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U.S. Environmental Protection Agency +

Continuous Move Planning for Logistics and
Shipper Companies

A Glance at Clean Freight Strategies

SCENARIO

This figure shows how changing from
scenario A to scenario B, continuous
move planning, allowed a 3PLto use one
carrier instead of two.

CARRIER 1 DEADHEAD

Continuous move planning involves a shipper or third-party Logistics provider (3PU
building a string of loads for their carrier to reduce or eliminate deadhead mileage.
Shippers and carriers can worh together to schedule shipments strategically. With
continuous move planning, inbound truchs delivering loads are matched with out-
bound loads or nearby loads to minimize empty miles.

WHAT IS THE CHALLENGE?

Deadhead miles are when truck drivers have to travel long distances between
a drop-off location and the next pickup location. These miles add up—in an
American Transportation Research Institute survey, carriers reported that 16.6% of
truck miles were deadhead miles.

Ideally, a carrier would drop off a load, pick up another load at that location or a
very proximal location, then drop off that load at the initial location. This would
form a closed-loop route with a single-stop load, with no or almost no deadhead
miles. But transporting loads in precise, closed-loop single-stop routes is not
always possible, because carriers often have multistop loads. Planning linear
routes can be difficult when pickup and drop-off points are far apart.

WHAT IS THE SOLUTION?

When it is difficult to minimize deadhead miles in multistop load routes, a 3PL,
often a freight-under-management 3PL, can help shippers improve efficiency by
offering a continuous move service.

In a continuous move strategy, 3PLS connect shippers with carriers to combine
loads going to the same or a proximal destination. Several companies offer
software that generates optimal matches of point-to-point movements, matches
backhauls with outbound loads, and facilitates strategic lane matching.

The figure, left, shows how a 3PL reduced deadhead miles by using one carrier
instead of two.





Scenario A. One carrier makes a round trip from the supplier to the shipper's
distribution center and back. Another carrier makes a round trip from the
shipper's distribution center to the customer and back.

Scenario B. One carrier drops off its load, picks up another load at or nearby
to the first load drop-off location, and then drops off the second load at or
along the way to its original start location or alternate planned final
destination. As a result of the continuous moves strategy, the carrier is
more efficient, and the shipper receives a discount from the carrier's
increased utilization.

EPA-420-F-21-036 | December 20211 SmartWay Transport Partnership | epa.gov/smartway

(continued)

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Continuous Move Planning (continued)

COSTS

To effectively operationalize this strategy, there must be
clear communication and coordination between 3PI_s,
shippers, and carriers. Costs may include the staff time
required for coordination as well as the costs of planning
tools. Planning tools, such as continuous moves planning
software, are often priced based on the size of the fleet.

5-15%

less in
operating
costs.

One company estimates that
its planning software can reduce
operating costs by 5 to 15%.

SAVINGS AND BENEFITS

This strategy can benefit both the shipper and the carrier
through:

Improved asset utilization. By reducing deadhead
miles, this strategy improves asset utilization.



%

Reduced costs. The reduction in vehicle miles
traveled leads to savings in fleet costs, fuel costs, and
labor costs. One company estimates that its planning
software can reduce operating costs by 5 to 15%.

Visibility. Software that helps with continuous move
planning can give the shipper greater industry insight
and visibility, allowing shippers to choose carriers that
meet their needs.

Environmental benefits. By reducing vehicle miles
traveled, this strategy helps reduce greenhouse gas
emissions.

NEXT STEPS

1

2

3

Analyze existing routes and collect data on deadhead miles and asset utilization.

Look for opportunities to create continuous moves on multi-stop routes. Consider using continuous
moves planning software and conduct a cost-benefit analysis to determine if it is a worthwhile
investment.

Work with planners, carriers, and suppliers to implement the strategy.



Please visit the SmartWay website at www.epa.gov/smartway
to access more tech bulletins.

SmartWay

U.S. Environmental Protection Agency^

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