Partnering with a freight broker, a solution for optimizing freight transport in Europe

BUCUREșTI, BUCUREșTI, ROMANIA, May 13, 2024 /EINPresswire.com/ -- The International Road Transport Union (IRU) estimates that in 2024, rates in the European road freight transport market will remain low. In March, the capacity index dropped for the third consecutive month, by 7.4% year-on-year. On the other hand, the introduction of new road charges and increasing operational costs compel carriers to seek new ways to remain profitable. The quickest and most effective solution is partnering with a freight broker capable of ensuring an optimal load level.

Besides the decrease in rates, the increase in road taxes poses a significant challenge for carriers. According to IRU estimates, the additional cost introduced in 2024 will be EUR 6,700 per truck per year in Germany, for example.

Moreover, owning and operating a truck has become increasingly expensive. According to Upply, in the last three years, labor costs have increased by 28.2%, maintenance and repair costs by 20.4%, tire costs by 21.6%; and insurance by 8.7%.

All these factors create increasing pressure on road freight carriers, who are forced to seek ways to make their fleets more efficient. Partnering with a freight broker with extensive coverage at the European level and solid experience in the field can be the solution to these challenges. "For carriers, working with a freight broker allows them to keep their drivers active and profitable, ensures full trucks, and saves them the constant search for the next load. By partnering with a freight broker with a solid client base and expertise in logistics management, transport companies gain predictability over costs and profit, which is essential in the current context of decreasing rates," says Răzvan Grancea, CEO of Fra Express.

The company, which primarily operates in the markets of England, Germany, the Netherlands, Belgium, and France, has over 10 years of experience in the field of road freight transport and registered a growth of over 300% in turnover in 2023 by expanding its customer portfolio. For this year, Fra Express estimates a doubling of revenues by attracting new clients and expanding transport routes, as well as by increasing the number of partner carriers from Poland, Lithuania, and Bulgaria.

Working with a freight broker provides carriers with consistent time and money savings, explains Grancea. Thus, they no longer need to develop and maintain their own sales team. Additionally, it also simplifies administrative tasks, as the final customer contact is maintained by the broker.

"In practice, we act as representatives of our partners, who can focus their efforts on their main area of activity. Our goal is to keep the carriers' trucks loaded and moving, which is beneficial for both sides. That is why the international transport routes we currently cover are strategically chosen, so we can make the most of the offer from the subcontractors we work with. The experience gained and the large customer portfolio allow us to optimize freight transport routes and identify cost-saving opportunities," specifies the CEO of Fra Express.

Collaborating with a freight broker not only provides access to more business opportunities but also to a higher level of expertise in transport regulations, which allows carriers to avoid potential obstacles and unplanned costs from the outset.

nicoleta amarandei
Fra Express
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