Capacity Crunch Spurring Shippers to Check Out Dedicated Services
For many shippers, dedicated contract carriage will enable them to control costs and improve service. It may be wise to consider the option for the first time. Learn more.
September 16, 2014, Downers Grove, IL – With trucking capacity running close to 100 percent and freight rates steadily rising, shippers are taking a second – or in some cases a first – look at dedicated contract carriage as a solution to the uncertainty which lies ahead. So says Joe Gallick, Senior Vice President of Sales, in a recent blog on the NationaLease Website.
“With trucks in such demand and carriers in the driver’s seat, shippers are now scrambling to find sources to move freight on the timetable they require,” he says. “Even 3PLs are feeling the squeeze.”
Gallick makes the case that shippers need to investigate the advantages of dedicated contact carriage at a time when carriers themselves are also grappling with problems of their own. These include finding qualified drivers to move freight and a general unwillingness to dramatically expand fleets at a time when economic conditions are not quite stable.
With all of these factors working against shippers, Gallick points to dedicated contract service as a solid solution. A dedicated service offers predictability of transportation expenses, which brings budgeting benefits to shippers. In addition, by locking in an agreement, shippers can lock in a rate with agreed upon CPI-based adjustments for a specific period of time. “And while common carriers might guarantee a rate, they don’t usually guarantee availability on a specific date the shipper may need shipments moved,” Gallick notes.
The blog offers a number of other reasons why dedicated contract carriage may be the logical choice for shippers which have never considered the arrangement before. To view the full blog, visit http://blog.nationalease.com/shippers-look-to-control-costs-and-improve-service-with-dedicated-carriage/.
Founded in 1944, NationaLease is one of the largest full service truck leasing organizations in North America, with over 700 service locations throughout the U.S. and Canada and a combined customer fleet of over 135,000 tractors, trucks, and trailers. The company provides comprehensive fleet management services for private fleets and transportation service providers. More information can be found at nationalease.com.
Caption: Joe Gallick, Senior Vice President of Sales, NationaLease