Carriers can earn an additional $200 per day by hauling shared truckloads
When shippers faced unprecedented capacity constraints in 2020, Flock Freight®’s unique model—based on eliminating waste by creating more efficient shared truckloads—helped businesses secure capacity without overpaying on trailer space.
Now, carriers are facing strong headwinds—Freightwaves reports that spot rates continue to decline alongside increasing carrier operating costs (and diesel prices).
Flock Freight believes carriers deserve great loads and fair pay, regardless of market conditions. That’s where shared truckloads can help.
Fleets of any size can combat a challenging market by hauling shared truckloads, which can pay 20% more per haul than standard one-pick, one-drop truckloads. Flock Freight’s proprietary algorithms match shipments from multiple businesses and pool them into one tech-optimized haul, which can increase carrier revenue per mile by $0.20 while minimizing out-of-route mileage. The result? An easy-to-run shipment that can pay $200 more per day to offset increased fuel and operations costs.
Flock Freight conducted research to demonstrate how much more carriers can earn by hauling shared truckloads over a comparable one-pick, one-drop truckload. Follow along to learn more about the findings.
Analyzing thousands of shared truckloads
First, Flock Freight examined more than 4,000 of our shared truckload shipments over a five-month period in 2022. Shared truckload shipping is an efficient, terminal-free freight mode that leverages advanced algorithms to pool two or more shipments from customers and deliver freight in first-in, last-out order.
The first shipment in the trailer is considered the “anchor”, because it travels with the shared truckload for the entire haul. The anchor shipment has the same origin and destination as the shared truckload, and these shipments tend to travel via traditional truckload (or alternatively, less-than truckload) shipping if not for Flock Freight’s proprietary pooling algorithms.
To calculate how much more carriers can earn when Flock Freight adds pooled shipments to a load that would have otherwise ran solo, we did the following:
- Collected the shared truckload’s cost estimate and the anchor shipment’s truckload cost estimate.
- The shared truckload cost estimate is what Flock Freight expects to pay a carrier for the shared truckload.
- The full truckload cost estimate is what Flock Freight expects to pay a carrier if the anchor shipment ran as a truckload.
- Calculated the difference between the shared truckload and the anchor shipment’s truckload cost estimate.
- Placed the estimated cost differences into a distribution chart and pulled the 75th percentile values.
The results are in…
Analysis proves that carriers can increase their revenue per trip by 20% when hauling a shared truckload over a one-pick, one-drop truckload from the same origin and destination.
When comparing the shared truckload’s rate estimate against the anchor shipment’s truckload rate estimate, the data shows that:
- Over ¼ of rates increased by 22%
- Over half of rates increased by 12%
- Over ¾ of rates increased by 6%
Hauling a shared truckload can require more pickups and dropoffs than a standard truckload haul — therefore, it’s a good practice to consider how trip duration (in days and miles) affects carriers’ overall profitability.
However, after analyzing the data by days and miles, shared truckloads remain the most profitable mode for carriers.
Carriers can increase their revenue per day by $200 when hauling a shared truckload over a comparable one-pick, one-drop truckload, based on the findings below:
- Over ¼ of rates increased by $200 per day
- Over half of rates increased by $100 per day
- Over ¾ of rates increased by $50 per day
Lastly, carriers can increase their revenue per mile by $0.20 by hauling a shared truckload over a one-pick, one-drop truckload from the same origin and destination, based on the findings below:
- ¼ of rates increased by $0.19 per mile
- Half of rates increased by $0.09 per mile
- ¾ of rates increased by $0.05 per mile
Earning more per mile is easier than ever when you book online
Helping carriers earn more per mile is a top priority at Flock Freight, and hauling high-revenue shared truckloads is easier than ever when you book online.
Sign up in seconds to access our free online platform that’s more than your average load board. After signing up, you’ll find a customized “load board” experience that allows you to browse loads that fit your fleet’s specific needs — providing you with easy access to shared truckload, truckload, LTL and partial freight you can’t find anywhere else.
Online users have access to book loads at least 30 minutes before non-digital users, giving you a competitive edge to keep your trucks full and earnings flowing. Plus, you’ll receive tailored load suggestions straight to your email inbox so you never miss a money-making opportunity.
You work hard. Opt for freight technology that helps you earn more profits than ever before.