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Power only contracts and dedicated lanes
Updated October 2026By PowerOnlyDispatch Dispatch Desk
Most power only freight is booked one load at a time. Power only contracts are the other way: a broker, carrier program or shipper agrees to give you a lane, or a number of trailers a week, at a set rate for a set period. For a small carrier that can mean steady miles and predictable home time. It can also mean a rate that looks worse every month the spot market rises, so the terms matter as much as the lane.
What counts as a power only contract
| Type | What you get | What you give |
|---|---|---|
| Dedicated lane | The same lane (for example, a shipper pool to a DC) on set days, often every week | A tractor available on those days, on time, every time |
| Contract rate agreement | An agreed price per load on a lane for a period, often 6 to 12 months | Acceptance of most loads tendered at that price |
| Program commitment | Priority access to a trailer-pool program's loads | A minimum number of loads or days per week |
| Mini-bid or project | A short run of loads for a season or one customer | Capacity for the whole project |
Not every arrangement called a contract promises anything. A signed rate agreement with no volume clause is a price list: the broker can send nothing and still be in compliance.
How small carriers win dedicated power only work
Brokers and shippers give contract lanes to carriers who lower their risk. That usually means:
- A track record on the lane. Run spot loads on it first, on time, with tracking on. Then ask the broker which lanes they need steady capacity on.
- Clean safety data. Shippers check your FMCSA Safety Measurement System scores and inspection history.
- The right insurance. Contract shippers often ask for higher auto liability than the federal minimum, plus trailer interchange coverage and being named as additional insured. Our power only insurance guide covers each.
- Answering the phone. A carrier who calls ahead when a trailer isn't ready is worth more to a broker than one who is a few cents cheaper.
- Enough trucks for the volume. A one-truck carrier can hold one dedicated lane; a lane that needs coverage five days a week with no gaps suits a small fleet better.
Large carrier and broker trailer-pool programs are another route to steady power only work. What each one publishes about its requirements is in our power only carrier programs guide, taken from their own pages.
12 terms to read before you sign
General information, not legal advice. Check the cited source and your own advisor before you act.
- Term and termination. How long it runs, and how either side can end it. Look for the same notice period on both sides; a contract only the broker can end early is a warning sign.
- Volume commitment. Is there a minimum number of loads per week or month? For both sides, or only for you?
- Rate and what it covers. Line haul per load or per mile, and whether deadhead to the pool is paid.
- Fuel surcharge. Whether it is built in or added, and which diesel index it follows. A contract with no fuel adjustment puts all of the diesel risk on you.
- Accessorials. Detention (free time, hourly rate, cap), layover, TONU, extra stops, lumper reimbursement. See our guide to power only detention.
- Trailer damage and interchange. Who pays for damage to pool trailers, what counts as pre-existing, and how fast you must report it.
- Insurance limits and additional insured. The exact limits required, and whether you must name the broker or shipper.
- Indemnity. Clauses that make you cover the other side's losses even when they caused them. Ask your insurer whether your policy covers what you are agreeing to.
- Cargo liability. Changes to standard carrier liability under 49 U.S.C. 14706. Federal law allows written waivers between carrier and shipper but not of registration, insurance or safety fitness rules (49 U.S.C. 14101(b)).
- Payment terms. Days to pay, quick pay fees, and what paperwork starts the clock.
- Fines and chargebacks. Late fees, missed-appointment charges, tracking failures. Check they are capped and tied to your fault.
- Non-solicitation. Limits on working directly with the broker's customer. Usually reasonable; check the length and scope.
When a broker is involved, federal rules give each party to a brokered transaction the right to review the broker's record of it (49 CFR 371.3). Some contracts try to waive that; know what you are giving up.
Contract or spot: do the math
A contract rate is worth signing when the steady miles beat what you would average on the spot market after deadhead and empty days.
Comparing a dedicated lane with spot loads
A dedicated lane pays $1,400 per load, three loads a week, 450 loaded miles each and 30 miles to the pool. That is 1,440 miles and $4,200 a week, or about $2.92 per all-in mile, with every load known on Monday. Spot loads on the same days might average $3.10 per loaded mile but come with 15% deadhead and one empty day every other week. Plug both weeks into the load profit calculator before you choose. These figures are made up to show the method, not market rates.
The power only load profit calculator shows profit per hour for each option, which is often where a dedicated lane wins.
Mixing a contract with spot loads
Most one-truck carriers don't want 100% contract freight. The common setup is a dedicated lane or program commitment as the base, then spot power only loads on the open days and for the reload home. It keeps a floor under your week without locking every mile to one price.
That mix is what our dispatchers plan every week: hold the contract days, then book the best spot freight around them so the truck isn't sitting between commitments.
FAQ
How do I get a power only contract as a small carrier?
Usually by doing spot loads on the same lane well first. Brokers and shippers award contract lanes to carriers who already showed up on time, tracked the load and handled problems. Ask the broker directly which lanes they need steady capacity on.
Do power only contracts guarantee a number of loads?
Only if the contract says so in writing. Many rate agreements set a price per load without promising any volume. Look for a stated minimum per week or month, and what happens if either side misses it.
Can a contract waive my rights on cargo claims?
Federal law lets a carrier and shipper agree in writing to waive rights and remedies under the motor carrier part of Title 49, but not the rules on registration, insurance or safety fitness (49 U.S.C. 14101(b)). Read any clause that changes cargo liability carefully and ask your insurer.
Is a dedicated contract the same as leasing on to a carrier?
No. Under a contract you haul under your own authority and get paid by the broker or shipper. When you lease on, you operate under the other carrier's authority, and the lease must meet the federal leasing rules in 49 CFR Part 376.
Sources
Checked October 2026. Official pages first; company facts only from each company's own site.
- 49 U.S.C. 14101(b), contracts with shippers and waiver of rights
- 49 U.S.C. 14706, liability of carriers under receipts and bills of lading (Carmack)
- 49 CFR 371.3, records to be kept by brokers (each party's right to review the record)
- 49 CFR Part 376, lease and interchange of vehicles
- FMCSA, Safety Measurement System (SMS)
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