News / Dedicated trucking on the rise, driven by US retailers

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Truckers and shippers alike are shifting more of their traffic to dedicated arrangements, and according to some commentators, supply chain requirements in e-commerce are a significant driver.

Werner Enterprises rolled into 2026 on a course to boost its dedicated business. In late January it announced the takeover of FirstFleet for nearly $283m, an acquisition that adds some 2,400 tractors and 11,000 trailers, as well as 37 stations to Werner’s line-up and will shift its revenue balance to more than half in contract business, making it the fifth-largest dedicated carrier in the US.

Fourteen months earlier, Schneider National had shifted its revenue flows to a predominantly dedicated model with the $390m acquisition of Cowan Systems. Together with the subsequent addition of more than 100 tractors, the takeover brought Schneider’s dedicated fleet to nearly 8,600 power units.

Dedicated business now generates nearly three-quarters of Schneider’s revenues, reversing its mix from a split of 70% network and 30% dedicated nine years ago.

Strong impetus comes from the retail sector, where most major players have agreements with carriers that guarantee freight volumes on specific routes. E-commerce is widely regarded as a strong driver of this trend as traditional seasonal patterns of peaks and troughs have increasingly given way to smaller volumes moving at higher velocity and frequency.

The rise of large-scale sales events on commerce platforms, and merchants’ desire to respond rapidly to shifting trends, are putting freight networks under year-round pressure to accelerate moves and absorb volatility.

“Customer supply chains have been tightening. The only way to hit the high service levels they expect is with dedicated haulage,” Jim Filter, EVP and group president of transportation and logistics at Schneider said in an interview last summer.

In addition, shippers’ attempts to compress delivery windows while controlling service levels and stabilising capacity have been reinforced by the uncertainty that has hung over the market, largely as a result of Washington’s tariff policies.

Not everybody is convinced about the equation of e-commerce with speed. If this were the case, Temu and Shein would not have grown as rapidly as they did, commented Satish Jindel, founder and president of SJ Consulting. Consumers value price above delivery speed, he said.

He added, though, that a renascent emphasis on just-in-time deliveries strengthened the case for dedicated trucking arrangements, which usually means more predictable pick-up and delivery times.

While this locks-in capacity that might catch higher rates at times when demand exceeds capacity, it has a number of benefits for truckers, Mr Jindel said. Above all, it brings in predictable revenue without fluctuations. In addition, driver turnover tends to be lower, and safety improves from drivers’ familiarity with their route, he notes.

There is also the benefit from the customer experience aspect, as drivers interact regularly with the same people at customers’ premises, he added.

FirstFleet has an average 17-year tenure with its top ten customers, reflecting strong ties with them.

It is unclear how far the pendulum will swing in favour of dedicated trucking. For shippers, contract versus spot market arrangements is often not an all-or-nothing proposition. To some extent, some industries lend themselves better to dedicated alignments, Mr Jindel noted, pointing to the auto industry as one sector with a higher affinity for this. Flows tend to be stable, and not having the right part on the right day would be costly, he said.

For now, FirstFleet’s brand remains in the market. During an investor conference call following the announcement of the takeover, Werner chairman and CEO Derek Leathers left it open whether or not FirstFleet would be rebranded down the road. The company’s strong standing with its clientele would be one factor in favour of keeping the brand, he noted.

Schneider has a history of maintaining the brands of companies it acquires. According to Cowan president Steve Wells, it was “extremely important” to both parties to preserve the smaller carrier’s identity, and it ensured a seamless transition without disruptions to customers or employees.