While most Americans would accept the phrase, “time is money”, truck drivers agree with it completely. The amount of time they put in on the road is directly linked with the amount of money they’re able to bring home. However, the profitability of their time is also immediately linked to their ability to mitigate costs and find capacity.
In the search for ways to maximize capacity, there has been a rise in less-than-truckload (LTL) and full truckload (FT) spot loads and rates. DAT explained that spot load posts are up 41% year-over-year, and spot rates are up 19-28% year-over-year as of December 23, 2021. With rising costs, finding more ways to make the most of each bit of capacity is key for truckers looking to boost profitability. This article aims to explain some of the benefits of utilizing such a strategy to maximize truckload in logistics management.
What Is Shared Truckload?
Shared truckload is a transit mode used to describe a truckload that is shared by multiple customers with multiple drop-offs in a similar lane. While the concept of a LTL predates the pandemic, it is an even more common occurrence in a world recovering from business slowdowns. As backordered products are ready for shipping, sometimes there may not be enough for a full load going to the same destination with multiple customers making demands on the shipper for the same product.
Unfortunately, LTL can be prone to wasted space in trucks. Yes, LTL hauls can either be traditional contract freight or spot freight. Now, since the spot freight market is made up of shippers willing to pay a one-time fee in order to accommodate the demand for a product’s delivery, they’re likely going to accept some wasted space. These spot hauls have no further contractual obligations and when used to fill a shared truckload, drivers are able to enjoy the profitability of focusing on overall load shipment density. Still, the need to move the most freight with all capacity utilized is crucial to avoiding even higher rates in the future. In other words, the need to share the truckload is essential.
How Shared Truckload Improves Capacity
In the freight industry, capacity is understood as the amount of space able to carry loads. Trucking companies and owner-operators are able to leverage every inch of space by collaborating with multiple shippers. Shared truckload is able to improve capacity by:
Packing trucks to capacity with higher paying loads than traditional drop and pick freight.
Having more control and opportunity for lane matching.
Providing access to the less competitive market of LTL freight.
Improving relationships with shippers who no longer have to wait for products to be TL ready.
Streamlining routes to focus on gas efficiency.
Saving time by skipping LTL hubs and terminals.
Reducing the profit risk of damaged products at terminals.
These benefits and more allows truck drivers to focus on improving a working capital, instead of a waning capacity.
How Carriers Can Better Use Shared Truckload
Shared truckload is an incredible way to increase efficiency in truckload in logistics. Of course, it’s not without its own new complexities that add to a business’s operation. Doesn’t more customers mean more invoices and more time spent with office responsibilities? Logistically speaking, what is shared truckload in daily life? Owner-operators and fleet managers who are considering incorporating shared truckload can start with some of these steps:
Use an integrated platform for finding LTL loads and spot freight
Strategizing the incorporation of shared truckload into a business’s regular work creates room for a smooth transition. In the digital age, what better way to do this than by digitally streamlining. By using mobile tools to do this with high value and minimal cost, drivers are allowed a peace of mind to focus on serving their customers well without worrying about crunching the numbers on the next load.
Put the Power of Shared Truckload to Work by Signing up for newtrul Today
While many would say that shared truckload is too complicated, there are many tools to streamline business choices that make the adjustment smoother. By maximizing every inch of trailer space across every mile of road, truck drivers are able to support their customers in an eco-friendly way that still puts more money in the driver’s pocket. Carriers with a browsing history littered with “what is shared trucking” should look no further, start a demo with newtrul today.