How drop and hook freight can minimize dwell time

Truck drivers in the United States are legally permitted to drive for up to 11 hours a day. Unfortunately, many truck drivers end up driving for only six-and-a-half hours, partially due to prolonged dwell times at warehouses. Similarly, FreightWaves found that truck drivers average 119 minutes of wait time per pickup or drop-off waiting to be loaded or unloaded. They show up to their appointments for unloading only to be told they can’t be seen for several hours, which forces them to wait around in parking lots – often without pay.

According to a US Department of Transportation report, dwell time’s financial toll on the trucking industry is staggering – earnings are reduced by $1.1 billion to $1.3 billion annually (between $1,281 and $1,534 per driver per year) for for-hire commercial motor vehicle drivers in the truckload sector. Motor carriers see net income reductions of $250.6 million to $302.9 million annually due to driver detention. Plus, safety concerns rise with longer detention times, increasing crash risks and associated costs.

Thus, industry experts are always looking for effective solutions to mitigate dwell time. Recently, the drop-and-hook method has gained popularity. Unlike traditional live loading, drop-and-hook allows drivers to simply drop off loaded trailers and immediately pick up one that’s been pre-loaded. This drastically reduces overall waiting times, boosts driver productivity by maximizing their driving hours, enhances operational efficiency, and cuts costs for both carriers and shippers.

Understanding dwell time

To grasp how drop-and-hook minimizes dwell time, we’ll need to first fully understand dwell time and what causes it. Dwell time refers to the period a truck remains stationary while waiting to load or unload cargo. This wait period severely hampers logistics efficiency by reducing the time drivers spend on the road and directly impacts productivity and earnings.

Prolonged dwell times lead to an array of negative impacts, including:

• Operational efficiency: As trucks sit idle at docks, bottlenecks form that have a cascading effect throughout the network. Subsequent shipments can be delayed, and the overall efficiency of the logistics system can collapse.
• Driver productivity: If your drivers can’t maximize their allotted driving hours each day, their potential earnings decrease alongside their job satisfaction. They may even seek other opportunities, which impacts driver retention in the long run.
• Additional challenges: Carriers and shippers face scheduling conflicts, increased fuel consumption due to idling trucks, and higher overall operational costs. Plus, prolonged dwell times can affect customer satisfaction – delayed deliveries often lead to lost business opportunities and strained client relationships.

Introduction to drop and hook freight

What is drop and hook freight?

Also known as drop-and-pick trucking, drop-and-hook freight is a streamlined logistics method where drivers drop off their loaded trailers at designated locations and immediately pick up another loaded trailer. This process differs from the traditional process – live loading – where drivers must wait while trailers are loaded and unloaded.

How it works

Drop-and-hook is practiced specifically for the purpose of minimizing waiting times and maximizing efficiency. Here’s how it usually works at loading docks:

1. Dropping off a loaded trailer

When a driver arrives at their destination, they quickly disconnect the loaded trailer from their truck and leave it at the dock.

2. Hooking up a new trailer

The driver then finds the next trailer, typically pre-loaded and ready to be taken to the next destination on the driver’s route.

3. Quick turnaround

Drop-and-hook enables a quick turnaround period and significantly reduces driver idle time at loading docks.

Benefits of drop and hook freight

Reducing dwell time

The biggest benefit and the one most attractive to carriers and shippers is how effectively the process reduces dwell time. Because drivers won’t have to wait around during the time-consuming loading and unloading process, they’re able to move continuously. Several studies we’ll discuss later have shown that companies who embrace drop-and-hook operations see a marked decrease in average dwell times.

Improving driver productivity

Drivers no longer waiting at loading docks can spend those valuable hours on the road to maximize the use of their legally allowed driving time. They’re more productive and thus more satisfied with their jobs as they can more effectively adhere to schedules and enhance their individual efficiency.

Operational efficiency

Shippers and receivers see more streamlined logistics by reducing the time trucks spend idling at docks. Such improved turnaround allows for better driver scheduling and resource allocation. Shipments can be processed faster, and customers are kept happier. The more predictable your operations, the fewer delays you’ll experience in your supply chain.

Cost savings

As dwell times shrink, carriers will see significant cost savings throughout their operations. Optimizing the use of trucks and drivers means carriers reduce fuel consumption and save on expensive detention fees. With this improved asset utilization, they’ll have lower operational costs that contribute toward greater profitability.

When to use live load or drop and hook

Best scenarios for live load

• Lack of multiple trailers: If you don’t have enough trailers available to support drop-and-hook operations, it’s better to default to traditional live load processes.
• Limited facility space: If your facility can’t accommodate additional pre-loaded trailers, you’ll probably prefer live loading.
• Lack of terminal tractors: If your operation doesn’t have terminal tractors, vehicles used to move semi-truck trailers around your facility grounds, you may find drop-and-hook difficult if not impossible.
• Hauling perishable goods: If you routinely handle time-sensitive or temperature-controlled shipments, live loading may be necessary the majority of the time.

Scenarios for drop and hook

• High volume and consistent shipping needs: Drop-and-hook is much more ideal when your operation deals with steadily high-volume shipments.
• Reducing driver dwell time: If your main concern is minimizing waiting times and maximizing productivity for drivers, drop-and-hook is an optimal solution.
• Flexible loading and unloading times: Drop-and-hook operations enable superior flexibility in scheduling.
• Regional distribution networks: If your regional network has multiple distribution points with limited dock availability at each location, you’ll find drop-and-hook ideal.

Implementing drop and hook freight

1. Assess your needs and capabilities

• Evaluate logistics operations: Consider your shipment volumes and frequency as well as available facility space.
• Operational feasibility: Can your current logistics operations accommodate the drop-and-hook method?

2. Invest in trailers

• Acquire or lease trailers: Purchase or lease additional trailers to maintain a pool of trailers that supports drop-and-hook operations.
• Ensure compatibility and compliance: Verify that all your trailers are compatible with your existing fleet and comply with regulatory requirements.

3. Coordinate with shippers and receivers

• Align schedules and processes: Coordinate with shippers and receivers to align on schedules and streamline your drop-and-hook process.
• Establish protocols: Develop clear protocols for loading, unloading, and trailer handoff to keep your operations streamlined.

4. Implement technology solutions

• Real-time tracking: Utilize real-time tracking systems and data analytics to manage trailer locations and availability to optimize the use of each trailer.
• Trailer pool management software: Invest in software solutions that help you manage and optimize your trailer pool for scheduling, tracking, and maintenance.

5. Train drivers and staff

• Comprehensive training: Make sure your drivers and logistics staff are thoroughly trained on the new drop-and-hook procedures you plan to implement.
• Emphasize safety and efficiency: To ensure new procedures are implemented effectively, focus on the importance of safety, efficiency, and communication in your training.

6. Monitor and adjust operations

• Continuous monitoring: Use key performance indicators (KPIs) and metrics to track dwell time reductions and overall efficiency of your drop-and-hook operations.
• Feedback and improvement: Collect feedback from drivers and logistics staff to identify any areas that need improvement. Then, make necessary adjustments to your strategies and processes.

Case studies of utilizing drop and hook freight practices

J.B. Hunt 360box

J.B. Hunt’s 360box® service leveraged a network of over 16,000 trailers across the country. This power-only solution allows carriers to connect quickly to pre-loaded trailers, reduce dwell time, and enhance operational efficiency. The company also integrated advanced software solutions for tracking and managing loads to optimize logistics process throughout supply chains. This success demonstrated to the logistics industry the scalability and reliability of drop-and-hook operations.

Powerloop by Uberfreight

In 2024, Uber Freight expanded their Powerloop program nationally to provide carriers access to a network of drop trailers ready for quick connection. The Powerloop program utilizies AI-powered bundling and smart trailers equipped with GPS and cargo sensors to optimize routes and reduce empty miles. Thanks to this advanced technological integration, carriers benefit from more efficient asset utilization and operational transparency.

FreightVana and Wabash trailers-as-a-service

In 2022, third-party logistics company FreightVana and trailer manufacturer Wabash combined forces to introduce a trailers-as-a-service platform called FreightVanaX. The platform is a powered-only brokerage model that provides shippers access to pre-loaded trailers. FreightVana X has been deploying pre-loaded trailers with Wabash’s support through their maintenance and repair network and grew to over 3,000 units in 2023. This platform’s implementation demonstrates how operations of all sizes can enhance logistics efficiency and productivity through the drop-and-hook model.

Should you embrace drop-and-hook?

Clearly, implementing drop-and-hook freight has proven to be a strong strategy when seeking to minimize dwell time, enhance driver productivity, and optimize logistics efficiency. If your business adopts this method, you could achieve significant cost savings and improved operations. But there are many variables to consider before deciding if drop and hook are right for you.

At Optym, we’re ready to help you explore how you can better utilize your assets and enhance operational efficiency throughout your supply chain. If you’re ready to streamline your logistics processes, reach out to a member of the Optym team today.