Here at Anderson Trucking Service (ATS), weve been in the business of moving freight for well over 65 years. However, many regular truckload carriers also act as power-only carriers when they have spare drivers and tractors, such as during seasonal downturns in their main business. "Over the past year, it has climbed out to a historic 41-year high," he said. Again, this advantage gives truckers more opportunities to find loads. power-only side of Timmons Transit's business through C.H. It creates greater efficiency in other parts of their supply chain. Manufacturers, grocers, ecommerce, and construction companies are just some of the many businesses that can fill a trailer with freight. Power Only Trucking for Carriers. Permission granted by Jeopardy Productions, Inc. FLEXcon and Advanced Visibility Bring New High-Visibility Products to Market, Logistics International ERP Market Review Report Released by Logisyn, CloudTrucks Introduces New Partnerships to Deliver Cost Savings for Owner Operators, Optym welcomes Chris Torrence as Chief Strategy Officer, By signing up to receive our newsletter, you agree to our, Virtual Event You might also hear of power-only shipping as drop-and-hook shipping, as it refers to the process of hooking a truck to a shipment trailer. Of course, power-only trucking isnt right for all businesses. His DeWitt Transportation operation didn't sit there for much longer, though. Additionally, trying to generate extra revenue through side gigs like hauling freight for other companies can help to offset some of the running costs of your power-only trucking business. When volume declines or a project is complete, a 3PL can end their trailer lease and scale back to provide power-only capacity. Wayne Timmons, co-owner of Arkansas-based Timmons Transit, found similar with legacy broker C.H. They may also have some tractors and drivers but need extra capacity during periods of unusual demand. Often, power-only service providers such as a freight brokerage or a 3pl can preemptively coordinate pick-ups that smoothly fit each shippers needs. They might not have the hours available to budget for loading a trailer but by taking a power-only pickup, they make the most of their available 14 hours. The process of employing power-only trucking for each shipper is really quite simple. The shipper must also rely on an external provider to make an on-time delivery. "The expectation from a shipper would likely be a lower line-haul cost and more flexibility on end destination, in exchange for the use of the carrier's equipment.". Some shippers have their own fleet of trucks and trailers. You can find out these rates by searching online or talking to other power-only truckers in your area. Power-only trucking is a service that is becoming increasingly popular in the trucking industry. March 22, 2021 Power Only trucking is a different type of commercial transport service. Well also discuss why power only trucking has gained popularity over the last few years, particularly since the pandemic began, and where you can find and book power only loads and reloads. DeWitt served in the military in the Army. Recognized as a Best Remote Large Places to Work. For Tim DeWitt, as he began to add trucks and employee drivers, that meant making good on a goal of transforming trucking's traditional miles-pay arrangements for drivers to a salary-type structure, with weekly guarantees of $1,400 for those just starting out, rising to $1,540 over the course of the first 90 days a driver is with the company. Read more in the long-running "Niche Hauls" series via this link. Subscribe to get the latest news, industry trends, blog posts, and updates. What does power-only trucking mean to shippers? ", DeWitt offered baseline advice for anyone making such a consideration -- pick your partner wisely. Most of our customers are bigger, too. You can also optimize routes based on historical location reports, current weather conditions, and other factors. Return shipments from a destination back to the origin. "For customers, it's a good option for their timeline because it offers flexibility," she said. Tractor and trailer manufacturers are still struggling to keep pace with demand for new equipment and power only is great way to take advantage of high demand for capacity when trailers cant be purchased due to supply shortages. Yet, they may not have their own truck or driver to move it. Since these trailers are pulled by external power units transporting them back to a shipper's home base following a drop-off can get costly especially if each trailer isnt utilized. If youre new to the trucking industry, you may have heard the term power-only trucking. But what does that mean? "We typically stay within a region city to city, back and forth. Expect brokers to require truck owners to have liability and cargo insurance. "With the pandemic, many drivers haven't wanted to wait at [distribution centers] and are often staying confined to their trucks," said Sabatini. Motives always-evolving software is constantly improving to fuel your business productivity and profitability. Instead of sourcing for truck and trailer capacity, shippers that utilize this service work with their transportation partner to find a power-unit in their area and match it to their freight. If youre still using load boards, be sure to read 10 Reasons To Use Trucker Tools Load Search Over Load Boards. For shippers that move power-only freight consistently, the contracted rates they develop with their provider should mitigate some of these issues. Power Only Trucking - DAT Rather than paying to keep and maintain equipment that they might only need seasonally, power-only trucking lets shippers bring on extra equipment as needed. Trailers must be either 53' or 28' and box trucks must have interior cargo dimensions of at least 26'x8'x8'. It's a simple way to increase capacity while still receiving the benefits that come with Schneider's high level of service. Home - Towaway Express Offers flexibility when a facility or warehouse moves, for special shipping projects, or to meet shipping surges. "It all comes down to the most affordable way to go.". There are two potential disadvantages you need to consider before choosing this method. Outsourcing a lot of the aggravation and with just one full-time staff member (plus a part-timer) in the back office other than himself, "the way I pay," he said, "I can take some of the suckiness out of the job. Power-only trucking is a relatively new business venture that involves transporting cargo using only power-driven vehicles, such as trucks and tractors. Working with a load board with rates can help you negotiate and determine the going rates for various types of loads and choose the runs that make sense for you. Use our Power-Only Load Board to make the connections you need to find the best loads. This means less. ", Vice President of Flex Solutions at Coyote Logistics. In many cases, power only trailers are already preloaded. Without them, its difficult for drivers to coordinate, line up, or handle drop-offs according to plan. Minimum 3 years experience required. The trailer is provided by the shipper, a third-party logistics (3PL) company or, sometimes, through a lease option. However, the vast majority of truck drivers are not happy in their job because of the long hours, low pay, time away from . A hazmat load? Perhaps the greatest advantage of power only trucking is that you/your drivers dont have to deal with long waits at shipper and receiver facilities. To own or not to own a trailer: How COVID fast-tracked an explosion in power-only opportunity, Part 1 of this "Niche Hauls" series focused on growth in power-only opportunities for independents, Small Fleet Champ semi-finalist DeWitt Transportation is now a 34-truck business, given large fleets' growth limitations with owned equipment, Rates hack: The spot market 3 o'clock hustle, marching on Washington begging for Uncle Sam" to help, enforced transparency into brokers' margins, Volatile year shows growing pains for in-app freight pricing, value of negotiation. If you would like to know how ATS can help you with your next power-only load, please reach out. Rather than purchasing and storing their trailers, they simply work with a leasing company to have them dropped off when needed. According to Brent Hutto, chief relationship officer at Truckstop.com, power only was at a low in the years following deregulation. However, focusing on the power-only market does narrow load opportunities. ", Chief Relationship Officer at Truckstop.com. Power-only trucking is one of the most cost-effective and cost-efficient transportation methods for companies that need to store their products on trailers for a significant period of time, with occasional shipping along the way. But theyre taking on the responsibility for maintaining and servicing their own trailers. Do owner-operators need to worry about credit scores? You can save time by instantly finding the loads you need and connect with reputable companies throughout the country. Essentially, drop and hook refers to the simple hook-up process that is used when transporting trailers. Power-Only Trucking: An Overview of a Growing Trend Since the beginning, every Tour has been planned to include activities appealing to hot-rodders, from cruise-ins in shopping . Previously in this series: To own or not to own a trailer: How COVID fast-tracked an explosion in power-only opportunity. Cyclical shipments ending at the original point (A - B - C and back to A). Power only trucking allows for greater control of freight shipment and helps to ensure uniformity of transporting trailers and general trucking services across the entire fleet. Power-only trucking offers shippers several advantages. With power-only trucking, immediacy is more challenging as a driver needs to be found with an available semi-tractor. In this blog post, we will discuss what power-only trucking is and how it works. Instead, they solely take on power-only trucking jobs. When the truck is nearing the endpoint, notifications let you communicate with the shipper to expect delivery, which enhances customer experience. Power only trucking is a full truckload capacity solution that occurs when a carrier provides only a driver and a tractor (also known as a "power unit"). Anything that streamlines the process and makes it easier for shippers and carriers to work will be in high demand. Stephanie Sabatini, COO at RLSA Trucking & Logistics, said that after providing close to 30 years of power-only services, demand is higher than ever right now. Different size trucks are available as well as oversize load hauling to transport even the heaviest loads. Or the shipper might contact a broker who finds a power-only trucking company to help. He acknowledges that, "for the short-term minded person," power-only in a system like Prime's is probably not where the truly big money is right now. Those outcomes reflect a couple of different advantages earmarked by Overdrive readers as benefits of power-only trucking in Overdrive's recent survey. Shippers need to find ways to coordinate freight to avoid having to hire drivers to drop off empty trailers. This has only increased the demand for power only trucking options. There are, of course, disadvantages to power only trucking, as well. An EGU's capacity factor indicates a power plant's electricity output as a percentage of its total generation capacity. By using power-only trucks, businesses gain a wide range of benefits, from lower costs to improved efficiency. Find out how our platform gives you the visibility you need to get more done. Powerful benefits Efficiency. Join the Roehl Transport team, one of North Americas safest and most successful trucking companies. This type of trucking utilizes vehicles that are designed specifically for power-only trucks, meaning that they only have power sources and no other cargo space or hauling capabilities. These can include things like the cost of obtaining your commercial drivers license, buying or renting trucks and other equipment, hiring staff, and purchasing fuel for your power units. Here are five factors worth considering when thinking about power only trucking services. Plus, deadhead miles are a greater risk. And, provided it fits your supply chain, can it truly make your life easier? U.S. news. The company that supplies the tractor and the driver is known in the trucking industry as the carrier. Advantages and Disadvantages of Power Only As a carrier or owner operator, power only may be an attractive option for you because it doesn't require that you own or have access to a trailer. Moving your commodities is only a small part of your business. When a shipper uses a power-only trucking company, the shipper is not responsible for the insurance costs. Power only represents a particular branch of trucking service and operations. This can mean building relationships with companies that have their own trailers or using load boards to see available choices. You see, truckers are subject to a strict set of governmental regulations that dictate the amount of on-duty service hours theyre legally allowed 14 hours within a 24-hour period. With the truck provided, this is often referred to as power only as the trailers that carry the shippers freight comes from another source. Often, the trailer will be pre-loaded as well, making it easy for the driver to hook the trailer up to their truck and get going. The more convenient a load is for a driver, the more willing they are to service it. Power only trucking is a full truckload capacity solution where the driver isn't tasked with bringing a trailer to move freight. As a result, its important that you understand all of the factors that impact your freight rates so that youre better prepared to maximize your budget. Since they dont need to wait around for a trailer to load, shippers can focus on the efficiency of their production schedules and maintaining their bottom line. From faster loading and unloading to a more streamlined approach and driver management tools, this innovative transportation service is changing the industry. Although maintaining a fleet of trailers isnt nearly as expensive as routinely servicing a tractor, its not without its costs. They dont need to worry about working with a leasing company when theyre ready to load up. It is often cheaper to go with this option as there is no worry about fuel costs and expenses. Power-only trucking is a convenient solution for shippers who own or lease their own trailers but dont have their own fleet of trucks or drivers. Power-only and tractor-trailer approaches to equipment have their merits in this unprecedented demand economy. Runs in and out of major cities often pay more than rural routes. For one thing, competition is fierce, which means making cost/revenue calculations before a load is taken by another driver is challenging, and rates are often non-negotiable. These include: Two types of insurance generally cover power-only trucking: trailer interchange and non-owned trailer. The company that is being hired in this case will only provide the power that moves the trailer. Demand for power only trucking services has increased significantly in response to recent shopping trends and consumer buying habits. Owner-operator evolution in 'Partners in Business': Roundtable, Do Not Sell or Share My Personal Information. Let's say they get to the top of the pecking order with the best-paying freight. In the end, only you can decide whether power-only trucking will fit your business. The power only cab service isn't only limited to a single trailer shipment, this service can provide a team of drivers depending on . Power-only trucking, also known as drop-and-hook trucking, is a type of transportation service where a trucking company provides the tractor or power unit to haul a customer's trailer. This article explores power-only trucking and addresses challenges of power-only logistics. In most other kinds of trucking, youd also provide the trailer. Power-only trucking allows shippers to do just that. Rather than trying to find each other on your own, you can post and search listings, making it far easier and faster to make a connection. "They have way more freight available to them than they have the ability to cover" with either owned fleet trucks or leased owner-operators, DeWitt said. In some cases, the trucking company also owns a fleet of trailers but provides power-only capacity to account for seasonal fluctuations, network imbalances, or other issues. This type of trucking can be used for many different applications, such as delivering power generators to construction sites or transporting power transformers. In turn, having their trailers loaded and ready grants shippers the ability to source for power-only capacity where they are and when they need it. While power only trucking does offer a certain degree of freedom for load management, the overall scalability of load transportations can suffer when it comes to longer hauls. Make sure to consult your provider especially if youre seeing increased freight rates frequently due to a lack of lead time about whether a contracted rate may serve your needs better. But I was doing a couple of runs paying 4 dollars a mile power only. Is it a standard flatbed trailer? The more convenient a load is for a driver, the factors that impact your freight rates, Check out the cost/pricing section of our learning hub. the main disadvantages of using power-only services to move your freight, which are: Although maintaining a fleet of trailers isnt nearly as expensive as routinely servicing a tractor, its not without its costs, Should a trailer need to be replaced or fixed, this expense falls solely on the company that owns it, If a driver isnt confident in the condition of the trailer theyre set to haul, they may refuse a load, As a general rule of thumb, a window of 24-72 hours before your load needs to be picked should be more than enough time, its important that the shippers using this service employ a high level of logistical oversight, become costly as theyre constantly paying to move empty trailers back to their facilities. Not only does this reduce transportation costs, but it also enables businesses to save on fuel and maintenance expenses, since the power requirements for these vehicles are much lower than those of traditional trucks. If youre in the trucking business, you may have heard of power-only trucking. According to Brent Hutto, chief relationship officer at Truckstop.com, power only was at a low in the years following deregulation. These kinds of load options are often available through freight brokers or online digital freight match-up services. Because power-only shippers have trailers onsight, they can essentially store their freight until its trucking solution arrives. Subscribe to the Transport Dive free daily newsletter, Subscribe to Transport Dive for top news, trends & analysis, The free newsletter covering the top industry headlines. "Understand the business," he said "So many guys dont understand the numbers, and whether theyre profitable or not.