Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What Is a Headhaul? A headhaul is a load that is heading to its destination, from point A to point B. Carriers want to have

What Is a Headhaul?

A headhaul is a load that is heading to its destination, from point A to point B. Carriers want to have their trailers loaded with freight ready to be delivered at all times because a trailer rolling and loaded is more profitable than an empty truck.

Dedicated trucks and truckload transports don't just charge by the distance or day of the week. They also charge depending on whether the load is a headhaul or a backhaul.

What Is a Backhaul?

A backhaul is a shipment made during the trip back home. Having ample backhaul shipments ensures minimal travel without freight. Truckers often receive a dispatch for a backhaul enroute from a headhaul. Backhaul shipment rates are generally lower. This favors customers, while for carriers this means a lower profit margin than a headhaul.

With the cyclical nature of freight and its flows throughout the year, markets can be both a headhaul and backhaul market at different times during the year. A great example of this is when intermodal "peak season" hits in late third quarter and early fourth quarter every year when there is a higher demand to move the holiday retail product inland to the stores for their holiday shopping needs.

The most important aspect of setting up a backhaul strategy is to plan the delivery and pick up routes well.

1. With this, how do you understand backhaul service in freight cost?

2. What advantages or disadvantages do you think the Backhaul has or does not have?

3. How do you quote/sell the backhaul service to your client by knowing these?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Operations and Supply Chain Management

Authors: Cecil B. Bozarth, Robert B. Handfield

3rd edition

132747324, 978-0132747325

More Books

Students also viewed these General Management questions