Q4 Freight Peak Season - AJG Transport Overview and Advice
AJG Transport is shooting for a record fourth quarter as market rates have been increasing with the tipping of the trucking supply scale. Like all other trucking companies shooting for success here are our plans in regards to obtaining as much revenue as possible for the remainder of the year, I hope you can also apply this to your own company throughout this uncertain opportunistic time.
Retail Season is upon us!
With Holiday season incoming to finish off the year the bounce in retail will be insurmountable as there have been many reports of increased online sales strategy with big companies such as Amazon. We advise all trucking companies not to work with Amazon or UPS directly as the routes that they cannot cover will go to third party logistics companies willing to pay 40-50% more than their target rate for coverage.
The retail season is also a time to buckle down and really hustle before the slowdown of the First Quarter 2021. Retail freight that is in need of an expeditious transit will be opportune for you throughout this quarter. Those routes will most likely be available at the off hours of the night so making your number available 24 hours a day is going to be key for your to capture any of these opportunities that will pay even double the regular rate for transit.
Location!
Where you are stationed during peak season can change your entire revenue outlook. Take Texas for example, being inside of Houston, Dallas or San Antonio will be more opportune for retail freight to be available as the distribution centers are scattered around these cities. But if you are waiting for a route while inside of Del Rio Texas then you will not be able to access any of these markets.
Research where the Distribution centers are and ask brokers who are working retail freight this season where the hot spots will be. When it comes to Amazon, AJG will be strategically placing units in Dallas as well as in the upper Midwest for the holidays in order to capitalize on expedite freight throughout the nights.
Two is better than one.
In this industry in order to really make a profit a great strategy is teaming up with another driver in order to cover more mileage and also have someone awake to grab your next dispatch. This is for new owner-operators trying to expand in the future, you will not find enough great paying routes that will help you save for more assets unless you really are willing to sacrifice. the 4th Quarter of the year is the time to make those sacrifices as everyone wishes to be at home. This is a variable that brokers or shippers will never be able to get around that will always increase your rate. Take advantage of the social stigmas and earn your payout for an exponential increase in compensation.
Van Freight will cause a trailer shortage for other industries!
When it comes to the holidays most trucking companies will be thinking the same thing. This will cause the Reefer and Flatbed rates to also increase as some trucking companies will want to capitalize on all of the retail freight available for Dry Vans! Having interchangeable trailer is definitely a great strategy when running your own units throughout the US. If possible keep a dry van available at all times while also hauling different industry types such as goosenecks, flatbeds or reefers!
The industry regular in retail is going to be a 10 year old or newer 53 foot dry van trailer with swing doors and if you do not have this it can definitely decrease your ability to cover the retail freight aligned.
AJG Transport has this mindset and will continue to push for efficiency and profit for all.
Best of Luck!
Andrew Gomez
Andrew@AJGTransport.com