In our prior blog post, It’s the Final Countdown to the ELD Mandate, we discussed the effects that the new regulation may have on the industry, focusing especially on shippers. Since the transportation/logistics/supply chain is not mutually exclusive, disruptions in one area of the chain can affect the entire process.
So, today we’re going to take a look at one option to lean on that can help simplify your transportation strategy; it’s going to provide you capacity when you need it, optimize your transportation operations, and, if done correctly, can save you up to 20%! Did that get your attention?
What is a Dedicated Contract Carrier?
Overall, dedicated contract carriage is part of a transportation strategy where a carrier has a contract with a shipper to move all freight as outlined in the contract. This strategy takes many forms throughout the industry, but overall the benefits are pretty much the same. Dedicated contract carriage provides shippers the capacity they need while avoiding pricing spikes in spot market and seasonal capacity constraints. By locking into rates with your dedicated carrier, you protect yourself from fluctuations in the market based on seasonality or impacts of weather.
Over the last 14 months, we’ve seen spot market rates increase 2-4% year over year, with some markets seeing an increase of up to 20%! A dedicated freight strategy will help shippers secure capacity, set a transportation budget, and removes the volatility from the market.
Not all freight is a great option for a dedicated scenario, if your freight falls into any of these categories, it’s time to start the dedicated conversation with your transportation provider.
If specific lanes came to mind while reading the types of freight that are a good option for dedicated contract carriage, there’s no time like the present to pick up the phone and get a rate quote.
It’s time shippers start having the conversations with their carriers, because as we know, there are never two days exactly the same in the transportation world. Why not lock in some capacity for a few lanes and let us bare the load for you.
Learn more about what makes Keller Logistics Group and its affiliates the best choice for your company’s 3PL logistics needs. Contact us to learn more about our services and request a no-obligation quote. Call 419-780-3767 or return our online contact form today.