The 5 Needs for a Freight Carrier's Long-Term Sustainability

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Background

Generally, there are two distinct markets in the transportation industry through which freight is awarded, the contract market and the spot market. The contract market contains more stable pricing because it is governed by rates set for long-term or short-term arrangements directly between shippers and carriers (or brokers) for the movement of freight. These contracts detail ahead of execution the quantity of the commodity to be moved as well as the duration of the agreement. 

The other spot market however is more unstable and fluctuates to extreme highs or lows based upon the ratio of total trucking capacity to shipments needing to be moved. These shipments are doled out to companies on an individual basis-one shipment moved at a previously agreed upon rate.

Regarding long-term sustainability, a carrier can use the spot market as a resource for positioning equipment and servicing an already established customer base, but must not rely upon it. When the spot market fluctuates to extreme lows, the market's pricing is so low it no longer supports a competitive driver wage.

For long-term sustainability then, a carrier must position themselves able to secure freight on the contract market. Below are the five needs our company has identified as necessary to secure freight on the contract market, thereby providing a path to long-term sustainability.

Need #1 Technology - technology is a must have to retain contract freight because the customer’s workflow most times  will involve updating and maintaining accurate information in their own systems or technology. To accommodate customers who rely upon technology in their own workflows, a carrier must adopt technologies that are on par or exceed industry standards, to win new business.

Bright Trucking is Integrated with the 4 Largest and Most Frequently used Visibility Providers. These integrations allow us to partner with any particular customer on the visibility provider ‘s network, giving the customer immediate access to our company’s ELD data for specific trucks working their loads. This ELD data through previous integration we have authorized the visibility provider to access. 

1. Integrating with the four largest visibility providers makes our company flexible, as we provide the option for visibility on shipments through our own systems or the customer’s,  whichever is preferred.

   1. Macropoint-integrated..

   2. TruckerTools-integrated.

   3. FourKites-integrated.

   4. Project 44-integrated.

      
      

2. Bright Trucking Implemented their TMS LoadOps in 2022 and integrated it to their existing Fleet Management and Accounting Systems providing new capabilities: 

   1. Enabling our company to  provide Visibility  through our own systems, more precise than the visibility of leading competitors (24/7 access to  precise shipment location and load data through links our company provides)

   2. Enabling our company to provide Integration capabilities for frequent customers to our own system for added operational efficiency (24/7 access to  shipment's location and load data through customer's own system)

   3. Providing streamlined process for communication and  invoicing completed loads

Need #2 - Capacity - a freight carrier not only needs resources, human and material, but it needs to know how to put those resources into production. This is true capacity. A carrier must know BEFORE  a turnover event occurs how to get the equipment that was being used back into production. For example, who needs to be hired, and what is required in the hiring process; what offices need to be contacted, what files need to be created, what appointments need to be set. And how much does it all cost? 

In transportation, true capacity is the amount of resources, human and material, a company is able to deploy at any one time.

1. Trucks

2. Trailers

3. Rentals

4. Drivers

5. Fleet Managers

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Need #3 - A Well Thought Out Plan for Recruiting and Retaining Talent

Collecting Pre-Clearance Documentation

1. Fulfilling Federal Requirements for Human Resources Compliance

2. Verifying and vetting a future employee's understanding of:

   1. Federal and state laws regarding position

   2. Technology applicable to duties

   3. Safe operation of equipment 

      
      

Need #4 - Marketing and Advertising Campaigns

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Need #5 - A detailed and accurate Operating Cost Analysis

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