4-Steps To Get Better Rates For Trucking Fleets

3 minutes to read

Author: M.S.

Introduction

Navigating better rates involves more than meets the eye, but the process is straightforward. While securing improved rates can be challenging, especially in a slow market, there are practical steps to enhance your company's competitiveness during tough times. 

When launching a trucking business, it's common to begin with 53-foot Dry Vans, focusing on securing optimal loads from DAT. However, with increased competition and market conditions affecting prices, it's crucial to explore strategies for gaining a competitive edge and improving rates.

Step 1: Diversify 

Explore different ways to transport goods and offer various service levels. For example, consider options like 

• Flatbeds

• Expedited/Team Drivers

• High-Value Loads

• Military Loads

• Hazmat, and more

These markets are less crowded compared to the standard 53-foot dry vans, providing increased opportunities. Diversifying your services not only opens up more avenues but also acts as a safeguard – if one market underperforms, others can compensate for it. 

Encourage your drivers to obtain additional CDL endorsements to expand the range of loads your company can manage, potentially leading to significant returns, such as handling Hazmat shipments.

Expedited/Team Drivers create a distinctive operational environment, involving two drivers in a single truck for rapid deliveries across the United States. Brokers and shippers actively seek carriers offering this service and are willing to pay a premium for such loads. Strategic planning of front-hauls and back-hauls can elevate your overall Rate Per Mile above the average in both directions.

Consider investing in a small warehouse or cross-dock, even for smaller companies. While managing these facilities may pose challenges, they provide a network for Partial loads and serve as an entry point into the Less Than Truckload (LTL) sector. Though more complex, these ventures can significantly boost revenue for each truck trip. Start with small steps, gradually expanding your company to handle a variety of business types.

Step 2: Embrace Technology

In the logistics tech scene, Brokers and Shippers are heavily investing in their internal systems, such as scheduling software, TMS, and tracking tools. The aim is to optimize operations and simplify dealings with carriers. This investment has raised expectations for carriers to use technology in communication. Notably, major players like Walmart require carriers to handle EDI/API for dispatching, tracking, and invoicing to engage in direct business. Missing out on technology can lead carriers to lose business opportunities.

A practical solution is to invest in a TMS. Depending on size, there are various options at different price points, offering different capabilities. Taking the time to review and implement a TMS can significantly improve both securing more business at favorable rates through direct dealings with shippers and organizing internal operations. With a TMS in place, carriers can approach Brokers and Shippers, demonstrating technological integration for efficient electronic communication. It's observed that Brokers/Shippers consistently prefer carriers equipped with such technology, making it a crucial advantage.

Step 3: Invest in Your Sales/Marketing Department

With over a million carriers in the United States, getting noticed is key. Even just a small investment in your sales and marketing can go a long way. Your sales team can reach out to brokers or connect directly with shippers who often pay better. Getting contracts with them means you have a steady flow of loads each week, giving you more time to grow and make more money.

Marketing helps you have a digital presence, so when brokers or shippers look you up, they can learn about your company. Surprisingly, not everyone has a website yet, so this alone can make you stand out. Keep your marketing simple and fun, show off your company culture. Potential clients are more likely to want to work with you and might even pay more as you build a stronger relationship.

Step 4: Attend Networking Events

Building meaningful connections and securing better clients and rates is all about effective networking. While traditional face-to-face meetings over a drink still hold value, they go beyond immediate business discussions. Even if your contact doesn't have an opportunity for you, they might know someone who does, creating a ripple effect of introductions and potential opportunities.

A great starting point for expanding your network is local trucking associations, like the Illinois Trucking Association (ITA, https://www.iltrucking.org/). ITA hosts various events, from safety seminars to casual meet-and-greets throughout Illinois. Joining and participating in these events as a member offers more exposure compared to a simple phone call.

You can also set up a table to showcase your company, attract new business, and even find potential drivers if needed.

Conclusion

Of course, there are many ways to get better rates. You can use other resources/companies for consulting and advice. You can even hire a dispatching company to handle all of the back-office work. The main idea behind these four steps is to get you started and ultimately lead you to long-term success, whether you're on your own, working with others, or part of a bigger company. Our main goal is to give trucking companies good advice and tools.