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Why do brokers try to fill backhauls when possible?

User MCMastery
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Final answer:

Brokers try to fill backhauls to reduce transportation costs, increase efficiency, and maximize asset utilization. Doing so allows for competitive pricing and emissions reduction by avoiding empty return trips. It benefits both shippers and carriers financially.

Step-by-step explanation:

Brokers try to fill backhauls when possible because it is a strategy for reducing transportation costs and increasing efficiency within the logistic operations. When a truck delivers a shipment and returns empty, the costs for that return trip are not being offset by any revenue, which is inefficient. To avoid this, brokers coordinate so that trucks are loaded with goods on their return trips as well, known as backhauling. This not only maximizes the use of the transportation assets but also reduces the cost per delivery and emissions by avoiding unnecessary trips.

An additional benefit is that backhauls can offer competitive pricing to customers due to the shared cost efficiency. For shippers, leveraging backhaul services can lead to lower shipping expenses, which makes it an attractive option for companies looking to optimize their supply chain processes. For carriers, it presents an opportunity to make extra revenue that helps balance their transportation economics. Therefore, brokers serve an important role in connecting the dots in logistics, making backhauls an integral part of a cost-effective transportation strategy.

User Ronenmiller
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