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ETA is Money: How Precise Route Planning Increases Profit?

Find out how accurate ETA impacts margins, punctuality, and fleet utilization. A practical approach to route planning for transport companies.

ETA is Money: How Precise Route Planning Increases Profit?

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In transport, time is a currency that can be more valuable than the rate per kilometer. From the shipper’s perspective, certainty matters: goods must leave and arrive on time. From the carrier’s perspective, the game is about something more - fluidity, optimal use of driver working hours, and the ability to “catch” the next well-paid loop.

The problem arises in communication. Shippers often set rigid time slots (dock appointments) with a huge, safe buffer for themselves. They give a carrier, for example, 48 hours for a route that actually takes 28. Why do they do this? Because they fear delays. They prefer the driver to arrive too early and wait in the parking lot than to be even an hour late.

For you, as a carrier, this is a trap. You stand at the ramp, time ticks away, the wheels aren’t turning, and no one pays for the extra “downtime” resulting from the shipper’s overly cautious planning. Worse yet, if you arrive too early, you often still have to wait for your specific window.

How to break out of this vicious cycle and start making money on precision? The key is ETA.

What exactly is ETA and why is “by eye” not enough?

In transport jargon, we often throw around acronyms, but it’s worth clarifying what they exactly mean in the context of modern transport management systems:

  • ETA (Estimated Time of Arrival) - estimated time of arrival at the destination (unloading or intermediate point).
  • ETD (Estimated Time of Departure) - estimated time of departure (e.g., after loading is completed).

Calculating a precise ETA is a mathematical nightmare for a human. It’s not just a matter of entering the route into a passenger car’s navigation. To provide a realistic time, you must consider:

  1. Speed limits for heavy goods vehicles (usually 80-85 km/h, not 140 km/h).
  2. Mandatory breaks and daily driver working time (in accordance with the mobility package).
  3. Traffic bans (holidays, weekends, night bans in specific regions).
  4. Traffic density and congestion.
  5. Time needed for the actual loading/unloading.

A real-life example: Poznań - Paris

Let’s assume you have an order: loading at a warehouse near Poznań, unloading at a logistics center near Paris. The distance is about 1250 km. The shipper, looking at the map superficially or using simple calculators, assumes you have 2 days for this. They give you an unloading window with a large buffer.

Meanwhile, your driver, driving according to regulations and having “fresh” hours, can cover this distance much faster - for example, in about 18-20 hours of pure driving plus the necessary breaks. It often turns out that the real execution time (including rests) is 15-20% shorter than the customer assumes.

If you knew this before accepting the order, your negotiating position would look completely different. You could say: “I’ll do it cheaper, but I want a tight unloading window on Thursday morning because I already have a return load booked from the Paris area”. The shipper gains a lower price (or delivery certainty), and you gain crucial hours that allow you to complete one more freight trip per month.

Unfortunately, without the right tool, calculating this during a phone call is impossible. And in transport, as you know, good freights disappear in minutes.

Transport software vs. reality

Most small and medium-sized transport companies still rely on simple solutions: free Google Maps, an Excel sheet for planning, and a phone call to the driver asking “Where are you and how much time do you have?”.

This works as long as you have 3 trucks. With 10, 20, or 50 sets, it becomes chaos. Google Maps is great at showing traffic jams, but it doesn’t know that your driver has to “take a break” in 15 minutes. It also doesn’t know that the set weighs 40 tons and cannot take a shortcut through a small town center.

On the other hand, simple route planners lack insight into what is happening here and now. They show a theoretical travel time without taking into account that loading took 3 hours longer than planned and the entire intricate schedule in Excel has just collapsed.

Advantage through technology: ONYX TMS

This is where modern TMS (Transport Management System) software comes in. But not a complicated “behemoth” that takes a year to implement, but an intuitive transport program that actually helps in the daily work of a dispatcher and company owner.

Imagine the ideal scenario in ONYX TMS:

  1. You log into the system and see a map of your fleet.
  2. The system is connected to telematics (GPS) in the vehicles, so it knows exactly where the trucks are.
  3. More importantly - the system sees the drivers’ working hours. It knows who needs to take a break and who still has a buffer of hours.

When a potential order comes in, in a dozen or so seconds, with one click, you check:

  • Which driver is closest and has sufficient working hours.
  • What the precise ETA is (considering truck bans, breaks, and traffic jams).
  • What the profitability of this order is (fuel costs, road tolls vs. rate).

Because of this, you don’t guess. You know. This allows you to make lightning-fast decisions. You see the driver will arrive 4 hours before the appointment? You call the shipper and negotiate an earlier drop-off or look for a “top-up load” that perfectly fits into that gap.

Get into the game for Just-in-Time deliveries

Precise ETA determination is a ticket to cooperation with the biggest players. Large factories and production plants are increasingly operating on a Just-in-Time model. They don’t want to store goods - they want them to arrive on the production line straight from the trailer.

Here, the margin for error is minimal, and freight rates are usually much higher. However, to handle such contracts, you must be a partner who can be relied upon completely. If you say the truck will be there at 14:15, it has to be there at 14:15. Most transport companies are unable to guarantee this because they lack the tools to control the process in real time. With ONYX TMS, you become a reliable partner for the most demanding clients.

Summary: Time is your most expensive resource

ETA is not just information for the client so they “don’t get nervous.” It is a powerful business tool for your company. Precisely determining the execution time of an order allows you to:

  • Secure better-paying loads (including Just-in-Time).
  • Avoid contractual penalties for lateness.
  • Better plan driver work and avoid empty runs.
  • Build the image of a professional company that is in control of every kilometer.

You don’t have to take our word for it. Modern transport management is within reach, whether you have 5 or 50 trucks.

Want to see how it works for your fleet? At ONYX TMS, we offer a free trial period. No obligations, no “catches,” and no unnecessary questions if you decide it’s not for you. You can connect even just one vehicle and see how it changes the comfort of your work and planning.

Check us out and see how much time (and money) has been slipping through your fingers until now. Feel free to contact us!

About the author

Karolina Nowak

TSL Analyst

Specializes in fuel cost optimization, transit settlements, and improving the financial liquidity of transport companies.

FAQ

Why does precise ETA directly impact a transport company’s profit?

Because accurate arrival times allow for better use of loading and unloading windows, limit downtime, and enable faster planning of subsequent orders. The article shows that time recovered on one route translates into additional earning opportunities over the course of a month.

What should be included in a truck’s ETA calculation for it to be reliable?

Speed limits for trucks, driver working hours and breaks, traffic bans, traffic density, and real-time ramp operation times must be considered. ETA calculated "by eye" or from passenger car maps underestimates the risk of delays.

What does an accurate ETA give a carrier in negotiations with a shipper?

A better negotiating position regarding time slots and price. If a carrier can prove real execution time, they can propose more precise windows, reduce waiting at the ramp, and better secure return freights.

Why do Excel and phone calls stop being enough for planning with a larger fleet?

With a larger number of vehicles, the number of dependencies grows, making them hard to control manually: current vehicle position, driver status, working hours, and route changes. Without a TMS system, the risk of wrong decisions, delays, and margin loss increases.

How does ONYX TMS support operational decisions for a new order?

In the described scenario, the system combines data from telematics and driver working hours, then calculates the real ETA and preliminary route profitability. This allows for faster decisions based on data rather than intuition.

Why is an accurate ETA crucial for Just-in-Time contracts?

In the Just-in-Time model, the margin for lateness is minimal, and the carrier’s reliability determines the maintenance of the contract. Precise ETA builds customer trust and opens the way to better-paid, demanding orders.

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