This guide explains both approaches, their key differences, and how to determine the best option for your business needs.
Haulage is a vital part of logistics, involving the transportation of goods by road or rail from ports to inland destinations like warehouses or factories. Businesses must decide between carrier haulage and merchant haulage, two different methods that impact costs, control, and efficiency within the supply chain.
For companies managing their logistics, understanding these two haulage options is essential. This guide explains both approaches, their key differences, and how to determine the best option for your business needs.
Carrier haulage, also known as line haulage, refers to inland container transportation managed by the shipping line. The carrier coordinates the movement of the goods from the port to the inland destination or vice versa.
· The shipping line controls transportation, ensuring a smooth transition from sea freight to inland transport.
· Costs are typically included in the shipping contract, providing a single invoice covering all transport-related expenses.
· The carrier assumes liability for claims, damages, or losses unless caused by incorrect packaging or stowage.
· Often part of a multimodal transport process, integrating sea, rail, and truck transportation for efficiency.
✅ Lower Administrative Burden – The shipping line arranges all inland transport, reducing the effort required from your team.
✅ Potential Cost Savings – Carrier haulage can be cheaper than merchant haulage because of shipping line contracts with haulage companies.
✅ Integration With Ocean Freight – A streamlined approach that reduces delays caused by separate transport arrangements.
✅ Reliable Service – The carrier can adjust transport schedules in response to port delays and other disruptions.
❌ Less Control – Businesses have less flexibility over transport schedules, routes, and choice of service providers.
❌ Limited Customization – Carrier haulage follows standard procedures that may not align with specific supply chain requirements.
Merchant haulage refers to inland container transport managed directly by the shipper or consignee. Instead of relying on the shipping line, businesses hire a third-party haulage provider for the transportation of their goods.
· The shipper arranges inland transport, choosing service providers and negotiating contracts.
· Provides greater flexibility and control, allowing businesses to select the best routes, pricing, and service levels.
· Requires more internal resources to coordinate logistics, manage contracts, and ensure timely deliveries.
· Ideal for companies that require specialized transportation solutions tailored to their supply chain needs.
✅ High Level of Control – Businesses can select their preferred transport providers and dictate delivery schedules.
✅ Flexibility – Merchant haulage is better suited for dynamic supply chains that require frequent adjustments.
✅ Custom Solutions – Allows for special requirements like temperature-controlled shipments, specific delivery times, and customized tracking solutions.
✅ Better Negotiation Power – Larger businesses can negotiate better rates with haulage providers based on shipment volumes.
❌ Higher Administrative Effort – Requires more internal coordination and logistics expertise.
❌ Potentially More Expensive – Without bulk discounts from carriers, individual haulage contracts may cost more.
❌ Responsibility for Claims and Liabilities – The shipper assumes greater risk and must manage insurance, damages, and potential transport failures.
Scenario: Importing Goods via Rotterdam Port to Düsseldorf, Germany
· A company importing electronics hires a third-party haulage provider to move goods from the Port of Rotterdam to their warehouse in Düsseldorf.
· They negotiate the best rate with a reliable haulier, allowing flexibility in scheduling.
· The company maintains full control over transport routes, ensuring deliveries align with production schedules.
· The shipping line responsible for the ocean freight also handles the inland transport to Düsseldorf.
· The company receives a single invoice, simplifying administration.
· The carrier adjusts transport schedules based on port conditions, reducing the risk of delays.
Selecting the best haulage option depends on several factors, including cost, control, and supply chain complexity.
If you want to consolidate costs and reduce administrative effort, carrier haulage is often the better choice. However, if you have the ability to negotiate rates and manage logistics, merchant haulage may offer savings in the long run.
Merchant haulage gives businesses more oversight over routes, schedules, and transport providers, whereas carrier haulage follows standard procedures with less flexibility.
Companies with frequent volume fluctuations and seasonal demand may benefit from carrier haulage’s integrated approach, while businesses requiring specialized transport might prefer merchant haulage.
Carrier haulage shifts liability to the shipping line, while merchant haulage requires shippers to manage risks and damages.
Small businesses with limited logistics experience may prefer carrier haulage to avoid the complexity of managing multiple transport providers.
Both carrier haulage and merchant haulage have distinct advantages and drawbacks. Your decision should be based on factors like cost, control, risk, and operational complexity.
At Daguer Logistics, we help businesses optimize their supply chains by offering flexible logistics solutions, whether you prefer carrier haulage, merchant haulage, or a combination of both. Contact us today to find the best transportation strategy for your needs!
Carrier haulage is usually cheaper because shipping lines have contracts with transport providers, reducing costs. However, merchant haulage can be more cost-effective for companies with large shipping volumes and strong negotiation power.
Merchant haulage is best when businesses need greater control, customized transport solutions, or specific delivery schedules that carrier haulage cannot accommodate.
Yes, carrier haulage is more straightforward because the shipping line manages everything, providing an integrated, hassle-free solution.
With merchant haulage, you are responsible for damages, claims, and delays, requiring additional insurance and supply chain oversight.
Yes, businesses often use a hybrid approach, choosing merchant haulage for high-priority shipments and carrier haulage for cost-effective bulk transport.
