Advantages Of Becoming A 3PL Contract Carrier

Authored by Michael Shaub, Director of Carrier Sales at TRAFFIX

Partnering with a third-party logistics provider (3PL) as a contract carrier offers significant advantages for trucking companies. This strategic alliance is built on trust, respect, and collaboration, resulting in easier transactions and enhanced operations.

MUTUALLY BENEFICIAL RELATIONSHIPS

By becoming a contract carrier with a 3PL, trucking companies can count on a more consistent stream of business. Strong connections built on mutual respect and trust ensure that carriers are offered consistent and profitable cargo opportunities. 

As a contract carrier, trucking companies will:

• Thrive in relationships that are built on respect and trust. 
• Work with experts who understand the importance of communication, confirming appointments, and sharing information for seamless pickup and delivery.

INCREASED FINANCIAL STABILITY

Every dollar counts when booking loads, and every day counts when getting paid. A good 3PL recognizes the importance of building mutually beneficial relationships with its carriers and offers fair rates and quick payment terms for good service. This financial stability enables carriers to strategically plan their revenue and attract high-quality drivers. 

As a contract carrier, trucking companies can enjoy the following:

• Fair market rates for their excellent service
• The financial security that comes with hauling contractual freight.
• The ability to attract high-quality drivers with consistent volume on optimized lanes.

CONSISTENCY AND RELIABILITY

Becoming a contract carrier offers trucking companies more dependable freight volumes. Having consistent volume at contracted rates substantially diminishes driver turnover, leading to cost savings related to recruitment and training. Furthermore, 3PLs provide efficient risk mitigation strategies, such as frequent communication and financial evaluations, ensuring carriers receive robust support and comprehensive insights into future forecasts. 

As a contract carrier, trucking companies can:

• Provide more consistent schedules to drivers, helping to reduce turnover and related costs. 
• Drivers enjoy regular schedules and more home time.
• Carriers can rely on accurate communication from their 3PL, ensuring their needs are met on the road, and any issues are quickly and effectively addressed.

RISK MANAGEMENT SUPPORT

A strong partnership with a 3PL helps carrier partners proactively manage risk. The 3PL conducts financial evaluations, explores growth opportunities, and shares valuable insights with carrier partners for informed decision-making. The 3PL protects carriers from exposure to unforeseen losses and claims that could be financially devastating. Furthermore, the dedicated and experienced 3PL Risk Management team provides expert knowledge and resources to ensure all loads are in compliance, insured appropriately, and all safety and driver requirements are being met. 

GROWTH OPPORTUNITIES

Partnering with a 3PL opens doors to growth for carriers. By consistently working with the same 3PL, carriers become preferred partners for spot loads and contract freight that matches their capabilities. Consistent volume and payment help carriers scale their businesses more rapidly. With a reliable 3PL partnership, carriers can strategically manage their fleet size and focus on dedicated contractual freight.

As a contract carrier, trucking companies get the following:

• Preferred partner status for spot loads and contract freight that matches capabilities.  
• Rapid business expansion with confidence. 
• Strategic fleet size management and focus on dedicated contractual freight. 
• Considered the most beneficial revenue stream. 

Becoming a contract carrier with a 3PL offers trucking companies numerous advantages. The partnership built on trust, respect, and effective communication enables access to consistent volume, financial stability, risk management support, and growth opportunities. By selecting a reliable 3PL partner, carriers can enhance their operations, attract high-quality drivers, and thrive in the competitive transportation industry. 

Contact us today to learn what it takes to join TRAFFIX’ premium carrier network.