“I'd really encourage carriers to work more on their business than in it.”

Tobias van Rees, director of transport at freight forwarding company Interlogic, shares the choices he’s opted for and that other carriers might want to consider.

When asked about the price development in transport over the past ten years, Van Rees is clear: "Costs have risen enormously, especially labour costs. Collective agreements have become significantly more expensive. Nothing wrong with that, but it does mean that on medium-distance trips, our costs mainly consist of wages. On top of that, you pay road tolls. Germany is the best example: we pay 38 cents per kilometre driven. It forces us as a carrier to take a very, very close look at what we actually do as a business." 

Truck toll leads to new choices 

Interlogic's sharp focus on what it does and doesn't do is nothing new. Van Rees: "But the truck toll marks a new chapter in making choices." More on that later. Interlogic started ten years ago because Van Rees disagreed with the approach of many fellow carriers. "A lot of carriers focus on a small part of the market and regions like Northern France or the Benelux. If a destination falls just outside that area, the answer to a customer request is usually 'no'. While customers actually want all their transport taken care of." 

Interlogic wants to serve every customer, but on its own terms. "When we started the company, we said we would support customers with any road transport request. For anything we can't handle ourselves, we use partners. If a customer wants something extra, it costs a bit more, or we bring in a partner. These are choices you offer the customer. They can go along with it, or not."

The introduction of the truck toll once again calls for making choices, says Van Rees. "If you're running a lot of empty miles, you really need to start filling those kilometres. On top of that, there are questions to answer, like 'do you have the right people in place for this new approach?' And: should you have a partner handle part of your existing routes? Business owners and planners will need to connect much more with peers to arrive at a cost-effective transport model together." 

Adjusting route structures or finding additional freight  

The Interlogic director notices that uncertainty is growing not only among carriers, but also among shippers. "I'm talking about companies that aren't our customers yet, but run their own fleet or work with a small carrier. The shipper hires the carrier on an hourly basis to serve, say, 5 customers a day across the Netherlands, covering 500 kilometres. In the evening, the carrier arrives empty at its base. A round trip with a toll of 20 cents per kilometre suddenly costs 100 euros more. In many cases, you'll need to adjust your route structure, possibly with an extra partner or freight you pick up along the way." Van Rees expects that some shippers will be willing to cover part of the empty running, but if the return on a truck keeps dropping, they will walk away. "More collaboration across the chain is truly needed." 

Searching for freight to fill empty kilometres 

When it comes to finding more efficient routes, Interlogic has been using its own data warehouse 'for a while now', according to Van Rees. "We track which kilometres we run empty and then steer towards new loading and unloading addresses in locations where the number of empty kilometres is highest." In addition, the transport and freight forwarding company increasingly connects with fellow carriers. "To find the right balance, we use Teleroute, among other tools. The vast majority of our trips are handled by ourselves or through fixed partners, but there's always some freight left over. That's where the freight exchange is ideal. The same goes for when a truck runs load- free in North Holland and the next trip only starts in South Holland. For the stretch in between, we use Teleroute, among others. I'd say it accounts for about 2 to 5 percent of our trips." 

According to Interlogic, the truck toll above all accelerates the need for carriers to look more effectively at the solutions available to them. "The most important solution is to talk to your customers about how you can get a better grip on costs together. Insight matters: knowing whether it's effective to bundle flows, to drive less frequently instead of every day, or what impact flexibility in time windows can have." 

The carrier's role is shifting towards advisor  

If a conversation with a customer doesn't result in a workable solution, carriers need to dare making choices. "As a carrier, you are increasingly your customer's advisor. Carriers are developing into strategic partners. It's important for both sides to evaluate which partner fits whom. If a customer doesn't want to go along with that, it might mean the end of the partnership. I'd really encourage carriers to work more on their business than in it. Look at what's possible and don't be afraid of new steps or collaboration."