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How BoxHaul helps hauliers maximise profits in the container haulage industry

How BoxHaul helps hauliers maximise profits in the container haulage industry

The container shipping industry has long been an essential cog of the British economy. However, the global shipping industry has faced an unprecedented reduction of container demand due to overstocking during Covid and, more recently, interest rate increases that reduce consumer demand. As the UK is an import dominant country, this has significant implications on the UK haulage industry.

Successful hauliers in the container sector can be characterised as highly efficient, due to their high fleet utilisation. This is achieved through effective planning and securing the right balance of customers to maximise return loads. One type of return load is a “container re-use”, where after the import container has been delivered to the importer, it is taken directly to an exporter to be stuffed and exported at a port.

The reason it is an optimisation is because a container re-use saves two trips for a combined import and export load. For an import load, the container does not have to be empty restituted and for the export load, an empty container does not have to be picked up from the port or a depot. However, finding container re-uses is like looking for a needle in a haystack.

The dynamics of the container haulage industry in the UK makes this even more challenging. Container haulage can be divided into two key segments. The merchant haulage import market, controlled by shippers and forwarders, and the carrier haulage export market controlled by the shipping lines. Thus, access to reloads and container re-uses, ultimately favours larger hauliers who are able to contract with the shipping lines and get access to both import and export business.

There is, however, an opportunity for all hauliers, even the largest hauliers, to collaborate and increase their margins. In the UK, export haulage rates are much lower than import haulage rates. Shipping lines, due to internal management accounting practises, can still find it more profitable to offer a lower haulage rate for carrier haulage exports, as they avoid exporting an empty container to Asia. This means that not all export business is particularly profitable, even for the larger hauliers who still rely on a certain amount of optimisation from container re-uses.

Find the right business

This is where BoxHaul, the UK’s first container haulage marketplace can help. Getting access to quotes through an online marketplace can save your business costs related to sales and marketing, helping you focus on your core business. Hauliers can identify the right business, with separate load boards for spot loads and quoting opportunities on quarterly rates from shippers and forwarders. The BoxHaul platform is completely neutral and simplifies the procurement process for both sides of the market, ensuring speed and transparency, not only on the quotation but also on service levels.

BoxHaul takes this concept a step further, enabling hauliers to gain credibility by setting up their haulier profile. Here, they can showcase their fleet and share their insurance credentials to speed up vetting. In fact, vetting new hauliers has been one of the main barriers for shippers to enter the spot market. As an added benefit, each haulier’s profile also has a fixed website address, useful for smaller hauliers who do not have an online presence yet.

Improve your efficiency

Not only do hauliers get access to new customers, but the platform’s algorithms will automatically identify relevant loads and container re-use opportunities. Our algorithms take into account the relevant factors, such as loading times, distances based on truck routes and estimated costs based on the latest fuel prices. Now, you can save time from checking Whatsapp and Facebook and only get notified about operationally feasible loads that would be profitable.

The BoxHaul platform will identify container re-use in one of two ways, by either matching your existing load to a new spot request from a shipper, or by matching it for a load exchange from another haulier. In the latter case, you’ll be able to negotiate with the other haulier who will take the job and the revenue share involved.

Secure

Due to the nature of the interaction between hauliers, commercial sensitivity was a key concern that we have addressed. After adding your loads to the BoxHaul platform, or integrating your TMS, access to your loads is restricted to users from your company and our algorithms. Other companies are not able to see your loads. When we identify load matches or exchanges, we only share discreet information, such as the nearest town’s name. It’s then up to you to share more information about your loads with the other haulier, keeping you in full control of your business.

Trustworthy

Hauliers already collaborate with each other on load exchanges and reloads. However, this collaboration is generally limited to a smaller circle of people who trust each other. We manually cross-check all hauliers and shippers against their company information at Companies House, ensuring that only active companies, without irregularities, join the platform. This is followed up by a validation phone call to check the authenticity of the haulier and shipper, and obtain some necessary details about their business.

We also take reliability seriously, in both aspects of operational performance and timely payment. As a managed marketplace, we monitor the performance of all hauliers and shippers on the platform to maintain the trustworthiness of all participants. Transaction information in terms of the proportion of missed payments and undelivered loads will be available on each haulier’s and shipper’s profile, so you know who you are dealing with. If certain performance measures are not adhered to, the haulier or shipper in question would be removed from the platform.

Neutral

Maintaining neutrality is one of BoxHaul’s key values. Our main aim is to help hauliers connect with shippers and identify
win-win optimisations that help hauliers improve their margins. To create a successful marketplace, it’s ultimately down to the participants. If you’re a reliable and trustworthy partner, we’d love to have you onboard! We’re launching the platform on 1st October 2023, so please check us out and sign up on our website at https://boxhaul.co.uk.

BoxHaul is founded by industry experts, Saif Khalaf as Chief Executive Officer and Franco Basilico as Chief Technology Officer. Saif has over 12 years of experience in the container shipping industry, working at Maersk, ZIM and UASC across operations, pricing and strategy. For the past four years, he has been involved in logistics technology, having led the international expansion at Avantida and later founding three freight-tech companies. He is joined by Franco, who has over 10 years of experience in the technology industry, having developed applications at blue chip companies, such as the London Stock Exchange. Their joint experience makes them the perfect team to develop BoxHaul, the UK’s first container haulage marketplace.

https://boxhaul.co.uk

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