A backhaul is an additional journey on similar routes. If the head haul was made from Point A to B, then the backhaul would be completed starting from B and moving to A.
Since it’s a journey that is made back to the location of the journey, backhauls are essential to carriers and are provided at lower prices than head hauls due to the lower demand.
What are the characteristics of a backhaul market?
- Carriers have no alternatives to exit the market, and they are prepared to negotiate prices instead of running out of.
- Freight shipping costs are lower for shippers
- Grater chances for deadheads