What is a Dedicated Fleet

What is a Dedicated Fleet

A dedicated fleet is basically a for-hire fleet that you book to carry your goods. It is mostly a carrier company that specializes in dedicated runs, owns a fleet of vehicles, and provides drivers.

When you sign a contract with a dedicated shipping company, they take care of all your transportation needs in the required route. It is called Dedicated Contract Carriage (DCC), and it can be beneficial for your business.

Reasons to Choose Dedicated Fleet

If you still hesitate whether you need to cooperate with a dedicated fleet, here are the reasons that might help you choose.

• Your product flow is increasing seasonally. Many businesses share seasonal growth in product flow. Searching for free carriers to carry your goods might be a problem. Having a dedicated fleet that is always ready to take care of your deliveries will be much better.
• Your business sometimes requires specialized equipment. Renting it for some time is more cost-efficient than purchasing. Also, when you require a different transportation mode apart from regular LTL and FTL, a dedicated carrier may provide it to you faster.
• It is cheaper to have a dedicated fleet if your business doesn’t imply long-haul deliveries. It is extremely cost-effective when the transportation radius is less than 100 miles.

Benefits of a Dedicated Fleet

When you decide to team up with a dedicated fleet, it will be beneficial to your business, and here’s why.

• You will always have available vehicles to carry your goods.
• You can be sure that delivery will arrive within a schedule.
• You do not have to pay for the fleet itself (vehicle purchase and maintenance).
• You do not have to search for drivers.
• You will always work with professionals as dedicated fleets hire experienced drivers.
• Stable rates as you conclude a contract.

Private vs Dedicated Fleet

Private fleets differ from dedicated ones. They are both used as a capacity solution. However, the key difference is who owns the fleet.

Private fleet is when:

• The business owns the fleet
• You, as a business owner, manage all logistics operations
• You have to find and employ drivers

It is a great choice when your business has a big freight capacity, and the area of delivery is large. A private fleet gives you full control over the supply chain and eliminates all the uncertainty.

Dedicated fleet is when:

• You make a contract with a third-party carrier company
• They are responsible for logistics operations
• They are responsible for drivers employment

A dedicated fleet is when you have short delivery routes and prefer outsourcing logistics routine to 3PL company. Working with a dedicated fleet allows you to have predictable shipping rates, adjust capacity if your freight volumes change.