A hub is a key site in road freight where freight and cargo are aggregated, sorted, and distributed to their final destination. It is also known as a distribution center or a transfer point, and it functions as a transfer point for items being delivered by truck.
A hub can be either a physical site, such as a warehouse or a terminal, where freight is loaded and unloaded from trucks, or a virtual hub, where freight is consolidated and dispersed using software and technology. Trucking companies, logistics providers, and other third-party companies can run hubs.
A hub's primary function is to optimize product transportation by lowering empty miles, reducing the number of delivery sites, and boosting vehicle usage. For carriers and shippers, this can result in cost savings and enhanced operating efficiency.
