A haulage company is a business that provides freight shipping services for goods and materials. Haulage companies typically own and operate a fleet of vehicles, including trucks, trailers, and other specialized equipment. These businesses provide their services to various clients, including manufacturers, retailers, distributors, and other businesses.
Haulage companies offer two main types of services: carrier haulage and Merchant haulage. Carrier haulage involves transporting goods for a single client under a contract between the haulage company and that client. On the other hand, Merchant haulage involves the transport of goods for multiple clients on a non-contractual basis. In both cases, the haulage company is responsible for picking up and delivering the goods to their destination.
Load size
Carrier haulage typically involves transporting oversized loads for a single client, allowing the haulage company to optimize its route and schedule to meet that client’s needs. On the other hand, Merchant haulage often involves the transport of smaller loads for multiple clients, making it more difficult for the haulage company to optimize its routes and schedule.
Contractual obligations
Under a carrier haulage contract, the haulage company is typically obligated to transport all goods for a particular client. Meaning the company must be able to accommodate any changes in the client’s shipping needs. Merchant haulage contracts are typically much less rigid, and they may allow the haulage company to decline specific loads if it cannot transport them.
Routes and schedules
The routes and schedules for carrier haulage are typically planned and designed to meet the client’s needs. On the other hand, merchant haulage routes and schedules are often more flexible and may change depending on the needs of the clients.
Equipment
Carrier haulage companies typically use specialized equipment, such as trailers and trucks, designed to transport large loads. Merchant haulage companies often use standard cargo vans or trucks to transport their goods.
Payment terms
Carrier haulage companies typically require payment before they will transport any goods. Merchant haulage companies may offer terms that allow their clients to pay after the goods have been delivered.
Price
Carrier haulage services are typically more expensive than merchant haulage services because the company must make a more significant investment in equipment and staff. Merchant haulage companies can often offer lower prices because they do not have the related overhead costs.
Duration of service
The duration of carrier haulage services is typically longer than that of merchant haulage services. Carrier haulage companies are often contracted to transport goods for a specific period. Merchant haulage companies typically do not have such rigid contract terms.
Insurance
Carrier haulage companies are typically required to have insurance that covers the goods they are transporting. Merchant haulage companies are not typically required to have such insurance.
Staffing
Carrier haulage companies typically have a large staff of drivers and other employees dedicated to transporting goods for a particular client. Merchant haulage companies usually do not have such a large staff, and they may rely on subcontractors to transport some of their goods.
Client base
Carrier haulage companies typically have a smaller client base than merchant haulage companies. Carrier haulage services are often more specialized and are not suited for every business. On the other hand, Merchant haulage companies can typically transport goods for any business that needs them.
Picking the correct type of haulage company depends on the needs of your business. If you require the transport of large loads, you will likely need to use a carrier haulage company. If you need more flexibility in routes and schedules, you may want to use a merchant haulage company. Consider your needs carefully before making a decision.
Risks of using a haulage company
Accidents
There is always the risk of accidents when using a haulage company, which can cause delays in your shipments and may even damage or destroy your goods.
Theft
Another risk to consider is theft. Haulage companies typically have strict security measures to prevent theft, but it is still possible for goods to be stolen while in transit.
Loss or damage
Another risk to consider is loss or damage to your goods while transporting. It can occur due to accidents, weather conditions, or other factors beyond the control of the haulage company.
