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20 May 2023

EMPTY MILES > BACK HAUL LOAD AVAILABILITY CHALLENGES & HOW TO MAXIMISE PROFITS

In the world of transportation logistics, the term "back haul" refers to the process of transporting goods or cargo from a destination back to the origin. This process is essential to ensure efficient use of resources and reduce costs for both shippers and carriers. However, back haul load availability can pose significant challenges, particularly in situations where there is a shortage of available loads. In this blog post, we will discuss the challenges associated with back haul load availability and explore potential solutions.

Back Haul Load Availability Challenges

One of the biggest challenges associated with back haul load availability is the uneven distribution of goods and services across different locations. For instance, in certain regions, there may be a high demand for goods, while in others, there may be a surplus of supply. As a result, carriers may find it difficult to find available back haul loads that are suitable for their needs.

Another challenge is the lack of visibility in the market. This can make it difficult for carriers to identify available back haul loads that match their specific requirements. In addition, the market can be highly competitive, with carriers vying for the same loads. This can lead to price wars and result in lower profit margins for carriers.

Finally, there is the issue of timing. Back haul loads must be picked up and transported within a specific timeframe to ensure timely delivery. However, this can be challenging if the load is not ready for pick up when the carrier arrives. Similarly, delays in transit can result in missed delivery deadlines, which can have a significant impact on the carrier's reputation and future business prospects.

Potential Solutions

Despite the challenges associated with back haul load availability, there are several potential solutions that carriers can explore to overcome these obstacles. Below are some examples:

Load Bord Technology

One of the most effective ways to address back haul load availability challenges is to leverage technology. There are several transportation management systems (TMS) available that can help carriers identify available back haul loads that match their specific requirements. These systems can also provide real-time updates on the status of the load and help carriers optimize their routes to reduce transit time. Load boards do connect shippers and brokers who have back haul loads available with cariers. These load boards have smart systems, back haul load can be easily searched according to your date time location. EXEL LOAD provides its users back haul load availability system in both web/app and it dones not discriminate to back haul load, it shows as a fresh load but cariers can win by offering any low freight bid, it is for both shipper & carieer’s maximum profitability.

Build Relationships

Another way to overcome back haul load availability challenges is to build relationships with shippers and brokers. By establishing a rapport with these entities, carriers can gain insight into their supply chain needs and identify opportunities for back haul loads. Moreover, by demonstrating their reliability and efficiency, carriers can increase their chances of being awarded future contracts.

Offer Flexible Pricing

Carriers can also offer flexible pricing to attract back haul loads. This involves offering discounted rates for back haul loads that complement their existing routes or equipment. By doing so, carriers can reduce their empty miles and maximize their revenue potential. However, carriers must be careful not to offer pricing that is too low, as this can result in a loss of revenue.

Diversify

Finally, carriers can diversify their services to increase their chances of finding available back haul loads. For instance, carriers can offer warehousing, distribution, and other value-added services in addition to transportation. This can help them establish long-term relationships with shippers and brokers and increase their chances of finding suitable back haul loads.

Conclusion

In conclusion, back haul load availability can pose significant challenges for carriers, particularly in situations where there is a shortage of available loads. However, by leveraging technology, building relationships, offering flexible pricing, and diversifying their services, carriers can overcome these challenges and maximize their revenue potential. Ultimately, the key to success in the transportation logistics industry is adaptability and

References:

"Backhaul Load Board: How to Find a Profitable Backhaul" by Alex Miller, published on FreightWaves, available at: https://www.freightwaves.com/news/backhaul-load-board-how-to-find-a-profitable-backhaul

"4 Backhaul Strategies for Carriers to Increase Revenue and Reduce Empty Miles" by Joe Lynch, published on The Logistics of Logistics, available at: https://www.thelogisticsoflogistics.com/4-backhaul-strategies-for-carriers-to-increase-revenue-and-reduce-empty-miles/

"7 Tips for Finding Backhaul Loads to Maximize Profit" by DAT Freight & Analytics, available at: https://www.dat.com/blog/post/7-tips-for-finding-backhaul-loads-to-maximize-profit

"The Ultimate Guide to Backhaul" by Uber Freight, available at: https://www.uberfreight.com/blog/the-ultimate-guide-to-backhaul/

"How to find Backhaul Loads in 2021: The Ultimate Guide" by Truckstop.com, available at: https://truckstop.com/blog/how-to-find-backhaul-loads/

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