< Back to Logistics Glossary

Underutilization refers to not using resources as much as they could or should be used. Examples of assets that can be underutilized include warehouse space, trucks and trailers. To give a more specific example, transporting an empty trailer on one leg of a trip would be considered underutilization of the trailer, the driver and the route, and would lead to a loss of money due in part to the high cost of transportation. As a way of avoiding this, the driver may try to pick up cargo for a return route, so he/she isn't transporting air.