Dedicated freight is an arrangement where a shipper contracts with a carrier to haul consistent truckload shipments in the same lane on a fixed rate for a set period of time. This freight option offers benefits to both the shipper and the carrier, including:
For carriers, dedicated opportunities keep their trucks loaded and rolling with revenue they can count on week after week. And since dedicated freight is typically contracted at rates lower than spot market rates, it can provide stability during times of market volatility.
The efficiencies of dedicated transportation help reduce shipping costs for the shipper as well. With fewer stops, less handling and the ability to adjust delivery schedules as needed, dedicated transportation allows for faster pickups and deliveries. This can lead to a reduction in product damage and an overall better customer experience.
For drivers, dedicated opportunities allow them to build relationships with the shippers and customers they serve. In addition, being familiar with their routes and the facilities along the way can make the job safer for them as they drive through areas where they’re likely to encounter traffic or limited truck stops and parking.
For some drivers, however, running dedicated freight may not be the right fit. They may prefer to choose their own loads and have the freedom that comes with securing freight from the spot market. In addition, dedicated opportunities are often managed through a third-party logistics (3PL) company, which can slow down resolutions for issues that arise during the haul.