One of the most effective means for a small or micro-carrier to be successful is to service a specific type of freight, geographical area, or specialized market that requires unique equipment and handling, especially one in which larger carriers, just by their sheer size, have difficulty servicing.
True, there’s a greater quantity of truckload freight available to place in your trailer, but it’s typically the lowest-paying tonnage. Trying to compete with large truckload carriers offering volume hauling and pricing in a realm where profits can be mere pennies per mile can bring the best independent trucker to his knees. Steer towards that specialized market that requires skills and knowledge the larger carriers don’t possess or are unwilling to invest in.
- Consider regional. Find shipments or find a service you can provide that encompasses the smallest geographic area. Having your trucks closer to your origin and destination points will reduce fuel costs and deadheading.
- Go for the labor-intensive freight. Find loads that require out-of-the-ordinary care either in the trailer or at time of delivery to reap higher revenues for your operation. Most truckload carriers aren’t interested in loads that need special handling beyond the trailer doors and freight dock.
- Find groups of shippers needing similar services. This includes specific ways of securing the items hauled, disassembly and reassembly of equipment, or crating and uncrating. The more time spent in a trailer and the less time spent in the left seat of a tractor, the greater the revenue earned for the time invested.
- Haul your passion. The more you believe in what you’re hauling, the more care you’ll provide the customer. There are small trucking companies in business today that haul items such as custom and private individual’s motorcycles to rallies and shows, windmill blades for generating electricity, custom cars in enclosed car carriers, and, well, just use your imagination.
An advantage you’ll have over a large carrier is the ability to adjust more quickly to the needs of shippers and receivers. You will also be able to adjust to regulatory and other changes that are constantly piling up on truckers, i.e., fuel costs, the requirement of special IDs to haul in and out of ports, the changing attitudes of buyers of freight-hauling services who are concerned with how much energy is consumed in bringing their products to market, and the adjustments shippers and receivers are making in how they do business with haulers.
Positioning your company in this manner creates a higher level of efficiency, better cash flow, and lower costs. This type of business model allows you to become the expert in your chosen area.
Contact Tim Brady at 731-749-8567 or at www.timothybrady.com