Backhaul Meaning in Logistics: Why Empty Miles Matter

In freight logistics, the return journey is often an overlooked opportunity. Imagine a truck driving back to its origin after delivering goods, empty and wasting fuel. This scenario, known as ‘deadhead miles,’ can be costly and inefficient. But there’s a better way – backhaul logistics. By optimizing the return trip with another load, freight carriers can save money, reduce emissions, and increase operational efficiency.

Understanding this concept is essential for businesses aiming to reduce transportation costs and improve service delivery. 

Understanding Backhaul in Transportation

The Basics of Backhaul and Return Trips

Backhaul refers to the return journey of a freight carrier after delivering goods to their destination. Instead of returning to the point of origin empty, carriers often seek out a new backhaul load to transport during the return trip. The goal is to reduce the number of empty miles or deadhead miles, which occur when a truck travels without cargo. These empty miles not only increase transportation costs but also contribute to a higher carbon footprint.

For example, a truck might pick up goods at Point A and deliver them to Point B. On the return trip, the same truck would ideally pick up another load from Point B or a nearby location, creating a backhaul that maximizes its route efficiency.

This simple practice helps reduce costs and make the logistics process more efficient. The return trip or backhaul load not only fills the truck but also ensures that the carrier is earning revenue from what would otherwise be an empty ride.

Backhaul vs. Headhaul vs. Deadhaul Loads

• Headhaul Load: This is the initial trip made by the truck carrying goods from the point of origin to the destination, typically involving higher-demand routes or freight with a higher rate.
• Backhaul Load: The return trip, often involving the transport of goods in the opposite direction. These loads tend to be less profitable and may involve lower demand. However, optimizing these routes can still help reduce costs.
• Deadhead Miles: This term refers to the miles a truck travels without cargo, empty miles that contribute nothing to revenue. When a truck returns to its starting point without picking up a backhaul load, these miles are considered deadhead miles. Deadhead miles are an inefficient and costly part of logistics, adding to overall fuel and maintenance costs.

Feature	Headhaul Load	Backhaul Load	Deadhead Miles
Route	Longer, higher demand routes	Return trip or opposite direction	Empty miles, no freight
Freight Rate	Typically higher	Often lower or less demand	No revenue generated
Miles Traveled	Higher initial travel	Return travel, often shorter	Longer return trips without cargo
Profitability	Higher potential	Lower, but cost-saving if optimized	No revenue, increases costs

The Impact of Empty Miles on Transportation Costs and Freight Rates

One of the main reasons backhaul is essential is to avoid running empty trucks or empty containers back to their origin. These empty miles, or deadhead miles, contribute to unnecessary costs, increasing fuel expenses and wear and tear on the vehicle without generating any revenue. When a truck or container returns empty, the carrier is essentially paying for transportation with no return on investment.

These inefficiencies not only raise operational costs but also affect freight rates. Without backhaul loads, carriers would need to charge higher rates for freight to offset the expense of deadhead miles. By filling these return trips with a backhaul load, companies can reduce the need for empty miles, lowering fuel costs and improving the overall profitability of the logistics operation.

This issue also applies to sea freight and rail transport, where empty containers or cargo cars returning without a new load are equally wasteful.

Backhaul and Carbon Footprint

Another advantage of backhaul is its positive impact on the environment. By reducing the number of empty miles driven, backhaul helps reduce the overall carbon footprint of the logistics industry. Fewer empty trucks mean fewer emissions, leading to a more sustainable transportation network.

This reduction in carbon emissions is not only beneficial for the environment but also aligns with many businesses’ sustainability goals. Companies that focus on reducing their carbon footprint can benefit from marketing themselves as environmentally conscious, which can help attract environmentally aware customers.

How Backhaul Improves Operations

Backhaul logistics improves operational efficiency for both freight carriers and their customers. By filling up return trips with additional freight, companies can reduce the number of trucks on the road, saving both time and resources.

• Network Optimization: Operators match return loads with available trucks
• Resource Utilization: Better use of existing fleet capacity
• Cost Reduction: Lower operational expenses per mile traveled
• Revenue Generation: Income from previously empty return trips

Simple Backhaul Workflow

• Step 1: Carrier delivers goods to destination (Point B)
• Step 2: Network operator identifies potential backhaul load in Point B.
• Step 3: The truck picks up new cargo for the return journey
• Step 4: Truck returns with a new load, avoiding empty miles.

Challenges in Backhaul Logistics

These challenges can make it difficult for freight carriers to always find a profitable backhaul network, but with the right technology and strategies, these hurdles can be overcome.

• Finding Suitable Backhaul Loads: One of the biggest challenges in backhaul logistics is finding a return load that matches the truck’s capacity and can be transported efficiently.
• Remote Areas: In remote areas, there may be fewer available backhaul load options, leading to increased deadhead miles.
• Access Points: Certain access points or geographical locations may lack the infrastructure needed to facilitate efficient backhaul arrangements, limiting opportunities for backhaul optimization.

How Freight Carriers Can Maximize Backhaul Opportunities

Freight carriers can maximize backhaul opportunities by:

• Leverage Technology: Implement route optimization software or load-matching platforms that can help identify return loads and backhaul networks.
• Build Relationships: Cultivate strong relationships with other carriers, freight brokers, and shippers to ensure access to a wider range of backhaul opportunities.
• Flexibility: Be willing to adjust routes and schedules to accommodate backhaul opportunities, which may sometimes require rerouting.

By using these tactics, carriers can maximize their return on investment by reducing empty miles and filling as many return trips as possible.

Reduce Your Empty Miles

Backhaul logistics transforms the traditionally unproductive return journey into a profitable opportunity. By reducing empty miles, carriers can lower fuel costs, decrease emissions, and improve overall supply chain efficiency. What was once viewed as a necessary expense becomes a strategic advantage in competitive freight markets.

At Mercer Transportation, we understand the importance of optimizing your logistics operations. We offer efficient and cost-effective freight solutions that help you minimize empty miles, reduce costs, and improve your overall supply chain efficiency. Whether you need local or long-haul logistics, Mercer Transportation delivers results. Contact us today to learn how we can help!