What is Dedicated Freight and How Does it Benefit Shippers?

Dedicated freight is a type of shipping where a truck is exclusively assigned to transport cargo on a specific route.

In other words, it means having a truck dedicated solely to moving your goods.

Unlike general freight services, where trucks may carry loads for multiple companies, dedicated freight is exclusive to your business. This setup makes it a reliable way to get goods where they need to go, ensuring reliability and predictability for your business.

How Dedicated Freight Works

With dedicated freight, you get a truck, a truck driver, and a set route, all dedicated to your shipments. These trucks move goods along the same path, often called a “dedicated lane,” regularly. This arrangement is an attractive choice for businesses with consistent shipping needs as it guarantees that trucks are available when needed, leading to streamlined logistics solutions.

Key Components of Dedicated Freight:

• Dedicated Routes and Lanes: A dedicated route means a pre-determined path from the origin to the destination. In contrast, a dedicated lane is a specific route that is repeated frequently, ideal for consistent freight movement.
• Qualified Drivers and Dedicated Trucks: With a dedicated contract, shippers gain the assurance of having qualified drivers assigned to their freight. A dedicated truck is exclusively reserved for a specific route, which minimizes handling issues and delays.
• Dedicated Freight Contracts: With contract freight, shippers can secure fixed rates that help avoid the price fluctuations of the spot market. This type of contract ensures reliable service for the long term.

Dedicated Freight vs. Spot Freight: Which is Better?

Differences Between Dedicated Freight and Spot Freight

The main difference between these two methods of freight shipping is consistency. 

Dedicated freight uses a set truck and route for repeated deliveries, making it reliable and efficient. This contrasts with spot freight, which is typically arranged on a case-by-case basis, depending on the availability of trucks in the market. Spot freight often comes with cost unpredictability and variable service levels, which can lead to unexpected delays.

When Should You Choose Dedicated Freight?

Dedicated freight is a preferable option when businesses have regular and predictable shipping needs. It guarantees that shippers get reliable transportation with a dedicated fleet of trucks and drivers, eliminating the risks associated with relying on fluctuating market conditions.

For example, industries that ship products on a weekly basis or have strict supply chain requirements will benefit significantly from having dedicated transportation solutions.

On the other hand, spot freight might be more appropriate for companies that only need to move goods occasionally.

Industries That Benefit from Dedicated Freight

• Retail and Consumer Goods: Retailers, especially those with high volumes of inventory, depend on reliable deliveries to keep their shelves stocked. Dedicated freight helps avoid supply chain disruptions by providing regular and timely shipments from distribution centers to stores.
• Automotive Industry: The automotive industry requires a steady flow of parts to manufacturing plants. A delay can halt the entire production line, leading to costly downtime. With dedicated freight, automotive companies have trucks dedicated to transporting parts, ensuring they always arrive when needed. 
• Food and Beverage: For the food and beverage sector, timely delivery is crucial to maintain freshness and safety standards. Dedicated freight provides consistent schedules, ensuring perishable goods get to their destinations on time without delays. This makes it easier to manage delivery windows, helping maintain product quality and reduce waste.

For businesses seeking a balance between consistency and flexibility, dedicated trucking provides an ideal middle ground by securing regular capacity without the concerns that arise from unpredictable availability, prices, and delivery times. 

Benefits of Dedicated Freight for Shippers

1. Consistency and Reliability: With dedicated freight, the shipper knows exactly what to expect. There’s a set truck driver, a dedicated route, and a pre-arranged schedule, which minimizes delays and unexpected issues. Shippers can plan with confidence, knowing they have a consistent freight service at their disposal.

2. Cost Control and Predictability: Securing a fixed rate through a dedicated contract helps businesses manage costs more predictably, unlike the fluctuating rates seen in the spot market. Dedicated lanes also mean fewer delays, as the trucks are specifically allocated to a particular shipper. This translates into faster deliveries and lower overall costs.

3. Improved Operational Efficiency: With a dedicated freight opportunity, companies can improve operational efficiency by reducing downtime and avoiding the challenges that come with finding available capacity in the spot market. Dedicated carriers are committed to a particular shipper’s needs, meaning that trucks are always ready to roll, maximizing supply chain performance.

Strategic Partnerships with a Dedicated Carrier

Forming a strategic partnership with a dedicated carrier ensures long-term reliability, with dedicated freight lanes and dedicated drivers fully committed to meeting your company’s transportation needs.

Through dedicated contracts, businesses gain access to a partner that understands their unique needs, offering services customized to their requirements. Dedicated freight contracts help shippers achieve peace of mind, as they know that their freight is in the hands of professionals who are committed to on-time delivery.

Such partnerships help shippers avoid the stress of driver hiring and retention issues, which are common in the trucking industry. By relying on a dedicated driver, shippers can avoid disruptions that might occur with smaller carriers or third-party logistics providers.

How Mercer Transportation’s Dedicated Freight Services Benefit Shippers

Building strategic partnerships with a dedicated transportation provider like Mercer Transportation ensures a smoother, more predictable logistics process. 

We offer a wide range of freight services, all customized to meet your needs, whether you need dedicated freight, flatbed shipping, or dry van services.

And with a strong network of independent truck drivers, you can always count on your shipments to be in capable hands.

Mercer’s dedicated freight solutions mean that you’ll have a truck and driver-focused solely on your shipments, ensuring reliable, on-time delivery every time. Plus, our team supports its drivers every step of the way, which means you get consistent and professional service.