Line Haul Optimization: How to Reduce Transportation Costs (Fast)

The efficiency of freight transportation between hubs determines the total cost reduction in logistics operations. Line haul is where most freight costs live. Optimize it, and you cut CPM, shrink empty miles, and hit hub windows, without adding trucks.

The shipping process complexity, together with its associated cost, depends on both the type of items being transported and their final destinations. 

The transportation of large international shipments, weighing 10,000 kg, requires different methods and expenses than domestic regional deliveries of smaller loads. 

This article examines the crucial importance of line haul optimization through its fundamental optimization methods.

Line haul optimization involves planning and executing hub-to-hub transport across road, rail, air, and ocean to maximize load factor, minimize empty miles, select the most suitable mode, and meet time windows at the lowest total cost per mile/ton-mile.

The transportation sector remains the primary factor that drains resources from freight cost reduction initiatives. The logistics industry serves as a vital foundation for international trade, reaching €8.4 trillion in 2021, and experts predict it will reach €13.7 trillion by 2027.

The worldwide logistics sector spent $9 trillion in 2020 while representing 10.7% of the $85.24 trillion global GDP.

Businesses focus on line haul operations because these operations handle bulk freight transportation between hubs, which represents a significant portion of their total logistics expenses.

See how with this checklist:

Cost → Reliability → Sustainability

Line haul is where most transportation budgets get stretched the thinnest. Inefficient planning often leaves trailers half-empty, sends trucks on longer routes than necessary, and burns fuel that adds nothing to the bottom line. 

Smarter planning also makes networks more dependable. When carriers know the exact location of every load, when it will arrive, and how to reroute around delays, they keep freight moving on schedule. That reliability ripples through the entire supply chain, reducing missed handoffs and keeping commitments to customers.

Full trucks and shorter hauls directly translate to fewer emissions in terms of sustainability. Even a modest 10% increase in utilization across a regional fleet can result in thousands of tons of CO₂ emissions being eliminated in a year.

How Fareye Helps Enterprises Control Line Haul Costs

The implementation of technology platforms enables these improvements to become achievable. Fareye serves as a foundational platform that allows organizations to achieve their performance objectives. 

Through our platform, shippers can track carrier performance with real-time visibility, allowing your teams to monitor truck locations and delivery times.

Line-haul operations serve as the primary transportation method for most freight, as they handle the bulk of product movement between distribution centers.

The following strategies offer proven approaches to reduce costs while enhancing service quality and maintaining operational stability.

Consolidate Shipments and Maximize Load Efficiency

The most effective method to decrease line-haul expenses involves consolidating different shipments into complete truckloads. The practice of uniting smaller shipments into complete truckloads enables companies to achieve better load utilization.

The practice of consolidating shipments yields two primary advantages: decreased hub congestion and reduced carbon emissions through lower transportation needs. 

Moving fragmented LTL into fuller loads/FTL or pool distribution can reduce line-haul cost depending on density, accessorials, and lanes.

Smart Route Planning With TMS and AI Tools

The combination of Transportation Management Systems and AI-powered platforms enables organizations to achieve better route planning efficiency and scheduling accuracy. 

AI-based planning systems execute automatic load reassignment during disruptions to maintain schedule continuity. 

Organizations that implement TMS for their line haul platforms achieve better delivery performance and lower operational expenses. The practicality of this investment makes it suitable for line haul operations.

Leverage Backhaul Optimization and Reduce Empty Miles

Coming back empty is wasted energy like running your car with nothing in it. In logistics, these “empty miles” are surprisingly common; estimates indicate that anywhere from 15% to 35% of truck miles in the U.S. are traveled without a route and load optimization. 

How to make it work:

• Lane pairing. Match outbound and inbound routes so trucks carry loads in both directions.
• Co-loading. Share capacity with other shippers moving freight along similar routes.
• Milk runs. Plan multi-stop trips to maximize truck utilization, rather than single-destination hauls.
• Drop-and-hook. Keep trucks moving by dropping off a trailer and picking up a loaded one, reducing idle time.
• Appointment scheduling. Coordinate pickup and delivery slots to minimize the time trucks spend waiting empty.
• Digital freight exchanges. Utilize platforms that instantly match available trucks with freight that needs transportation.
• Pooling consortia. Collaborate with other businesses to consolidate shipments and fill trailers.
• Dynamic pricing for reloads. Offer competitive rates for backhaul loads to attract more freight and minimize wasted miles.

Optimize Mode Mix with Multimodal Line Haul

Different shipment profiles require different modes. Rail, for instance, is cost-effective for long hauls with bulk freight, while trucks are better suited for shorter or time-sensitive routes. 

Air and sea transportation are utilized for international trade, depending on the urgency and type of cargo. Multimodal optimization ensures the right balance of speed, cost, and sustainability. 

Technology is transforming line haul from a static cost center into a dynamic, efficient process. Below is a refined guide on how key tools are enabling smarter, more sustainable logistics.

Transportation Management Systems (TMS) and Automation

TMS solutions now automate entire workflows. They offer automated carrier selection, real-time tracking, route consolidation, invoice verification, and performance analytics all in one environment.  Here are some automations that will help you:

• Auto-Tendering. Automatically assign loads to carriers based on cost, capacity, and service level.
• Consolidation. Group shipments into fuller loads before dispatch to minimize space usage.
• Appointment Scheduling. Book dock times in advance to minimize wait times and detention charges.
• Freight Audit. Validate invoices against contracted rates to catch errors and prevent overpayment.

Data Analytics and Freight Audits

Freight audit tools and data analytics complement TMS by validating that shipments align with execution and billing. 

Watch for accessorial leakage, as well as common hidden costs such as detention, redelivery, and lumper fees that can eat into margins if left unchecked.

Digital Freight Booking & Marketplaces

Digital booking systems enable shippers to view available transportation capacity and pricing details in real-time. The platforms make procurement operations more efficient, shortening the time needed to find capacity and enabling businesses to handle sudden changes in demand.

Real-Time Visibility and Predictive Tools

The combination of GPS tracking and telematics data with weather forecasts and port congestion reports from third-party sources enables visibility platforms to show real-time freight movement status. 

You get forecast hub arrival times and flag potential delays early with predictive alerts and weather congestion feeds.

According to pre-pandemic research from the McKinsey Global Institute, companies experience a supply chain disruption lasting one to two months on average every 3.7 years.

How Fareye’s Platform Delivers End-to-End Visibility and Predictive ETAs

Fareye combines these capabilities to offer actionable insights across line haul. Users get:

• Real-time visibility. A single interface provides instant monitoring of goods across all modes of transportation.
• Reliable tracking. GPS and SIM triangulation ensure continuous data flow, even in low-connectivity regions.
• Seamless integrations. Connects effortlessly with OMS, WMS, CRM, billing, BI, and other supply chain systems.

Line-haul optimization offers high rewards, but it comes with its own hurdles. Here's how to tackle the biggest ones:

Breaking Down Data Silos and Legacy Systems

Many logistics teams face fragmented data, with TMS, ERP, and WMS systems sitting in isolation, resulting in manual transfers and conflicting reports. When data remains stuck in silos, decision-making loses its edge. 

Reports from the World Economic Forum and McKinsey note that, despite growing disruption risks, averaging one to two months of events every 3.7 years, companies are still lagging behind in their digitization efforts. 

In fact, over 40% lack visibility even into Tier-1 supplier performance, highlighting how system fragmentation directly undermines resilience.

Enforcing Data-Quality Standards

Even with integrated systems, optimization fails if the data feeding them isn’t reliable. Setting Service-Level Objectives (SLOs) for data quality is essential. Examples include:

• Status posts latency. Shipment status updates should flow into the system within ≤5 minutes.
• GPS continuity. Location signals should cover at least 98% of trip time, with gaps capped at <2%.

These standards ensure algorithms and planners work with fresh, accurate information.

Managing Resistance to Change

Change can be unsettling in logistics, where "that's the way we've always done it" often reigns., Resistance manifests in various forms, such as outdated workflows or manual overrides. 

Successful companies ground their transformation in small, visible wins, such as automating load matching or simplifying performance reporting.

Simplifying Integration with Multiple Carriers

A lean fleet must often connect with numerous carriers, each with unique APIs or data formats. Without a unifying interface, integration becomes a patchwork of one-offs. 

That’s where middleware or integration platforms step in, acting as information translators that enable different systems to communicate using a common language.

How Fareye Simplifies Integrations with TMS, WMS, and ERP Systems

Fareye streamlines this complexity by offering prebuilt connectors and APIs to major TMS, WMS, and ERP systems. 

This enables centralized control without requiring each logistics node to rewrite or redesign its code. It improves speed, accuracy, and reduces the friction of onboarding new partners or carriers.

Key Metrics to Track

Some metrics offer powerful insight into performance, and they are:

• Linehaul Efficiency. Measures how effectively trucks are utilized by comparing loaded miles against total miles traveled.
• On-Time Delivery Rate. Tracks the percentage of shipments that arrive within the promised delivery window.
• Empty Miles Percentage. Shows how often trucks run without carrying freight, highlighting wasted capacity.
• Cost per Mile (CPM). Calculates the average transportation cost for every mile traveled, including fuel, wages, and maintenance.

Key KPIs for line haul efficiency

H3: Industry Benchmarks and Expected Savings

Here are some benchmarks you need to keep in mind:

• The logistics industry operates with a 20-40% gross margin and a 5-15% net margin, which requires precise financial management practices.
• The average logistics company achieves $4.57 million in annual revenue while generating $95,200 in weekly sales; however, its profitability depends on its size and operational effectiveness.
• Research on 100 major logistics companies revealed that their annual revenue increased by 7% from 2005 to 2012; however, their EBIT margins declined from 6.8% to 4.2% during this period.

Line haul benchmark ranges

Compare your own data against these ranges to spot where optimization could deliver the biggest savings.

Continuous Monitoring and Improvement

The improvement of performance requires constant maintenance to sustain its achieved levels. The implementation of dashboards that track linehaul efficiency, dwell time, and empty miles enables teams to make proactive changes.

Teams can detect emerging patterns, which enables them to make adjustments before problems escalate into major issues, thus creating a continuous improvement cycle.

ROI Examples: How Global Brands Achieved Savings with Fareye

The discussion about logistics among global brands reveals that their profit margins are low, while customer demands continue to grow, and minor operational flaws can lead to substantial financial losses.

That’s why companies across industries are turning to FarEye.

Gordon Food Service

Scaling delivery capacity without breaking the cost model is tough in the food distribution space. With FarEye, Gordon Food Service increased its delivery capacity by 36% while maintaining control over costs. That meant more orders fulfilled, happier customers, and a healthier bottom line.

Blue Dart

In express logistics, every failed delivery means wasted fuel, lost time, and frustrated customers. 

Blue Dart raised its first-attempt delivery success rate by 22%. The impact was twofold: fewer repeat trips (saving thousands in operational costs) and stronger customer trust in a sector where reliability is everything.

Linehaul optimization is no longer optional in a world where margins are thin, customer expectations are high, and disruptions are frequent. 

If you’re looking to take control of your line haul cost reduction operations, reduce waste, and achieve faster ROI, it’s time to act. FarEye can help you bring all the pieces together into one intelligent platform for predictive, end-to-end visibility. 

Talk to our experts today and see how your business can move smarter, faster, and more profitably.

What is line haul optimization?

Line-haul optimization is the process of improving the line haul transportation of goods between hubs or distribution centers over long distances. 

How does it differ from last-mile optimization?

Line haul covers hub-to-hub or regional transfers, the “middle mile” of logistics. Last-mile optimization, on the other hand, focuses on the final leg of delivery to the customer’s doorstep. 

What are typical savings from line haul optimization?

Companies typically achieve savings of 5-15% on transportation costs through strategies such as consolidating shipments, reducing empty miles, and optimizing routes. In industries with net profit margins of just 5-15%, these savings directly boost profitability.

Which technologies are essential for optimizing line haul?

Key tools include:

• Transportation Management Systems. 
• Real-time visibility platforms. 
• Freight audit and analytics tools. 
• Integration platforms (with WMS/ERP)

How long does it take to realize ROI?

Most companies begin to see measurable returns within 3-6 months of implementing line haul optimization tools, especially when targeting quick wins, such as reducing empty miles or improving on-time rates. 

Can small fleets benefit too?

Yes. Small and mid-sized fleets often gain disproportionately because they feel the impact of wasted miles and idle time more sharply. 

Can FarEye Integrate with My Current Logistics Stack?

Yes. FarEye is designed to work seamlessly with existing TMS, WMS, and ERP systems through APIs and prebuilt connectors.