Haulage

Posted in Operations and Supply Chain Terms, Total Reads: 233
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Definition: Haulage

Haulage refer to the business of transporting goods by rail, road or any other means for one’s own company or for any other company. The horizontal transport of coal, ore, waste, supplies etc. is included in the definition of haulage and is called cartage or drayage. A haulage fee which is simply referred as “Haulage” is charged for the service provided.


The fee includes the charges for:

a. Loading and Unloading charges

b. Transport Charges


There are 3 types of carriers involved in Haulage. They are:

i. Common Carrier: A common carrier is a company that provides the transport services to a person or company. The common carrier has the license from the government and is bound by government regulations. It does not discriminate among its clients and provides service to everyone willing for the service. A common carrier is fully responsible for the loss of goods or any damage to them while transporting.


ii. Contract carrier: Contract carrier is special carrier which transports the goods of only a certain number of clients. It can refuse to carry the goods of any other company apart from its clients.


iii. Private carrier: A private carrier transports the goods of its own company only. Haulage is not the primary business of such carriers and they can refuse to transport the goods of any other company.

 

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