Merchant and carrier haulage are commercial and freight forwarding terms that refer to the movement of containers over land to and from ships. These aspects of logistics are particularly important for import and export companies to ensure the safe transport of freight to its destination.
Rising transportation costs and unpredictable disruptions on international trade routes have shown companies that it is more important than ever to address cost-efficient and safe shipping for their own freight.
In this article we will look at the differences between merchant and carrier Haulage, exploring the advantages and disadvantages as well as price differences.
What is carrier haulage?
Carrier haulage, also known as line haulage, refers to the transport of freight containers in trade over the entire route. This includes loading onto the ship, transport by sea, and even transport from the port to the warehouse.
Only one company is responsible for this, the carrier (e.g. the shipping company) or a shipping company. Shipping companies and freight forwarders often have special knowledge for this intermodal freight transport, as well as a comprehensive network of land carriers, which simplifies the organisation between sea transport and land transport and increases efficiency.
Amazon Freight for example, relies on an extensive network of freight forwarders, which has a solution for every type of route matching.
What is merchant haulage?
With merchant haulage the organisation of the commercial transport of the containers remains with the merchant (i.e. the vendor or sender of the goods). This takes care of the transport to the ship, the loading of the containers and the transport of the cargo from the port to the final destination. With this option, only the sea transport is outsourced to another company.
This offers the merchant more flexibility regarding prices, delivery routes and transport options, especially when special freight is involved. For some merchants, this form of commercial transport is advantageous if they already have existing contacts with local transport companies or receive better rates locally.
What is the difference between carrier haulage and merchant haulage
Which of the two options for freight transportation is better depends on the needs of the shipper. While carrier haulage does most of the work for the merchant, there is less flexibility in the tariff structure and the transport of the freight.
With merchant haulage, the shipper or recipient of goods has more control and flexibility over prices and transport routes, such as by truck or train, but bears more responsibility because they have to take care of part of the container transport themselves. This type of freight transportation can often be more expensive.
1. Operational control
Merchant haulage offers the shipper greater control over the transport of goods in distribution and thereby helps optimise the supply chain. Since only sea freight is outsourced, the merchant has the upper hand over means of transport, prices and route planning on land.
This not only offers them the advantage of choosing the best means of transport for their goods, but also the opportunity to influence the speed of delivery and ensure the safe arrival of the goods via GPS tracking. Transporting the containers from the port by truck is usually the fastest option. Transport by train is more sustainable and reduces CO₂.
2. Costs
The costs can be lower with Merchant haulage than with carrier haulage. However, only if the sender has good local contacts and therefore receives cheaper rates. In many cases, it is better to work with a carrier that handles the entire movement of containers, as freight forwarders and shipping companies often offer a competitive package price.
3. Flexibility and adaptation to your own needs
In terms of flexibility, merchant haulage offers more scope. For example, if the containers are to be transported by rail in a CO₂-friendly way, the shipper can get the best offer. If the onward transport needs to be carried out particularly quickly, he can commission a freight carrier with a fleet of trucks for the rapid transport of goods.
4. Documentation and compliance
In terms of documentation and compliance with guidelines, carrier haulage is advantageous because the carrier takes care of all the necessary documents for shipping. He is also liable for any damage or loss that may occur on the route.
If the merchant takes over the shipping to and from the port, he is subject to liability on these routes and must take care of the relevant contracts, customs duties and obligations. This often means additional work and requires a good knowledge of transport law on German and European roads.
Advantages and disadvantages of carrier haulage vs. merchant Haulage
Depending on what a shipper is looking for in freight forwarding or commercial transportation, carrier haulage and merchant haulage offer their own advantages in terms of safety, price, efficiency and control.
Carrier haulage advantages
- Cost: often cheaper
- From a single source: Processing with just one carrier
- Responsibility & obligations: lie with the carrier
- Total invoice: one invoice for everything
Carrier haulage disadvantages
- Reliability: often lower
- Flexibility: lower, carrier decides on means of transport, routes and speed
Merchant haulage advantages
- Flexibility: Adjustment of route planning and means of transport
- Control: over prices, time limits and transport routes
- Reliability: certainty about the arrival of the freight
Merchant haulage disadvantages
- Cost: often more expensive
- Rights & Obligations: Merchant has to take care of contracts and obligations himself
- Multiple invoices: for parts of freight transport
Amazon Freight takes care of the safe transport of your freight
As a 3PL company, Amazon Freight has an extensive network of freight forwarders and trailers to transport FTL and LTL loads. With us you can optimise your supply chain and keep track of where your goods are at all times: through GPS tracking, route matching, effective route planning, and a dashboard to manage and adjust bookings.
Create your free shipper account today and send us an inquiry about your freight directly in the dashboard.
We are available to you by email at: freight-eu-interest@amazon.com. We would be happy to advise you.