Power Only Transportation: What is it and How is it Used to Ship Products?
Power-only transportation of product is a trucking arrangement in which the carrier provides only the tractor and driver, while the shipper provides the trailer(s). This type of arrangement is used when the shipper already owns or leases trailers, or when there is a surplus of trailers in the market. Retailers, construction companies, and manufacturing companies are a couple industries with trending use of this shipping strategy with great success. Businesses of all sizes can benefit from owning or leasing trailers and doing power only transport. However, some companies may benefit more than others, depending on their specific shipping needs and circumstances.
Current trends in power only transport for shipping products:
- Increased use by shippers who own or lease their own trailers. This is because power only trucking can provide a more cost-effective way to move freight, as shippers do not have to pay for the trailer rental, cost of ownership on tractors, or salaries for drivers.
- Growing popularity of third-party logistics (3PL) companies. 3PLs (like Portage Logistics) can provide shippers with a variety of logistics services, including power only trucking. This makes it easier for shippers to find and book power only transportation services and can also help to reduce the administrative burden of managing power only shipments.
- Increased use of technology to improve efficiency. Technology is being used to improve the efficiency of power-only trucking in several ways. For example, some companies are using telematics to track the location of power only trucks and trailers, which can help to improve scheduling and routing. Portage Logistics has tracking capabilities on all the trucks they contract with.
- Expanding use of power only trucking for long-haul shipments. Traditionally, power only trucking has been used for short-haul shipments. However, the use of power only trucking for long-haul shipments is increasing, as carriers are finding ways to make this option more cost-effective. 3PLs that have multiple power-only customers and a pool of drivers like Portage Logistics can achieve efficiency of scale making it more cost-effective because volume is spread across multiple customers.
Benefits of using a power-only fleet of trucks for inbound and/or outbound product:
- Flexibility: Power only trucking can be a more flexible option than traditional truckload shipping, as shippers can use their own trailers or lease trailers from a 3PL. This can be helpful for shippers who have fluctuating freight volumes or who need to move freight on short notice.
- Cost-effectiveness: Power only trucking can be a more cost-effective option than traditional truckload shipping, as shippers do not have to pay for the trailer rental or ownership costs.
- Environmental benefits: Power only trucking can have environmental benefits, as it can reduce the number of empty miles driven.
Freight volumes, shipment types, geographic reach, and financial resources are all important considerations when deciding whether power-only transport is a viable option for your company or business.
If you are considering owning or leasing trailers and doing power only transport, be sure to consult with a transportation expert to determine whether this is the right approach. Give us a call to discuss, or request a quote from our site, we’d be happy to discuss possible options.