There are many ways to ship freight within the country and ensure that it makes it from point A to point B. While many people instinctively think of trucking as a long-distance haul, there is also cartage in trucking which covers different distances.
Short local delivery and regional delivery of cargo are also carried out by the trucking industry. The term cartage is commonly used to describe the transportation of cargo between these short distances.
What is Cartage?
The cartage meaning is quite simple. It is the shipping and transportation of cargo that is within a local area. There is typically a service fee that is applied to cartage shipments because a van, smaller truck, or LTL is required to deliver the goods.
How Does Cartage Work?
There are cartage companies that provide a service to business owners. They transport cargo over short distances, typically within the same city, town, or municipality.
Cartage services can even apply between two towns that are located relatively near each other. A cartage company provides their services and in return charges a fee for the methods used in the transportation of the goods at such a short distance.
How is Cartage Transported?
Cartage is generally transported by a small truck, LTL, or van.
What is a Cartage Agent?
A cartage agent is a carrier that provides transportation services in a localized area that completes shorter shipments. They provide the local services that larger freight companies do not.
What’s a Cartage Fee?
A cartage fee is an upcharge that is charged by a cartage agent for their services to transport cargo between short distances.
What Kind of Truck Do You Need for Cartage?
The type of truck needed depends on the type of cargo you’ll be hauling. Most cartage deliveries utilize a small box truck, van, or LTL deliveries.
Difference Between Freight and Cartage
Freight is the cargo, goods, or products that are being transported from one location to the other. It is an all-encompassing term that refers to the commercial transportation process of moving items by land, air, or sea. Alternatively, cartage is a more specific term that refers to the transportation of cargo over short distances.
Cartage Factors and Costs
There are a handful of factors that impact the services and costs of cartage. Below are the most common ones you should consider if you’re looking to start a trucking business.
Flexibility
Being a great cartage agent starts with having flexibility. Do you have the capability of moving almost every type of cargo? Cartage carriers should be able to move all types of items, from frozen goods and construction equipment to small loads and large ones. With the right equipment and flexibility, they can help you land more cartage jobs each year.
Additional Service
Cartage does not have to be the only service that you provide your clients. You can offer your clients warehousing services, logistics services, and more. The more services that you can offer your local clients, the more they’ll keep coming back.
Cartage Fees
Companies that provide cartage services will charge a fee for local shipments within the city, town, or even between two close cities. The calculation of the fees are based on the cost of the transportation management, the actual cost of transporting the goods, and the fee for the shortened locational services.
Storage
No matter how much planning is involved, there are times when deliveries show up early. When that’s the case, storage is needed. As a cartage agent, having space for storage will help ensure that there’s no damage to your clients’ cargo, and it’s another great service you can provide.
Location
One of the biggest factors in cartage is the demand. Is your local region bustling with shipping needs, or are you in a smaller city that’s only a few miles from beginning to end?
Depending upon the shipping needs of your location will have a big impact on your decision of whether or not to offer cartage services. After all, the goal is to be profitable, and if you don’t have any local clients, you won’t have a cartage business.
Cartage vs Drayage
Cartage and drayage are commonly confused terms. As we explored above, cartage moves cargo from one location to the next, as long as the two destinations are close in proximity to one another.
Drayage also moves cargo from one location to the next that is in close proximity, but drayage involves moving a full container via truck. Cartage can move the cargo in vans, trucks, and even rail. There are some instances where a shipment can be both cartage and drayage, as long as the truckload is an FTL, not an LTL.
Capitalizing on Cartage
Most of the large transportation companies do not offer cartage services, which might mean that there’s an opportunity for you to gain clients in your city. Being an intrastate cartage provider can be a lucrative career.
By providing cartage services, you can stay in town and not have to offer long-haul services, which means more time at home with your family. But be sure to consider all the factors outlined above and offer additional services for your clients to ensure success.