Flatbed trucking is a critical segment of the logistics industry, yet many third-party logistics providers (3PLs) find it challenging to build competitive and reliable flatbed services. At first glance, it might seem confusing—flatbed trucks are frequently spotted on the road, suggesting that capacity should be readily available. So why do 3PLs often fall short in this area compared to their dry van offerings?

This article explores the key reasons behind this challenge, including operational complexities, market dynamics, and service-specific requirements.

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1. Unique Operational Complexities of Flatbed Shipping

Flatbed trucking comes with a unique set of operational demands that go beyond the standard dry van model. Here’s what makes flatbed logistics inherently more challenging:

• Specialized Equipment Needs:
  • Flatbeds require specific configurations depending on the cargo, including step-decks, double-drops, and extendable trailers. Not every 3PL has access to such specialized fleets.
• Loading and Unloading Requirements:
  • Unlike dry vans, flatbeds are loaded and unloaded from the sides or top, often requiring cranes or forklifts. This adds complexity that some 3PLs may be ill-equipped to handle.
• Securing Freight:
  • Cargo must be secured with chains, straps, or tarps, requiring trained drivers and additional loading time. Errors can cause costly damages or safety issues, making reliable capacity harder to maintain.

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2. Capacity Challenges in Flatbed Trucking

Despite seeing flatbeds on the road, securing capacity through 3PLs is harder due to several market dynamics:

• Fragmented Carrier Base:
  • The flatbed market is more fragmented than dry van trucking. Many flatbed carriers are small owner-operators or regional carriers, making nationwide coverage difficult for 3PLs to build.
• Seasonal Demand Swings:
  • Flatbed capacity is highly seasonal, driven by industries like construction, agriculture, and oil and gas. Demand spikes in spring and summer can tighten capacity, creating spot-market volatility.
• Backhaul Limitations:
  • Finding return loads for flatbeds is harder because they typically carry specialized cargo. This makes flatbed lanes less predictable and increases costs.

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3. Pricing Complexity

Flatbed pricing is notoriously complex compared to standard dry van services due to the following:

• More Variables to Quote:
  • Rates depend on cargo dimensions, weight, required securing methods, and specific permits or escorts. This makes flatbed quotes more time-consuming and error-prone.
• Insurance Costs:
  • Flatbed loads often involve high-value, oversized, or hazardous cargo, driving up insurance premiums and adding to the total shipping cost.
• Geographical Constraints:
  • Rural and remote destinations common in flatbed shipping increase deadhead miles, leading to higher quoted rates.

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4. Expertise Gap in 3PL Operations

Many 3PLs struggle with flatbed offerings due to a lack of in-house expertise:

• Flatbed-Specific Knowledge Required:
  • While dry van logistics can be managed by generalist teams, flatbed logistics require specialists familiar with equipment types, securing methods, and permit regulations.
• Relationship Building:
  • Successful flatbed operations depend heavily on strong carrier relationships. Small flatbed operators often prioritize brokers they trust and have worked with before. 3PLs new to the market may lack these relationships, leading to limited capacity options.

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5. Risk Aversion and Business Prioritization

Many 3PLs actively avoid flatbed logistics because of inherent risks:

• Higher Liability:
  • The risk of damage, accidents, and customer claims is higher, deterring some 3PLs from entering the flatbed market.
• Operational Complexity:
  • Flatbed freight is operationally intensive, requiring higher service levels, increased communication, and more frequent updates. For 3PLs focused on scalable, low-touch operations, flatbed may not fit their business model.
• Specialized Focus Elsewhere:
  • Many 3PLs choose to specialize in high-volume, scalable services like dry van or drayage, leaving flatbed logistics to niche brokers or specialized carriers.

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What Can 3PLs Do to Improve Their Flatbed Offering?

For 3PLs willing to invest in flatbed logistics, these strategies can help build a competitive and reliable service:

1. Develop Carrier Partnerships: Build strong relationships with trusted flatbed carriers through frequent, fair freight opportunities.
2. Hire Flatbed Experts: Invest in specialists with flatbed experience to manage quoting, booking, and compliance.
3. Use Load-Matching Technology: Leverage technology platforms that connect 3PLs with flatbed carriers to increase coverage.
4. Create a Flatbed-Specific Division: Consider creating a dedicated flatbed team separate from other service offerings.
5. Focus on Niche Markets: Specialize in specific industries like construction, heavy equipment, or steel, where flatbed capacity is critical and pricing margins may be higher.

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Final Thoughts: Why Flatbed Remains Challenging for 3PLs

The operational complexities, fragmented carrier market, and specialized knowledge required make flatbed logistics a tough nut to crack for many 3PLs. While flatbeds may seem abundant on the highway, the reality behind the scenes is far more complicated. However, with the right investments in expertise, relationships, and technology, 3PLs can build a strong flatbed offering and turn this challenging market into a profitable opportunity.

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