Disclaimer: The views expressed in this article are my own and do not represent those of any organizations mentioned. The content is based on personal research and is for informational purposes only. Readers should independently verify any claims. The author assumes no responsibility for errors or potential consequences.
Good morning, FreightCaviar readers.
I hope you enjoyed Tuesday’s feature newsletter where I shared insights from our day with Kevin Nolan and Andrew Silver. Today’s feature dives into one of the most talked-about freight brokerages in our industry: Total Quality Logistics (TQL).
Now, you might be wondering—does TQL pay me to feature them frequently in our memes and newsletters? Absolutely not. I have no affiliation with TQL. The reason I’m writing about them today is simple: their story is interesting. TQL is arguably one of the most controversial freight brokerages, with strong opinions from both carriers and former employees. Some consider them the most disliked brokerage, while others, including carriers who work with them, speak highly of their experience. Many employees have also found significant success at the company.
Given their size and impact on the industry, with $6.7 billion in revenue in 2023 and over 9,000 employees, I thought it would be worth exploring their history—covering both their remarkable growth and some of the challenges that come with it.
Before we dive in, I’d appreciate it if you could take a minute to fill out an anonymous survey to help us improve our content. You can find the link here. If you complete the survey and want to let me know, feel free to email me at pbj@freightcaviar.com. One lucky participant will receive a FreightCaviar t-shirt in the mail as a thank you!
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Origin Story: From Produce Broker to Freight Broker
Total Quality Logistics (TQL) was founded in 1997 by Ken Oaks in Cincinnati, Ohio. Before starting TQL, Ken worked as a produce buyer, frequently dealing with freight brokerages. According to TQL’s website:
His frustration at the lack of service and integrity he saw in the industry drove him to start his own company.
Interestingly, C.H. Robinson also began as a produce broker. It seems there’s something about the challenges of shipping perishable goods that drives produce brokers to take logistics into their own hands. In addition to C.H. Robinson and TQL, several other freight brokerages have also evolved from produce brokerage origins.
TQL's Growth: From Zero to $8.8B
TQL's Revenue Growth (1997-2023): The chart shows TQL’s revenue growth from under $50M in 1997 to $8.88B in 2022, with a slight decrease to $6.7B in 2023. Source: TQL.
Now, I may not know exactly how TQL grew from under $50M in revenue to $8.8B by 2023, but here are some insights I’ve gathered from conversations with former employees and others in the industry:
Rapid Expansion: TQL rapidly expanded to open offices in major cities across the U.S. Today, they operate more than 60 offices in 25 states.
A map showing all of TQL's locations. Source: TQL.
A few years ago, I interviewed Dan Hellmann, a former TQL employee and top performer at their Cincinnati branch. He shared that in 2011, he was tasked with opening TQL's Denver office, which was their westernmost location at the time. TQL frequently offered its top performers the opportunity to relocate and open new offices in strategic locations.
When we interviewed Steve Cox, President of Steam Logistics, whose company experienced massive growth during the pandemic, he shared that he admires Ken Oaks and the way he built TQL. Steve has similarly expanded his own company by rapidly opening offices across the Midwest.
Relentless Focus on Customer (Shipper) Satisfaction: While many of you may have negative views of TQL from a carrier’s perspective, shippers generally seem to have a positive experience working with them.
A shipper recently commented the following on one of our Instagram posts:
Persistent Phone Calls: One of the biggest complaints I’ve heard from carriers is the sheer volume of phone calls they receive from TQL after booking a load. It’s reportedly constant check-ins for updates. The same goes for lead generation—TQL reps are cold-calling businesses across the U.S. in an effort to secure freight. With 9,000 employees, it’s understandable that landing new accounts can be challenging.
In-House Tech: TQL has developed its own freight technology stack, which includes TQL Trax (customer portal), Carrier Dashboard, TQL OTG (mobile app for reps), and EDI for customer integration.
At logistics conferences, there's often a debate about whether companies should build their own tech or buy from providers. Today, most experts agree it’s more cost-effective to buy, given the range of affordable options available. However, this wasn’t always the case. For example, C.H. Robinson acquired American Backhaulers in 1999, partly for their in-house tech, and UPS did the same with Coyote, which built its own TMS, Bazooka.
Paying Attention to Every Dollar: A former TQL employee once shared a story with me about Ken Oaks allegedly throwing a plant out of a window in frustration over a rep overpaying a carrier. While I can't verify the accuracy of this story, it wouldn’t surprise me if there was some truth to it.
Other Factors: There are many factors contributing to TQL’s growth that may not be covered here. I know they recruit outside talent, often young, recent college graduates, and train them in-house on their specific systems. They also have a President's Club to recognize and reward top sales representatives
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The Largest Privately-Owned Freight Brokerage
What’s incredible to me is that TQL is the largest privately-owned freight brokerage in the United States—and possibly the world.
The Richest Man in Cincinnati: From what I've been told, Ken Oaks owns 98% of the company. Since Ken tends to keep a low profile and rarely speaks publicly within the logistics industry, it’s hard to verify this information. However, he was named the richest man in Cincinnati, with an estimated net worth of $980 million (2016).
Stingy Non-Competes
One of the main reasons many former employees speak negatively about TQL is due to their strict non-compete policy. All new employees are required to sign a one-year non-compete if they leave the company. While non-competes are fairly common in the industry, most companies tend to avoid enforcing them aggressively. TQL, however, is known for being particularly strict. They even pursued legal action against one of their top former sales reps for taking a job as a dispatcher at a trucking company.
Several successful freight brokerages have emerged from TQL. The two that come to mind (though there are likely more) are:
Transloop: Founded by Nicholas Reasoner, who was originally tasked with opening TQL's Chicago branch before branching out to start Transloop—now one of the fastest-growing freight brokerages in the industry.
$35M Expansion: Last week, we reported on TQL's recent $35M expansion of their Cincinnati headquarters that includes pickleball courts and a court simulator.
TQL Stadium & Bearcats Field Sponsor: In 2021, FC Cincinnati announced that TQL had secured the naming rights for their stadium as part of a long-term partnership with the club. Since 2023, TQL has also been a field sponsor of the Bearcats.
TQL Stadium in Cincinnati, Ohio.
What Do People Think of TQL?
Whenever we post anything about TQL online, we receive a flood of comments—some positive, mostly from TQL employees, and the rest predominantly negative. Here are a few comments from our recent posts last week:
To conclude, TQL has built a massive operation. Some people love them, while many others dislike them. Personally, I’ve never worked with TQL as a carrier or shipper, so I don’t have an opinion either way. I hope you enjoyed today’s feature.
Here’s a meme in light of their new pickleball courts at HQ:
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