A logistics network model where freight flows through central hubs before fanning out to spoke destinations.
Detailed Definition
In a hub and spoke network, freight from many origins travels to a central hub, is sorted, and then moves out to many destinations. Concentrating volume at hubs lets carriers fill trailers on the long linehaul legs between hubs and serve many locations with fewer direct routes. LTL carriers, parcel carriers and many retail distribution networks use variations of this design. The alternative is point-to-point shipping, such as a dedicated full truckload that goes straight from shipper to receiver.
What hub and spoke means for palletized freight
Every hub is another handling point. An LTL pallet is typically picked up by a local truck, taken to a terminal, cross-docked onto a linehaul trailer, moved to another terminal or hub and finally delivered on a local route. At each stop it is lifted by forklift and may be top-loaded with other freight. Damage risk rises with the number of touches, so pallets in hub networks need to be sturdy and well secured.
How shippers can reduce problems
- Use sound pallets with no broken boards, sized to the footprint of the load.
- Keep cases inside the pallet edges and stretch wrap the load to the pallet.
- Add corner boards or caps for fragile or stackable freight.
- Label each pallet clearly on more than one side with consignee and handling marks.
- Declare accurate weight, dimensions and freight class to avoid reweigh and reclass charges.
For high value or fragile loads, compare the cost of a direct truckload or volume LTL move, which avoids some hub handling, against the risk of damage in the network.
Transit times in hub networks also vary with sort schedules, so build some buffer into delivery appointments.
Related Glossary Terms
Frequently Asked Questions
Why do LTL carriers use hub and spoke networks?
LTL carriers move many small shipments that would not fill a truck on their own. By bringing freight into terminals and hubs, they can combine shipments heading the same way onto full linehaul trailers, which lowers the cost per shipment. The tradeoff is extra handling and transit time compared with a direct truckload, because freight is unloaded and reloaded at each hub along the way.
Is hub and spoke the same as cross-docking?
They are related but not the same. Hub and spoke describes the shape of a network, with freight flowing into hubs and out to spokes. Cross-docking is the handling method often used inside a hub, where inbound freight is moved straight to outbound trailers with little or no storage. Most hub and spoke freight networks rely on cross-docking at their hubs and terminals.