Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/555101
COMMERCIAL CARRIER JOURNAL | AUGUST 2015 71 C owan Systems (CCJ Top 250, No. 65) has nearly all of its trucks and drivers assigned to dedicated routes. It's a business strategy that more truckload carriers would like to adopt. "We have a commitment with a number of large shippers and do the same thing every day," says Dennis Morgan, president of the Balti- more-based company. Amid a growing driver shortage, dedicated contracts allow shippers to lock up capacity, service levels and steady prices. In return, carriers such as Cowan get reliable lanes, schedules and revenues that lead to consistent pay and home time for drivers. For large publicly traded carriers, dedicated services are among their fastest-growing and most profitable divisions. J.B. Hunt's revenue in Dedi- cated Contract Services grew 5 percent in the second quarter compared to the same period in 2014. Its DCS operat- ing income increased 34 percent, and the division added 413 trucks. The downside of dedicated is not having capacity readily available to take advantage of higher rates in contract and spot markets if the economy begins to accelerate, says Donald Broughton, trucking industry economist and managing director of Avondale Partners. That is a tradeoff Cowan has been willing to make. All of its miles already are bought, so it does not have to Technology helps carriers choose customers, loads BY AARON HUFF Because we are on top of it every month, we know which ones work and which ones don't, so we can work to x them. – Dennis Morgan, president, Cowan Systems