In early 2022, Arrive Logistics started getting feedback about the impact of deflationary market conditions on owner-operators and small fleets in their network. As a company committed to seeing carriers thrive, they launched “We Deliver Flexibility,” a cost-free program that connects interested owner-operators and small fleets with private fleets that may require short or long-term freight services.
Blair Blake, Arrive’s vice president of carrier strategy, reports that the program is off to a strong start.
“We are very encouraged by the initial response. Since launching just over a month ago, fifteen of the largest private fleets in the country and more than one hundred owner-operators have already enrolled” said Blake. “We continue to receive feedback from our partners about how we can optimize different program elements to generate results for both parties.”
Small carriers searching for consistent freight opportunities in a soft market can also feel encouraged by those results. According to David Spencer, director of market intelligence for Arrive Logistics, ongoing deflationary market conditions are likely to continue causing challenges for these spot-dependent carriers even as the fall and holiday freight surge approaches.
“The data in our July Market Update showed a less dramatic spot rate decline; however, a recovery before year-end seems unlikely,” said Spencer. “Given the continued strength of contract compliance, we expect spot rates will continue to experience downward pressure into 2023.”
With no spot rate recovery in sight and the contract market going strong, “We Deliver Flexibility” can provide a meaningful service for those interested in exploring a less traditional route to generating business. Spencer said that, though net revocations of trucking authority indicate that record numbers of owner-operators and small fleets are exiting the market according to FTR analysis of Federal Motor Carrier Safety Administration data, job opportunities are available to drivers willing to work for larger fleets.
“Though lucrative spot market opportunities will likely remain scarce for some time, according to the Bureau of Labor Statistics, the period from April to May saw the second largest growth ever in trucking jobs over a two-month period,” he said. “That’s one reason we believe many owner-operators and small fleets will reposition themselves in the market rather than leave it entirely. And since many private fleets need drivers, pursuing consistent employment with them is a viable option for many.”
Given other variables like the looming threat of a broader economic recession, Blake sees potential for “We Deliver Flexibility” to endure even after deflationary conditions diminish.
“As we look to expand and refine the program over time, it will be critical to honor its collaborative nature and ensure we tailor any changes to address the unique needs of our partners in this challenging market and beyond,” said Blake.
“We Deliver Flexibility” is open for enrollment at no cost to Arrive’s current owner-operator, small truck fleet and private fleet partners. For more information, please click here to visit our website.