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Trucking Trends: Trailer Pools: Look Before You Leap



By Mark Montague, DAT Solutions

Imagine a transportation industry where no truck is ever detained.

That's the motivation behind establishing a trailer pool, which more companies are considering as a way to maximize utilization while minimizing idle and dwell times for carriers and drivers.

Trailer pools are a way to facilitate drop-and-hook operations as opposed to live loading and unloading. The shipper can load or unload trailers on their schedules while the carrier and driver can drop an empty trailer and pick up a full one at a shipper or receiver's facility, or nearby, without waiting around.

The potential reduction in late-delivery fees, detention charges, and delays is a win-win scenario for drivers who need to comply with federal hours of service rules and carriers and shippers who want to control costs and stay on schedule.

Silver bullet?

But is a trailer pool and drop-and-hook operations the silver bullet the industry needs to solve the problem of inefficiencies and driver detention? Not necessarily.

For one, trailer pools aren't free.

They require more equipment. In a live load/unload scenario, there's a 1:1 ratio of trailer to power unit (tractor). However, most trailer pools have a ratio between 3:1 and 5:1. All of those extra trailers add costs even as they improve driver retention and minimize detention.

Trailer pools also require drop lots. Someone has to pay for the real estate and managing maintenance and operations, including the use of dedicated spotting tractors.

Solving one problem, creating others

Inefficient dock operations often substitute dropped trailer lots as a "fix." The result, however, can be an equally inefficient, wasteful trailer lot unless you change your management practices.

There are other challenges, such as tracking equipment and allocating responsibility for damages.

Something as simple as signage to mark each parking space can have a huge impact on organization. Carriers and drivers tend to park trailers haphazardly, resulting in delays looking for suitable equipment or specific trailers.

I've managed a drop lot, and one of the biggest annoyances with multiple carriers dropping equipment is the potential for an accident while backing a trailer into a tight parking space. And if you didn't see how the damage occurred, it can lead to you watching hours of surveillance footage.

Finally, you have to carry the costs of those extra trailers and facilities in good times and bad. A trailer pool may pencil out today but become a burden when the economy slows down.

What's the long-term fix?

The best approach to shipping challenges is a well-trained, well-staffed group to ship and receive within rigorous parameters. This also allows smaller carriers to participate in hauling freight, adding to the potential carrier base. A few large carriers with trailer pools can add operational flexibility, but shouldn't be the sole solution unless business levels remain at a steady state throughout the year.

Bottom line, an efficient dock operation that quickly turns doors has the best payback for a shipper in terms of physical capital and is the best way to minimize the carrier's costs.

Mark Montague is senior industry pricing analyst
for DAT Solutions, which operates the DAT® network of load boards and RateView rate-analysis tool. He has applied his expertise to logistics, rates, and routing for more than 30 years. Mark is based in Portland, Ore.