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Experts advocate return cargo system, collaboration to cut haulage costs

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Experts in the haulage and logistics sector have advocated return cargo systems, technology adoption and stronger collaboration to reduce operational costs and improve efficiency.

They made the call at the 12th Haulage and Logistics Magazines Annual Conference and Exhibition (HAULMACE), held on Wednesday in Lagos.

The conference had the theme, “Technology as an Enabler for More Efficient Haulage Operations: The Need for Industry Collaboration”.

Speaking, a logistics technology entrepreneur, Mr Jean-Claude Homawoo, called for a return cargo system to reduce trucking costs and improve transportation efficiency.

Homawoo is the Co-founder and Chief Executive Officer of Lori Systems, a technology-driven company.

He said that collaboration among manufacturers, transporters and financial institutions would minimise empty return journeys and reduce logistics expenses.

He attributed rising transportation costs to inefficient truck operations, prolonged waiting periods and poor cargo coordination.

According to him, about 90 per cent of goods transportation in Nigeria depends on road networks, making improved trucking operations critical to economic growth.

“Trucks frequently returned empty after deliveries because of unequal cargo distribution, seasonal demand and limited trust among industry stakeholders.

“A 2024 World Bank study indicates that about 29 per cent of truck kilometres travelled globally were empty, with developing countries recording higher figures.

“Nigeria lacks reliable national data on empty truck movements, although the problem is particularly evident along major north-south transport corridors,”’ he said.

The entrepreneur disclosed that only about two per cent of trips initially involved return cargo carried by the same trucks through his company’s Nigerian network.

He advocated technology-driven platforms to connected manufacturers with verified transporters, improve cargo coordination and provide reliable information on available shipments.

He said that digital proof of delivery could shorten payment processing by up to one week, easing financial pressure on transport operators.

Homawoo said that compressed natural gas and electric trucks offered opportunities to reduce fuel and maintenance costs, although infrastructure challenges required attention.

He warned that small-scale transporters risked being excluded from the cleaner energy transition without accessible financing and guaranteed shipper contracts.

He urged manufacturers, transporters, banks and technology providers to strengthen collaboration, saying trust, information sharing and efficient cargo planning were essential to reducing logistics costs.

In a panel session, Mr Aanuoluwapo Agboola, Chief Operating Officer of Dukeridges, said that technology should provide infrastructure for intelligence gathering, informed decisions and cost reduction.

Agboola said that digital platforms could connect cargo owners with available trucks, creating opportunities to optimise cargo movement.

He stressed the need to develop rail infrastructure and stations to facilitate seamless cargo movement and strengthen the sector’s economic contribution.

Similarly, Mr Ibikunle Sodipo, Head of Logistics, Promasidor Nigeria Ltd., said timely delivery and improved turnaround remained critical performance indicators in haulage operations.

Sodipo said that partnerships among companies could help transporters secure return cargoes and reduce losses associated with empty journeys.

He, however, stressed the need for effective coordination and trust among partners to ensure trucks returned safely with cargoes.

On his part, Mr Oluwafemi Oladokun, Managing Director of Trucksoft Logistics Telematics Services, urged stakeholders to recognise logistics capacity as an economic resource.

Oladokun said that every stakeholder had a role in improving the sector, adding that technology remained essential to managing available resources.

He identified driver management as a major challenge, stressing the need to ensure drivers fulfilled their responsibilities.

Also, the Chief Executive Officer of Triple A Logistics, Mrs Omotunde Ogunbowale, said that teamwork and collaboration were essential to achieving timely cargo delivery.

She called for better cooperation among industry players to improve operational performance and emphasised adequate rest for drivers.

According to her, well-rested drivers are better positioned to perform their duties effectively, while technology can monitor their activities and document cargo movements.

‘’Electronic sign-in and sign-out procedures will strengthen accountability and improve monitoring of haulage operations, ‘’ Ogunbowale.

Earlier, the convener of HAULMACE, Mr Alfred Okugbeni, called for increased technology adoption and stronger stakeholder collaboration to address operational challenges in Nigeria’s transport and logistics sector.

Okugbeni said that the conference provided a platform for stakeholders to deliberate on ways to improve efficiency and strengthen the economy.

He said that movement of goods, knowledge and services remained critical to economic growth, requiring sustained investment and improved operational efficiency.

The convener said that technology could address industry challenges through digital platforms, smart banking, fleet management systems and other innovative solutions.

He, however, stressed that technology alone could not transform the sector without effective collaboration among stakeholders.

Okugbeni identified shipowners, manufacturers, cargo owners, logistics providers, freight forwarders, shippers, technology providers, financiers, insurers and government agencies as key players in the value chain.

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