Is dedicated capacity the same as Dedicated Contract Carriage?

Dedicated capacity and Dedicated Contract Carriage are not the same.

Dedicated Contract Carriage constitutes a dedicated fleet of trucks dedicated to a specific customer and is used solely on their behalf and at their beck and call. It’s essentially a “private fleet by other means.” Having a Dedicated fleet affords the shipper/client all the benefits of a private fleet without any of the hassle or liability of operating it themselves. A Dedicated fleet of trucks and drivers is custom-built, sourced, and deployed to meet the specific, long-term, transportation and operational needs of the customer. A dedicated fleet operates on a multi-year agreement and at the sole discretion of the customer.

Dedicated capacity, on the other hand, refers to a transactional agreement between a common carrier and a shipper/client for a certain amount of capacity for a pre-designated amount of freight shipments. Dedicated capacity does not guarantee the same trucks and drivers will service you or your customers and limits your operational flexibility. Dedicated capacity is typically more suited for short-term needs and lacks in that “private fleet-like” customer service.

Here are some other differences between dedicated capacity and a dedicated fleet:

1. Dedicated capacity rates will tend to fluctuate with the market whereas dedicated fleet rates are locked in over a mutually agreed upon contractual term.
    
2. Dedicated capacity is more rigid in nature and is typically based on point A to point B shipments, while a dedicated fleet is inherently more flexible in order to meet the ever-changing demands of our customer’s customers.
    
3. Dedicated capacity is dispatched remotely and managed from afar, while a dedicated fleet typically comes with management embedded in your operation and on-site in order to be both proactive and reactive to our customer’s daily challenges.
    
4. Dedicated fleet trucks, drivers, and management are sourced, trained, and allocated specifically for our customer’s operation allowing for more intimate knowledge of our customer’s business as well as the opportunity for continuous improvement.

TQ Logistics provides you with dedicated drivers and equipment that are assigned to your exact location(s) and the specific trucks, tractors, and trailers are scheduled within our contract. We never share your resources – we focus on servicing your core customers.