Line haul in NZ is the portion of a trucking route that covers the distance between two major points, such as cities or terminals. It is typically the longest and most expensive leg of a trip and can make up a significant portion of a trucking company’s total expenses.
In this article, we will take a closer look at line haul and its importance in the trucking industry. We will also discuss the different factors that affect line haul costs and the different options available to companies.
What Is Line Haul?
Line haul refers to the distance travelled by truck between two major points on its route. For example, if you live in Los Angeles and want to ship goods from your warehouse in San Francisco to another warehouse in Seattle, you would need two trucks: one for each leg of the journey (the line).
The Importance of Line Haul in A Trucking Business:
Line haul transportation is an important factor in any trucking operation because it accounts for such a high percentage of total expenses. For example, if you have 100 trucks in your fleet, your line haul costs will probably account for about 50% of your total operating budget. If you have 200 trucks in your fleet, line haul costs will probably account for about 75% of your total operating budget.
Factors that Affect Line Haul Costs:
Several factors affect line haul costs, including:
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Distance:
The longer the distance between your origin and destination, the higher your line haul costs will be.
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Truck Size:
Larger trucks are more expensive than smaller ones because they require more fuel and maintenance costs. If your company has a large fleet of trucks, it should consider investing in smaller vehicles with better fuel economy to minimize these expenses.
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Traffic Conditions:
Traffic congestion (especially during rush hour) can significantly increase delivery times and thus increase line haul costs for companies that rely on trucks for their business model.
Strategies for Minimising Line Haul Expenses:
Here are some strategies for minimising line haul expenses:
- Use an efficient routing process
- Select the best carrier for your load
- Use fuel cards effectively
- Negotiate freight rates with carriers
- Select the most fuel-efficient vehicle for each trip
Conclusion:
Despite its importance, line haul costs can be difficult to control. However, several strategies can help companies reduce the expense of Line haul in NZ.
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