Truck drivers are among the hardest working independent contractors in the country. While the industry carries potential for profit, it’s also a challenging business. Most business owners are looking for ways to improve their bottom line. Trucking is no different. Finding loads is the key to being profitable and surviving in this business. However, finding loads can be a complicated task if you don’t know the right places to look. By looking at some of the most common or popular sources used by truckers to find loads, we can narrow down the most effective methods to increase profit.
One of the best ways truckers can find loads is by working directly with shippers. Getting loads through shippers directly is the most advantageous method, but harder to come by if you're a small company or an owner-operator. When you build relationships with shippers, you are in a better spot to find loads that earn money, as drivers can negotiate or research which loads they take, while avoiding paying a percentage to freight brokers or dispatch services.
Working directly with shippers will take some time, as you have to research, cultivate relationships and find ways to approach new ones. Most often, shippers will move loads through contracted carriers, if they have consistent loads. Reason why shippers choose contracted carriers is that this method allows less time on researching and vetting any smaller or newer carriers. This becomes an issue because often contracts come about through a bidding process and thus larger carriers get them more often than not.
For smaller truckers or small companies; if you are looking to work directly with shippers, you may want to use your networking skills and start building relationships with several shippers in different freight markets, so that you are better able to secure loads. LinkedIn networking or even cold calling shippers will work, as well as investing in the technology for your business can allow you more of a chance to secure loads from the shipper. If you want to compete with larger carriers who offer electronic integration services such as EDI, (these services allow shippers to electronically send out load offers to their carriers), then you would need to consider potentially a TMS system.
One of the most common ways to potentially secure a load is through load boards. Load boards are the place in which freight brokers post loads available, and a quick online search allows drivers to see what is posted and then bid on these loads. Truckers can also usually contact freight brokers to negotiate or find more information about a load posted.
One issue with load boards is that though there are some free ones, often you need to pay a monthly fee to participate in some of the higher quality boards. For higher quality boards, if you are willing to invest time and resources, you want to look towards bigger boards such as DAT. Meanwhile TruckStop is a good board for those looking into flatbed loads.
Load boards do allow drivers to look into reviews of the brokers and research before accepting loads. Another advantage is that you are able to work on building relationships with freight brokers, which can later lead to more consistent loads being given to the driver. However, it is an investment in time and the load instability can challenge your bottom line.
What occurs with load boards is that thousands of loads are posted regularly, in real-time. This process can be time consuming since you need to repeat the process for each load you want to take. You are working with different brokers on each load, and setting everything up takes time. The freight rates remain unpredictable on these boards, so it will be a process to find quality or high paying loads at times. Competition is high, so the process of finding quality loads may not pay off in the long term. This is not the ideal way to build a long-term client base either, as the competition is high.
Outside of load boards, drivers can also get loads directly from freight brokers, though the profit is shared between broker and driver. Drivers who are able to network with reliable freight brokers can then also use the brokers network of shippers to secure loads. Freight brokers in this instance work to connect small owner-operators to shippers.
An advantage to using a freight broker is that the often will have access to shippers, which smaller carriers or truckers may not have. This allows them to find out and bid on contracted lanes, and eventually they can match the loads to truck drivers. Though freight brokers end up negotiating for the highest possible price with shippers, they do also get to keep a percentage of the profit of that load. Usually it is between 15 to 25%.
In the modern age, we are seeing apps developed which allow drivers to get loads more easily. Apps like Uber Freight or J.B. Hunt 360 are examples of how these technologies work. Load matching apps allow freight brokers to connect shippers and truckers. Trucks can use the app on their phone to accept specific loads which may be published at a specific time period. The catch here is that the loads are posted at a set rate, so the driver can choose whether to accept the rate or not, but there is not a negotiation process. If the driver does not like the rate, they don’t take on the load.
Another common way to get loads may be through dispatching services, though this method can be frustrating for drivers. Dispatching services will work to connect owner-operators with shippers, helping smaller businesses find loads. Dispatch services also often offer admin work, making sure shippers pay on time, scheduling and accounting services.
Keep in mind that dispatch services also take portion of the load profit or may charge a flat fee. If they are taking a portion of the load it may be anywhere from 10% to 15%. Other times, the dispatch service charges a fee for their services, and you have to research if the flat rate they charge is within your budget.
The bottom line is that trucking is a bit of an arms race. In order to profit, you have to be creative and smart about how you operate your business, and that means looking at things from multiple perspectives. You've got to keep a sharp eye on different revenue streams, and do some serious planning every month in order to get the best picks. Finding loads isn't just a numbers game; it's about knowing the right places to look, and finding the right people with whom to talk. Often, a trucker's best bet would be to combine a few of the aforementioned methods of finding loads, as a strategy for boosting profit. It's a competitive business, so do not be afraid to put yourself out there and go for it.