Welcome to another insightful episode of the Trekking Risk and Insurance podcast! This week, we were joined by distinguished guests from Circle Logistics, a renowned player in the transportation industry. Host Chris Harris, also known as Safety Dawg, dives deep with Karl Fillhouer and Robert Fortmeyer on the opportunities and challenges in the freight brokerage business.
Meet Our Guests
**Karl Fillhouer**: With a career spanning over three decades in transportation, Karl has touched every segment of the industry, from domestic to international services. Currently, with Circle Logistics for the past eight years, he plays a pivotal role in managing operations and ensuring the company’s sustained growth.
**Robert Fortmeyer**: Serving as the in-house legal counsel at Circle, Robert plays a critical role in contract review and compliance, ensuring the company operates within the legal bounds and mitigates any potential risks.
The Role of Legal Counsel in Freight Brokerage
Why does a freight broker need a lawyer? This question led to a fascinating discussion. Robert explained how crucial it is for Circle Logistics to navigate the myriad of risks, including cargo claims and highway accidents. Legal expertise is essential for contract reviews and managing relationships with out-of-house attorneys. Karl highlighted how the company’s size exposes it to various claims, emphasizing the critical role of in-house counsel in steering clear of unfavourable terms.
Insights into Circle Logistics
In 2011, Circle Logistics rapidly expanded, showcasing impressive growth from $185 million to peaking over $700 million in annual revenue. Their strategy centers on being light asset-based, focusing on broker activities. Karl shared how their organic growth has been fueled by hiring exceptional leaders and maintaining strong relationships with carriers. Their service entails offering clients access to vetted carriers, ensuring reliability and safety.
Understanding the Market Challenges
Karl and Robert discussed the impact of tariffs on the freight industry, noting a slowdown in business and the resultant uncertainties. Both emphasized how companies are hesitant, with many sending out requests for new proposals to ensure they’re prepared for any eventuality. Tariffs, while intended as negotiation tools, can pose longer-term economic challenges due to the disparity in labour rates across countries.
Carrier-Vetting as a Key Component
Circle’s vetting process is stringent, ensuring they work only with trusted carriers. This detailed process includes verifying carrier safety records, insurance, and past business conduct, ensuring the integrity and quality of their service remain uncompromised.
The Journey Ahead
Both Karl and Robert expressed optimism about adapting to market changes while highlighting Circle Logistics’ agility and capability to handle various industry needs. Offering an extensive range of services from typical van freight to specialized transits like automotive component shipping, Circle Logistics continues to offer unmatched service to both customers and carriers.
Conclusion
This episode provided a comprehensive view into the intricacies of the freight brokerage world and Circle Logistics’ significant influence and operation within it. By adeptly managing legal, logistical, and market challenges, the company exemplifies growth through strategic partnerships and operational excellence.
We thank Karl Fillhouer and Robert Fortmeyer for sharing their expertise with us. For those interested in the intricate workings of freight logistics or considering partnerships, Circle Logistics presents a compelling option.
Don’t forget to share this episode with individuals who would benefit from understanding the contemporary logistics landscape. Subscribe, like, and comment with your thoughts and questions. We’ll see you next week with another insightful discussion!