Some vendors will choose to manage haulage themselves as it gives them an additional layer of control over price. They can negotiate more directly with any contractors they use throughout the process and develop strong supply chain relationships with third-party logistics (3PLs) providers. Long-term, this can lead to cost savings and boost overall efficiency.

However, with carrier haulage, shippers tend to get all-inclusive contracts which account for all subcontractors involved in the process. Carrier companies also benefit from economies of scale since they provide transport services to many different shippers. This helps reduce each shipment’s cost and can lead to savings passed on to shippers.

Merchant haulage can provide shippers with more customisation, letting shippers manage transport according to their needs. The extra control in this scenario extends to which routes to take during delivery and how shipments are scheduled.

Since carrier haulage is executed by a third party, the shipper has limited choice over these. However, carriers will often have access to route optimisation tools that provide customisation, even if this is out of the control of the shipper.

Whichever method shippers choose involves filling out the right documentation. However, this is where merchant haulage can become more complicated. When vendors assume responsibility for transport they need to deal with additional paperwork involved with coordinating different parties, such as waybills, packing lists, and certificates. The merchant also has to arrange storage and other administrative tasks that are involved in shipping.

Carrier haulage simplifies this process for the merchant vendor, since the third-party takes care of all documentation, along with loading, unloading, and other activities.

An experienced, worthwhile shipping company is likely to use a Transport Management System (TMS), which provides real-time visibility into shipment journeys. Additionally, carriers can then use these systems to optimise routes and help customers plan the direction of travel.

A TMS also provides greater responsiveness in the event of a delay or disruption by applying automated tools to alert other supply chain agents like warehouse facility staff, port contacts, etc.

Merchant haulage can also make use of a TMS, but organisations must have a dedicated logistics department to deal with this and would have to purchase the technology outright.

So, in short, each mode of haulage has its advantages and disadvantages:

With regards to choosing between carrier haulage and merchant haulage, ultimately it’s up to the shipper. But their choice is likely to be shaped by the size of their business, how much they need to ship, the degree of control they want over their shipments, and other variables. Ultimately, it often depends on what the company chooses to put its resources into.

Merchant haulage may afford more control over contracts and shipping routes, but carrier companies often are more cost-effective, especially for smaller shippers that do not have the time or the means to individually arrange transportation, negotiate haulage contracts, and deal with other administrative burdens. However, if the shipment is comparatively small, it may be worth having the ability to manage each stage of the supply chain.

Larger companies, on the other hand, may have access to their own TMS tools that enable them to gain transparency and responsiveness over shipping, making merchant haulage a good option for them. Thanks to automation, TMSs can also process essential documentation faster than ever before. If you’re a small business, it may be the most logical move to partner with a carrier who has access to this technology.

Amazon Freight leverages our internal freight brokerage system and network of thousands of carrier partners to identify the right one for your shipment. When you need to move large volumes we can support you from pickup to drop-off—hassle-free and at competitive rates.

Contact us today at freight-uk-interest@amazon.com to learn more, or easily create your free shipper account. We’re excited to start working with you.