That keeps the folks at Hybrid Transit Systems Inc., 2525 18th St. SW, searching to find loads for trucks and trains moving freight across the nation, as well as airfreight operators and oceangoing ships handling international transportation.
"We have a federal license to be an arranger of freight," said John Miller, vice president of Hybrid Transit Systems. "We have shipping customers in Eastern Iowa that are heavily into agriprocessing and bagged products and we charge them a shipping rate.
"We negotiate freight rates with local and regional truck carriers to haul the freight. We live on the margin between those rates." Miller said about 5,000 active truck lines do business with Hybrid Transit Systems. He said deregulation of the trucking industry led to the development of federal licenses to broker freight.
"The economics of running a truck line require that you have to load every truck every day," Miller said. "If someone has two extra trucks out there that need loads, they look to brokerages like ours to find loads for them." If a relationship matures with a brokerage, the carrier is able to depend on it to fill loads, Miller said. He said there's also some private dedicated fleets owned by companies like HON and Target looking to avoid partially empty trailers.
"A lot of their overall strategy is to fill their trucks with loads coming back into Eastern Iowa," he said.
"They may primarily deliver HON furniture around the Midwest, but they have to put some revenue on that truck after they make those deliveries to make the numbers work." Miller said the brokerages need to find freight that is acceptable to truck lines, whether they haul for any shipper or are private dedicated fleets. Usually that means the freight must be clean and fit well with other freight being transport-
TRANSPORTATION
ed.
Robert Halgens, president of Hybrid Transit Systems, said the brokerage or agency system has a long history in the United States.
"In the very early days of the stage coach, there were agents handling shipments across the country," Helgens said. "They would book freight on a stage coach traveling across the country.
"The agency or brokerage base has grown in recent years as deregulation and technology lowered the barriers to entry. With our many years of experience in the industry working for carriers, we have built up trust with carriers and shippers." The senior management team and owners of Hybrid Transit Systems offer a wealth of industry experience.
--Helgens has worked in the transportation industry since 1982, handling truck load sales and account management for CRST International and RFK Transportation.
He served in executive management at Cedar Rapids Transportation and Providence Transportation Group.
--Miller, also a 26-year industry veteran, worked in truckload sales, account management and opera-
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