As supply chain issues continue to roil the logistics industry, shippers must find new ways to optimize their internal transportation procurement processes. For many businesses, this means interrogating their freight asset management; leasing trailers from semi-trailer leasing companies can be a quick, simple solution to the ongoing capacity issues many businesses face.
American Trucking Association (ATA) said in TruckingInfo.com reported that “The trucking industry moved 10.23 billion tons of freight in 2020, generating $732.3 billion in revenue, according to the latest edition of American Trucking Associations’ American Trucking Trends 2021…[Yet] trucking remains a small business industry: 91.5% of fleets operate six or fewer trucks, and 97.4% operate less than 20.”
By partnering with semi-trailer leasing companies, businesses that are leasing trailers can expand their existing fleet without emptying their balance sheet. Truck trailer leasing companies can provide fast and flexible solutions for businesses to stay competitive in a crowded logistics marketplace when paired with power-only logistics solutions. But how do trailer leasing companies work?
How the State of the Supply Chain Impacts Semi-Trailer and Truck Availability
the pandemic has continued to disrupt the transportation industry. Driver shortages have forced businesses to make difficult decisions about route management, and supply chain disruptions have consumers less patient than ever before. Despite these ongoing setbacks, the profitability of the North American logistics market in 2020 accounted for a staggering two trillion US dollars.
By partnering with truck trailer leasing companies to lease trailers, businesses can gain easy access to the trailers for lease that they need to find available capacity. Leasing trailers from trailer leasing companies allow companies to skirt many capacity procurement issues that have plagued the logistics industry since the pandemic shrank available capacity to all time lows. Paired with power-only logistics solutions, which are brokerages or owner-operators who have a power-unit (the trucker) available to pick up a trailer, combined with trailers that are provided by experienced truck trailer leasing companies, means shippers, who are the customer of these brokers, to get the capacity they need, and brokers to successfully fulfill the needs of their customer, the shipper. This type of service excellence provides healthier margins to power only brokers and happier customers.
What is Truck Trailer Leasing?
Increasingly, businesses are looking to work with truck trailer leasing companies. Truck trailer leasing companies provide fast rented cargo capacity–and unlike buying, leasing trailers from reputable trailer leasing companies can offer businesses using trailer leases this flexibility without tanking their bottom line.
businesses leasing trailers are using idle freight assets owned by another party. Semi-trailer leasing companies either own these assets themselves or facilitate the transaction between owners with trailers for lease and renters looking to lease trailers.
While traditional ownership might work for conventional logistics, today’s logistics ecosystem requires shippers to have fast, reliable access to capacitywithout the hefty cost of asset ownership. When considering semi-trailer leasing companies, businesses need to understand why truck trailer leasing is the right option.
- Flexibility On-Demand. Leasing a trailer can offer businesses flexibility and quick access to equipment without regular maintenance and storage costs. Truck trailer leasing companies increases capacity without tanking their bottom line.
- Technology on the Go. Innovative app-based truck trailer leasing companies enables businesses to access capacity with the tap of a finger. With supportive features like roadside assistance, these tech-enabled semi-trailer leasing companies are driving trailer leases into the future.
- New Horizons. Leasing trailers can allow businesses to expand into new territories. New logistics solutions are flexible, with local access to trailers for lease, regardless of where ‘local’ happens. tech-supported truck trailer leasing companies can help businesses optimize their supply chains throughout North America. ,. By North America, does that include Mexico? If not, say US/CANADA
With more and more semi-trailer leasing companies competing for clients, shippers that are looking to lease trailers should take time to ensure that the truck trailer leasing companies they choose tare the best option for them.iSome easy-to-use, app-enabled leasing companies now include reviews of both sides of a transaction, ensuring complete transparency in the rental process. Remember, good press is a good sign regarding leasing trailers from trailer leasing companies.
What is Power Only Trucking Services?
Power-only trucking is an logistics strategy in which a 3PL (third-party logistics) or aseet-based provider supplies a tractor unit and driver to transport a trailer. This strategy helps businesses save on their payroll and tractor maintenance costs by outsourcing liability while getting access to the logistics services they need.
Like semi-trailer leasing companies, power-only trucking providers allow shippers to reap the benefits of asset ownership without the costs. However, unlike semi-trailer leasing companies, power-only trucking providers exclusively offer transportation. As with truck trailer leasing, businesses should consider the best optiosn when deciding whether to employ a power-only trucking service.
- Drop Trailer Management. Power-only shipping provides businesses with a cost-effective alternative to traditional drop trailers, assuming their logistics budget is put to good use at all times.
- Divide and Conquer. By separating tractor units from trailers, 3PLs can offer shippers flexibility. Leasing trailers give businesses access to on-demand capacity, while power-only trucking provides on-demand transportation.
- Use What You Have. With power-only shipping, businesses can use the trailers they already have without paying for a tractor unit and driver.
Power-only trucking is a total truckload capacity solution when paired with semi-trailer leasing companies. When businesses use semi-trailer leasing companies alongside power-only trucking solutions, they gain instant access to the full benefits of freight assets without any costs or burdens associated with traditional ownership. Leasing trailers from trailer leasing companies provide businesses the freedom and flexibility to make essential capacity decisions. At the same time, power-only trucking enables them to react to real-world logistic crises in real-time.
How the Two Come Together to Improve Supply Chain Optimization
Power-only trucking can save businesses leasing trailers time and money and allow them easy access to their needed capacity. However, of these advantages, there’s one that stands out: agility. With power-trucking and truck trailer leasing, businesses leasing trailers can easily transport many types of freight assets.
- Flatbed trailers. These open-air trailers can be used to transfer many types of goods. From building materials to construction equipment, flatbed trailers are an industry standard for over-the-road transportation and are readily available from most truck trailer leasing companies.
- Shipping containers. These containers c can be moved from a cargo ship to a tractor-trailer and then onto a train in a matter of hours. This flexibility makes them an industry favorite and a favorite of truck trailer leasing companies.
- Refrigerated trucks. Reefers are anideal option for businesses moving heat-sensitive cargo, such as agricultural or medical products. These trailers rely on a cooling unit to keep the product inside at the ideal temperature.
- Dry vans. A more protective version of the flatbed, dry vans are a four-walled, weather-proofed container. Vans are ideal for protecting merchandise, from the elements. Truck trailer leasing companies will likely offer dry vans in ‘pup’ sizes (28 ft) or an industry-standard length of 53 ft.
- Tankers. Tanker trailers are used to transport liquid products. These easily customizable trailers can be easily outfitted with heating or cooling capabilities and can be further equipped to meet the needs of any business.
The flexibility of power-only trucking means that shippers should be as specific as possible in describing their needs when searching for a power-only trucking partner; their load may require specific considerations, such as hazmat or other special accommodations.
When paired together, semi-trailer leasing companies and power-only trucking providers can help businesses looking to lease trailers reduce repositioning inefficiencies and work toward cost-effective supply-chain optimization through truck trailer leasing.
Semi-trailer leasing companies, combined with power-only trucking providers, are a way of addressing both halves of the capacity crisis at once: connecting drivers and capacity to businesses.
Make the Most of Semi-Trailer Rental Company Availability by Working With Industry Experts from the Start
businesses considering leasing a trailer should choose a truck trailer leasing company that reflects the latest developments in logistics technology. The forward-thinking, tech-focused truck trailer leasing experts at vHub are dedicated to designing trailer leases that connect businesses to the capacity they need. Sign up with vHub today, and see what an advanced truck trailer leasing company can do for your business.