Large Firms See Profit in Helping Small Fleets
Small fleets and independent owner-operators, expected to bear the brunt of the coming shakeout in trucking, are getting a helping hand from an unlikely source.
Why would companies like C.H. Robinson Worldwide (CHRW) of Eden Prairie, Minn., and Miami-based Ryder System Inc. (R) want to reach out to the little guy?
Simple: Acting as freight brokers and shippers’ agents, neither company has freight-hauling assets of its own. C.H. Robinson contracts with more than 20,000 motor carriers — plus air, rail and ocean carriers — to supply the capacity it needs to meet shipper demand. Ryder procures $1.6 billion in transportation services annually from more than 1,000 carriers.
Big trucking companies and logistics players are assisting owner-operators and small fleets by offering everything from fuel discounts and business software to load matching and equipment financing.
Solo truck operators could use the help. They lack the leverage bigger companies have with shippers to get better rates and cannot lower their costs because they do not buy in volume. They also tend to be behind in adopting new technology.
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For the full story, see the Jan. 8 print edition of Transport Topics. Subscribe today.
