Backhaul (definition): The return movement of a truck or railcar to its point of origin or the location of highest demand, also known as a great opportunity for dealers to save on auto transport!

The Challenge

We all know the advantage of planning our daily errands to save time and money on unnecessary trips to the grocery store, dry cleaners, basketball games, etc. Auto transport companies apply the same planning to their distribution networks on a larger scale. A car hauler’s job is to maximize their outbound railcar or truckload capacity within the specific delivery route. A full load ensures their customers get the best transport rates available. The challenge for many car haulers is that often the railcar or truck returns to the origin location empty. Simply put, a car hauler who is not hauling freight is not making money!

The Opportunity

Experienced auto transporters are always looking for ways to fill their railcars and trucks for the backhaul, or return trip. Often, in less popular lanes, they may offer lower rates for the backhaul. For example, a car hauler might have full loads of new cars going from an assembly plant in Kansas City to dealerships in Phoenix. After the trucks or railcars are unloaded, they return to Kansas City for another shipment of new cars. Since there might be fewer customers shipping the other way from Phoenix to Kansas City, some of the car carriers might return empty. Shipping cars in a backhaul lane presents a win-win opportunity for both auto transporters and dealers.

The Solution

Dealers should work closely with their auto transport partner to determine where the best backhaul opportunities are. Then, they can plan their wholesale auction purchases accordingly, to take advantage of lower backhaul rates and save on auto transport.

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