Ready to solicit backhauls? Answer these questions first
By John D. Schulz, Contributing Editor -- Logistics Management, 6/26/2007
Getting operating authority is relatively inexpensive. There’s a one-time registration of about $75 and annual DOT fees ranging about $200 annually. But not every private fleet is equipped to solicit backhauls. Experts warn there are scheduling, equipment, and workforce considerations to answer before establishing an ongoing backhaul program.
If you’re thinking about establishing a backhaul operation, ask yourself these five easy questions:
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Can drivers and equipment be delayed long enough to accommodate the pickup and delivery of backhaul loads? Waiting time in some sectors, such as the grocery business, are notoriously long and can be schedule-killers. This can mean driver and equipment downtime, or extended layovers. The private fleet operation must have the scheduling flexibility to handle such a situation.
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Do you know the potential customers you can handle? Once a private fleet commits to haul for others, it must be prepared to deliver what was promised. But failing to serve one primary business to the exclusion of revenue-producing customers can mean trouble.
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Do you have the right kind of equipment? Some equipment is highly specialized to meet the specific operating needs of the company. That could mean difficulty finding compatible loads.
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Do you have the bandwidth to solicit freight? It’s a competitive market out there and freight won’t just appear because you want to fill an empty lane. You must sell your services—much like a for-hire carrier. To top if off, you better understand how to use brokers.
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Do you have a good handle on your costs? You need to understand the impact of providing “for-hire” activity on your operation in terms of equipment delays, out-of-route miles, hours of service rules, and other complexities of ground transport.
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