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The role of sub-contractors in interstate transit companies

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Reduce shipping freight rates

If you don’t have experience or in-depth knowledge of the transport industry, it’s easy to assume that the big brand freight companies do all their hauling themselves.

This is actually far from the truth. The transit times of a freight company are largely dependent on smaller, line haul companies. The major transport companies use sub-contractors to transport goods between major cities and regional locations. This is useful to know if you want to get an understanding of how freight companies work and the different variables that impact their transit times, proof of deliveries and other service factors.

Even though you might see a truck branded by a major transport company driving down the freeway, there’s a good chance that while the trailer may be owned by the transport company and branded accordingly, the truck itself is probably owned and operated by a smaller line haul company (sub-contractor).

So, what do freight companies actually do?

This often begs the question that if freight companies aren’t the ones transporting goods from one city or state to another, what is it they actually do? The major transport companies have infrastructure set up in cities and major regional locations, in the form of depots and trucks that receive products and ensure they get to their final destination. This is great if your delivery area is in a city or on the outskirts of a major regional centre, but if you’re in a remote regional location, there is a good chance your goods will be delivered by a sub-contractor rather than the transport company you’re expecting.

How does this impact my freight delivery times?

With freight delivery times largely dependent on sub-contractors, if something goes wrong with the line haul company it will impact your transit times. Line haul companies can lose drivers, go bankrupt or experience other difficulties and this can have an effect all the way down the chain, meaning that your transit times could be affected and the level of service your transport company has promised you could go out of the window. If your freight provider isn’t delivering on their promises, it could be time to change. 

 

Our freight auditing service can help you find the best freight provider for your business so you can save money and better support your customers. For in depth advice and help regarding your freight costs, contact Freight Cost Solutions™ today. Call 1800 428 348

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