New group aims to reduce backhaul pain

LAWRENCEVILLE, N. J. — Here’s a club you’ll want to join, it’s called Empty Miles.

Basically, it’s a not-for-profit load board, currently operating in the U.S. and soon to be launched in Canada.

Many of America’s biggest fleets — JB Hunt and Schneider to name two — and many of their largest customers such as Wal-Mart and Macy’s, are members.

Not only is Empty Miles eliminating unwanted backhauls, it’s yielding profits and much-ballyhooed green brownie points because fewer trailers on the road run empty, more goods are delivered per gallon, and there’s more efficiency throughout the system.

In its first year of operation, it reduced Schneider’s empty miles by 25 percent. At the same time, it cut Macy’s stores’ freight bill by about $25,000.

In order to understand how it works — and why it might make other load boards stand up and pay attention — you should understand who is running it. Empty Miles is a natural outgrowth of some colossal but off-the-radar-screen industry organizations.

Here in Canada, Empty Miles will be run by GS1 Canada, the non-profit organization that, in a phrase, ensures all the bar codes in our lives are consistent and effective and well-managed. They do a lot of other things too, but they’re basically supply-chain experts.

In the States, Empty Miles is run, naturally, by GS1 US; as well as an organization called the Voluntary Interindustry Commerce Solutions (VICS) — a supply-chain management company run by its members; and its members are, well, all the big players. See for yourself.

Paul Osland is vice-president of Industry Relations with GS1 Canada. He says that back when the price of oil was nearing the $150 mark, the CEO of the Canadian arm met with the brass at GS1 U.S. and VICS and they decided that they have sufficient information about the North American supply chain that they could start a whole new venture, matching empty trailers with freight on existing lanes. On a not-for-profit basis.

“Down in the U.S.,” he says, “some are saying that close to 30 to 40 percent of trucks on the road are empty.

“That has a huge impact on driver shortages, fuel costs, the environment.”

Osland says that since VICS was already home to suppliers, retailers, manufacturers and shippers. “Surely to God we could collaborate to minimize empty hauls and collaborate on back hauls.”

Thus began Empty Miles, stateside. And earlier this month, Empty Miles released the results of its first case study. It’s a winner.

The case study looked at Schneider National and Macy’s. Schneider made money by filling their otherwise empty trailers (increasing dedicated backhaul revenue by 25 percent on specific accounts using Empty Miles) and Macy’s has reduced annualized transportation costs, on average by $25,000.

Osland says the system itself is like a dating service, with an eye on marriage. Once the matchup is done, the rate negotiations can begin.

But you have to go through a registration process to join, so if you get matched up with a partner, that partner will already have been vetted by the Empty Miles admin team. To participate, you need to be either a VICS member or referred by a VICS member.

“We’re not going to be helping people looking for a load next Tuesday. We want to help people looking for a load every Tuesday.”

To that end, Osland says carriers who want to get in on the action should be prepared to register with the Empty Miles Board.

Gypsies, he says, need not apply.

“Some boards,” he says, “have 10,000 members and you never know who you’re going to be dealing with.”

“With Empty Miles, it’s like a family. That’s a word we use a lot around here.”

You can expect to hear more about Empty Miles in the near future, as they prepare to enter the Canadian market.


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