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Lean On Me To Be Your Dedicated Contract Carrier

Shippers often face the challenge of finding the most efficient and cost-effective solutions to move their goods from point A to point B. One option that has gained popularity in recent years is dedicated contract carriage (DCC). DCC involves a long-term contractual agreement between a shipper and a carrier for the exclusive use of transportation services.

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.

A dedicated freight strategy will help secure capacity, set a transportation budget, and removes the volatility from the market.

  • Consistent volume: Shippers with consistent shipping volumes throughout the year can benefit greatly from dedicated contract carriage. By entering into a long-term agreement with a carrier, shippers can secure capacity and ensure that their goods are moved efficiently and reliably, even during peak seasons. This stability in transportation services can lead to improved supply chain performance and customer satisfaction. If the carrier knows that every Monday Company A has a load to destination X; their sales team can work on finding a backhaul that matches your lane.
  • Closed-loop scenario: Does your freight go from Point A – > Point B – > Point A? If so, this is the best scenario for a dedicated freight option. There are a few variations that can be applied to your lanes to create a closed-loop scenario.
    • For example, let’s say Point A is your plant, you ship the product to Point B your customer, then you pick up your customer’s packaging at Point B (or in the vicinity) and head right on back to deliver it to Point A creating a closed-loop.  Working together with your customer or supplier may help you set up a scenario that will save you up to 20% on this particular lane.
  • Short Haul: Is this lane less than 100 miles? With the Hours of Service (HOS) regulations on drivers, short haul lanes provide the opportunity for a driver to handle more than one load a day, thus optimizing the use of the truck. Or, the cost to deadhead back to the terminal may be included in the price. It’s when the distance becomes a Tweener load that optimization of the truck and driver get difficult.
  • Specialized Equipment Requirements: 
    • o Certain shippers may have unique requirements for transporting their goods, such as the need for specialized equipment like temperature-controlled trailers or flatbed trucks. Usually, you can load up to 45k pounds onto a trailer. With a Heavy Haul program where carriers use lighter weight equipment, shippers can load up to 52,500 pounds on one trailer decreasing the volume of loads and saving the planet one truck load at a time. Dedicated contract carriage allows shippers to work closely with carriers to customize transportation solutions that meet their specific needs. This level of customization can result in enhanced service levels and better protection for sensitive or high-value cargo.
  • Spotting or Shuttling:
    • A form of dedicated trucking is to provide a spotter driver to move trailers in and out of your loading docks. The practice of utilizing drop and hook scenarios in your yard decreases congestion as drivers are waiting to be loaded/unloaded. Not only will this make your facility more appealing to the driver, you won’t run into the issue of being charged detention because it took more than 2 hours to load or unload.
  • Geographic Coverage:
    • Shippers with complex supply chains that span multiple regions or require last-mile delivery services can benefit from dedicated contract carriage. By partnering with a carrier on a long-term basis, shippers can ensure reliable transportation services across various geographies. This can lead to improved efficiency, reduced transit times, and better control over the entire shipping process.
  • Cost Efficiency:
    • For shippers looking to optimize their transportation costs and achieve greater predictability in their shipping expenses, dedicated contract carriage can be a viable solution. By negotiating fixed rates and terms in a long-term contract, shippers can avoid the fluctuations in pricing often associated with spot market rates. This can result in cost savings and improved budgeting for transportation expenses.

Dedicated contract carriage offers shippers a range of benefits, from increased operational efficiency and cost savings to improved service quality and performance. By identifying the best scenarios for utilizing DCC, shippers can make informed decisions that align with their specific transportation needs and business objectives. Whether it’s ensuring consistent shipping volumes, meeting specialized equipment requirements, expanding geographic coverage, or optimizing costs, dedicated contract carriage can be a valuable strategy for shippers looking to streamline their transportation operations and drive business success.

Why not lock in some capacity for a few lanes and let us bare the load for you.

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