What is Line Haul Transportation?

In the vast world of logistics, you are more likely to bump into different terms that you might find hard to comprehend. One such term is line haul transportation.

And, if you are new to this term, you are not alone.

There's a lot of hauling around us via truck, train, ship, or plane. But, if we talk about the US alone, 2,929 railroads are making it one of the most popular modes.

However, understanding this model might not be everyone's cup of tea. So, in this article, we shall help you get the hang its different aspects.

Let’s get started!

Line Haul Transportation: The Meaning & Definition

line haul is a branch of logistics that helps companies determine the appropriate logistics for moving from point A to point B within a predestined timeframe.

In it, freight or goods are relocated using different modes between cities. These varying modes can be road, air, water, rail, waterways, etc.

One thing that sets it apart from other goods relocation models is that the freight moved through is not homogenous in dimensions or nature.

The range of goods includes everything from small packages to heavy shipments.

How Does It Work?

All the goods moving to the same destination are gathered in long-distance trailers. Then, they are sent to one or multiple distribution facilities for further sorting and categorization.

Once again, the freight is sorted and gathered with like-weighted goods at the sorting facility. The last step is to dispatch goods to their destination.

An entire chain of infrastructure and stakeholders is involved in carrying out this process. The network includes:

• Drivers
• Trucks
• Dock Executives
• Depots
• Hubs
• Distribution/Sorting Facilities

Another critical factor that plays a vital role in network management is the "line haul charge." (More about that later!)

Carriers: What Are They?

line-haul carriers have a fair share of responsibilities to smooth the process.

They are the organizations or companies that take part in the overall procedure and provide the required data for tracking the logistics. Like other, carriers also stick to load regulations: Full Truck Load (FTL) and Less than Truckload (LTL).

Why Are Tracking Carriers Important?

It tracks the logistics of every single package using digital software. This tracking procedure allows it to keep track of all the requirements for relocating the freight and sticking to federal regulations.

Also, the tracking procedure helps to measure efficiency and further optimize their process.

The insights gathered through this tracking process are used to:

• Control the cost of shipments
• Take valuable information for both carriers and customers
• Verification of the compliance of the move with the government bodies

5 Key Areas of Moving That Are Influenced By Carriers

Line haul carriers have a significant impact on the overall process. Below are the five areas that are highly influenced by the process.

1. Intercity Movement of Goods: When goods are moved between two cities, the carriers decide the suitable method for those goods. They take this decision by considering the cost and time and keeping and reducing the competition.
2. Costs: Haulers track the cost of every delivery they carry out. Hence, they have daily delivery insights that help them decide how to deliver the goods at a reduced cost. With these analytics, they can decide on the just right price for moving logistics while securing profit for themselves.
3. Duration: The efficiency and tracking are the two factors that impact the duration. By tracking the estimated time, it can notify the receivers in advance. Hence, they can save time that would otherwise be wasted and put it to work.
4. Movements of Packages/Goods to and from Depots: By moving to and from the depot, it give companies more edge and flexibility on times. The finished products and raw materials can safely stay at depots under controlled storage conditions until they are finally delivered.
5. Movements of Packages/Goods to and from Sorting Facilities: Carriers also move to and from sorting facilities. These are places where companies categorize raw materials and goods into separate groups depending on their specific use.

Charges

As the name already hints, the charge is the premium ones usually charge for the service. The charge is typically set by keeping different factors in mind, such as the distance between the point of origin and the point of destination and the weight.

However, additional services like loading/unloading and transfer costs are not included in the charge.

The clients can usually pay additional charges for these services (if necessary).

The total charge also varies depending on the mode of relocation. Here’s how the final cost is calculated based on the mode used during the move:

Trucks and Road Delivery: Truck mileage and road method are the significant cost-deciding factors.

Air Freight: When goods are being hauled by air, the calculations go above and beyond mileage and the weight of the goods.

The Difference between Line Haul vs. Long Haul Trucking

When it comes to moving logistics through trucking, there are two types of models.

1. line haul trucking
2. Long haul trucking

Here’s the difference between the two:

Line Haul Trucking: Trucking is more like your conventional 9-to-5 job. The truckers come, complete their shift, and eventually go home.

Long Trucking: It is another method. In it, the truckers spend several days, weeks, or even months completing their haul and delivering to their point of destination.

It is preferably the most appropriate trucking method as it reduces the work fatigue, cost, and chances of accidents that might skyrocket if the trucker is tired. Moreover, it can also cut down the other expenses related to trucking: fuel costs, food costs, and hotel costs, for instance.

5 Advantages

Companies that adopt the model for moving goods are often more efficient than those with the traditional trucking mode of shipment.

Hence, they reap the benefits of this new yet improved model.

We are listing a few of the perks of going with it below:

1. Rapid Deliveries

The end goal of any logistic network or model is to deliver in the fastest and most efficient manner. In it, the only challenge the companies have to deal with is finding reliable drivers who'll do the chore on time.

Furthermore, tracking makes things way easier.

By tracking the average time, carriers can figure out which roads slow down their process and then use an alternate way to get things done quickly.

1. Cost Efficiency

As discussed earlier, the carriers record the gathered analytics and get insights throughout the logistics process. With the appropriate use of these analytics, it can control and reduce the cost.

With this control and savings, it can benefit their clients by offering more cost-efficient deliveries.

1. Reduced Chances of Errors or Accidents

In it, the truckers don't work for days or even weeks in a row without taking any break, so they aren't tired. The shorter work shifts keep the drivers fresh and reduce the risk of accidents or errors in the deliveries. Eventually, the process becomes more efficient and error-free.

1. No Communication Gap

The tracking system and analytics keep the customer and it in touch. When both parties continuously communicate, there are fewer chances of any error and higher chances of increasing the efficiency of the process.

Excellent communication between the customer and the service providers also strengthens the supply chain. And, when the supply chain gets more robust, it eventually reduces the cost for everyone.

1. Improved Customer-Carrier Relationships

When the goods are delivered faster, better, safer, and cheaper, these perks automatically translate into a better relationship between the carrier and the customer. These better relations strengthen the supply chain.

With this strength, it can do more with less – charging less but providing faster and more efficient services.

Optimization: What It Is?

The key is to save money and efficiently send shipments. Line haul optimization is the way to improve the services based on freight collection from different hubs.

First off, the cargo is separated based on the destination.

As in line haul, the products vary from light documents to heavy machinery. The main goal is to deliver on time at the destination hub.

The whole industry relies on the network of drivers, boys, trucks, and depots.

3 Steps to Optimize the Business

Every company that needs to optimize it must follow these three steps.

Step 1: Take detailed notes on the location and capacity of depots.

Step 2: Figure out the route for cargo flow from the origin hub to the destination hub.

Step 3: Use the insights gathered in steps 1 and 2 to determine the most appropriate route, service type, and cargo size.

Tips on Optimizing It

Here are a few more tips that you can use to optimize your system:

Keep Records:

Keep a record of every shipment you deliver. Also, you can boost your understanding of your company's moving capability by tracking the capacity of each sorting facility or hub. The details of every shipment that you should track are:

• Weight
• Destination
• Assigned Driver
• Delivery Time

Keep Your Customers Updated

Keep your customer updated about the possible time (or delay). These updates help build trust between you and your customer.

Determine Optimal Routes

If you determine the optimal routes, you can ensure the delivery of goods on time and control costs.

Reward Your Drivers with Benefit Packages

Rewarding the truckers or drivers in your network is a great way to increase their performance. Giving bonus packages for optimal performance or effort can keep your drivers more productive or loyal to your company's end goal.

Use Tracking Software:

It would be best to use digital software to track the overall process. There are dozens of tools and software available. All you have to do is find the one that works the best for you and your company.

The Varying Costs and the Reason Behind It

The loads hauled through it are of different weight and dimension categories. Hence, it's difficult to tell the average range of cost. However, below we shall look at some of the reasons why the costs vary.

Reason #1: Supply & Demand

The biggest reason you might see an influx in the rates is the supply and demand. And this supply and demand rule applies in every region, no matter where you are located. However, the reason behind the varied charges can also be seasonal demand.

Other factors like the global pandemic we have recently faced can also impact the price.

Reason #2: Details of the Freight

The details regarding the freight also contribute to deciding the final price. These details include:

• Length
• Shipping Dates (Load/Offload Times)

You'll have to pay more bucks for long hauls than shorter hauls. This is because lead times are also important in deciding the cost.

Reason #3: Other Different Factors

There's also a large list of other factors that have their fair share in finalizing the cost. Have a look at these factors below:

• Accessorial Requirements
• Job-Site
• After-Hours Deliveries & Driver-Assist Loads
• Uniform Intermodal Interchange
• Transportation Worker Identification Credential (TWIC) cards
• Weather

Taking Control of Your Fees

Typically, there’s not much that you can do to control when it comes to logistics. However, there are a few things that you can still keep in your control, such as lead times and windows.

Plan your deliveries ahead of time and keep the flexibility in the timeline. This pre-planning and flexibility will save you money.

Don't have time to plan ahead of time? Still, you have an option. But, first, you should get help from trusted carriers and brokerage to make the process smoother. The well-established brokers have contacts with dozens of carriers who can help you plan your goods to move cost-efficiently.

Conclusion:

Its operations are complex and involve several checks and balances. This model is highly suitable for delivering long-distance logistics. By properly optimizing and incorporating this model into the services, companies can make their overall system more streamlined and budget-friendly.

No doubt, it has changed the logistics game for good. And, agencies can keep the dice rolling in their favor by optimizing the mode and making the most of their gathered insights.