Articles by Day: November 28, 2022
Dedicated trucking services can provide stability, efficiency, and cost savings to companies with consistent truckloads in relatively predictable freight lanes for fixed rates. Sometimes referred to as dedicated trucking, dedicated freight, dedicated transportation, or primary freight, these long-term contracts are basically the opposite of spot rate trucking (short-term, transactional freight pricing that reflects the real-time balance). Cleveland dedicated trucking contracts are ideal for established companies with fairly dependable demand.
According to the American Transportation Research Institute, the trucking industry as a whole hauls more than 10 billion tons of freight annually, comprising nearly 75 percent of the total domestic tonnage in the country. There are roughly 4 million registered tractor trailers in the U.S., with those based in the Midwest accounting for more than 40 percent.
Truckload markets are notoriously volatile, swinging from tight carrier capacity and high rates in one quarter to one where per-rate-mile and freight rate increases are scarce. Entering into a longer-term dedicated trucking contract can provide some much-needed cost dependability, as it locks in competitive rates and available trucks for the duration of the contract – typically 3-5 years.
On Time Delivery & Warehouse offers Cleveland dedicated trucking to Northeast Ohio customers seeking greater regularity in their supply chain.
Primary Benefits of Cleveland Dedicated Trucking
There are a number of reasons dedicated transportation has spiked in popularity. Among them:
- Reduced fleet management responsibilities. When you sign a contract for dedicated trucking with a third-party logistics firm, you get lots of the same perks as a private fleet – without the hassle and cost. Instead, it’s the 3PL trucking company that shoulders the work of acquiring and maintaining trucks, hiring and training drivers and support staff, and keeping pace with safety and statutory requirements.
- Stable pricing. Transportation rates are seemingly always in flux, thanks to unpredictable gas prices, labor shortages, updated safety rules, etc. For shippers, this often means coping with sudden cost spikes – on top of erratic trucking capacity. But if a shipper has a dedicated trucking delivery contract, their vulnerability to freight market fluctuations is substantially reduced. Furthermore, dedicated trucking reduces idle truck time, which also keeps costs in check.
- Dependable delivery times. On Time Delivery & Warehouse prides itself on ensuring deliveries arrive intact, on time, every time. Customers with dedicated delivery trucking contracts have even greater assurances because their inbound/outbound shipments are already clearly mapped out. That allows for greater consistency with pickup and delivery times.
- Guaranteed freight capacity. Dedicated transportation requires an established network and consistent routes. This translates to reliable services for shippers, who can depend on that guaranteed freight capacity as outlined in the contract.
- Minimized liability. When customers opt for dedicated trucking services, routes are arranged for goods and products to move from Point A to Point B without other stops along the way (as there might be with less-than-truckload or spot rate deliveries). Fewer stops means less risk of delays and accidents, which in turn reduces shipper liability.
- Greater customer satisfaction. When it comes to deliveries, speed and reliability are at the top of most customers’ priority lists. Dedicated trucking contracts help ensure you’re meeting – or exceeding – their expectations, which in turn boosts not only your bottom line but your reputation.
Cleveland dedicated trucking services hinge heavily on mutual trust. The carrier must commit to a certain amount of driver and trucking capacity, while the shipper commits to a certain amount of regular freight. If you’re considering a dedicated transportation arrangement, it’s important to carefully vet the reputation of the 3PL/carrier. Trucking is a tough business and supply chains are always changing. When a company has been in business for decades, it means they’ve gained customer confidence through successful navigation of challenge after challenge, year after year.
For information on Northeast Ohio Trucking Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
An Analysis of the Operational Costs of Trucking: 2022 Update, August 2022, American Transportation Research Institute
More Blog Entries:
Cleveland Transloading Service Benefits, Oct. 15, 2022, Northeast Ohio Dedicated Trucking Services Blog