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March 28, 2024

Merchant haulage

What is merchant haulage?

Merchant haulage refers to a scenario in transportation logistics where the party responsible for arranging and paying for the inland transportation of goods (e.g. port to warehouse) is the cargo owner or another party distinct from the ocean carrier. In other words, instead of relying on the carrier's inland transportation services (referred to as carrier haulage), the cargo owner or their designated agent arranges for the pickup and delivery of the container using their own transportation provider.

Benefits and implications of merchant haulage

Merchant haulage gives the cargo owner greater control over the inland transportation process, allowing them to choose a transportation provider that best fits their needs in terms of cost, reliability, and service quality. It can also lead to cost savings and more efficient logistics operations, especially when the cargo owner has established relationships with reliable inland transportation providers.

Understanding merchant haulage is essential for logistics professionals as it impacts decision-making regarding transportation arrangements and cost management strategies. 

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