Freight transportation is an opportunity-based industry in many ways. You get an order to transport freight from place to place, accept it, and hit the road. But in many cases, you don’t work for the same people, transport the same freight, or drive the same route very often, if at all.
That is unless you pursue dedicated trucking. Today, let’s break down the pros and cons of dedicated trucking for carriers like you.
What Is Dedicated Trucking?
Dedicated trucking involves hauling freight for one or possibly two primary customers on the same route every time. Instead of taking freight as it becomes available and driving many routes without knowing where you’ll be next week, dedicated trucking means:
- You know who you drive for
- You know the freight you drive
- You know the routes you’ll drive
- You know when you’ll be home
Why Is Dedicated Trucking Important?
Also called dedicated freight, primary freight, or contract freight, dedicated trucking is important for businesses since they can develop relationships with their carriers. Consistency is key to any successful business relationship, and consistency means that businesses and carriers can learn to trust each other and tailor their work to each other’s expectations.
In addition, dedicated trucking is important for carriers since it leads to business consistency above all else. Satisfying the same client over and over is much easier than hustling to get more work from dozens of different clients over a quarter.
What Are the Pros of Dedicated Trucking?
Dedicated trucking has many advantages, making it a favorite choice for carriers.
Increased Efficiency
For starters, dedicated trucking leads to much greater efficiency. Dedicated trucking runs are consistent, efficient, and profitable. That’s because dedicated drivers know the routine and the routes they will drive, so they handle pickups, drop-offs, and transactions more quickly.
Opportunities for Growth
In addition, dedicated trucking offers extra opportunities for growth as a carrier business. More consistency means more income you can count on, so you can put money toward a new fleet of trucks, buy new equipment, or even higher extra dedicated drivers.
Many carriers find growth difficult to pursue in an uncertain market. Dedicated trucking limits the uncertainty to some degree.
Long-Term Agreements
With dedicated trucking, you may benefit from long-term agreements with clients. Most dedicated trucking contracts are annual, so you can budget and forecast your finances much more accurately. Again, this ties into opportunities for growth and more consistency for your drivers and your business’s coffers.
Consistent Rates and Cash Flow
Speaking of consistency, dedicated trucking often leads to more consistent rates and, in turn, more consistent cash flow for your business. Consistency is king in any industry, and having money you can count on coming in each month is vital.
Not only does this help your business's bottom line, but it also gives your drivers greater consistency in their day-to-day lives. They may reward you with greater company loyalty and longer tenure — a key concern, given the current driver shortage.
What Are the Cons of Dedicated Trucking?
At the same time, there are some possible downsides to dedicated trucking to keep in mind.
Lack of Variety for Drivers
For example, many truck drivers like freedom and variety in their freight hauling routes. You may find it difficult to hire some of the best truck drivers, as they may be turned away from your carrier business if you advertise dedicated trucking as one of the advantages rather than one of the downsides.
Lack of Flexibility for Unexpected Opportunities
In addition, dedicated trucking does limit your flexibility in some cases. You won’t be able to take advantage of unexpected business opportunities, like a chance to jump on a great freight contract, if all of your drivers are already tied up in dedicated agreements.
Many carrier business owners will consider the trade-off worthwhile. Still, you’ll have to be able to stomach seeing some money float away from you in exchange for more consistent money reaching your business bank account.
Greater Responsibility
Lastly, dedicated trucking carries greater responsibility for a carrier business like yours. After all, when you sign a dedicated contract for a client, you are responsible for all their freight shipping needs.
They rely on you to get the job done no matter what. If you falter in your responsibilities, your reputation can plummet, you could lose the contract, and you could face other issues, like difficulty finding new dedicated freight clients.
Is Dedicated Trucking Worth It?
That depends on your perspective! Many carrier businesses find dedicated trucking well worth the alternative, thanks to its consistency in income and driver schedules. Others like to remain operationally flexible, so they stay away from dedicated contracts so they can jump on new opportunities as they arise.
Using a Transportation Provider for Dedicated Trucking
Many clients rely on transportation providers or companies like RPM to access dedicated, experienced truck drivers. As a carrier, you might benefit by signing on with a transportation provider rather than seeking out dedicated clients yourself.
The right carrier can:
- Provide you with a client list that works for your budget and location needs
- Give you the tools to succeed
- Ensure that you only drive the routes you want
The Bottom Line
Dedicated trucking can be a good career move, particularly if you are looking for stability more than anything else. But you’ll want to work with the right transportation provider to ensure you get good routes and the consistency you need.
RPM could be that transportation provider. Signing up with our network gives you access to a robust client base and intuitive tools to help you manage your finances. Contact us today to learn more about the benefits of driving for RPM.
Sources:
Industries at a Glance: Truck Transportation: NAICS 484 | Bureau of Labor Statistics
Q: What Is a Dedicated Route in Trucking | ZipRecruiter
Freight Shipping: What is Freight & How it Works | FedEx
