Dedicated Contract Carriage

What Is Dedicated Contract Carriage DDC

Dedicated contract carriage or dedicated trucking refers to a transportation arrangement in which a carrier provides long-term shipping services to a single client, known as the shipper.
Unlike the spot market, contract trucking is tailored to the unique requirements of the shipper, providing a dedicated fleet and driver resources for their operations.

How Does Contract Trucking Work?

Customized Solutions 

Contract trucking begins with a thorough analysis of the shipper’s transportation needs. This includes analyzing factors such as the volume of shipments, delivery schedules, geographic reach, and service level expectations. The carrier works closely with the shipper to understand their requirements.

Dedicated Fleet

A dedicated fleet of trucks and drivers is assigned exclusively to the contracted shipper. These vehicles are often branded with the shipper’s logo, creating a seamless extension of their operation.

Long Term

Dedicated contract carriage arrangements typically involve long-term contracts, a minimum of 1 year. This allows both the shipper and the carrier to plan for the future and build a stable, mutually beneficial partnership.

Driver Expertise

Drivers in a contract trucking arrangement become intimately familiar with the shipper’s processes, products, and expectations. This familiarity enhances efficiency and customer service.

Operational Control

The shipper retains control over the dedicated fleet’s operations, ensuring that shipments align with their specific needs and timelines.

Benefits of Dedicated Contract Trucking

Cost Efficiency

Contract trucking can lead to significant cost savings as shippers pay only for the capacity they need, reducing the need for excess resources and equipment.

Reliable Service

Dedicated fleets are known for their reliability and consistency. Shippers can count on their contracted carrier to meet delivery deadlines consistently.

Enhanced Customer Service

The close relationship between drivers and shippers allows for personalized service, improving customer satisfaction.

Scalability

Contract trucking services are scalable, making it easy for shippers to adjust capacity based on their evolving needs, whether seasonal or long-term.

Focus on Core Competencies

Shippers can concentrate on their core business activities while leaving the complexities of transportation to the experts.

External Links

Understanding The Difference Between Dedicated Contract Carriage And Dedicated Truckload Capacity blog by Penske.