Subhauler - Meaning & Definition

Published by MBA Skool Team, Last Updated: December 18, 2015

What is Subhauler?

Subhauler is the independent contractor that a transport company hires to transport cargo. Subhaulers are generally used by the companies to optimize cost and increase the efficiency of the distribution system.

It helps trucking companies to keep an asset light model and only operate mostly on the routes where they have sufficient numbers and have significant profits. On the less profitable routes, trucking companies use subhaulers to transport goods. The subhaulers have the advantage that they receive contracts from multiple transport and trucking companies and consolidate all these items together and earn profits on routes that are generally less profitable.

Moreover, there is very less competition that exists on these routes and all the trucking companies use services of a single subhauler. Sometimes, Subhauler also leases trucks to the trucking or transport company.

It is an owner operator that hauls freight for a prime carrier. A Porthauler is a subhauler that picks up freight at the harbor and hauls it to the operations terminal or to the consignee.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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