What is Line Haul Transportation?

What's in this article?

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 transportation around us via truck, train, ship, or plane. But, if we talk about the US alone, 2,929 line haul railroads are making it one of the most popular modes of transportation.

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

Let’s get started!

Line Haul Transportation: The Meaning & Definition

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

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

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

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

How Does Line Haul Transportation 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 linehaul network includes:

Drivers
Trucks
Dock Executives
Depots
Hubs
Distribution/Sorting Facilities

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

Line Haul Carriers: What Are They?

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

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

Why Is Tracking Line Haul Carriers Important?

Line haul carriers track the logistics of every single package using digital software. This tracking procedure allows carriers to keep track of all the requirements of relocating the freight and sticking to federal regulations.

Also, the tracking procedure helps carriers 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 Shipping That Are Influenced By Line Haul Carriers

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

Intercity Movement of Goods: When goods are moved between two cities, the line haul carriers decide the suitable transportation method for those goods. They take this decision by considering the shipping cost and time and keeping and reducing the competition.
Costs of Transportation: Line haulers track the cost of every delivery they carry out. Hence, they have daily delivery insights that help them decide how to transport 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.
Duration of Delivery: The carrier’s efficiency and tracking are the two factors that impact the duration of any delivery. By tracking the estimated time of the delivery of goods, carriers can notify the receiver’s about their delivery in advance. Hence, they can save time that would get otherwise wasted and put it to work.
Movements of Packages/Goods to and from Depots: By shipping to and from the depot, line haul carriers give companies more edge and flexibility on shipping times. The finished products and raw materials can safely stay at depots under controlled storage conditions until they are finally delivered.
Movements of Packages/Goods to and from Sorting Facilities: line haul carriers also ship to and from sorting facilities. These are places where companies categorize raw materials and goods into separate groups depending on their specific use.

Line Haul Charge

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

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

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

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

Trucks and Road Transportation: Truck mileage and road transportation are the significant cost deciding factors.

Air Freight Transportation: When goods are being transported 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 shipping models.

line haul trucking
Long haul trucking

Here’s the difference between the two:

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

Long Haul Trucking: Long haul trucking is another trucking method to transport goods. In long haul trucking, the truckers spend several days, weeks, or even months completing their haul and delivering goods to their point of destination.

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

5 Advantages of Line Haul Trucking

Shipping companies that adopt the line haul trucking model for shipping goods are often more efficient than those with the traditional trucking mode of shipment.

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

We are listing a few of the perks of going with line haul trucking below:

Rapid Deliveries

The end goal of any logistic network or shipping model is to deliver its goods in the fastest and most efficient manner. In line haul trucking, 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 delivery time, carriers can figure out which roads slow down their delivery process and then use an alternate way to get things done quickly.

Cost Efficiency

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

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

Reduced Chances of Errors or Accidents

In line haul trucking, 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 transportation process gets more efficient and error-free.

No Communication Gap

The tracking system and analytics keep the customer and the carrier in touch. When both parties continuously communicate, there are fewer chances of any error and higher chances of increasing the efficiency of the delivery 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 shipping cost for everyone.

Improved Customer-Carrier Relationships

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

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

Line Haul Optimization: What It Is?

The key is to save money and efficiently send shipments to freight carriers. 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 transportation, the shipping products vary from light documents to heavy machinery. The main goal of the line haul transportation is to deliver the shipments on time at the destination hub.

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

3 Steps to Optimize the Line Haul Transportation Business

Every transportation company that needs to optimize its line haul 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 the Line Haul Transportation

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

Keep Records:

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

Weight of Shipment
Delivery Destination
Assigned Driver
Delivery Time

Keep Your Customers Updated

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

Determine Optimal Routes for Delivery

If you determine the optimal routes for your delivery, you can ensure the delivery of goods on time and control transportation 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 shipping 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 of Line Haul Transportation and the Reason Behind It

The loads transported through line haul transportation 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 of line haul transportation vary.

Reason #1: Supply & Demand

The biggest reason you might see an influx in the rates of line haul transportation 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 shipment price in line haul transportation.

Reason #2: Details of the Freight

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

Length of Haul
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 shipment cost.

Reason #3: Other Different Factors

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

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

Taking Control of Your Line Haul Transportation Cost

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

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:

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

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

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