Businesses need trucks to deliver their freight. Dedicated contract carriers help companies receive their cargo sooner. Instead of serving the public, dedicated contract carriers serve a small number of shippers. This article will explore some of the most reliable dedicated carrier options.
Quicklook: Best Dedicated Contract Carriers
- Best For Extra Security: FedEx Custom Critical
- Best For Supply Chain Logistics: Penske
- Best For Saving Money: Keller Logistics
- Best For Ample Freight Choices: Knight-Swift Transportation
- Best For Up-to-Date Technology: Ruan
5 Best Dedicated Contract Carrier Options
Each carrier comes with advantages and disadvantages. Reviewing multiple dedicated contract carriage services takes time. These five dedicated contract carrier options are great starting points for your research.
FedEx Custom Critical
FedEx is a reliable shipping company. Their Custom Critical service comes with extra security among dedicated contract carriers. The company sends shipment notifications and uses positive driver identification to bolster security.
Best For: Extra security
Location: 942 South Shady Grove Road, Memphis, TN 38120
Services: Dedicated contract carriage, temperature control, surface and air options, same day and overnight delivery, and air expedite exclusive use
Employees: 499,718
Revenue: $84 billion
Special Features:
- Temperature control
- Same day and overnight delivery
- Exclusive air expedite services for Custom Critical
Benefits:
- Global presence
- Large workforce
- International customer service centers
Disadvantages:
- Fewer pick-up and drop off locations
- Higher shipping rates
- Pick-up fees for one-time shipments
Penske
Penske is a global dedicated contract carrier. Each location is locally-managed, leaving the company more prepared to deal with supply chain challenges. Their state-of-the-art transportation and distribution solutions provide plenty of customization for your business.
Best For: Supply chain logistics
Location: 2675 Morgantown Road, Reading, PA
Services: Supply chain management, freight management, route optimization
Employees: 20,193
Revenue: $32 billion
Special Features:
- Global supply chain logistics
- Locally-managed areas in the Americas, Europe, and Asia
- Access to cross-industry experience
Benefits:
- Customized strategies to unique needs
- Strong positioning to navigate global supply chain logistics
- Locally-managed offices
Disadvantages:
- Higher shipping rates
- Assigned drop-off dates
- Cancellation fee
Keller Logistics
This Inc 5000 recipient has over 40 years of supply chain expertise. Their affiliates have helped them expand their footprint across the country. The logistics company’s high customer satisfaction score indicates its ability to serve customers well.
Best For: Saving money
Location: 24862 Elliott Rd, Defiance, Ohio, 43512
Services: Closed-loop transportation, short hauls, heavy hauls, spotting and shuttling
Employees: 720
Revenue: $14 million
Special Features:
- Closed-loop transportation
- Short hauls
- Performance guarantee
Benefits:
- Lower overhead expenses
- Locking in rates to drive down cost fluctuations
- Reduced environmental impact
Disadvantages:
- Less reach
- Smaller business
- Only in the U.S.
Knight-Swift Transportation
Knight-Swift Transportation is the largest full truckload carrier. They service many customers across various industries. Their versatility in their truckload and logistics services makes them a popular choice.
Best For: Ample Freight Choices
Location: Phoenix, Arizona, 85043
Services: Dry van, port services, reefer, flatbed, power only, hazmat, inter-modal, and expedited
Employees: 22,700
Revenue: $4 billion
Special Features:
- 24/7 operational support
- Many freight shipping choices
- Efficient cost cutting
Benefits:
- Over 1,500 fueling locations
- Ample freight choices
- Truck savings program
Disadvantages:
- Smaller workforce than global carriers
- No exposure outside of North America
Ruan
The family-owned transportation company has been at it for almost a century. They provided dedicated contract transportation, managed transportation, and value-added warehousing. They employ over 6,000 employees across over 300 locations.
Best For: Up-to-Date Technology
Location: 3200 Ruan Center 666 Grand Ave. Des Moines, Iowa, 50309
Services: Dedicated contract carriage, freight brokerage, intermodal and drayage, inventory management and packaging
Employees: 6,000
Revenue: $2 billion
Special Features:
- Seamless start-ups
- Door-to-door supply chain solutions
Benefits:
- Up-to-date technology
- Efficient and cost-effective delivery
Disadvantages:
- No ocean freight
- Only in North America
What Is a Dedicated Contract Carrier?
A dedicated contract carrier does not make any stops on the way to your business. The trucks from these carriers only contain your freight.
How Does a Dedicated Contract Carrier Work?
Dedicated contract carriage companies hire truck drivers and maintain fleets for your company. They handle the transportation of your freight. They take on all of the risks so companies can focus on reaching new customers.
What to Consider With Dedicated Contract Carriers
When reviewing dedicated contract carriers for your business, consider these factors.
Experience
Companies with more experience have faced more challenges. They have had to adapt to these obstacles and serve a greater range of customers. Look for dedicated contract carriers with expertise in your marketplace.
Financial Stability
A dedicated contract carrier’s financial stability can affect its ability to serve your brand. If a carrier has to cut costs on operations, your freight shipments can get delayed. If a carrier goes out of business, you’ll have to find another carrier to deliver your freight quickly.
Strong finances help dedicated contract carriers invest in new trucks and equipment. Using old trucks and equipment creates risks. While the companies hold onto the liability, any accidents or delays because of old parts also affect your business.
Customization
Companies have specific needs for their cargo. Some companies need refrigerated trucks, while others need flatbeds. The level of customization stretches well beyond the type of truck.
A dedicated contract carrier must meet your company’s specific needs and standards. Review each carrier’s services and give them a call to see if they can serve your specifications.
Safe and Experienced Drivers
A nationwide truck driver shortage has turned truck drivers into a hot commodity. Many companies are lowering their hiring standards to get enough people behind the wheel.
Safety is always important, but safe and experienced drivers carry extra significance. Select companies that have focused on safety for years and have plenty of experienced drivers on their staff.
Effective Use of Technology
Technology gives us instant access to pertinent information. Dedicated contract carriers with effective technology can provide information on your deliveries, the supply chain, and other essential details. Technology can optimize each delivery’s path and lower costs.
Safe Operation
Companies should continue training their drivers in safety operations and customer service. This training will help your freight transportations run smoothly. Companies should invest in training and equipment such as disk brakes and LED headlights to foster safety.
Dedicated Contract Carriers Ride to the Rescue
Dedicated contract carriers provide the drivers and fleet to ship your freight. They take risks off a company’s shoulders and deliver vital cargo.
FAQ
A contract carrier provides trucks to specific shippers based on existing contracts.
A contracted carrier vehicle is designated for a particular shipper.
Dedicated contract carriage helps businesses receive freight without having to operate their own fleet and hire truck drivers.
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