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Every shipper with steady volume eventually asks: should we keep hiring trucks trip by trip, or commit trucks to our lanes under a contract? Both work. The right answer depends on how regular your volume is and how much a missed placement costs you.
This guide explains how each model works, when a dedicated fleet pays off, and what to put in the contract. It gives no prices, because the answer moves with lane, vehicle and season.
The two models in one paragraph each
Spot hire. You need a truck, you ask for a price, and a truck is placed for that trip. Each load is a fresh negotiation. Price and availability follow the market that day. Our full truckload service covers this model.
Dedicated fleet. Trucks are committed to your lanes for a contract period. You send a daily indent, and trucks are placed against it every morning without a fresh negotiation. Placement, turnaround and delivery are measured, and the fleet is reviewed monthly. Safe & Secure Logistics runs dedicated shuttle lanes on fixed vehicle types this way. See our dedicated fleet service.
When a dedicated fleet pays off
A dedicated fleet tends to make sense when most of these are true:
- You ship the same lanes most days, not just some weeks.
- Your daily volume is steady enough to predict a base number of trucks.
- A missed placement is costly, for example a plant line or a depot that runs out of stock.
- Your loading and unloading windows are fixed, so trucks can run a regular rhythm.
- You want one set of measures for placement and delivery, reviewed every month.
Spot hire tends to make sense when:
- Loads are irregular, seasonal or one-off.
- Destinations change from load to load.
- You can wait for a truck on a tight day without a large cost.
Utilisation: the number that decides it
In a dedicated contract you pay for committed capacity. A committed truck that waits at your gate, or runs fewer trips than planned, still costs you. So the key question is how well you will use the trucks.
Three things drive utilisation:
- Fleet size against your real daily volume. Sizing for your busiest day leaves trucks idle on quiet days. Sizing for your base volume and topping up with spot trucks usually keeps the fleet busy.
- Turnaround time. Waiting at the loading point, the unloading point and in paperwork reduces trips per truck. Shorter waits mean more trips from the same fleet.
- Lane length and regularity. A short shuttle with fixed windows can repeat many times. A long lane with unpredictable unloading cannot.
Our guide on demurrage and detention covers waiting time in more detail.
Empty-return risk
A truck that delivers and comes back empty still costs its round trip. Who carries that cost differs by model.
- In spot hire, the empty return is priced into the trip rate. The transporter takes the risk of finding a return load.
- In a dedicated fleet, the truck belongs to your lanes, so the empty leg is part of what you pay for. A round-trip lane, where you load in both directions, uses the truck far better than a one-way lane.
If you have flows in both directions, or between several of your own sites, share them when you ask for a proposal. They can change the economics.
Contract structures, explained without numbers
Dedicated contracts are priced per trip or per month, by lane and vehicle. Common structures:
| Structure | How it works | Suits |
|---|---|---|
| Per trip | An agreed rate for each trip on the lane | Steady lanes with a known trip count |
| Per month | A fixed charge for each committed truck for the month | Fleets with stable, high use |
| Fixed plus per km | A fixed part for the committed truck, plus a variable part linked to distance run | Lanes where distance varies, or where use moves month to month |
| Minimum commitment | A floor of trips or distance, with an agreed rate above it | Protecting both sides from very low use |
The fixed part pays for the truck being yours. The variable part pays for how much it runs. Which mix is fair depends on how predictable your volume is. Our guide on how road freight is priced in India explains the underlying cost drivers.
Also agree how changes in diesel prices, tolls and route changes are handled, and when the fleet size can be changed.
Service levels to agree
Write each measure down, with how it is counted and what happens when it is missed:
- Placement against indent. Trucks reported against trucks asked for, by the agreed time.
- Turnaround time. Time from reporting to release at each end.
- On-time delivery. Arrival against the agreed transit time for the lane.
- Proof of delivery. POD collected and shared within an agreed period.
- Vehicle fit. The agreed vehicle type, body and condition, every time.
- Review cadence. A monthly review of performance and fleet size.
Keep the paperwork clear for every trip: invoice, lorry receipt, and an e-way bill where Rule 138 of the CGST Rules requires it. The GST and e-way bill guide explains the rules.
The decision table
| Situation | Lean towards | Why |
|---|---|---|
| Same lanes, most days, steady volume | Dedicated | Committed capacity, no daily negotiation |
| Missed truck stops a plant or empties a depot | Dedicated | Placement measured every day |
| Irregular or seasonal loads | Spot | No idle committed trucks |
| Steady base with sharp peaks | Dedicated base, spot peaks | Keeps the fleet well used |
| One-way lane, no return flow | Compare carefully | Empty return sits in your cost |
| Flows in both directions | Dedicated | Better use of each round trip |
| Cold-chain lanes with regular volume | Dedicated reefers | See our cold-chain guide |
Common mistakes
- Sizing the fleet for the busiest day of the month
- Ignoring turnaround time, which quietly cuts trips per truck
- Signing without written service levels and a way to measure them
- Forgetting the empty return on a one-way lane
- Never reviewing the fleet size once the contract starts
How SSL works on dedicated lanes
Safe & Secure Logistics has moved goods since 1951, with 110+ branches and offices and 2,000+ destinations. Its dedicated model starts with a study of your lanes, daily volume and loading windows. Vehicle types, count, rate structure and service levels are then agreed. You send a daily indent, trucks are placed against it, and placement, turnaround and deliveries are tracked. Performance is reviewed monthly and the fleet is right-sized.
Checklist
- Lanes, daily volumes and loading windows written down for the last few months
- Base volume separated from peaks
- Return flows identified, if any
- Vehicle types chosen by both weight and volume
- Contract structure chosen: per trip, per month, fixed plus per km, or minimum commitment
- Service levels written, with how each is measured
- Monthly review and right-sizing agreed
To get a dedicated proposal for your lanes, send a request for quotation with your lanes and volumes. For a single load, request a quote.
Figures for Safe & Secure Logistics are for FY2025-26 from our booking register. How each one is counted is on the Facts and sources page.