Why Haulage Companies Rely on Lorries

Summary

Despite the high fuel costs and low mileage of lorries, haulage companies prefer them over smaller vans for their operations. This choice is driven by the need for expediency, efficiency, and the ability to handle a variety of loads, including abnormal and heavy ones. Lorries offer logistical advantages, cost savings in terms of employment, and the capacity to avoid "deadheading" by carrying return loads. This article explores these factors in detail, supported by statistics and expert insights.

The Economics of Haulage: Lorries vs. Vans

Fuel Costs and Mileage

The high cost of fuel is a significant concern for haulage companies. According to the U.S. Energy Information Administration, the average price of diesel fuel in 2023 is around $4.00 per gallon. Lorries, which typically get about 6-8 miles per gallon, might seem less economical compared to vans that can achieve 20-25 miles per gallon. However, the decision to use lorries goes beyond just fuel efficiency.

Employment Costs

One of the primary reasons haulage companies opt for lorries is the cost of employment. A single lorry can carry the load of multiple vans. For instance, if a lorry can handle the equivalent of six van loads, it means only one driver is needed instead of six. This significantly reduces labor costs, which can be substantial. According to the Bureau of Labor Statistics, the median annual wage for heavy and tractor-trailer truck drivers was $47,130 in 2022.

Logistical Efficiency

Lorries offer logistical advantages that vans cannot match. When multiple deliveries are required over a large geographic area, using a single lorry simplifies the logistics. For example, if a company needs to make a dozen deliveries spread out over hundreds of miles, a lorry can handle all these deliveries in one trip. This reduces the complexity and cost associated with coordinating multiple vans and drivers.

Avoiding Deadheading

What is Deadheading?

Deadheading refers to the return trip a vehicle makes without carrying any load. This is a significant issue in the haulage industry because the fuel costs for the return trip are not covered by the customer. Haulage companies strive to avoid deadheading by finding return loads that can be transported back to the base of operations.

Lorries vs. Vans in Deadheading

Lorries are more versatile in handling return loads compared to vans. While a van might be sufficient for the outgoing load, it may not be suitable for the return load, which could be larger or heavier. This flexibility makes lorries a more practical choice for long-distance hauls.

Handling Abnormal and Heavy Loads

Abnormal Loads

Abnormal loads are those that exceed standard dimensions or weights. These loads often require special handling and permits. Lorries are specifically designed to handle such loads, whether they are oversized, overweight, or both. For example, some loads are so wide that they need to be transported at night when traffic is minimal. Local authorities may also restrict the movement of these loads to specific times to ensure safety.

Heavy Loads

Lorries are built to carry heavy loads that would be impossible for vans to handle. Some loads are so heavy that they can only be transported at night to avoid traffic congestion. In some cases, local authorities may only allow these loads to cross bridges when they are devoid of other traffic due to the immense weight.

Keeping the Wheels Turning

In the haulage business, profitability is directly linked to keeping the vehicles moving. Lorries, with their ability to handle a variety of loads, ensure that the wheels are always turning. This is crucial because the costs associated with idle vehicles, such as insurance and loan payments, can quickly add up. According to a report by the American Transportation Research Institute, the average cost of operating a truck in 2022 was $1.82 per mile, which includes fuel, maintenance, and other expenses.

Conclusion

Lorries are an essential part of the haulage industry due to their ability to handle a wide range of loads, reduce employment costs, and avoid deadheading. Despite the high fuel costs and low mileage, the logistical and economic advantages they offer make them the preferred choice for haulage companies. By understanding these factors, it becomes clear why lorries remain indispensable in the world of logistics and transportation.

For more insights into the logistics industry, you can refer to Transport Topics and American Trucking Associations.

Sources:

• U.S. Energy Information Administration: Diesel Fuel Prices
• Bureau of Labor Statistics: Heavy and Tractor-Trailer Truck Drivers
• American Transportation Research Institute: Operational Costs of Trucking