Moving freight down dedicated lanes is a solution that both shippers and carriers love. Why? It’s a simple process and a straight shot to and from that just works. Do you know how to set up dedicated shipping lanes with your carrier or broker partner? You should.
Shippers who set up dedicated lanes with their freight partners are setting themselves up for success. A dedicated lane is a single to-and-from route assigned to a specific shipper. It guarantees service along that lane and is a very cost-effective solution for shippers in all industries.
Are you considering switching your freight shipments to a dedicated lane? Get the information you need to truly make sense of the process and benefits of moving goods down a dedicated route. Let shipping on a consistent schedule lead to increased levels and more with the right broker or carrier partner.
You need to know what a dedicated lane is before you can determine if this solution is a good choice for your shipping needs.
What is a dedicated lane? A dedicated lane for shipping freight is a route that a carrier travels for a single company. The truck or carrier will take a full truckload -- an entire trailer -- of goods from Point A to Point B. Then the truck will turn around and move goods from Point B to Point A.
In many cases, the broker or company booking freight on a dedicated lane arranges a deal with the carrier to ensure a fixed rate for a designated amount of time.
Dedicated lanes can be local, regional, or even long over-the-road routes. Large companies, like retailers such as Walmart or Amazon, might have their own dedicated fleet of trucks traveling down consistent shipping lanes to keep goods flowing, as they are constantly moving products from warehouse to terminal to retail store and beyond.
Medium-sized and smaller companies, however, can benefit by partnering with a 3PL broker or a carrier partner to find backhauling opportunities along their chosen lane. This balances the load and ensures great service for all shippers.
A few factors go into making dedicated lanes work. When done right, dedicated lanes are mutually beneficial to both shippers and carriers. This means they are often the foundation of a strategic partnership.
Dedicated freight lanes are:
Shipping along a dedicated freight lane comes with many advantages, especially when you use them correctly. Learn when a dedicated lane is a good choice and what is takes to take advantage of these elevated service levels.
A dedicated lane is a good idea when you are consistently shipping goods along the same route.
For example, if you are a small business regularly shipping freight from California to New York, a strategic broker partner can ensure the carrier moving your goods can backhaul a load from the Golden State to the Empire state. Doing so might cut costs and come with other benefits.
Carrier partners and even owner-operators like working with businesses to book dedicated lanes. For example, consider these two factors:
Simply put, you likely need to use a dedicated lane when you are consistently moving freight down the same route. There are many benefits to using this kind of shipping arrangement and it can lead to serious strategic partnerships.
There are a bevy of benefits that come with seeking out a strategic partnership and moving freight down a dedicated lane. Let’s dive into a few ways shippers can benefit by working with the right 3PL broker or carrier partner to book freight on a dedicated route.
As noted above, many large businesses and major enterprises have their own dedicated fleets. Small and medium-sized businesses just don’t have this option in most cases.
Working with a broker or carrier partner to book freight on dedicated lanes let them act just like your own dedicated fleet and go to work for you with each journey and return down the route.
When you book freight on a dedicated lane, you’re locking in freight rates for the duration of that contract. This is especially important today, as freight rates are skyrocketing and there’s no end in sight.
According to July 2021 data from the Journal of Commerce, freight rates are up 466% over July 2020 on some routes. As rates continue to rise, securing a dedicated freight contract with a broker partner or carrier just makes sense.
Looking for other ways to keep your freight shipping budget in the black? We’ve put together a list of 15 easy ways to reduce freight costs. We’ve even crunched the numbers and come up with how much you can save by implementing each measure.
Freight delays are a big problem plaguing today’s shippers and today’s consumers. Think about it: freight delays, regardless of the cause, put your business at a serious disadvantage.
Shipping freight down a consistent, dedicated lane can help prevent freight delays and prompt punctual pickups. How? It’s a routine. Your carrier or broker will count on you to be there at the same time with the same freight with each shipment, and they’ll deliver at the same time to your end destination.
You’ll also find that sending your freight down a dedicated lane can help your business cope with the capacity crunch other shippers face. An ongoing, dedicated contract with a carrier or broker partner will ensure a truck is always available to move your freight.
Dedicated lanes run like clockwork and are practically as dependable as sunset and sunrise.
You won’t have to spend time worrying about spot quotes and logistical legwork when you’re shipping freight along a dedicated route. Why? The hard part is taken care of and freight shipping is secure.
Not only will this free up money, but more importantly it can free up time. Shipping on a dedicated lane can let business owners focus on what matters.
Dedicated freight shipping is just one way you can overcome the obstacles that come with dealing with transportation. Check out our recent post about 10 logistics challenges and how to solve them to find answers to common conundrums.
The benefits of shipping down a dedicated lane are great, but what does it mean for the bottom line? Will shipping on a dedicated lane cut costs?
The answers to these questions are fairly simple. In many cases, shipping on a dedicated lane will absolutely cut costs.
Because companies generally rely on the use of dedicated lanes for ongoing scheduled deliveries, 3PLs and carrier partners can likely offer better prices to faithful shippers. This is generally because the shipment regularity, recurring shipment schedule, and the strategic partnerships established can both increase trust and reduce cost.
Additionally, securing a contract on a dedicated lane can lock in current prices. This is especially important as freight costs and fuel surcharges continue to spike. In fact, the Journal of Commerce has reported that trucking rate inflation is expected to extend into 2022. Booking dedicated lanes now can lessen the impact of trucking inflation on your budget.
Shipping on a dedicated lane can cut costs by creating a win-win situation for both shippers and transportation providers. Let’s look at what dedicated lanes can do for your supply chain.
Shipping down a dedicated freight lane can keep your supply chain strong. In fact, dedicated freight lanes can keep the supply chain operating at peak efficiency.
A dedicated truck that drops off raw materials at your plant each Monday can ensure weekly production goals are met. Along the same lines, a dedicated truck that brings inventory from the port to your warehouse each week can ensure you have the stock needed to fulfill online orders.
You are very likely to find that shipping down a dedicated lane is the most efficient solution to keep your supply chain strong. Dependable, dedicated service offers strength through a systematic supply chain solution.
Are you ready to start shipping on dedicated lanes to cut costs and enjoy other benefits? USA Truckload Shipping, powered by R+L Global, is ready to offer a strategic partnership to those seeking a dedicated shipping solution.
Why USA Truckload Shipping? Our partnership with R+L Global Logistics allows us to fully take advantage of all transportation resources available to find capacity and more. We can leverage our own essential allies to ensure service levels are exceeded with each shipment.
In addition to dedicated transportation solutions, USA Truckload Shipping (powered by R+L Global), can offer shippers services including:
What are you waiting for? Start reaping the benefits of shipping on dedicated lanes by reaching out today. Call (866) 353-7178 or contact us online now.