How Every Shipper Can Benefit From Modern Drop-and-Hook
Drop and hook freight is the most favored choice for shippers today for its speed, flexibility, and
simplicity in nature. Indeed, the modern drop and hook services have provided unmatched scale
and visibility with the help of advanced technologies like Artificial Intelligence, Machine
Learning, IoT, etc.
Did you know the transportation and warehousing market is projected to reach $1.2tr in 2021 ?
While the challenges with traditional drop and hook freight are on the rise due to limited lanes
and regions, the modern drop service provides business flexibility to deliver services beyond
boundaries.
So, if you are exploring the potential of drop and hook loads, the article is for you. We will
explore ‘drop and hook’ freight and how it helps shippers get the most out of it. However, let’s
explore the basic first;
The Evolution of Drop and Hook Approach
There are times when live loading was the only option for transportation of goods in which a
driver takes the empty trailer at the doc yard or the designated pickup location to get it loaded.
Throughout the process, the driver has to do nothing but wait, and that consumes considerable
time. In some cases, it costs a shipper driver detention fee.
Besides, the live load required better coordination and a large workforce to manage the loads
within a scheduled window. A little mismanagement will increase the driver’s wait time, resulting in increased detention fees. That’s when drop and hook freight comes into the picture, allowing shippers to load the trailer at their convenience. At the same time, the driver gets to the pickup location, leaves the empty trailer at the yard, and takes the loaded trailer for the destination.
So, that’s how the drop and hook approach evolved. Even drop and hook service has
transformed with the advancement of technology. There is a sea of differences between the
traditional drop & hook and the modern one. Let’s compare these two;
Traditional Drop and Hook vs. Modern Drop and Hook
Approaches
The traditional drop and hook service was a preferred approach for high-volume shipping
operations. The small and medium carriers still had to face plenty of issues following the
traditional drop and hook approach. For example, when the number of freight and carriers is
low, the traditional drop and hook struggle when there is a surge in demand. There is no room
for scalability.
The modern drop and hook have solved the issue by creating an efficient digital freight network.
With the help of advanced technologies, such as the Internet of Things, Artificial Intelligence,
Machine Learning, etc. freight industry can get real-time analytics and insights to stimulate
business operation. With the help of these technologies, you can efficiently optimize routes and
minimize operational costs.
So, we shall explore how modern drop and hook freight will make a profitable outcome for the
transportation sector.
Benefits of Modern Drop and Hook Freight for Shippers
Did you know the size of the freight forwarding market is evolving and is expected to reach 207
billion U.S. dollars by 2025?
The data is significant as you can see the highs and lows of the sector (the year 2020 has been
a nightmare for various industries, and the transportation sector was no immune to that), but it is
forecasted to grow manifold. Let’s take a look at the image given below;
The stats given here is just an element of the glimpse you can peep through to evaluate the
future of transportation. However, if we talk about the local trucking market in the U.S., it is
going to be a 63.3 billion U.S. dollars market by the end of 2021. These developments are
based on the integration of advanced technology, especially Machine Learning. If we talk
specifically about drop and hook freight, it brings immense possibilities and benefits, including;
● Machine Learning helps evaluate the trailers requirement a week in advance
● Let you control fuel consumption by allowing you to utilize resources efficiently
● Route routing and tracking make efficient freight operations
● Transparent and 24/7 visibility into all loads
The benefits given there are coupled with the technology integration. Drop, and hooks
themselves bring plenty of benefits for shippers and carriers. Shippers avoiding drop and hook
programs may have to deploy human resources to establish better coordination between
pickups and deliveries with carriers to avert any possible error.
Due to traffic and weather conditions, a minor issue may wreak havoc on pre-scheduled tasks,
resulting in massive delays. When you don’t meet the scheduled task, the shippers may have to
bear additional costs, such as late delivery fees and detention fees, apart from the negative
impression. So, seeing these issues, one can easily say that drop and hook can be beneficial in
terms of labor, time, and flexibility. Let’s explore;
Decreased Labor Costs
With drop and hook, shippers get the flexibility to load and unload trailers at their convenience
that too with a fraction of the labor force. When the campers are loaded and unloaded far in
advance, there, you may not just avoid driver detention costs but also high labor costs.
No Waste of Time
Live loading and unloading is the most time-consuming process, while drop and hook save you
from live loading and unloading needs. It significantly saves time and money, as a result.
Better Flexibility
No need to deploy any workforce to manage pickup and delivery. The driver himself would
come with the empty trailers and drop them at the pre-designated location and hook the pre-
loaded trailers and depart.
Driver Gets More Freedom
Drivers’ jobs are incredibly complicated. They need peace of mind. In live loading, they are
bound by time and have to deliver the consignment at the scheduled time. In the drop and hook
approach, the driver gets freedom. He can arrive any time, hook the trailer and leave for the
destination anytime.
Drivers can Earn Money
When drop and hook are implemented, drivers spend less time at the dock and more time on
the road. As a result, drivers can complete more trips and earn more money.
These are the top benefits of drop and hooks for shippers; it doubles when technology becomes
part of the drop and hook approach. All it needs is the right equipment and robust software to
get accurate results.
Final Thoughts
As you have understood, the benefits of the drop and hook program for shippers. We have tried
to provide all the information that drop and hook brings to the shipper, though you can explore further online before taking any decision. You can also speak to experts regarding the proper implementation of drop and hook services or the integration of advanced technology to
streamline the business process. You can also let us know if you have anything to share with us
or need further information regarding the transportation sector. We are happy to help.
