By In the United States, trucking is responsible for transporting around 73% of the nation’s freight by weight, making it a crucial part of the logistics industry. However, this significant role also brings its challenges, including driver shortages, fluctuating freight rates, and the constant demand for better on-time delivery performance. Fleet managers and dispatchers know that even a minor miscalculation in routing can lead to hours of delays and additional operational costs.
To overcome these challenges, dedicated truck routes have proven to be an effective solution, offering a streamlined approach that enhances operational efficiency and creates a more resilient supply chain.
Why Dedicated Truck Routes Are a Game-Changer
During peak seasons, like the back-to-school rush or the holiday season, supply chain managers often struggle to secure truck capacity in a volatile spot market. This results in higher rates, challenges in finding reliable carriers, and a shift in planning from optimized to reactive. Major consumer packaged goods (CPG) companies frequently face disruptions in their distribution networks due to these seasonal fluctuations, causing ripple effects across warehousing and last-mile delivery.
Dedicated truck routes mitigate this volatility by establishing regular lanes for high-volume shipments. With these lanes in place, dispatchers can rely on fixed truck availability and costs, allowing for more predictable operations and reducing dependence on the unpredictable spot market.
Key Benefits of Dedicated Truck Routes
- Predictable Lanes and Steady Freight Flow
Dedicated truck routes focus on consistent corridors with regular freight movements, whether on a daily or weekly basis. For instance, a company that ships 15 full truckloads from Los Angeles to Dallas each week can benefit from dedicated lanes that feature set schedules and designated driver assignments, making the process easier to manage. The benefits include:- Reduced Detention: Set arrival times for drivers and scheduled loading docks ensure shorter dwell times.
- Optimized Equipment Usage: Knowing exactly how many trucks are needed prevents overcapacity or underuse of vehicles.
- Dedicated Routes for Owner-Operators
For independent fleet owners, dedicated routes provide a steady income stream. Instead of spending hours searching for loads, owner-operators can secure contracts for specific lanes, ensuring consistent mileage and more predictable weekly earnings. This arrangement also simplifies vehicle maintenance scheduling, as truck routes are fixed. However, owner-operators must remain flexible, as a drop in volume or the cancellation of a contract may require quick adjustments. - Reduction in Empty Miles and Fuel Costs
One of the biggest inefficiencies in trucking is deadhead mileage, which refers to driving an empty trailer. On average, deadhead mileage in the trucking industry ranges from 14% to 35%. By using dedicated lanes, logistics managers can plan round trips or partial backhauls, significantly reducing empty miles. This not only saves on fuel costs but also improves overall fleet efficiency.
Overcoming Operational Challenges with Dedicated Routes
- Managing Driver Hours and Compliance
Compliance with regulations such as the Electronic Logging Device (ELD) mandate is crucial for drivers. Dedicated routes help manage this by allowing for pre-scheduled breaks and rest periods, reducing the need for last-minute adjustments when drivers approach their maximum hours of service (HOS). - Driver Familiarity
Frequent use of the same routes means drivers become more familiar with road conditions, traffic patterns, and local regulations. This familiarity reduces stress and the likelihood of errors, leading to a safer and more efficient driving experience. It also creates a better environment for both seasoned drivers and those newer to the job. - Handling Seasonal Demand Fluctuations
While dedicated routes do not eliminate seasonal demand spikes, they do make them more manageable. For example, a business that ships 120 loads weekly may see that number increase during peak seasons. By securing additional trucks for dedicated routes in advance, businesses can avoid the inflated rates typically associated with last-minute capacity procurement. - Improving Customer Satisfaction
Retail giants like Walmart require their suppliers to meet strict On-Time and In-Full (OTIF) delivery standards, penalizing those who fail to meet these requirements. Dedicated routes provide a more structured delivery schedule, which improves the chances of meeting these strict criteria. Timely deliveries build customer trust, strengthen relationships, and enhance brand loyalty.
The Role of Technology in Optimizing Dedicated Truck Routes
- Advanced Route Planning Software
Gone are the days of relying on paper charts or basic consumer apps for route planning. Modern logistics systems use advanced software that factors in:- Multi-day schedules: Incorporating driver shifts, cross-docking times, and multiple stops.
- Real-time traffic data: Enabling rerouting due to accidents or road closures.
- Regulatory considerations: Handling factors such as bridge height restrictions and HOS regulations.
These tools ensure that dedicated routes remain flexible and responsive to day-to-day disruptions.
- Real-Time Visibility and Proactive Adjustments
When incidents such as a flash flood occur, it’s crucial to react quickly. Real-time tracking tools enable dispatchers to monitor truck locations, send rerouting instructions to drivers, and adjust estimated delivery times for customers. This flexibility helps maintain the structured nature of dedicated routes while allowing for quick adaptation to unforeseen disruptions.
Why FarEye Stands Out
FarEye offers an all-encompassing route planning solution that addresses the complexities of managing dedicated truck routes. Key benefits include:
- Driver Compliance: FarEye integrates mandatory break times seamlessly into route planning.
- Long-Haul Support: It is designed to manage fleets covering long distances with multiple stops.
- Load Optimization: The system helps identify partial backhauls or co-mingled loads, reducing empty miles.
- Data-Driven Insights: FarEye’s historical analytics help pinpoint inefficiencies and guide continuous improvements.
With integrations into Transportation Management Systems (TMS) and Warehouse Management Systems (WMS), FarEye ensures smooth communication and coordination across all logistics touchpoints, whether you’re managing a small fleet or thousands of deliveries.
Best Practices for Implementing Dedicated Truck Routes
- Identify High-Density Lanes
Look for the most frequently used routes or those with the highest volume of freight. These lanes are prime candidates for dedication, as their predictable nature ensures consistent truck utilization and stable pricing. - Engage Stakeholders Early
Successful implementation of dedicated truck routes requires alignment among all stakeholders, including warehouse managers, procurement teams, and finance departments. Clear communication about capacity needs and timelines can prevent roadblocks during execution. - Stay Flexible During the Pilot Phase
Even with dedicated routes, flexibility is essential. Test new routes with a pilot phase, collect feedback, and adjust based on performance. Monitor on-time goals, driver comfort, and freight volume to ensure that expectations align with reality. - Continuous Monitoring and Refinement
Dedicated routes should be continually assessed for performance. Monitor load factors, on-time delivery rates, detention times at loading docks, and driver feedback. Use analytics to identify recurring patterns, such as traffic bottlenecks, and refine routes accordingly.