dedicated contract carriage

The second largest dedicated contract carriage provider

Penske Logistics acquired Black Horse Carriers in December 2020, integrating with the existing dedicated contract carriage (DCC) operations, and joining the already expansive DCC network in North America. Penske Logistics handles deliveries for various leading companies in a wide range of industries, including automotive, CPG, food, grocery, beverage, manufacturing, quick-service restaurants, healthcare, and convenience store chains.

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Penske Logistics is the recipient of a 2025 Manufacturing Innovation Award from Toyota North America. The award was handed out at Toyota’s supplier conference, in recognition of Penske’s dedicated contract carriage solutions. Penske received this honor for attaining high marks in ingenuity, efficiency and cost savings for Toyota.

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For shippers, deciding whether to diversify or consolidate the number of truckload carriers they work with is a critical part of their overall supply chain strategy. However, there isn’t a one-size-fits-all solution, and the best approach depends on various factors.

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Artificial intelligence and machine learning are deriving new insights from supply chain data that are increasing efficiency, improving decision-making and making operations more resilient. Penske is deploying AI to analyze and adjust operations throughout the supply chain.

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To compete in today's complex global economy, you must look for ways to improve efficiencies, without losing value, in every aspect of your business. One immediate change that can easily help you focus on your core competencies is outsourcing the management of your freight transportation to the experts at Penske.

What Is Dedicated Contract Carriage?

The Council for Supply Chain Management Professionals (CSCMP.org) defines dedicated contract carriage (also known as DCC) as a third-party service that dedicates equipment (vehicles) and drivers to a single customer for its exclusive use on a contractual basis. At Penske Logistics, we see dedicated contract carriage as a way for shippers to reduce costs, increase truck capacity and transfer liability. As a dedicated contract carriage provider, we may also take on white-glove responsibilities such as direct store delivery, front-door delivery, customer interaction, cross-docking and more.

The Benefits of Dedicated Contract Carriage

With Penske dedicated contract carriage, you don't have all the worries of fleet ownership, but you receive all the benefits: a safe, efficient fleet that's under your control; visibility to your shipments and deliveries; well-trained, professional drivers; continuous improvement that's measured and tracked; and much more. All this allows you to focus on the real concerns of your business and your customers. Penske's dedicated contract carriage solution relies on industry expertise, dedication to safety and cutting-edge transportation technology to deliver peak service performance, allowing you to surpass your business goals.

Recruiting and retaining drivers along with managing the complexities of running a fleet and staying current with regulations can cut into your time and profits. Penske dedicated contract carriage provides you with a fleet of trucks and well-trained drivers that we take care of. We'll even brand them for you. Penske covers 48 states and Canada and provides dedicated contract carriage service across industries, equipment types and uses. Some of the notable benefits of outsourcing to Penske include guaranteed capacity and the ability to alleviate driver management and truck maintenance concerns while establishing route optimization that saves valuable time and money.

Penske Dedicated Contract Carriage Benefits

Gain Access to Cross-Industry Experience

Penske has experience in a variety of industries: food and beverage, industrial manufacturing, automotive and retail, and others. We can also demonstrate transferrable skills that can adapt to your requirements. We understand your needs because we have experience working in your world. Learn more.

Improve Customer Service

You want to represent your company in the best way possible. Penske dedicated contract carriage seamlessly integrates into your organization and ultimately becomes an extension of your business. From driving trucks with your logo to wearing your uniform, a Penske dedicated contract carriage solution means we will represent your business in the same manner that you would.

We also help you give your customers the best service possible by giving you visibility into every delivery we make. With ClearChain®, you'll be able to rest assured that the parts you're waiting for are on their way or the order you sent is nearing its destination. ClearChain collects load data in several ways, so you can automatically receive alerts regarding shipments based on parameters you set. You can define how often you'd like updates, the type of updates you want (such as ship notifications or estimated time of arrival) and the preferred communication method. Learn more.

Drive Excellence With the Latest Technology

Penske uses advanced tools and state-of-the-art technology called ClearChain to create operational excellence and control within our dedicated contract carriage practice.

ClearChain is a comprehensive suite of optimization and operation tools that leverages best-in-class commercial software and integrates it with Penske's own applications. It provides key benefits in the areas of visibility, operational efficiency and productivity.

ClearChain captures GPS data on your loads and provides customized dashboards, so all vested parties are in the loop and know where your products are every step of the way. Not only will you have a clear picture of your operations, but we can also use that data to improve your productivity as well as make quick decisions, should a disruption occur.

Much of ClearChain's reporting is automated, which means no one has to wait for a driver to update the system. It utilizes a truck's electronic onboard recorder to monitor both engine and driver performance while a truck is in operation. It can communicate with the driver via tablet, smartphone or the web.

From fleet management to driver performance, ClearChain produces disciplined metrics management and ultimately enables continuous improvement, allowing you to reduce costs and increase efficiency. Learn more.

Improve Safety

Penske makes safety a priority. For drivers, Penske provides the tools they need to be successful. We also continuously invest in state-of-the-art safety componentry for our vehicles. This includes items such as adaptive cruise control, collision avoidance, disc brakes and LED headlights. Penske also routinely conducts a continuous evaluation of new safety products, ensuring that we are always up to date with the latest safety technology. Learn more.

Eliminate the Need To Buy and Maintain Your Fleet

Fleet ownership comes with the associated expenses of overhead, towing, taxes, washing, acquiring substitute vehicles, licensing and fuel, among other hard costs. And the longer you own a truck, the higher maintenance and repair costs will be. This includes givens like tires, oil changes and routine inspections. With dedicated contract carriage , Penske Logistics owns and maintains all of the vehicles in your fleet. That means we take care of keeping vehicles safe, compliant and on the road.

Easily Handle Fluctuations

Penske understands that the ability to meet spikes in demand can often make or break a business. We have the solutions to make certain your freight is delivered during both seasonal and unexpected surges. When demand surges, we are able to source additional Penske drivers and trucks. Our vast network of trucks and qualified drivers enables us to place resources where necessary to ensure your business is covered. Learn more.

Optimize Routing

Today, shippers require some degree of a customized solution to ensure both time and resources are used with maximum efficiency. Penske will fully customize a plan for your transportation needs, taking into consideration your market, your people and your schedule.

Complexities within the supply chain also increase the importance of route optimization. Penske doesn't just look at it as distributing from A to B. We look at the network and optimize it, and that applies to miles, drivers and assets. With ClearChain technology, we model scenarios that look at increasing efficiency by diversifying equipment or by making more frequent deliveries, etc. Learn more.

Outsource Recruiting and Retaining Qualified Drivers

Recruiting and retaining quality CDL drivers is a big challenge for any shipper. Penske has highly skilled, dedicated drivers, and all drivers receive year-round training and instruction to keep their driving skills sharp.

Penske seeks out drivers who are positive brand representatives and who exhibit a strong customer service commitment and pledge toward road safety. Our drivers enjoy outstanding benefits packages and comprehensive onboarding and training programs; well-maintained, late-model trucks and trailers with the latest safety and technology; 24/7 support from our own roadside assistance team; and a North American network of over 2,900 truck leasing and rental facilities. Penske drivers are highly valued—a strong indicator as to why Penske driver turnover is among the lowest in the industry. Learn more.

Stay Compliant with Changing Regulations

Requirements for transportation companies seem to change on an almost-daily basis. Penske can create a strategic solution that right-sizes your fleet, keeps it safe, well-maintained and compliant, and runs it all using a combination of operator expertise, proven processes and industry-leading technology. Because Penske is a leader in the truck leasing industry, you can rest assured that we will always keep your fleet safe and compliant. Additionally, we stay up to date on all of the industry's changing regulations, from ELD and hours of service requirements to environmental considerations. You will no longer need to worry about being compliant because we will make sure you are.

Reduce Overhead Costs

Buying new equipment and keeping it operating at peak efficiency is expensive and can be unpredictable. And with the way technology is constantly changing, enjoying and maintaining the latest technology is extremely challenging. At Penske, we are experts at buying and maintaining cutting-edge transportation solutions and finding the best fit for every customer.

The supply chain provides significant opportunities to improve a company’s sustainability efforts. The Environmental Protection Agency (EPA) estimates that more than 75% of an organization’s greenhouse gas (GHG) emissions stem from its supply chains, underscoring the significant opportunities for improvement.

Corporate responsibility, customer expectations and regulatory requirements have shippers examining their direct and indirect emissions, especially as they relate to logistics and transportation.

Types of Scope Emissions

There are three categories of GHG emissions: Scope 1, Scope 2 and Scope 3. Each scope represents a different source of emissions, ranging from emissions created as part of a direct operation to emissions from services and suppliers.

Scope 1 Emissions: Direct Emissions From Controlled Operations

Scope 1 emissions are direct GHG emissions from sources that a company owns or controls. For shippers, this includes emissions from company-owned vehicles and equipment. Emissions from warehouse operations, such as gas-powered forklifts, are also part of Scope 1.

Scope 2 Emissions: Indirect Emissions From Purchased Energy

Scope 2 emissions are indirect, deriving from an organization’s purchase of electricity. While these emissions happen at the energy provider’s site, they are tied to the company’s operations because they depend on the energy.

Scope 3 Emissions: Indirect Emissions From Upstream and Downstream Activities

Scope 3 emissions encompass all other indirect emissions in the company’s upstream and downstream value chain. This includes emissions associated with suppliers, transportation providers and end users. Scope 3 is often the largest and most complex to manage. However, because Scope 3 sources may represent most of an organization’s GHG emissions, they often provide the strongest emissions reduction opportunities.

Emissions Reporting

Many companies are proactively providing information about their emissions even without government requirements. The Governance and Accountability Institute found that in 2023, sustainability reporting hit record levels as U.S. public companies prepared for mandated disclosure. In 2023, 99% of the S&P 500 companies published sustainability reports or disclosures, up from 20% in 2011.

The EPA has created a GHG inventory development process to help companies quantify and track emissions. The four steps include:

  1. Reviewing accounting standards and methods, determining organizational and operational boundaries, and choosing a base year
  2. Collecting data and quantifying GHG emissions
  3. Developing a GHG Inventory Management Plan to formalize data collection procedures
  4. Setting a GHG emission reduction target and tracking and reporting progress

The demand for increased transparency around emissions is expected to create new responsibilities for a company’s chief financial officer. As companies quantify their carbon output, CFOs, sitting at the intersection of strategy, reporting and resource allocation, are in an ideal position to ensure that carbon management initiatives align with their company’s strategic and compliance needs.

According to McKinsey and Company, businesses can reduce costs associated with decarbonization by zeroing in on their most important emissions drivers and investing in more accurate and granular data to inform discussions with suppliers.

Opportunities To Reduce Scope 3 GHG Emissions

Shippers are increasingly adjusting their supply chains to better align with their environmental goals, and a survey from EY found that eight of 10 supply chain executives are investigating sustainable transportation practices.

There are several strategies companies can use to reduce supply chain emissions, which include the following:

Improve Routing

Optimizing transportation routes can reduce fuel use, but optimization goes beyond finding the most direct route between two points. There may be opportunities to reduce mileage by adjusting delivery windows, consolidating orders across days of the week, determining the optimal sequence of stops on multi-stop routes or changing the trailer size.

Optimize the Network

Focusing on the entire network, including the planning and design of manufacturing, warehousing or distribution facilities, as well as transportation routes, can create significant sustainability gains. Network design should consider site selection, mode selection, routing, utilization and more to shrink the carbon footprint of freight operations and reduce waste.

Utilize Backhauls

Eliminating empty miles by utilizing backhauls ensures all miles are productive, which maximizes fuel use and capacity and ultimately results in fewer trucks on the road.

Increase Visibility

Having visibility into inventory and transportation can help companies make tactical, data-driven decisions quickly, increasing efficiency. Examples include sourcing inventory from the ideal location to eliminate unnecessary miles or getting ahead of supply chain disruptions before they become more significant issues that lead to increased miles or expedited air freight.

Consolidate Shipments

A shared network provides an alternative to less-than-truckload (LTL) shipments coupled with dedicated transportation that combines freight loads from multiple shippers going to a shared geographic area. Shared dedicated transportation networks can boost efficiency and sustainability by reducing miles and minimizing freight handling.

Use Energy-Efficient Warehouses

An energy-efficient warehouse can cut operational costs while improving sustainability. Using LED lighting, motion-activated lights and temperature controls can all decrease energy consumption and emissions. There may also be opportunities to use renewable energy within a warehouse.

Choose Suppliers Wisely

The EPA’s Supply Chain Guidance advises companies to strategically choose which suppliers to engage. The EPA has also developed several voluntary programs that companies can use when selecting partners. For example, SmartWay assists companies in advancing supply chain sustainability by measuring, benchmarking and improving freight transportation efficiency, empowering companies to make strategic and sustainable choices.

Contact us to learn more about how Penske can help you track, quantify and reduce emissions in your supply chain.

Operating private fleets often provides fleet operators with a greater perceived sense of control over things like customer service, capacity, over-the-road performance, cost controls, safety and more. Yet, more and more private fleet operators are challenging their thinking and operating models by turning to dedicated contract carriage (DCC) solutions.

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Penske Logistics is utilizing machine learning technology to further automate the process for customer goods that are being handled at a distribution center. Penske is the first Blue Yonder customer to employ their innovative Yard Management solution.

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Penske Logistics professional truck driver Tom Warters is one of 36 finalists for the American Trucking Associations (ATA) America’s Road Team. PJ Singh is nearing completion of his two-year team representing Penske. America’s Road Team, a group of professional truck drivers with superior safety records, was created in 1986 to represent the trucking industry.

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Change can be hard, especially in complex operations with multiple moving parts. In transportation and logistics, the stakes can be even higher — ensuring business continuity, maintaining legacy knowledge and business data, and retaining staff are all top priorities when a transition occurs. Penske Logistics has transitioned hundreds of companies to its dedicated contract carriage services and has developed critical best practices to minimize disruptions and maintain continuity.

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Transporting goods is a complex process, and the trucking industry faces a wide range of operating challenges. Shifts in capacity, fluctuating rates, rising insurance and fuel costs, and the ongoing driver shortage create uncertainty for shippers. At the same time, customer service demands and regulatory requirements continue to increase, leaving many shippers looking for a solution that will provide secure capacity, steady rates, and high levels of service, all while mitigating the risks of operating a private fleet.

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Food Logistics magazine has named Steve Chambers, vice president of operations for Penske Logistics, as one of the winners of this year’s Rock Stars of the Supply Chain award, which recognizes influential individuals in the industry whose achievements, hard work and vision have shaped the global cold food supply chain.

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Penske Logistics has earned entry onto the 2022 Top Food Chain Providers listing, as announced by Food Chain Digest, the official publication of the Food Shippers of America.

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Guide to Dedicated Contract Carriage

Download our free white paper to learn how the right dedicated transportation partner can deliver your products safely and efficiently

When it comes to choosing a Dedicated Contract Carriage (DCC) provider, it’s important to identify your requirements and fully understand the benefits of a well-structured DCC arrangement before starting the selection process. That’s why we created this guide – to make available the critical information you need to make the best decision possible. Whether you currently operate a private truck fleet, utilize common carriers, or are evaluating the options available in ground transportation, this booklet will be a helpful resource in determining if DCC is right for you. It also provides a “how-to” in selecting a specific provider as your dedicated carrier.

There are many new entrants into the DCC market as the product continues to evolve. The more you know about DCC, the better decisions you can make for your transportation needs.

Penske Logistics has been recognized by the U.S. Environmental Protection Agency (EPA) SmartWay program as a High Performer in a pair of clean transportation categories. Penske earned the listing in the Truck Carrier Carbon Metrics and Logistics Freight Management categories.

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Jamie Rigot, vice president of dedicated contract carriage operations for Penske Logistics, has been named among the winners of Supply & Demand Chain Executive’s 2022 Women in Supply Chain Award. The award honors female supply chain leaders whose accomplishments and mentorship set a strong foundation for women at all levels of a company’s supply chain.

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When you need regular, dedicated deliveries to out of area locations, Penske Logistics’ shared dedicated transportation solutions provides a consistent and cost-effective alternative to less-than-truckload (LTL), parcel or expedited shipments.

Dedicated, multi-client delivery networks improve service levels and cost efficiency by leveraging customer synergies within geographical areas to share truckload space. It's like carpooling for your freight.

Shared networks afford customers the ability to combine freight loads from multiple shippers in one truckload, with the added benefits of:

  • High service levels providing unattended, overnight deliveries
  • Fast, next-day delivery service
  • Consistent, reliable delivery times
  • Returns handling for containers or packaging
  • Minimal handling and reduced damage
  • Efficient delivery toless dense geographic areas
  • Reduced carbonfootprint

Shared Costs, Quality Service

Because shared transportation networks combine multiple shipments, shippers also share the cost without sacrificing service. You will pay for only the freight volume and distance traveled. Service is improved and shipment accuracy is ensured with advanced scanning systems to prevent co-mingling. Shared transportation is especially efficient at serving outlying destinations with less delivery density - reducing cost and improving delivery times versus less-than-truckload shipments.

Reduced Carbon Footprint

Optimizing deliveries with shared dedicated transportation also benefits the environment:

  • Reduce miles
  • Reduce fuel costs
  • Run fewer, fuller trucks

Expertise Across the Country

Our success lies within the scale of our networks. Penske Logistics operates five regional shared transportation networks within the continental United States. Dedicated drivers move thousands of shipments through hundreds of relay points overnight so that your deliveries arrive the next day.

Penske provides dedicated transportation to automotive services, industrial distribution and many other industries. If you need regular, daily product or parts deliveries to keep your business moving, Penske Logistics can help.

Cristy Sinclair, the first-ever Penske Logistics director of food safety, has been recognized as a 2022 Rock Star of the Supply Chain by Food Logistics magazine. The honor recognizes influential individuals whose achievements, hard work and vision have helped shape the cold food supply chain.

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Penske Logistics professional truck driver PJ Singh was named a member of the prestigious 2022-2023 American Trucking Associations (ATA) America’s Road Team. Singh is the fourth ATA Road Team Captain in the company’s history. Based in Stockton, California, he services regional food and beverage accounts.

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Dedicated contract carriage (DCC) is a third-party service that dedicates equipment (vehicles) and drivers to a single customer for its exclusive use on a contractual basis. Using a DCC allows shippers to reduce costs, increase truck capacity and transfer liability. It provides all the benefits of owning a fleet while avoiding the worries. Some DCC providers also take on white-glove responsibilities, such as direct store delivery, front-door delivery, customer interaction, cross-docking and more.