In the Just-in-Time (JIT) delivery system, you are not merely paying to move goods from point A to point B; you are primarily paying for reliability and precision. Halting an assembly line due to a late truck generates massive losses for a factory. Therefore, in this model of cooperation, there is no room for risk or seeking savings at the expense of quality.
As a carrier with our own fleet, we fully understand the weight of this responsibility. We know that our customers’ business continuity is at stake.
In this article, we explain why punctuality has its price and exactly what constitutes the cost of a service that provides peace of mind to logistics managers in manufacturing plants.
Standard Transport vs. Just-in-Time (JIT) – Why Does Precision Cost More?
To understand the price difference, one must first define the different logic behind these two types of services. In standard transport, the priority is cost optimization and filling the cargo space. The carrier usually has some flexibility—goods can reach the recipient “during the day” or within a wide time window. This allows dispatchers to combine loads (groupage) and plan routes to minimize empty runs. In this model, the low price stems from the fact that the transport schedule dictates the rhythm of deliveries to some extent.
In the Just-in-Time (JIT) transport model, this relationship is reversed. Here, transport becomes an integral part of the customer’s production line, functioning as a “warehouse on wheels.”
The truck must arrive at the ramp not just on a specific day, but at a strictly defined hour (often with a tolerance of +/- 15 minutes) so that components go directly to assembly. This precision forces us, as a carrier, to forego any flexibility.
Higher JIT freight rates result from the necessity of creating so-called safety buffers. When planning standard transport on a 1,000 km route, we assume a realistic transit time. When planning JIT transport on the same route, we must add a margin for unforeseen road events (traffic jams, accidents, inspections). This means the driver often reaches the vicinity of the unloading point 2–3 hours ahead of schedule and waits in a parking lot for their “window.” During this time, the vehicle is not earning, is not performing another task, and the driver is “burning” their working hours. Therefore, the customer pays not only for the kilometers but for the full availability of resources and the reservation of time that, in standard transport, would be spent on additional mileage. Precision is a premium service because it eliminates costly warehousing for the customer, shifting the logistical burden to the carrier.
Double Manning – When Transit Time is More Important than Price
One of the most effective ways to drastically shorten delivery times in road transport is to utilize a double crew (team driving). In the standard “one driver – one vehicle” model, the truck remains stationary for nearly half the day. This is due to strict driver hours-of-service regulations, which mandate an 11-hour (or in specific cases, 9-hour) daily rest period. This means the goods physically move toward their destination for only about 9–10 hours a day. In Just-in-Time logistics, where every minute counts, such downtime is often unacceptable.
The solution is double manning. While one driver is at the wheel, the second rests in the cabin; the vehicle stops essentially only for refueling and short technical breaks. This allows the vehicle to remain in continuous motion for 20, or in some cases even 21 hours a day. As a result, a distance that would take a single driver three days to cover can be completed by a two-person team in less than 30–40 hours. This is crucial for long international routes—for example, from Spain or Portugal to Poland—where halving the transit time maintains production continuity without the need for extremely expensive air freight.
However, it must be noted that this service comes with a significantly higher freight cost. A quote for double-manning transport must include salaries and allowances (diets) for two employees, while the vehicle’s payload remains the same. Additionally, operating in this mode is a logistical challenge—it requires perfect synchronization of driver schedules and a staff capable of cooperating harmoniously in a cramped cabin for many days. For the customer, however, the higher rate is usually incomparably lower than the contractual penalties for halting the recipient’s production line.
Reservation of a Dedicated Vehicle and Readiness to Act
In the standard groupage or part-load (LTL) transport, the carrier’s priority is to maximize trailer utilization. The truck will not leave the warehouse until the dispatcher finds enough pallets to make the route profitable. The transport cost is then spread across multiple shippers. In Just-in-Time transport, this logic cannot exist.
JIT service pricing is based on the reservation of transport capacity, not on the number of pallet spaces actually occupied. The vehicle must depart exactly when the production schedule requires—regardless of whether there are 33 pallets on the trailer or just 3 critical components.
While add-ons (e.g., collecting goods from several locations) are possible within a single order, these are operations planned as part of a single logistical process. Crucially, as a carrier, we cannot “top up” the vehicle with external customers’ goods to optimize our own margin. Every unplanned stop is a risk of delay, which is unacceptable in JIT.
Therefore, in this model, you often pay for readiness and exclusivity. Our fleet is dedicated to your project. If production drops on a given day and you send fewer goods, our transport costs remain the same (fuel, driver hours, depreciation). The freight rate must, therefore, reflect the fact that you are often paying for “carrying air” to guarantee that during peak moments, the vehicle will be exclusively available and hit the road immediately.
Risk and Liability – The Impact of Contractual Penalties on Freight Rates
In standard transport, a delay of an hour or two is usually merely an operational inconvenience. In Just-in-Time logistics, particularly in the automotive industry, such a delay can mean stopping the assembly line. The costs of such downtime are measured in thousands of euros per minute, and manufacturers do not hesitate to pass these charges on to suppliers and carriers.
When quoting JIT transport, we do not just calculate kilometers and fuel; we must price the risk we are assuming. Contracts for production line deliveries often contain draconian penalty clauses for late arrival, which frequently exceed the value of the transport service itself.
The higher freight rate in this case acts as a risk premium. As a responsible company with its own assets, we cannot sign a contract burdened with penalties in the tens of thousands of euros while offering a rate based on minimal margins. The price of the service must reflect the weight of responsibility. Furthermore, handling such orders requires us to have specialized, extended Carrier’s Civil Liability (OCP) insurance. Standard policies often exclude liability for contractual penalties or consequential damages (such as the aforementioned line stoppage). To safely execute JIT deliveries, we pay much higher insurance premiums, which is a direct fixed cost included in the final freight quote.
By paying a higher rate for time-critical transport, you are purchasing not just transit, but legal and financial security. You can be certain that the order is being handled by a partner who is aware of the consequences and possesses the appropriate financial and insurance backing.
24/7 Monitoring and Direct Communication – The JIT Service Standard
In JIT logistics, information regarding cargo status is almost as valuable as the goods themselves. “Information silence” from a carrier is unacceptable. Therefore, the pricing in this model includes the cost of maintaining 24/7 dispatch supervision.
This is where our greatest advantage as a fleet owner lies. In a brokerage model (where an intermediary resells the load to a subcontractor), information about a problem on the road passes through 3–4 links. By the time news of a highway traffic jam reaches the end customer, it is often too late to react. In our company, the communication chain is shortened to the minimum: Your Company ↔ Our Dispatcher ↔ Our Driver.
The Cost of a Dedicated Account Manager
JIT handling requires a dedicated manager or a team working in shifts on the carrier’s side. GPS and telematics systems (which are standard for us) only show where the vehicle is. It takes a human to interpret that data, predict potential threats, and—most importantly—inform the customer before the problem becomes critical. The JIT rate covers these operational costs. You are paying for the fact that at 3:00 AM, our dispatcher is monitoring the situation and is available by phone, ready to act immediately in case of a breakdown or detour.
Why Entrust JIT Deliveries to Jasek Transport?
Just-in-Time transport is a high-stakes game where the weakest link determines the success of the entire supply chain. The market is full of offers tempting customers with low prices, but these are often virtual forwarders who outsource to random subcontractors. In an emergency, this chain of dependencies is the first to break.
At Jasek Transport, we operate differently. We are a carrier, not just an intermediary. We own a modern fleet and employ proven drivers. This gives us and out clients a full control over the transport process. When you entrust us with a load, our company takes it on with our equipment and our responsibility.
By choosing us, you gain the certainty that information flows without disruption, and in the event of unforeseen road incidents, you have direct contact with the dispatcher who is actually managing the vehicle. If you are looking for a partner who understands the time pressure of the manufacturing industry and offers quality backed by real resources, we invite you to cooperate.
