Revenue stream

April 8, 2015
Finding niche loads that larger carriers ignore can be a profitable endeavor

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.

  1. 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.
  2.  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.
  3. 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.
  4. 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

About the Author

Timothy Brady

Timothy Brady is an author, columnist, speaker and business coach who provides information, training and educational presentations for small to large trucking companies, logistics organizations and community groups. He’s the business editor for American Trucker Magazine, the “Answer Guy” for trucking education website TruckersU.com, an author and business editor for Write Up The Road Publishing & Media and freelance journalist. An expert in crafting solutions to industry challenges after 25 years in trucking, Brady’s held positions from company driver to owner-operator to small trucking business owner. Along with sales and business management, he has a well-rounded wealth of experience and knowledge.

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!