In an everchanging freight market, logistics companies are looking for creative ways to expand their capacity and to provide comprehensive service to their customers. The national driver shortage and electronic logging device (ELD) mandate present obstacles for carriers looking to reduce wait times and to increase their drivers’ productivity. Therefore, leading logistics companies are partnering with their carriers to develop drop and hook freight networks.
The power only concept is simple, a small to mid-sized carrier can bring their tractor and the logistics company supplies a third-party trailer pool to offer a drop freight network. This can be a successful partnership by allowing the carrier to focus on the daily service, and the logistics provider to focus on building network density. Together, they bring scalable value to the customers.
The power only solution presents cost savings in a variety of areas. Leasing or purchasing a trailer can be expensive and can convey its own additonal costs, such as extra insurance, taxes and maintenance. Without access to a fleet of trailers, your business is missing out on the opportunities of productive drop and hook freight that keep your drivers moving and making money. After all, productivity puts money in the drivers pocket, so carriers can retain them.
Easy to Use
By partnering with a driver-focused company that you trust, it’s much easier to grow your earnings and business. Searching for freight can cause you to lose valuable time. Power only simplifies the process by offering no touch, driver-friendly freight. Opportunities can consist of regional, cross border, project-based and 48-state coverage.
Also, carriers don’t have to waste time working with multiple logistics companies to build their weekly truck plan. The power only solution can include predictable routes, a single point of contact and 24-hour service. Then, carriers have one more advocate to help build their business.
The goal in every business is to eliminate waste. Werner Logistics’ Power Only eliminates waste by paying all deadhead miles. While deadhead is technically not eliminated, it’s paid to the carriers at the same rate as loaded miles, creating a consistent revenue stream for the carrier and driver. A company like Werner Logistics can do this because of the extensive freight network they’ve built over more than 60 years.
In addition, expert load planners will find you constant freight from their customer-base. You’re able to get consistent volume with year-round freight and preference of lane.
The power only solution is also beneficial to the driver by giving them more home time. A Transport Topics article references Bob Costello stating that compensation and the quality of life are part of attracting drivers. This is what is aimed for in power only, but to provide productive miles where drivers get paid and can be home on a more consistent basis through more freight options.
Overall, power only lowers the cost, it is easy to use and offers consistent freight. These benefits have the ability to increase driver retention. The American Trucking Association reported on June 7 that the turnover rate dropped to 73 percent with smaller truckload carriers, but was still seven points higher than a year ago.
Whether you’re a customer looking for creative solutions or a carrier looking to drive revenue into your business, power only can diversify your freight execution strategy. At Werner Enterprises, perks are offered for carriers such as a truck leasing opportunity and allowing for the utilization of our 24,000 network of trailers, that are the latest model with driver-friendly freight.