“We deliver, so you can” is more than a tagline — it’s the foundation upon which Arrive Logistics has built its business.
It’s also the driving force behind “We Deliver Flexibility,” the brokerage’s new cost-free program which provides a channel for interested owner-operators to connect with private fleets who may be in need of freight services.
Arrive recently launched the initiative in response to insights from organizations in their carrier network about the impact of deflationary market conditions on owner-operators and small fleets.
“Deflationary markets are a natural part of the freight cycle, but they can be tough on smaller carriers,” said Blair Blake, Arrive’s Vice President of Carrier Strategy. “We have close relationships with our carrier partners and this has been a theme of many recent conversations. Their insights, along with industry data, make clear that this is a challenging market for some owner-operators and small fleets, so we hope this program can help.”
During the last two years, unprecedented consumer demand made it difficult for shippers — even those with private fleets — to balance price and service in a tight market. In turn, carriers had access to a surplus of lucrative spot market freight. This motivated many fleet owners to expand capacity by purchasing more equipment and even spurred an influx of new carriers entering the market, hoping to capitalize on the same surge.
As deflationary conditions and other factors like historic fuel costs have set in, the spot market opportunities small carriers and new entrants depended on have drastically declined. In fact, according to DAT load board data referenced in the January Arrive Market Update, spot market posts were up over 100% year-over-year from January 2021 to 2022. In May 2022, however, the same comparison showed a -12.7% decline.
“Owner-operators and small fleets who were thriving in the spot market are struggling now and looking for other revenue opportunities,” said Blake. “In the last three months alone, we have seen more carrier authorities exit the market than at any other point in the last decade.”
On the other side of the same coin, private fleets are navigating challenges around driver retention and sky-high equipment costs. According to Arrive’s Chief Capacity Officer Justin Frees, “We Deliver Flexibility” could help bridge this gap.
“We recognized that connecting small fleets and owner-operators with private fleets could create opportunities for mutually beneficial partnerships,” said Frees. “If all goes well, private fleets will get the additional capacity they need, and drivers will get to stay on the road with good business partners.”
The company surveyed many of its carrier partners to gauge interest before launching the program, and the results were overwhelmingly positive.
“85% of our partners said they would be interested in exploring partnership opportunities with nationwide private fleets,” added Frees. “That’s why we think ‘We Deliver Flexibility’ can provide short-term benefits and be a long-term investment in the shared success of our carriers, shippers and our business.”
“We Deliver Flexibility” is open at no cost to Arrive’s current owner-operator and private fleet partners. For more information on “We Deliver Flexibility, please click HERE. And if you want to stay up to date on the latest industry data, be sure to check out the Arrive Monthly Update.
