The trucking company with the shipping contract turns into a foreign logistics company (3PL) or a freight broker. A special caring contract or brokerage contract is used to assign the partial carrier`s trucks to the freight broker or 3PL. The equipment manufacturer has its own authority, trucks, drivers, insurance, dot compliance and security liability. What makes this different from any other brokerage/carrier contract? The main difference is consistent capacity and sub-hauler access to cost-efficient products and services is not available on common brokerage/carrier relationships. The 3PL or broker must promise to keep the freight-filled sub-carriers and in return, the partial carrier must accept that at least 75% of its revenues are generated by 3PL or brokers. With the purchasing power of the 3PL or broker, the Sub-Hauler can then access fuel rebates, security resources, insurance and equipment financing. Before jumping head first into the partial transport model, you should consider these points: the agreement should have the following lines entered by line; A property contract is a contract between a company that owns vehicles to rent another person or business for payment. Rent is usually a combination of time plus the number of miles the vehicle is driven. Typically, this form is used with tractor trailers, but can be used for any type of vehicle carrying goods. The shortage of drivers has allowed almost all road transport companies to find and retain drivers. According to the American Trucking Association`s October 2015 study, the sector will be just 73,500 drivers by the end of 2016. If current trends continue, this figure could rise slightly to 175,000 by 2024.
So where do HGV companies find drivers? Short answer is, by other heavy goods companies. The secret is that smart truck companies are finding ways to make this attractive to all parties involved, including other trucking companies! Resources: Truck Driver Shortage Analysis 2015 by Bob Costello and Rod Suarez of the American Trucking Associations Freight Brokers have long appreciated the almost limitless capacity of their model. The shipwreck has always been the consistency of the cargo for the trucker. What if you could combine the benefits of freight agents and maintain a consistent partner and freight flow for the trucking company? Enter the Sub-Hauler model.