in their markets, combined with the need to tackle the ever-challenging supply chain talent pool gaps that exist in North America.”
As for where the two other locations set to open in 2023 will be based, he said that additional locations are being considered for the Western Time Zones (Pacific & Mountain) due to lack of brokerage presence in these areas and to be closer to its critical customers and carriers and continue to tap into talent, to enable Ryder to continue to deliver its promise of high standards of concierge level service.
When asked to assess the current state of the truckload brokerage sector, Clonch explained that in the current environment, Ryder sees headwinds in the form of inflation, diesel prices, threats of potential recession, and threats to potential contraction in the overall capacity able to support supply chains.
“However, at Ryder we are continuing to see customers and carriers that are seeking our expertise and overall service levels,” he said. “Our overall strategic vision for the aggressive Brokerage expansion has been to continue to seek out the best talent in the industry that will allow us to continue to deliver the service levels desired by our customers. Regardless of the potential for headwinds, our strategy in this space remains unchanged and due to the cyclical effect of the industry as a whole, we feel that our continued growth strategy will better position for future years.”