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Gaylord Journal · Logistics

Backhauls, and why your location sets the freight price

Two buyers, identical order, identical grade, a few hundred miles apart — and a delivered price that can differ noticeably. The reason is often a truck that was going there anyway.
Published
July 16, 2024
Written by
ReGaylord Boxes
Reading time
8 minutes

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Key takeaways

  • A truck already making the journey can often move banded boxes for well under a standalone rate.
  • Lane structure can matter more than distance: a nearer destination without return capacity can cost more than a farther one with it.
  • A flexible delivery window can help a load fit onto a return leg and is often the cheapest concession a buyer can make.
  • Backhaul capacity tightens in busy seasons such as harvest and the weeks before the holidays.

Two buyers order the same four hundred boxes at the same grade in the same week. One delivered price comes in lower than the other. Neither negotiated anything. The difference is that a carrier happens to run a regular return lane to one location and not to the other.

What a backhaul is

A carrier delivering into an area with nothing booked for the return leg has two options: run empty, or take whatever pays something. A load of banded boxes going the direction the truck is already heading is close to pure margin for the carrier, which is why it can be priced well below the headhaul rate.

It is one of the main reasons a used box can be delivered a long way and still compete with a new box made closer to the buyer.

Why this makes pricing look inconsistent

Buyers occasionally suspect that delivered pricing is arbitrary. It is not, but it is genuinely lane-specific in a way that catalogue pricing cannot express.

Lane types and how they tend to affect freight
Lane typeWhat it meansEffect on freight per box
Short metro runLocal truck, little deadheadLow, mostly fixed handling cost
Regular backhaulA carrier has a standing return leg on the laneLow relative to distance
Headhaul with no returnThe truck must come back emptyHigher than distance suggests
Brokered truckloadCarrier found on the open marketVaries with the market and season
LTL or partial loadShared trailer, more handlingHighest per box, but no minimum load

Note that a nearer destination can cost more than a farther one. Distance is a rough proxy for freight cost; lane structure is the real driver.

How to make your own lane cheaper

  1. Ask what capacity exists on your lane before assuming a quote is fixed. Sometimes waiting a few days puts you on a return leg.
  2. Be flexible on delivery date. A window of a couple of days is often worth more than a fixed appointment.
  3. Combine collection with delivery. If empties are leaving your building on the same truck, the leg is already paid for.
  4. Order in trailer-efficient quantities. A load that fills a trailer costs little more to move than one that nearly does.
  5. Consolidate with a neighbour. Two businesses in the same industrial park may be able to share a load and split the freight.

The seasonality nobody warns you about

Backhaul availability tends to tighten during agricultural harvest and again in the weeks before the holidays, because trailers in many regions have paying loads in both directions. A lane that is cheap in spring can be noticeably dearer in autumn with no change to the boxes.

If your requirement is predictable, plan it outside the busiest windows. If it is not, tell the supplier how much flexibility you have so it can work around the peaks.

Questions

Follow-ups on this post.

Can I do anything to lower my own freight cost?
A few things usually help: take flattened stock, be flexible on the date, order in trailer-efficient quantities, combine collection with delivery, and ask whether a neighbouring business could share a load. Availability depends on partner suppliers and carriers.
Why might freight be quoted separately?
So you can see what geography is contributing to the delivered price. Separating the freight from the product makes quotes easier to compare between suppliers.

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