Attention! The definitive solution to empty kilometers arrives in Mexico

Eduardo Narváez - CEO & Co-founder
November 4, 2021

Some say that running a lot is of little use if we do not know where we are going and even worse if we carry nothing. In the case of the motor transport of goods, this thought applies like a glove.

In any road network, a certain number of cargo vehicles circulate empty or partially loaded. These movements are undesirable because of the cost they represent since they also derail one of the main objectives of any company: to minimize losses.

The return of empty trips for the motor transport industry generates a serious problem in the objectives set by any company, regardless of whether they are owned or subcontracted units.

In the case of Mexico, it is estimated that trips with empty kilometers represent up to 35% of company operations. However, figures from the Mexican Institute of Transportation, IMT, indicate that the extra cost for the existence of empty vehicles can reach up to 60%.

Even those same cost overruns can reach up to 90% if faulty load distribution is added, with partially loaded vehicles, to a high degree or frequently.

The pandemic boosted empty returns

This problem has been accentuated due to the health crisis that is being experienced, mainly on the northern border of our country. Carriers saw their cargo volumes drop drastically, specifically in auto parts and landscaping products.

Cargo units register 7.9% of the total number of motorized vehicles on the northern border, with a monthly average that fluctuates around 550 thousand units, where almost 72% travel loaded and the remaining 28% circulate empty.

According to Reuters, some carriers in the United States moved only one full load south for every seven trips north, well below the usual three-to-one ratio.

Figures from the International Road Transport Union (IRU) indicate that new cargo contracts have decreased between 60% and 90% since the pandemic, while transfers with empty trucks have increased up to 40%.

At the same time, the expense of fuel, as well as the production losses that all this entails, can increase the cost of tariffs. Given this, various companies are forced to reject charges due to the unfeasibility of finding returns that monetize the return trip and make the freight profitable.

One of the most critical problems of empty trips in the motor transport sector is the pollution and damage to the environment that is generated.

In this sense, political and social leaders at the global level are constantly searching for a more sustainable supply chain. Accordingly, environmental sustainability is one of TrackChain's main strongholds.

The platform is already making progress in reducing carbon emissions by improving the ability to connect shipments more effectively. TrackChain's Smart Load Matching reduces industry-standard empty miles from 35% to 21%.

If the industry as a whole can achieve the same efficiency improvements that TrackChain has seen in our shipments, it would reduce CO2 emissions by 40 million metric tons.

How much does the above amount to? To 8,641,743 passenger vehicles driven during one year. What a saving!

Don't hesitate and join TrackChain right now to reduce your empty kilometers and increase your earnings. For your peace of mind, you can request a free demo.

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