Associated transport is a specialist field within the logistics industry. Associated carriers offer collaborative transportation in which third-party carrier services are procured only when there are certain logistical requirements, such as delivering at a specific time or picking up and delivering to specific locations.
Associated transport has been viewed as an attractive, cost-saving, and efficient logistics solution for businesses, especially in the face of strict road-use regulations and carrier capacity limitations.
This blog post highlights some important things you need to know about associated transport so that your logistics department has no surprises.
When Should You Use Associated Transport?
You may be wondering when you might need to consider associated transport services for your business.
Some common situations where associated transport could be used are:
- Long-haul, high-volume shipping
- When you have a specific time range that your product must arrive at a destination by
- When you have limited carrier capacity to maintain on-the-road service levels.
Take inventory of your transportation needs today to determine if associated transport services can help you.
The Risks of Associated Transport
When using an associated carrier, the fundamental challenge is to create a legal framework that clearly defines the responsibilities and expectations for both parties to ensure safety and consistency throughout your supply chain.
Despite the available forms of shared-risk delivery contracts, it is still important to manage any associated contractual risks.
How to Select an Associated Carrier
First and foremost, your logistics team must build a list of potential carriers who can meet your needs.
Here are some factors to consider:
- Switching costs
- Capacity availability
- Turnaround time
Just like selecting a logistic provider, you select an associated carrier by thoroughly evaluating each company’s capabilities and rates.
Types of Associated Transport
This is the most common type of associated transport. In this scenario, your organization will rely on a carrier to ship goods from their original location to their destination. You would typically use direct transportation when you need a high volume of goods to arrive at a specific time. This can be very useful in providing same-day or next-business-day service. Still, it can sometimes be less cost-effective due to overcapacity and other operational challenges.
In this situation, third-party carriers are contracted to complete your shipping activity. Freight can be delivered by either ground or air, depending on the carrier and route you choose.
It can be contrasted to direct associated transportation, where the carrier directly transports your goods to the final destination.
Indirect associated transportation can be used at all times of the year and to any location. Indirect transportation is generally more expensive than direct transportation due to additional costs due to the third-party carrier’s involvement with the shipping activity.
Getting help as an associated transport driver
Are you a driver for an associated transport carrier and have been involved in an incident? Are you confused and unsure about whether your contracts cover any injuries you may have suffered when driving as an associated transport driver?
Hurt Trucker Attorneys can explain to you the laws and your rights. We are committed to fighting for your rights, so contact us today for a confidential discussion of your case.