Latest news with #smallcarriers
Yahoo
06-07-2025
- Business
- Yahoo
The KPI Breakdown Every Dispatcher Should Know
As a carrier with enough units that you hire an internal dispatch team, understanding how to measure their performance is critical. If your dispatcher is only focused on picking loads and calling drivers, you've got a major blind spot in your operation. Because in today's market, dispatch isn't just about movement—it's about measurement. And if your dispatcher doesn't understand the right KPIs, you're flying blind while the wheels turn. Too many small carriers overlook this. They hire dispatchers to keep trucks moving but never train them to measure what actually matters. That's why you can run 2,000 miles a week and still lose money. Or think you're doing great—until that breakdown or late delivery costs you a contract. Whether you're dispatching for yourself or managing a small team, this article breaks down the KPIs every dispatcher should know cold. Not just because it's good business, but because if you want to scale, you've got to manage by the numbers—not by gut feel. Let's break it down. This is the foundation. Revenue Per Mile is the most basic performance indicator in dispatch—and the most misused. Most dispatchers will tell you they're getting '$2.50 a mile,' but they're looking at gross rate—not net. And they're often including empty miles without even realizing it. The Fix:Track loaded revenue per loaded mile, not total miles. Then track total revenue per all miles. Why? Because both tell a different story. If your loaded RPM is $2.50 but your all-mile RPM is $1.85, you've got a deadhead issue. That's a dispatch problem. Target RPM (All Miles): Dry Van: $2.00+ Reefer: $2.30+ Flatbed: $2.50+ Hotshot: $2.00–$2.20 If your dispatcher isn't watching deadhead like a hawk, you're burning diesel and losing margin. Every empty mile is a silent killer. You're wearing down equipment, paying for fuel, and losing hours—without earning a dime. The KPI:Deadhead % = (Empty Miles ÷ Total Miles) × 100 Ideal Target: Under 12%If you're above 15%, it's time to have a serious conversation about routing and planning. Real-world Example:We had a fleet running Texas to Atlanta. The dispatcher kept booking returns out of Savannah—because it paid 'better.' But the deadhead to Savannah wiped out the profit. Once we tightened the outbound strategy and aligned reloads closer to Atlanta, profit jumped 14%. KPI #3 – On-Time Performance Shippers don't care about how far you drove—they care if you were on time. Yet many dispatchers don't track arrival times consistently. Or worse, they rely on drivers to 'check in' without confirming timestamps. The KPI:On-Time % = (On-Time Loads ÷ Total Loads) × 100 Target: 98% or betterAnd yes, 95% is not good enough if you want direct freight. Pro Tip:Build a habit of documenting delivery ETA vs. actual time on every load. If a driver hits traffic, logs out late, or stops for an unscheduled break—track it. Over time, you'll spot patterns that help fix service issues before they cost you a customer. Dwell time kills your hours, clogs up your day, and wrecks driver morale. If your dispatcher isn't tracking how long trucks sit at each shipper or receiver, they're leaving time—and money—on the table. The KPI:Dwell Time = Time at facility (from check-in to check-out) Why It Matters: You can start negotiating detention with evidence. You can identify problem customers. You can coach drivers on check-in/check-out habits. Target: Under 2 hoursLonger than that? Start documenting, charging, and rerouting away from poor-performing facilities. Now here's where dispatch and accounting collide. Your dispatcher might not be paying the bills—but they influence almost every cost decision with the loads they choose. Fuel, tolls, time, route, idle—all affected by dispatch. Your Role:Even if the dispatcher isn't doing the math, they need to know the target. For example: If your fleet's breakeven CPM is $1.70, then taking a $2.00/mile load with 150 deadhead miles is a bad move. If a load has NYC tolls and drivers unload, the 'rate' better reflects that—otherwise it's a loss. Pro Tip:Include your dispatcher in monthly cost reviews. Let them see the numbers they influence. That turns them into business thinkers—not just load planners. This one tells you how much of the driver's available hours are actually being used to generate revenue. Dispatchers must understand that time is your #1 asset—and unused time is expensive. The KPI:Loaded Utilization % = (Loaded Hours ÷ Available Hours) × 100 If a truck has 60 driving hours but only 30 were spent loading and moving freight, you've got a utilization issue. Target: 80% or higher Fixes: Better load timing Tight reload windows Avoiding 'wait for tomorrow' dead time This metric tracks how fast a driver is turned from delivery to next pickup. It's especially critical in power-only, reefer, and expedited freight. The KPI:Turn Time = Time between delivery and next pickup Target: Under 12 hours for OTRThe tighter this number, the better your dispatcher is planning. Long delays? That's poor forecasting or bad reload strategy. The gold standard. This is the scoreboard that wraps up everything your dispatcher does. If the dispatcher is killing every other KPI, it should show up here. Target Revenue (Ranges by trailer type): Dry Van: $5,500–$6,500/week Reefer: $6,000–$7,000/week Flatbed: $6,500–$8,000/week Hotshot: $4,000–$5,500/week If you're consistently under these ranges, revisit the load planning, deadhead, and utilization numbers. That's where the leak starts. Not a traditional KPI, but one I make every dispatcher track. The KPI:% of weekly freight booked off load boards Target: Under 40%If your dispatcher is pulling 80–90% of freight from the board every week, that's not a dispatcher—it's a gambler. Load boards should be backup, not your foundation. Encourage your team to build relationships with brokers, target dedicated lanes, and support direct shipper outreach. Your dispatcher is the nerve center of your operation. But if they're not watching the numbers, they're flying the plane with no instruments. KPIs aren't just paperwork—they're the pulse of your business. Train your dispatch team to live by them. Review them weekly. And tie performance goals to them. Because when your dispatcher knows the numbers, they stop reacting—and start driving results. The post The KPI Breakdown Every Dispatcher Should Know appeared first on FreightWaves.
Yahoo
05-07-2025
- Automotive
- Yahoo
July Market Recap – What Small Carriers Did Right (and Wrong)
July didn't pull any punches. Volatile rates. Tightening capacity. Diesel spikes that tested everyone's cash flow. For small carriers, it was either a month of smart moves—or hard lessons. What separated those who protected margins from those who scrambled to survive? Discipline. Strategy. Execution. In this recap, we break down what small carriers got right, where they went wrong, and how to use July's market as a launchpad for smarter, leaner operations heading into peak season. The carriers who won in July didn't chase freight across five states. They stayed close to home, worked repeat lanes, and locked in consistent power-only or short-haul freight that kept wheels moving and fuel costs manageable. Real example:One 6-truck fleet in Tennessee turned down 800-mile loads in favor of a tight 250-mile triangle. By week three, they had locked in a daily run with a regional food distributor—high frequency, predictable rates, and lower maintenance risk. Rates weren't great, but downtime was gold for carriers who used it wisely. July was when smart owners picked up the phone—not just for loads, but to follow up with brokers, check in with old shippers, and build actual relationships. Tactical move:Carriers that updated their shipper list, ran lane reports, and scheduled two weekly prospecting hours are already seeing better offers roll in. July's heat didn't just test engines—it tested drivers too. Smart carriers saw an uptick in harsh braking, speeding violations, and HOS mistakes. But instead of punishing, they coached. Winning script:'Let's review your last roadside. That 68 in a 55 dinged our CSA—next time, ease it down through that construction zone. If we drop that unsafe driving score, we qualify for a better contract I'm bidding on now. You're key to that.' Small tweaks in conversation led to real results. Fewer violations. Stronger scores. Gross doesn't mean anything if the net ain't right. Carriers that tracked cost-per-mile daily in July were able to spot trouble early—especially when diesel jumped mid-month. One carrier insight:'We noticed we were spending $0.12 more per mile after switching fuel cards. We swapped vendors mid-cycle and got back on track before the damage got worse.' The lesson: eyeball every line item. Especially when rates are thin. The ones who finally ditched Excel and stopped printing BOLs from the truck stop? They ran tighter ops, tracked KPIs weekly, and didn't wait until invoicing to know how much they made. If you're still writing odometer readings by hand, July exposed who cleaned up dispatch and billing with real TMS tools didn't just move freight—they moved forward. Many carriers jumped on cheap freight thinking 'at least we're moving.' But they didn't map out round-trip profitability. They didn't calculate true cost after tolls, fuel, or layover risk. And they got burned. Reminder: A load that pays $3.50/mile out but nothing back is a trap—especially in July. You don't fix CSA scores in court—you fix them in the cab. The carriers who skipped safety meetings or waited for violations to add up are now looking at inspections that cost them business. Harsh but true:If you haven't talked CSA with your drivers in the last 30 days, you're already behind. If you spent July refreshing the load board instead of making at least five new shipper contacts a week, you wasted a golden window. Brokers were overloaded. Shippers needed help. But they only awarded contracts to carriers who showed up. Missed opportunity:Small carriers who emailed lane data, FMCSA snapshots, and insurance certs to local shippers? They got callbacks. Some carriers panicked when they saw market softening and took anything above $2.00/mile—even if it wrecked their week. Others got greedy on hot lanes and sat empty while better offers passed them by. Truth: Strategy beats emotion. Always. The diesel spike in late July shouldn't have surprised anyone—but many small carriers got caught off guard, especially those who skipped monthly fuel projections. One owner's mistake:'I budgeted off spring fuel prices and didn't re-forecast. We were $6,000 short by the 20th of the month.' What to Do Now: Turning July Lessons Into August Strategy Audit every mile you drove: Where did you run hot? Where did you lose? Schedule weekly safety talks: Make CSA part of the culture, not a reaction. Build a Q3 shipper list: You need 25 contacts minimum. Reach out weekly. Re-run your cost per mile: Adjust for July fuel trends and overhead spikes. Block time for outreach: Minimum 2 hours/week cold calling or emailing. July gave small carriers a choice—adjust or absorb the damage. Some leveled up their back office, coached their drivers, and trimmed the fat from their lanes. Others spun their wheels, hoping for a rate bounce that never came. Don't let the next month catch you with the same bad habits. Take the wins, fix the misses, and make August your best-run month yet. This market ain't easy—but with the right systems, the right mindset, and the right action, it's still winnable. The post July Market Recap – What Small Carriers Did Right (and Wrong) appeared first on FreightWaves. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
04-07-2025
- Business
- Yahoo
The Rise of Broker Consolidation – What It Means for Small Carriers
If you've been in the game long enough, you've seen this coming. Quiet acquisitions. Big-name brokerages merging. The same five players showing up on every load board. Broker consolidation isn't a trend—it's a tidal wave. And like every major shift in this industry, it's the small carriers who feel the hit first. But this ain't a doom-and-gloom story. It's a reality check. And like every challenge in trucking, there's a way to move smart and come out stronger—if you're paying attention and playing the long game. Let's unpack what's really going on, what's driving these moves behind the scenes, and how you, as a small carrier or fleet owner, need to adjust your strategy now before the landscape shifts even further. Consolidation doesn't happen randomly. It happens because the freight economy is tightening—and big brokerages are realizing that scale equals survival. When margins shrink and shippers demand more transparency, brokers need more leverage. So, they merge, acquire, and grow—fast. In the last few years, we've seen multi-million-dollar deals between mid-tier brokerages and publicly traded giants. What's the end game? Fewer brokerages with more control over freight volume, pricing, and capacity. Technology is playing a big part too. TMS platforms, AI-based pricing tools, and load-matching software are expensive to build but easier to scale once you reach critical mass. Smaller brokers simply can't keep up. So they sell—or get swallowed. But here's the kicker: the average carrier isn't watching the back end of these deals. They're just seeing fewer broker names, tighter margins, slower payments, and more hoops to jump through just to get the same freight they ran last year. And that's where things get real. Let's not sugarcoat it. Broker consolidation is a direct threat to the independence and leverage of small carriers. When five brokers control 80% of your outbound lanes, your negotiating power shrinks. Period. Here's what else it means: 1. Fewer Relationships, Less Leverage When regional brokers get bought out, the personal relationships you built over years disappear overnight. You're no longer dealing with Sarah, who knew your schedule and lanes—you're calling into a general dispatch queue with 500 other trucks. 2. Standardized Rates and Less Flexibility Big brokerages operate on margin control and volume, not relationships. That means rates are algorithmic, not negotiated. You'll get what the system offers, and if you push back too hard, you'll just get skipped over. 3. Stricter Onboarding RequirementsMega brokers want to protect their shippers. So they tighten onboarding: higher insurance minimums, stricter safety scores, longer payment cycles. If your back office isn't dialed in, you're out before you're in. 4. More Competition on the Load BoardConsolidated brokers push more freight to digital platforms, which sounds good—until you realize you're bidding against every other small carrier who saw the same load five seconds after you did. This isn't a playing field. It's a meat grinder. And if you don't adapt, you're going to find yourself hauling cheap freight with rising costs and no seat at the table. Here's something most folks miss: large brokers win because they aggregate capacity. That means the more trucks they can 'control'—whether through contracts, apps, or consistent use—the better pricing they offer to shippers. But where does that leave you? If you're a 1–10 truck operation, you can't play the volume game. You've got to play the relationship game. That means: Finding shippers who value consistency over cost Narrowing your lanes and becoming irreplaceable Getting off load boards and onto routing guides You can't win by playing their game. You win by building your own. Now here's the good news: being small still has its advantages—if you know how to use them. 1. Stay Niche, Stay ProfitableStop chasing everything. Specialize. If you run reefer, get tight on lanes and seasonal cycles. If you run flatbed, focus on niche commodities. Brokers can't replicate the precision and flexibility of a specialized carrier. That's your edge. 2. Build Direct Relationships—NowThe clock is ticking. Every week you stay dependent on brokers is another week you lose leverage. Start mapping your lanes. Identify potential direct shippers. Make calls. Send emails. Drop in face-to-face. Relationships built today pay off when capacity tightens again. 3. Level Up Your Back OfficeIf your safety scores, invoicing, or paperwork is sloppy, you'll get left behind. Clean it up. Build systems. Automate what you can. Make your operation easy to work with and compliant with larger broker or shipper expectations. 4. Watch the Freight Tech StackThe big players are using technology to move faster. That doesn't mean you need to break the bank, but you need to pay attention. Digital rate confirmations, GPS tracking, ELD integrations—all of that matters now. If your systems are outdated, you're adding friction to every transaction. 5. Collaborate with Other CarriersThis one is underrated. You may not have 50 trucks, but if you partner with others in your region or niche, you can co-market to shippers, share backhauls, or present a united front for routing guide bids. That's how small fleets punch above their weight. Real Talk – What I Tell My Carriers When I work with small carriers inside the Playbook, I don't sell dreams. I deliver strategy. And the truth is, broker consolidation isn't going away. If you're waiting for things to go 'back to normal,' you're already behind. Here's what I tell my fleet owners every single week: Stop thinking of brokers as your customers. They're not. They're your middleman. Stop looking at load boards as a strategy. They're a backup plan. Start investing time in what builds long-term leverage: shipper relationships, clean compliance, and operational consistency. Because in this new landscape, the winners will be the ones who control the freight—not the ones chasing it. Broker consolidation is changing the rules of the game, but it's not the end of the road for small carriers—it's just a different road. The ones who adjust, evolve, and build outside the load board will thrive. The ones who don't will keep running harder for less money. Don't let size be your excuse. Let it be to your advantage. Move faster, build tighter, and stay focused. Because in this business, the ones who adapt are the ones who survive—and the ones who dominate. The post The Rise of Broker Consolidation – What It Means for Small Carriers appeared first on FreightWaves.
Yahoo
28-06-2025
- Business
- Yahoo
When to Hire and When to Wait in Your Trucking Business
Let's get this straight—adding a driver isn't just about filling a seat. It's about knowing exactly when your business can sustain it, when it needs it, and when waiting is the smarter move. Too many small carriers hire too early, chasing growth without the freight to back it up or the systems to support it. And what happens? Payroll gets tight. Equipment sits. Operations spiral. You're not growing—you're bleeding. Hiring has to be a strategic decision, not a hopeful one. If you're running a small operation and thinking about bringing someone on—whether it's your first driver or your fifth—this article is your gut check. Because timing matters just as much as execution. We're going to walk through the signs that it's time to expand, the indicators that you're not ready yet, and the foundational work you need in place before that hire ever sees the inside of your truck. This is where most small carriers fall short. They land one good contract or start seeing some consistent freight on the board, and they think, 'It's time to scale.' But steady isn't the same as sustainable. One broker with consistent loads is not a business model—it's a dependency. And if that freight disappears, now you've got payroll due on a driver you can't keep rolling. Before you hire, ask yourself: Can I consistently cover an additional truck with profitable freight, not just movement? Do I have a backup plan if my primary source of loads dries up? Have I run the numbers beyond just the gross—factoring in fuel, payroll, insurance, and downtime? If you can't say yes to all three, you're not ready. Waiting is smarter than hiring someone you can't afford to pay three months from now. Hiring a driver without knowing your cost per mile is like trying to win a race without knowing where the finish line is. You've got to know your breakeven down to the cent—per mile, per week, per truck. If you don't know: How many loaded miles you need to run weekly to stay profitable How much cash flow your business requires to cover payroll every two weeks How long you can float expenses if a shipper pays late or a load cancels …then hiring isn't a business decision—it's a guess. And in this market, guesses get expensive real fast. Here's a better question than 'Should I hire?' Ask: 'Am I already maximizing the truck I have?' Too many owners jump to hiring because they're tired. They want help. But the truth is, a second driver won't solve a business that isn't optimized. If your current truck isn't running 5+ days a week, or if you're turning down freight you could cover yourself, you're not ready to hire—you're ready to tighten up. That said, if you're booked out days in advance, running profitable lanes, and consistently turning down loads because you can't cover them—that's your signal. Demand is pulling ahead of supply. That's when a second truck makes sense. Let's talk about money. Hiring a driver means you're committing to paying someone every week—even if your customers don't pay for 30 days. You need at least 45–60 days of payroll set aside before that hire ever steps into your operation. If that sounds like a stretch, you're not alone. But it's also your red flag. Do the math: What's your average driver payroll cost per week, including taxes and worker's comp? Multiply that by 6–8 weeks. That number is your safety net. If you don't have it, wait. Because once the driver's in, there's no pause button. Running tight and hoping your next invoice pays in time is not a business strategy. Adding a driver doesn't just mean adding miles—it means adding complexity. Dispatch, safety, maintenance tracking, driver communication, onboarding, load paperwork—it all scales with every truck. If you're running everything manually or off your phone, you're going to burn out or drop the ball. Or both. Before hiring, ask: Do I have a standard process for dispatching loads, collecting BOLs, and tracking hours? Is my ELD ready to manage a second driver? Do I have a way to monitor safety and compliance in real time? Do I have someone (or a system) that can help manage the back-office work that comes with another truck? If your answer is 'I'll figure it out when they start,' you're already behind. Build the system first. Then staff it. Let's talk about what right looks like. Here's when hiring is the right call: You've got a contract or direct shipper volume that your current truck can't fully handle You're operating profitably, consistently, with cash flow that supports 60 days of payroll You have systems in place to dispatch, track, and support another truck You're turning down freight that aligns with your lanes, not just taking anything that moves You've tested your numbers and hiring doesn't just add revenue—it adds margin In that situation, adding a driver is a force multiplier. You're not just growing—you're growing right. If you're still heavily dependent on load boards, still running inconsistent freight, or still managing everything out of a single spreadsheet, hiring isn't going to fix it. It's going to break it faster. Wait if: You're still guessing at your weekly numbers You've got unpaid invoices that are 30+ days old You're running negative weeks more often than not You're hoping another truck will create cash flow instead of sustain it There's no shame in waiting. There's only risk in rushing. Adding a driver isn't a milestone—it's a responsibility. And in this industry, hiring too early will cost you more than waiting too long ever will. The numbers don't lie. If you're not running lean, consistent, and cash-positive, more trucks won't fix the problem—they'll multiply it. But when you've got the freight, the systems, and the financial foundation in place, that hire can be a game-changer. Just make sure it's a business move, not a bailout. The post When to Hire and When to Wait in Your Trucking Business appeared first on FreightWaves. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
