What does dedicated freight do for you?
Dedicated freight in commonly known to carriers that haul freight for one customer using the same dedicated route at a fixed rate of a contracted period. Typically, dedicated shipments fill more than half of a truckload, or the weight of the trailer is equivalent to the full carrying capacity of a trailer. Having dedicated trucking lanes for drivers allows them to work a consistent schedule, bring home consistent pay and build strong customer relationships.
Small to mid-size trucking companies benefit a great deal from dedicated freight. Here are a few reasons why dedicated freight is so important to the success of a transportation company.
Consistency
Having dedicated lanes and a contracted rate for those lanes, drivers can expect consistent pay and more home time. Knowing the route in advance helps drivers to be better prepared for long construction projects along those routes. Also, familiarity with the facilities decreases the chance of an accident.
Efficiency
With over 90% of dedicated runs consisting of drop and hook freight, drivers wait times to load are drastically reduced. With the right dispatch, a driver can drop one trailer and pick up another trailer within minutes or miles from the drop location and log virtually zero empty miles.
Driver Recruiting and Retention
Working a consistent schedule, receiving consistent pay and the right work life balance is key for drivers. Having longer term agreements with customers increases visibility with drivers so they know the company they haul for has their best interest in mind.
With all the benefits of running a dedicated trucking company, not everything is as it seems. We all know how volatile this industry. Great value can come at a price. Here are some of the cons to dedicated freight.
Prices
With a percentage of a company’s fleet on dedicated runs, missing out on extra jobs could be costly. Being able to improve margins with a balance of dedicated freight and spot freight is ideal. Typically, dedicated freight pays lower rates that spot fright or OTR Freight.
Responsibility to the Customer
One factor when considering dedicated freight is the responsibility that you put on the driver. If a customer has a poor experience with a driver, the contract could potentially be in jeopardy. Pairing the right driver with the right customer is the art of dedicated freight. Similar when pairing a driver to a dispatcher.
Driver Recruiting and Retention.
Not all drivers are created equal and there are drivers that really appreciate the variety that life on the open road has to offer. Some drivers find that driving the same route over and over can lead to boredom, distracted driving, and burnout.
In conclusion, having dedicated freight is great for business. With the benefits outweighing the risk it’s an ideal platform for continued growth. No more fighting over freight, happy dispatchers and trucks not idling away expensive fuel are all reasons to run dedicated lanes. Having a great relationship between carriers and customers get us excited.
Working with an asset based 3PL can significantly increase a carriers ability to access and develop relationships with shippers. ITF Group is a great way to leverage a 3PL to access dedicated freight opportunities for your business. By partnering with an established 3PL such as ITF Group you can focus on what you do best, hauling freight safely and allowing ITF Group to handle the rest.