This segment of the transportation industry involves a carrier providing only the tractor (the “power unit”) to haul trailers owned by another party. Instead of supplying both the tractor and trailer, the carrier focuses solely on the motive force. A common example is a trucking company using its tractors to move pre-loaded trailers from a distribution center to a retail outlet on behalf of a large retailer that owns the trailers.
The significance of this model lies in its flexibility and efficiency. It allows companies with trailer fleets to optimize their logistics by tapping into a readily available pool of tractors without the need to manage or maintain their own power units for every haul. Historically, this arrangement has proven valuable during peak seasons or when companies experience temporary capacity shortages. This can be a cost-effective solution which gives shipping companies control over shipping schedules, while outsourcing maintenance and driver management.