In this episode of Freight Nation: A Trucking Podcast, host Brent Hutto is joined by Tyler Johnston, the Director of Operations at Mercer Transportation. 

Tyler Johnston is Director of Operations at Mercer Transportation, where he has worked since 2013 in various capacities including Brokerage and Freight Operations Manager, Mid-America Freight Operations Team Lead, and Freight Coordinator. Mercer Transportation, founded in 1977, is a trucking company that provides shipping capacity anywhere from a single load to large volume moves, and can handle anything from regional shipments to cross country or international moves. Transport Topics has recognized Mercer Transportation as a “Top 100 Carrier”. 

[22:52 - 24:12] Tyler emphasizes that, when it comes to freight, time is money. Predictability is everything in this industry, as it breeds efficiency, which in turn breeds profitability. Tyler ensures success by knowing what he’s getting into, knowing what to expect, and knowing how to get out of there. For instance, he suggests that consistency in freight rates is better in the long run than negotiating every time on a load that is completed every week. When Tyler can predict a rate, this reduces time and uncertainty, which will lead to greater profit.

[25:25 - 27:10] Tyler considers the value of strong broker-carrier relationships in the freight industry. While there are occasionally obstacles that prevent this from happening, the prevalence of fraud means that familiarity and trust is equal to a higher rate on Tyler’s portion and his customer's portion, too. Customers are willing to pay for the security that their freight is going to get from point A to point B in a timely and efficient manner, which is why good relationships between brokers and carriers are so beneficial for each party involved. What’s more, established routes and trust-based relationships means less time is spent on logistics and more can be spent on other tasks.

[28:02 - 32:55] Tyler discusses the different types of freight relationships and the importance of knowing your broker and the market. Tyler explains that there are three ways to get freight: contract, spot market, and relationship freight. Contract freight involves a long-term agreement between the broker and the carrier. Spot market freight is more immediate and requires quick solutions—in short, it is on the spot pricing for an on the spot truck. Relationship freight is built on trust and reliability between the broker and the carrier. Knowing which category the freight falls into is beneficial for both the broker and the carrier, as it helps determine the urgency and negotiation power involved.

If you enjoyed this episode, make sure to subscribe, rate, and review on Apple Podcasts, Spotify, and Google Podcasts, instructions on how to do this are here.