When the trucking business provides just the driver and the tractor, the service is known as "power-only trucking." In this case, the shipper, a third-party logistics provider, or a leasing option must provide the trailer.
Trucking companies can provide power-only capacity in addition to their trailer fleet to adjust demand changes due to weather or network imbalances. Then there are the power-only carriers who don't own any trailers.
They specialize in power-only transport tasks instead. Power-only trucking is another option that, depending on the specifics, may improve the carrier's operational efficiencies and adaptability.
Let's discuss the pros and cons of power-only trucking and see what we can learn. This can help you determine whether power-only transportation is right for your company. Anyway, here's all you need to know.
What Is a Power Only Load?
Power-only" means that the carrier supplies the semi-tractor plus truck driver (the "power unit"), while the shipper provides the trailer. When carrying freight, shippers that own or lease their trailer fleet often find power-only trucking an efficient way to get their goods where they need to go.
It is easy to switch to power-only transportation for any shipper. Shippers that use this service coordinate with their transportation provider to locate a "power-unit" in their region and pair it with their freight, rather than shopping for truck and trailer capacity independently.
As a rule, this is a driver who has shown themselves capable of securely transporting loads in the past for the supplier. Once the most suitable driver has been found, and a trailer interchange agreement has been completed, this external "power unit" snugly connects the kingpin to the fifth wheel, secures all of the cargo, and hits the road.
What Does Power Only Trucking Provide?
- Control
- Reliability
- Efficiency
- Reduced expenses
- No insurance coverage
- No maintenance
- Budget flexibility
- Greater profits
- Satisfaction of drivers
- Versatility and quickness
Power-only trucking is a convenient option for everyone involved in the transportation chain. Some of the most significant advantages are as follows:
Control
The trailers are the responsibility of the shipping firm, but the tractors belong to the trucking company under a power-only trucking agreement. These two separate functions enable each company to concentrate on its core competencies.
Reliability
The shipper is spared the trouble of coordinating a driver's schedule and waiting around for an available driver. Instead, shippers may rely on a simple phone call to a tractor and driver to have their consignment picked up.
Efficiency
It may be challenging to enhance efficiency when trucks and trailers are a package unit due to the need to continually match uploads to avoid deadheading or the movement of empty trailers across the nation.
Shipping and receiving firms may load and unload trailers as required, and drivers can pick them up whenever they're ready using power-only trucking solutions.
Reduced Expenses
The cost of new machinery is high. By separating the two functions, power-only trucking businesses may avoid buying trailers, and shippers can save the expense of buying tractors.
No Insurance Coverage
Shipping companies and receiving facilities alike will greatly benefit from this. Tractor Insurance is notoriously expensive. The shipper is not liable for insurance fees when shipping through a power-only trucking firm. Because of the benefits to the shipper, the trucking company stands to get additional business.
No Maintenance
The cost of keeping a truck fleet running is high. When shippers own the trailers (or lease them) and engage a power-only trucking business to handle the driving, they are solely responsible for keeping the trailers in good working order.
Once again, this benefit expands the availability of cargoes for truckers.
Budget Flexibility
Power-only trucking allows shippers to bring on more equipment as required, rather than having to store and maintain the equipment they may only use seasonally. They will have greater leeway in their budget throughout the year due to this.
Greater Profits
Reduced costs mean more money in your pocket. It is preferable to reduce capital expenditures and maintenance costs for both parties.
Satisfaction of Drivers
Drivers would rather be generating money while on the road than waiting for goods to be ready to carry. Power-only trucking businesses reduce drivers' idle time by dispatching them to pick up finished cargo. When they arrive, they unload the cargo, pick up more cargo if necessary, and set off again.
Versatility and Quickness
Power-only trucking provides trucking firms with the freedom to send drivers where they are most needed, providing both long-term employment security and the day-to-day profitability that is essential to the success of any business.
What Doesn’t Power Only Trucking Provide?
Of course, not every company can benefit from using trucks alone for hauling electricity. Before committing to this strategy, you should weigh two possible drawbacks: Shipments that need to be delivered quickly often come with a hefty premium.
When shippers want a power-only trucker "right now," they may have to pay more. Two or three days' notice is ideal since it gives truckers time to include the cargo into a larger route.
However, there are some restrictions here, as the Federal Motor Carrier Safety Administration states that a driver cannot spend more than 10 hours behind the wheel in 24 hours.
Complexity in the supply chain
Moving a trailer is no problem with power-only. But what about when it has to be moved back to A? Power-only trucking is most beneficial for shippers with linear supply chains (Point A to Point B to Point A) or circular supply chains (Point A to Point C to Point A).
A lot of money might be wasted if they have to bring back empty trailers to where they started.
Scalability
While power-only trucking may provide some leeway in load management, its scalability may be limited on routes that need more stops along the way.
Scheduling
Shipping products by power-only trucks makes schedule changes more difficult than if in-house drivers were responsible for the transportation.
Collaboration
Cooperation and open lines of communication are necessary. In the absence of such devices, drivers cannot work in unison, form orderly lines, or prepare for the drop-offs promptly. As an added safety precaution, the Federal Motor Carriers Safety Administration forbids drivers from taking or making phone calls while operating a commercial motor vehicle, making the entire ordeal more difficult.
Who Works With Power Only Trucking Companies?
Companies who regularly transport open-deck or dry van goods maintain a fleet of trailers but have few available vehicles, and drivers sometimes resort to this mode of transport.
Because most open-deck and dry-van freight are picked up and delivered immediately, it is feasible for a driver to be found for the cargo to wait an extended period.
Additionally, since the firms that employ this service don’t have a semi-tractor and driver on-site to relocate trailers about their yard or from dock to dock, owning adequate room for stationary trailers is a regular attribute of power-only shippers.
Shippers may find it challenging to use power-only trucking if they do not have access to many trailers or a secure location to leave them for extended periods.
Beyond this, enterprises who transfer perishable items like fresh fruit or other refrigerated freight often aren’t able to employ power-only trucking since the timeliness of their shipments matters tremendously.
What Goods Can Power Only Carriers Transport?
Using purely electric power while driving is advantageous for several reasons. Transporting a wide variety of cargo is possible for power-only trucking businesses. The following are some examples:
- Flatbed trailers
- Refrigerated trucks
- Shipping containers
- Tankers
- Dry vans
Of course, you will need several vehicles to handle the various loads. Oversized loads and loads containing hazardous items, for example, often need the services of a driver with the appropriate qualifications and training.
Success with power-only trucking depends on shippers having as much information as possible about their cargo.
How To Use Power Only Trucking Services
Power-only transportation is a flexible option for shippers. Delivery of frozen meals, fresh vegetables, or other perishable things necessitates the use of temperature-controlled transport.
Even if the shipper has adequate temperature-controlled reefer units, they may not have enough drivers or tractors to transport them. This often occurs when the annual supply of perishable goods fluctuates.
Reefer trailers with built-in refrigeration can be towed by the vast majority of power-only trucking firms. Because the shipper supplies the refrigeration unit and the trucker furnishes the towing power, perishable cargo may be transported quickly and easily.
Shippers who preload their trailers with their cargo also often use power-only trucking. Many external variables, such as supply chain problems and adverse weather, may impact the transportation business. Some shippers choose to retain their own trailer fleet, load them as needed, and then engage a power-only trucking business when it's time to move.
How To Lease Power Only Trailers
Power-only transportation with rented trailers is another common choice among shippers. Instead of buying and keeping trailers, they contract with a leasing business to have them delivered as required. The shipper may take their time loading the trailers and then call for a power-only trucking business to get them when they're done.
How To Partner With a 3PL Company
Many companies in the current economic climate rely on a third-party logistics provider. They have become essential to the success of numerous enterprises.
To improve your online order fulfillment, warehouse management, and distribution, a third-party logistics provider (3PL) is your best choice.
It doesn't matter whether you're just starting or have been in business for a while and are trying to figure out how to manage your company's rapid expansion; a 3PL may be the perfect fit.
Do You Need a Private Fleet of Trucks?
Some transportation companies have a whole fleet of trailers. When the time comes to begin loading, they won't have to deal with a leasing firm.
They may have some tractors and drivers on staff, but they'll require more help during peak times. They may also merely own the trailers and hire power-only drivers for each time the trailers need to be transported.
Why Work With a 3PL Company for Power Only Trucking?
Power-only trucking provides additional mobility to your network, whether you use it to transport your own equipment or combine it with rented trailers.
Power-only capacity may be sourced most efficiently via 3PLs due to their access to vast, diversified carrier networks and sophisticated load-matching technologies. 3PL stands for “third-party logistics,” a specific type of company that allows businesses to outsource many aspects of order shipping and fulfillment.
A 3PL will be able to locate a power-only carrier to transport your goods wherever they need to go and at short notice.
Third-party logistics providers are not restricted to using the infrastructure of a single telecom company. They can quickly increase or decrease capacity when necessary (using electricity alone or a rented trailer).
A third-party logistics provider (3PL) may design a power-only solution that provides adjustable drop capacity, which is useful whether you're redistributing your equipment network or switching warehouses.
Keep Your Shipping Orders Flexible
Plans may change anytime, and incorporating those changes in your logistics plan can be challenging. However, by using a 3PL company, you can easily make any changes you need and even request customized services that match your timeline and budget.
Outsource Your Company’s Logistics
Logistics can be extremely tricky as there are many moving components involved. Moreover, most of these factors are not in our control most of the time. By outsourcing your company’s logistics, you can focus your efforts and resources on other tasks instead of logistics.
Conclusion
Moving your goods is simply a minor aspect of your operations. But, the expense of these services may rapidly grow out of hand if you’re not attentive. Make sure to conduct your due diligence now to be better prepared to make the most of your shipping dollars.
Please contact us for assistance with your next power-only load. We specialize in moving freight, and we’d love to serve your company in any manner you need.
Sources:
What Is 3PL? How Third-Party Logistics Companies Work for Small Businesses Mobile Phone Restrictions Fact Sheet | FMCSA
Summary of Hours of Service Regulations | FMCSA
