The moving industry faces significant inefficiencies, including rising costs, wasted truck and container space, and regulatory hurdles in international shipping. As moving rates fluctuate and consumer behavior shifts, businesses must adapt to remain competitive. One major challenge is the underutilization of available space, leading to unnecessary expenses for both moving companies and customers. By analyzing successful consolidation strategies in other industries, we can identify practical solutions for the moving sector.

Trends in Moving Rates, Patterns, and Sizes

The moving industry is undergoing notable shifts due to economic conditions, urban migration, and changing consumer preferences. The overall moving rate in the U.S. has declined, with only 7.8% of the U.S. population moving in 2024. However, long-distance and interstate moves have increased, with 19.9% of movers relocating to a new state in 2022, up from 18.8% in 2021.

Additionally, move sizes are changing. Most moves now involve households with one to three bedrooms, leading to a rise in partial truckloads. Despite this shift, the industry still primarily operates on a full truckload model, creating inefficiencies. The inability to effectively consolidate smaller moves results in higher costs for consumers and wasted fuel and time for moving companies. Let us take a glance at how industries and regulations play a role in encouraging efficiencies.

Regulations for International Consolidation

Here is how international shipping regulations affect how consolidated moves are handled:

• United States: Customs and Border Protection (CBP) oversees importation, requiring consolidated shipments to comply with inspection and security requirements.

• European Union: Enforces a comprehensive regulatory framework ensuring compliance with safety, security, and environmental standards for imports.

• Canada: Stricter security requirements for air cargo may affect consolidated shipments but are permitted under Canadian regulations.

Case Study: How Airlines, Shipping, and Amazon Mastered Consolidation

Industries such as airlines, shipping, and e-commerce have successfully adopted hub-to-hub models to improve efficiency, reduce costs, and enhance predictability:

• Airlines: The hub-and-spoke model consolidates flights at major hub airports before distributing passengers or cargo. Companies like FedEx and UPS optimize cargo space using sophisticated algorithms and real-time data.

• Shipping Lines: Large vessels transport containers to major ports, where smaller feeder ships distribute goods regionally. This minimizes empty space and maximizes fleet utilization.

• Amazon: Initially reliant on point-to-point shipping, Amazon’s logistics network evolved into a hub-based model. Amazon Air consolidates packages at key hubs, improving speed, efficiency, and cost-effectiveness.

Applying the Hub-to-Hub Model to the Moving Industry

The moving industry, particularly in the U.S. and Canada, could significantly benefit from adopting a hub-to-hub model. Here’s why:

1. Adapting to Changing Move Sizes and Patterns

• With an increase in smaller moves and long-distance relocations, a more flexible transportation solution is needed.

• A hub-to-hub model can better accommodate these varying move sizes and relocation trends.

2. Enhancing Cost-Effectiveness

• Full Truckload (FTL) and Full Container Load (FCL) moves are becoming less cost-effective, especially for smaller moves.

• A hub-based system would improve consolidation, reducing costs for both businesses and consumers.

3. Improving Efficiency and Predictability

• Dedicated state-to-state transport with local last-mile delivery could significantly enhance scheduling and routing.

• A structured system would allow for more consistent operations, similar to the airline and shipping industries.

4. Reducing Environmental Impact

• Traditional FTL and FCL moves are carbon-heavy and inefficient.

• Optimized routes and consolidated loads would lower the carbon footprint of moving services.

5. Addressing Industry Challenges

• Van Lines, responsible for large-scale moving operations in the U.S. and Canada, struggle to meet growing demand noticed in moving trends.

• A hub-to-hub model could alleviate issues like driver shortages and operational inefficiencies by optimizing resource allocation.

Challenges and Opportunities

While the potential benefits are significant, implementing a hub-to-hub system in the moving industry presents challenges:

Key Challenges

1. Infrastructure Development: Establishing hub locations and optimizing routes requires investment and planning.

2. Industry Adaptation: Van Lines and independent movers would need to modify their operations to align with the new model.

3. Regulatory Compliance: Cross-state and international moves involve complex regulations that must be navigated effectively.

Promising Opportunities

1. Improved Service for Independent Movers: A hub-based system could give independent movers access to a more efficient long-distance transportation network.

2. Technology Integration: Advanced software solutions for logistics management could enhance efficiency, customer satisfaction and overall ease of coordination across partners.

3. Sustainability Leadership: The industry could position itself as a leader in sustainable transportation by embracing a more efficient model.

Conclusion

The success of hub-to-hub services in airlines, shipping lines, and Amazon’s operations highlights a compelling opportunity for the moving industry. By tackling inefficiencies, adapting to evolving consumer demands, and prioritizing sustainability, a shift to a hub-to-hub model could transform the sector. Van Lines and independent movers in the U.S. and Canada stand to gain through enhanced efficiency, cost savings, and a reduced environmental footprint.