Benefits of independently contracted drivers

When it comes to transporting freight, hiring and retaining qualified, credible, and reliable drivers is no easy task. This article will explore the benefits of establishing a network of independently contracted carriers and drivers.

Cost savings

Starting with one of the more obvious benefits; cost savings. Independently contracted carriers and drivers are not employees of your company. This means they will be responsible for their own operational expenses – fuel, maintenance, equipment and insurance – greatly reducing your overhead costs.

Additionally, this will reduce your administrative burden by offloading tasks associated with employment, such as payroll, benefits, taxes, and insurance.

Risk mitigation

Imagine a situation where your employed driver is transporting valuable goods between two major cities. Your driver has been on the road for more than eight hours but the destination is near. Suddenly a wave of red brake lights begin to flash as 5 o’clock traffic pours onto the highway. Your driver slams on the brakes, avoiding a collision, but damaging most of the goods within the shipping container.

This situation is more common than you would expect. When leveraging a contracted resource, you can transfer certain risks associated with transportation, such as accidents or equipment failures, to the drivers and their insurance coverage. This will help protect your company from potential liabilities and unexpected costs when things go wrong.

Flexibility and scalability

What about instances when one of your drivers calls in sick and you don’t have anyone else available? You have a shipping container scheduled to be picked up and the longer it sits idle, the more fees and penalties your company will incur.

By establishing a network of independently contracted carriers and drivers, you’ll likely be able to mitigate these situations by engaging with a flexible and larger pool of drivers whose operations can be scaled up or down as demand fluctuates.

Geographic coverage

Building off of the notion that independent contractors will provide more flexibility and scalability, you are also provided the luxury of broadening your geographic coverage. Because drivers are spread across various locations, access to their services eliminates the need to maintain your own fleet in each location you do business. This will introduce more efficient logistics operations.

Equipment and expertise

Independently contracted carriers and drivers will often have their own specialized equipment, such as flatbed trailers, refrigerated trucks, or hazardous materials certifications. This can be especially beneficial if you require specific transportation capabilities for your goods, or if your company is looking to expand into smaller niches within the logistics industry.

Conclusion

It's worth noting that while using independently contracted carriers and drivers can offer the above-mentioned benefits, there are also potential challenges and considerations, such as maintaining quality control, managing relationships with carriers, ensuring regulatory compliance, and addressing potential legal and liability issues.

haul-e, Inc. uses software to help further mitigate these challenges. Our platform will help you source credible and qualified carriers to move your freight. Whether you're building out a preferred network to launch your operation, looking to combat recent driver attrition, or in need of a specialized certification, haul-e is the place to look.

Check out our platform or integrate with our API to simplify your carrier search!