www.dcvelocity.com MAY 2020 DC VELOCITY 27conditions to deliver critically needed goods. Seldomin history has the importance of trucking to America’sfinancial and physical well-being been demonstratedso clearly, particularly since some 71% of all freighttonnage moves in the back of a truck, according to theAmerican Trucking Associations.
And while the majority of these volumes move on
commercial, for-hire LTL, and full-truckload carriers,
one outcome of the market’s pandemic-fueled disrup-
tion has been rising interest in:
These fleet options are
finding a growing window
of opportunity as shippers scramble to lock in reliable
capacity, operational consistency, and high-quality ser-
vice—and to secure protection against dramatic sup-
ply/demand swings in the market.
LOCKING IN CAPACITY
Today’s environment—with its widespread uncer-
tainty about the immediate future—is not unlike the
market that occurred shortly after the 9/11 terrorist
attacks, observes Don Digby Jr., president of Denver,
Colorado-based refrigerated carrier Navajo Express.
“The biggest demand is for secure capacity,” he notes.
Shippers want “to know they’ll have the trucks. That
[desire] has never been more relevant or prevalent than
it is today.”
John Bozec, senior vice president and general man-
ager, van truckload, at Green Bay, Wisconsin-based
truckload carrier Schneider, agrees that predictable ser-
vice at high levels is “a driving force” behind increased
interest in dedicated. “The bar … is only getting high-
er,” he notes. Bozec cites three determining factors,
especially for dedicated solutions addressing complex
needs: “The ability to have capacity that is locked in
and that [shippers] can rely on, at a price point they
know, and [confidence in] the ability to get a great
delivery experience. [That’s] why they want more ded-
icated and not less.”
The current environment notwithstanding, increased
interest in dedicated services also continues to be driven
by e-commerce–related traffic, observes Eric Downing,
senior vice president, dedicated for Omaha, Nebraska-
based Werner Enterprises. “Demand for dedicated
services has increased, especially as e-commerce [vol-
umes] have expanded and customer expectations for
next-day and same-day delivery have increased,” he
says. “As shippers move to
get their products closer
to customers, these types
of transportation needs
usually fit well within the
dedicated model.”
Downing noted thatwhile cost is always partof the equation, shipperslooking to dedicated typically are pursuing a larger strategy, often aroundthree primary goals:
1. High levels of service
quality, normally 99% percent on time or better
2. Longer-term partnerships where the carrier is
working closely with the shipper to drive improve-
ments and efficiencies in the overall supply chain
3. Committed capacity that is consistent yet flexible.
“Customers who have volatility in their supply chain
need the ability to quickly flex their fleets up and down,
and a good dedicated provider can provide that kind of
solution,” explains Downing.
Schneider’s Bozec adds that while “dollars are always
important,” the decision to adopt a dedicated strategy
often involves other value considerations that don’t
show up on an Excel spreadsheet. One example, he
notes, is the experience created for the customer. “We
will do things like have drivers wear co-branded gear,
and the equipment might be co-branded,” he notes.
“When you make that delivery, countless times per day,
that driver is creating a great experience [and through
that] there is brand equity for the customer that gets
built up over time.”
He cites as well two key factors in launching a suc-
cessful dedicated operation: getting the foundation
right through open, frank communication, and effec
