Haulage 101: Everything You Need to Know About Haulage Logistics
Haulage is the transportation of goods or cargo from one location to another using various modes of transportation, such as trucks, trains, ships, or planes. It encompasses the entire process of moving goods, from the point of origin to the final destination.
Haulage is an essential part of the logistics industry, involving the transportation of goods by road or rail between suppliers and large consumer outlets, factories, warehouses, or depots.
It includes everything humans might wish to move in bulk — from vegetables and other foodstuffs to clothes, ore, coal, and other supplies. Haulage is important because it enables the movement of goods from one place to another, facilitating trade and commerce.
Understanding haulage involves knowing the different categories of haulage which are carrier haulage and merchant haulage. Carrier haulage involves the transportation of goods by a haulage company, while merchant haulage involves the transportation of goods by the customer.
Haulage is also subject to challenges such as traffic congestion, fuel costs, and the need for skilled drivers. Despite these challenges, haulage remains an important part of the logistics industry, and evolving trends such as the use of electric vehicles and automation are expected to shape the future of the industry.
What Is Haulage?
Haulage is the commercial act of transporting goods by land, sea, air or railway. In essence, it is the movement of a container from one point to another.
There are two main categories of haulage
1. Carrier Haulage
2. Merchant Haulage
Carrier Haulage
Carrier haulage is the movement of the container from Point A to Point B under the control of the shipping line using a haulage contractor nominated by the shipping line.
Carrier haulage can also be defined as a situation where the shipping carrier is responsible for arranging the transportation of cargo from the port to the final destination.
In this scenario, the carrier is in charge of organizing the trucking or transportation services to move the goods from the port to the designated delivery point.
Merchant Haulage
Merchant Haulage is the movement of a container from Point A to Point B directly by the consignee using a nominated haulage contractor.
Merchant haulage can also be defined as a transportation arrangement where the buyer or consignee is responsible for overseeing the movement of goods, rather than the seller or carrier. The consignee arranges the transport of the goods from one point to another using their own nominated haulage contractor
In this case, the consignee has the choice to negotiate his rates for the same. In this case, the line does not bear any liability for the move and if there are any damages, they can hold the merchant liable for such damages.
Types of Haulage
Transportation of goods is an essential part of the modern world, and there are various types of haulage available to meet different needs. Here are some of the most common types of haulage:
1. Road Haulage
2. Sea Haulage
3. Air Haulage
4. Rail Haulage
5. Intermodal Haulage
Road Haulage
This is perhaps the most common and visible form of haulage, involving the transportation of goods on roads using trucks, lorries, or other heavy-duty vehicles.
Road haulage is flexible, allowing for door-to-door delivery, making it a popular choice for local and regional transportation. It’s suitable for a wide range of goods, from perishables to manufactured goods.
The benefits of transporting goods by road include:
· Road transport provides a faster and less costly means of transporting goods over short distances. Other modes of transportation, like water, air, or rail, may incur delays in the transit of goods, with loading and reloading required in multiple locations.
· Road transport is economical.
· It is safe. Damage to goods is generally much less in road transport because handling is minimal.
· It is flexible; it can reach the actual place of loading and unloading. It gives access even to the commoner.
· It is the only option if goods are to be delivered within a particular locality, e.g., if door delivery is to be given by a dealer.
· It offers broader coverage. Any domestic or national market can be reached by road transport.
· Loading and unloading of goods can be done more quickly.
· When compared to all other modes of transport, packing expenses are the lowest in the case of road transport.
· Road transport is the only suitable mode of transport for marketing goods in rural areas.
The primary vehicles used to transport goods by road are articulated lorries (Artics). These consist of a tractor unit with a turn-table device that can be linked to a trailer.
With or without a trailer, the gross combination of the mass of the combined prime mover and trailer must exceed 3.5 tonnes.
Artics have different types of trailers, including:
· Flatbed Trailer: It is used for almost any cargo, but goods must be protected from the elements and theft.
· Tilt Trailer: The tilt trailer is like a flatbed trailer but has a removable PVC canopy.
· Curtain-sider: The mainstay of road haulage, this has a rigid roof and rear doors. The sides are PVC curtains that can be drawn back for easy loading.
· Box Trailer: This is an entirely rigid unit, loading through back doors — a secure option for valuable goods.
· Road Train: As you already know, a typical road train has a rigid vehicle at the front, which pulls a trailer behind it.
· Swap-body System: It is built to accommodate standard cargo containers. Allows containers to be swiftly transferred during intermodal transport.
· Low-loaders: Low-loaders are often used for transporting heavy machinery and other outsize goods. Set it low to the ground for easy loading.
Sea Haulage (Maritime Shipping)
Maritime shipping otherwise sea haulage involves the transportation of goods over oceans using ships and vessels.
As the backbone of global trade, sea haulage handles the majority of international cargo. It is cost-effective for transporting large volumes of goods over long distances but may have longer transit times compared to air freight.
Sea freight is distinct from traditional modes of goods transportation, as ideally, large loads of goods or heavy machinery are shipped through sea freight. Sea freight also transports several crucial commodities for a country, like oil, equipment, and aircraft.
Like other modes of transportation, sea freight also involves the seller (manufacturer), buyer, ocean carriers, freight forwarders, brokerage, port authorities, and insurance providers.
The importance of sea freight haulage in international shipping includes:
• Sea freight offers a significantly larger capacity for transporting goods than air freight.
• Sea freight vessels, such as container vessels, can accommodate oversized cargo volumes.
• Large volumes can be shipped at low costs.
• One of the most significant benefits of sea transport is that your items will move safely and securely.
• Containers are locked securely during transit to keep your valuables safe en route.
Types of Vessels and Containers Used for Sea Freight
- Dry Containers: This is the standard and most widely used container. It is enclosed and weatherproof, suitable for transporting general cargo, dry goods, and manufactured goods.
- Reefer Containers (Refrigerated Containers): Equipped with temperature control systems, refrigerated containers transport perishable goods, such as fruits, vegetables, pharmaceuticals, and certain chemicals.
- Flat Rack Containers: These containers have collapsible sides and no roof, allowing for transporting oversized or irregularly shaped cargo, such as machinery, vehicles, and large equipment.
- Open-top Containers: Similar to dry containers but with a removable top, open-top containers are used for loading cargo from the top, making them ideal for tall or bulky items.
- Tank Containers: These containers are designed to transport liquid or gaseous cargo, such as chemicals, fuels, and food-grade products.
- Ventilated Containers: Ventilated containers are used for goods that require air circulation, like certain agricultural products.
- Insulated Thermal Containers: Insulated containers transport cargo that requires temperature control but not refrigeration. They protect against extreme temperature fluctuations.
- Open-Side Containers: These containers have full-side access doors, enabling easy loading and unloading of cargo from the sides, making them suitable for certain types of goods.
- Platform Containers (Flatbed Container): A simple container with no sides or roof carrying heavy, oversized, or awkwardly shaped cargo.
- Cargo Ship: A cargo ship is designed to transport goods and cargo. These ships are vital to global trade, enabling the efficient movement of goods across oceans and seas. Cargo vessels vary widely in size and shape, from small barges to huge container and bulk carriers.
Air Haulage
Air haulage utilizes cargo airplanes to transport goods swiftly across vast distances. It is recognized for its speed and ability to connect distant locations, air haulage is ideal for high-value, time-sensitive, or perishable goods. While it may be costlier compared to other forms, the rapid delivery makes it essential in certain industries.
Advantages of Air Cargo Haulage
1. Speed and Reliability: The most significant advantage shippers gain when shipping air cargo is speed, which can be as fast as same-day delivery. This mode of transportation offers the quickest shipping times and reliable arrival and departure times.
2. Security: While airport security can be a hassle for those who fly, strict regulations and screenings benefit air freight shippers. Cargo receiving areas and air terminals are highly monitored and secure, limiting the risk of theft or damage. Additionally, there is minimal handling and less time required for transit.
3. Locations Served: Even the most remote areas can be serviced by air. With a sizeable operating footprint, airlines can provide air cargo services to nearly any place on the planet. Additionally, air cargo consolidators can provide bi-directional links between many locations. This helps cargo move quickly and frequently.
4. Tracking: Most air freight service providers offer web-based tracking that allows you to check the real-time status of your cargo from destination to arrival.
5. Cost of Packaging: Because cargo is shipped in very lightweight packaging, there is a reduced need for packing materials and containers.
Rail Haulage
Rail haulage involves the movement of goods using trains and railway networks.
Rail haulage is known for its efficiency in transporting large quantities of goods over long distances, rail haulage is often favored for bulk cargo like coal, minerals, and manufactured goods. It’s environmentally friendly and can be cost-effective for certain types of shipments.
Rail haulage’s role in transporting bulk cargo and raw materials:
• When considered in terms of ton-miles or ton-kilometers hauled per unit of energy consumed, rail transport can be more efficient than other means of transportation. Maximum economies are typically realized with bulk commodities (e.g., coal), especially when hauled over long distances.
• Railway transport can carry heavy passengers and cargo at high energy efficiency, but often with less flexibility and more capital intensity than road transport for lighter traffic.
Advantages of Rail Haulage
The advantages of rail haulage include -
• Rail transports are the most suitable for carrying goods to distant places.
• It helps to transport bulky and heavy goods.
• Rail transport is more dependable than road transport (lousy road conditions make road transport undependable).
• Bad weather affects rail transport less than road transport.
• It is as economical as road transport and, in some cases, even more economical.
• Railway accidents are much fewer when compared to accidents on highways. This ensures the safe transportation of goods to different destinations.
• Railways must strictly adhere to the schedule, avoiding delays.
Limitations of Rail Haulage
• Huge Capital Outlay: The railway requires a significant investment of capital. Construction, maintenance, and overhead expenses are very high compared to other modes of transport. Moreover, the assets are specific and immobile. If the traffic is sufficient, the investments may be a good use of enormous resources.
• Lack of Flexibility: Another limitation of railway transport is its inflexibility. Its routes and timings cannot be adjusted to individual requirements.
• Lack of Door-to-Door Service: Rail transport cannot provide door-to-door service as it is tied to a particular track. Intermediate loading or unloading involves more significant costs, wear and tear, and a waste of time.
• Monopoly: Railways require massive capital outlays, so they may create cartels and work against the public interest. Even if controlled and managed by the government, a lack of competition may breed inefficiency and high costs.
• Unsuitable for Short Distances and Small Loads: Railway transport is inconvenient and uneconomical for short distances and small goods traffic.
• No Rural Service: Because of substantial capital requirements and traffic, railways cannot be operated economically in rural areas. Thus, large rural areas still need railway service even today. This causes much inconvenience to people living in rural areas.
- Under-utilized Capacity: The railway must have a full load for its ideal and economical operation. As it has a huge carrying capacity, under-utilizing its power in most regions is a significant financial problem and economic loss.
Sea Haulage (Maritime Shipping)
Maritime shipping otherwise sea haulage involves the transportation of goods over oceans using ships and vessels.
As the backbone of global trade, sea haulage handles the majority of international cargo. It is cost-effective for transporting large volumes of goods over long distances but may have longer transit times compared to air freight.
Sea freight is distinct from traditional modes of goods transportation, as ideally, large loads of goods or heavy machinery are shipped through sea freight. Sea freight also transports several crucial commodities for a country, like oil, equipment, and aircraft.
Like other modes of transportation, sea freight also involves the seller (manufacturer), buyer, ocean carriers, freight forwarders, brokerage, port authorities, and insurance providers.
The importance of sea freight haulage in international shipping includes:
· Sea freight offers a significantly larger capacity for transporting goods than air freight.
· Sea freight vessels, such as container vessels, can accommodate oversized cargo volumes.
· you can ship large volumes at low costs.
· One of the most significant benefits of sea transport is that your items will move safely and securely.
· Containers are locked securely during transit to keep your valuables safe en route.
· You can ship large volumes at low costs — freight forwarders can consolidate consignments to reduce costs.
Types of Vessels and Containers Used for Sea Freight
· Dry Containers: This is the standard and most widely used container. It is enclosed and weatherproof, suitable for transporting general cargo, dry goods, and manufactured goods.
· Reefer Containers (Refrigerated Containers): Equipped with temperature control systems, refrigerated containers transport perishable goods, such as fruits, vegetables, pharmaceuticals, and certain chemicals.
· Flat Rack Containers: These containers have collapsible sides and no roof, allowing for transporting oversized or irregularly shaped cargo, such as machinery, vehicles, and large equipment.
· Open-top Containers: Similar to dry containers but with a removable top, open-top containers are used for loading cargo from the top, making them ideal for tall or bulky items.
· Tank Containers: These containers are designed to transport liquid or gaseous cargo, such as chemicals, fuels, and food-grade products.
· Ventilated Containers: Ventilated containers are used for goods that require air circulation, like certain agricultural products.
· Insulated Thermal Containers: Insulated containers transport cargo that requires temperature control but not refrigeration. They protect against extreme temperature fluctuations.
· Open-Side Containers: These containers have full-side access doors, enabling easy loading and unloading of cargo from the sides, making them suitable for certain types of goods.
· Platform Containers (Flatbed Container): A simple container with no sides or roof carrying heavy, oversized, or awkwardly shaped cargo.
· Cargo Ship: A cargo ship is designed to transport goods and cargo. These ships are vital to global trade, enabling the efficient movement of goods across oceans and seas. Cargo vessels vary widely in size and shape, from small barges to huge container and bulk carriers.
Pipeline Haulage
Pipelines are used for the transport of liquids, gases, or solids in a slurry form.
Commonly employed in the energy industry, pipeline haulage is efficient and cost-effective for transporting oil, natural gas, and other commodities. It’s a dedicated infrastructure that minimizes the need for additional handling.
Intermodal Haulage
Intermodal haulage combines multiple modes of transportation seamlessly, often involving a combination of road, rail, sea, or air transport.
This type of haulage optimizes the strengths of different transportation modes, providing flexibility and efficiency. Containers can be seamlessly transferred between different modes, reducing the need for repackaging and handling.
Benefits of Haulage
Haulage is an essential aspect of modern logistics, providing a cost-effective and efficient solution for businesses transporting goods. The benefits of haulage are as follows —
Economic Advantages
One of the most significant benefits of haulage is its economic advantages. By outsourcing their transport needs to a haulage company, businesses can avoid the high costs of purchasing and maintaining their fleet of vehicles.
Haulage companies have the expertise and experience to manage logistics and transportation, which enables businesses to focus on their core competencies.
Moreover, logistics companies providing haulage solutions provide a cost-effective solution for businesses transporting large volumes of goods. They have the necessary equipment and resources to handle any type of cargo, from small packages to oversized items. By using haulage services, businesses can reduce their transportation costs, which can have a positive impact on their bottom line.
At Haul247 Truck Partnership model offers partners the opportunity to earn without hassle. By signing up your truck(s) on our platform, you will be verified and vetted.
Once that is done, all you have to do is make your trucks available when needed while you get paid for every successful trip completed.
Efficiency and Convenience
Haulage offers businesses the convenience of having their goods transported from one location to another quickly and efficiently.
Haulage companies have a network of transport routes and can provide customized solutions to meet the specific needs of their clients. They can handle any type of cargo, from perishable goods to hazardous materials.
Furthermore, haulage companies use advanced technology to track and monitor the movement of goods, ensuring that they arrive at their destination on time and in good condition.
This level of efficiency and convenience can help businesses meet their delivery deadlines and maintain customer satisfaction.
Challenges in Haulage
Haulage is an essential part of the logistics industry, and it comes with its own set of challenges. This section will explore some of the global and Nigeria-specific challenges that haulage companies face.
Global Haulage Challenges
One of the significant challenges that haulage companies face globally is the shortage of drivers. According to a report by the American Trucking Association, the trucking industry in the United States is short by around 60,000 drivers. This shortage is due to several factors, including an ageing workforce, low pay, and long hours.
Another challenge that haulage companies face globally is the increasing demand for faster delivery times. With the rise of e-commerce, customers expect their packages to arrive quickly, which puts pressure on haulage companies to deliver goods faster than ever before.
Haulage Challenges in Nigeria
In Nigeria, one of the most significant challenges that haulage companies face is poor road infrastructure. Many of the roads are in a state of disrepair, which makes it difficult for trucks to transport goods safely and efficiently. This issue is compounded by the fact that many of the roads are also congested, which can lead to delays and increased costs.
Another challenge that haulage companies face in Nigeria is the high cost of fuel. Nigeria is a major oil-producing country, but the cost of fuel is still relatively high due to factors such as government subsidies and taxes. This can make it difficult for haulage companies to operate profitably, as fuel costs can account for a significant portion of their expenses.
In addition to these challenges, haulage companies in Nigeria also face issues such as theft and security concerns. Truck hijackings and cargo theft are common, which can result in significant losses for haulage companies. As a result, many companies have had to invest in security measures such as tracking devices and armed guards to protect their cargo.
Overall, haulage companies face several challenges, both globally and in Nigeria. Addressing these challenges will require a combination of government policies, industry innovation, and investment in infrastructure and technology.
Evolving Trends in Haulage
The haulage sector is evolving and several key changes shape the industry. Here are some of the evolving trends in haulage:
1. Sustainability
Sustainability is becoming an increasingly important issue in the haulage industry. With the growing concern over climate change, companies are looking for ways to reduce their carbon footprint.
Electric and hybrid vehicles are becoming more common, and there is a growing trend towards using biofuels. Additionally, companies are looking for ways to reduce waste and increase recycling.
2. Automation
Automation is another trend that is transforming the haulage industry. With advances in technology, it is now possible to automate many of the processes involved in haulage, such as loading and unloading. This can help to reduce costs and increase efficiency, and it is likely to become more common in the coming years.
3. Safety
Safety is always a top priority in the haulage industry, and several trends are helping to improve safety. For example, there is a growing trend towards using telematics to monitor driver behavior and ensure that they are driving safely.
Additionally, there is a trend towards using advanced safety features, such as lane departure warning systems and automatic emergency braking.
4. Logistics
With the rise of e-commerce, companies are looking for ways to improve their logistics operations. This includes using advanced analytics to optimize routes and delivery schedules, as well as using drones and other technologies to improve delivery times.
Whether it’s road, rail, air, or sea, the world of haulage offers a diverse range of options to meet diverse transportation needs.
