©2012-2024 Adelante SCM. All Rights Reserved. The content of Talking Logistics may not be reproduced or distributed without prior written approval. Please read our Terms of Use for more details.
©2012-2024 Adelante SCM. All Rights Reserved. The content of Talking Logistics may not be reproduced or distributed without prior written approval. Please read our Terms of Use for more details.
The Truth About Multi-stop Truckload Shipping
It’s something we’ve wondered about, along with our customers: do carriers reject multi-stop truckloads more than single-stop, or does it only seem that way? We decided to find out. We worked with MIT graduate students to analyze 5 million truckload and multi-stop truckload tender records collected by TMC, a division of C.H. Robinson. What we found provides valuable insights on the effect that additional stops have on price and service.
According to the research, carriers do reject multi-stop truckloads more often than single-stop. But they don’t reject them automatically. In fact, there are steps you can take to make multi-stop more attractive to carriers.
If you rely on multi-stop truckload shipping as part of your strategy, you owe it to yourself to learn how to work more effectively with your carriers—which can also improve acceptance levels for these loads and help you better control supply chain costs.
In a nutshell, we learned that 3 things increase the cost of multi-stop truckload:
At the same time, you can do things that can lower the cost of multi-stop loads:
There’s no doubt that multi-stop is more challenging for carriers. But you can work through the issues and come to a solution that will work for you, and for them. This white paper can help you get started.
¹ Planned loads were defined as loads that occurred at least once every other week and were compared to similar corridor loads that were unplanned.
² Continuous moves are a single load with multiple legs that was part of the procurement event and awarded to a service provider. These were compared to three discrete loads in similar corridors.
³ Clustered stop loads were compared to mathematical market loads built from the shipment data to represent inline multi-stop loads based on the same origin and destination markets.
Steve Raetz is Director, Research and Market Intelligence, at C.H. Robinson. Steve has been with C.H. Robinson since 1989. He currently supports strategies designed to enhance the realized value that logistics operations have on supply chain and business initiatives. Steve is a graduate of Minnesota State University, Mankato and serves on two university supply chain advisory boards.
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