0
0
power only dispatch services can help get your freight where it needs to go. But what exactly does this term mean in trucking?
In a nutshell, shippers connect with a power unit and trailer interchange partner to get their loads moving. These companies may provide a tractor and driver or lease capacity.
Cost-Effectiveness
Power only dispatch services mean that shippers no longer need to worry about their tractors and drivers. Rather, they can focus on what matters most: getting their freight where it needs to go.
The cost of keeping a truck fleet running is significant. It can be a major expense that eats into the bottom line for many trucking companies. That’s why power-only trucking is an attractive option for shippers.
For one, it allows them to bring on more equipment as needed. This can save them money on capital expenses, as well as maintenance costs. It also means they have more opportunities to find loads for their trucks, which is a win-win for both parties.
Another benefit is that power-only trucking expands the availability of trailers for truckers to use. This can be especially helpful for shippers that have large amounts of open deck or dry van commodities that need to sit in a trailer for long periods of time.
It’s also a popular solution for trucking companies that want to add capacity during times of peak demand in their main business, such as during the holidays. It’s a great way to generate additional revenue for your company while avoiding the high costs of maintaining and buying new equipment year-round.
Additionally, power-only trucking can be a smart solution for shippers that get a lot of fluctuating levels of perishable goods. These types of shipments often need refrigeration, and they can be challenging to move with traditional driver-only service.
Power-only service can be added to a shipper’s standard Schneider service to meet a temporary demand, or it can become part of a long-term solution. It’s ideal for companies that already have an established relationship with Schneider and a network of company drivers and owner-operators.
To use power only, shippers coordinate with their transportation provider to locate a “power unit” in their region that can safely and securely transport their freight. After a trailer interchange agreement has been signed, the external “power unit” snugly attaches to the kingpin of the trailer and securely secures all of the cargo before it hits the road.
Efficiency
When a power only trucking company sends a driver out to pick up a load, the driver can drop off the trailer at their destination and get right back on the road. This minimizes wait times for drivers, which can be a big money-maker.
Shippers also see an increased efficiency when they use power only trucks because they don’t have to pay for trailers or tractors. This reduces their costs and gives them a bigger profit margin.
Another big benefit of power only is that it’s flexible, too. It can work especially well for companies that have a fluctuating level of perishables, or those who have to store their inventory on trailers for long periods.
A great power only service provider will find a mix of drivers and tractors to fit each shipment’s needs. This allows them to keep truck capacity in-house and avoid paying for extra trailers or tractors when they only have a few loads at a time.
It can also save money on insurance. This is an important consideration for shippers who want to make sure they’re not overpaying for a trailer that may be stolen or damaged.
Many large 3PLs have partnered with trailer leasing companies to provide leased trailer capacity for shippers. This capacity can be tapped into when the market needs more trailers for a period of time, or a special situation requires drop-trailer capability.
During a high-demand season, for example, these 3PLs can rent trailers to shippers and offer them power only trucking as a capacity solution. This gives shippers flexibility and scalability to respond quickly to changing market demands.
Some 3PLs also have their own fleet of leased trailers, which they can deploy to meet customer demand in busy times. When volumes decline or a project is complete, they can end their trailer lease and scale back to offer power only capacity.
In trucking, this is also referred to as freight ton efficiency, or FTE for short. It’s an industry-wide measure of how efficiently energy is used to move goods, and it’s calculated by multiplying the mass of cargo moved [in US tons] by the fuel economy of the vehicle.
Job Security
Job security is the reassurance that you will be able to keep your job without fear of being fired or laid off. Some jobs have a higher degree of job security than others, but no one can completely guarantee that they won’t lose their jobs.
As a power only truck driver, you can provide a valuable service to shippers that are facing an ever-increasing shortage of drivers to transport their loads. You help them avoid a costly line item on their annual budget by keeping their freight moving. You also provide them with a level of flexibility and convenience that would otherwise be impossible to achieve without the help of a power only dispatch service.
Many truckers enjoy an array of benefits, including health, dental, vision, life insurance and access to flexible spending accounts (FSAs). These benefits are especially important for those who are in their early career stages as they can be used to cover emergency costs or build up a substantial retirement account.
In addition to offering benefits, most trucking companies pay a competitive wage that grows with experience and miles driven. This ensures that you will always have a steady stream of income to support your family.
According to a study by the American Transportation Research Institute, company drivers and owner-operators/independent contractors ranked their income as an important factor in choosing to work in this industry. Almost two-thirds of owner-operators/independent contractors expected that their income would be higher if they were reclassified as company drivers, and nearly seven-in-ten expected that their job satisfaction would increase if they were classified as a company driver.
Another factor in job satisfaction is the opportunity for career growth. While many truckers choose to work for a company that specializes in hauling goods, some truckers opt to become owner-operators after gaining enough experience. This allows them to earn a higher salary and negotiate rates with freight hauling companies.
The DOT and DOL are launching the “Driving Good Jobs” initiative to address issues of driver retention and job quality. This initiative features a federally funded apprenticeship program that will help committed trucking employers develop and retain drivers. The program will include a series of listening sessions to gather input from truckers, labor leaders, and advocates. It will also help ensure that the trucking industry continues to have a strong and diverse workforce by increasing the number of women in this industry.
Flexibility
Flexibility is a key aspect of trucking, and it’s important for all parties involved. When truck drivers have more control over their work schedules, they can spend more time fully loaded and less time driving empty. Drivers who have more flexibility can also better manage their time and spend more money when they want to.
In trucking, there are many different types of flexible services available to meet your transportation needs. Some of these include zone routes, route deviations, and request stops. Each service can have its own benefits and disadvantages, so it’s best to explore each one before making a decision on which strategy is right for you.
Another type of flexible transport service is power only trucking. This is a type of truckload capacity solution in which carriers provide only a driver and a tractor (also known as a “power unit”).
Power only trucking allows shippers and 3PLs to create very flexible shipping solutions that meet a variety of needs. It can be used as a short-term solution for peak seasons or as part of a long-term freight network.
The main reason why power only dispatch is so popular is because it allows a company to select the carrier that can get the job done quickly and efficiently. This is especially helpful for shipments that need to be delivered promptly and that require round-the-clock staffing.
It’s also an excellent option for a trucker who wants to switch to an owner-operator position. This can give them a higher salary and more control over what projects they say yes to.
When truckers can switch to an owner-operator position, they can save on the cost of operating a fleet of tractors. This can free up funds that can be used to cover other costs, such as fuel.
Additionally, driver-only dispatch services are a great way to keep drivers on their feet and earn more money. They can line up loads that don’t fit into their regular schedules, allowing them to avoid idle time and maximize their earnings.
It’s also important to remember that when a driver is flexible, they are likely to take on more responsibilities and be more responsible for their own safety. This can help them increase their job satisfaction and improve their morale, and it may also lead to a greater likelihood of being promoted to supervisory positions.
