Knight-Swift Transportation announced the launch of a services division targeting small trucking by offering the buying power and leverage normally enjoyed by larger carriers.
Iron Truck Services aims to give smaller fleets affordable access to services such as insurance, equipment maintenance, fuel purchasing, truck sales and rentals by leveraging the scale and infrastructure of Knight-Swift, one of the largest carriers in the U.S.
“Many small carriers have no choice but to pay retail prices for many fundamental business services. Iron Truck Services brings wholesale prices within reach for all trucking businesses, regardless of size,” David Jackson, CEO of Knight-Swift said in a statement on Tuesday.
Knight-Swift (NYSE:KNX) has been offering fuel purchasing and truck sales programs for years, but the insurance and maintenance services were initiated last year.
“We have seen significant interest and growth for [insurance and maintenance],” Ken Cranston, Knight-Swift’s vice president of carrier services, said in a statement. “We are now excited to bundle these services in a simple and efficient way for our carrier customers through Iron Truck Services.”
Iron Truck Services includes the following:
— Auto, general and cargo liability insurance, as well as physical damage insurance options at variable rates.
— Fuel programs, which will be a free membership program providing access to a discount network of over 1,500 fueling locations nationwide, and include credit lines, fuel tax filing, etc.
— Maintenance services at wholesale prices, along with free Department of Transportation (DOT) inspections at 19 locations nationwide.
— Truck sales and rentals opportunities, including a selection of used DOT qualified trucks and equipment at 30 locations nationwide.
Prices for used trucks are up 31% year over year through July compared with the first seven months of 2020, as new truck production lags and fleets are holding onto equipment longer.
Phoenix-based Knight-Swift is one of the largest trucking companies in the country and is the industry’s largest full truckload carrier.
Knight-Swift had 18,448 tractors and 57,722 trailers in its trucking segment, according to the company’s 2020 annual report.
Knight-Swift generates about $5 billion in annual revenue from its trucking, logistics and intermodal segments.
In July, Knight-Swift acquired regional LTL carrier AAA Cooper Transportation for $1.35 billion, giving Knight-Swift a foothold in the more than $40 billion LTL market.
More articles by Noi Mahoney