HIP

A Higher Intermediate Point is a logistics hub that sits between primary distribution centers or ports and final delivery locations. It functions as a consolidation and sorting facility where shipments from multiple origins are combined, repackaged, or redistributed according to destination before moving on to the next leg of the supply chain. HIPs handle significant volume but serve a narrower geographic area than major terminals.

In trucking networks, a HIP might receive full truckloads from a regional distribution center, sort them by final delivery zone, and reload smaller shipments onto local delivery vehicles. In parcel operations, HIPs perform similar work: incoming containers are scanned, sorted by postcode or service type, and dispatched to smaller hubs or directly to delivery routes. The facility typically operates with less automation than a primary hub, relying on manual labor and basic conveyor systems.

Network Position and Scale

The hierarchy typically runs: primary hub or port, Higher Intermediate Point, then local delivery facility or final customer. A regional carrier might operate two or three primary facilities but maintain ten to fifteen HIPs across its service territory. This structure reduces handling time compared to routing everything through one central point, while avoiding the cost of building many small facilities. Processing times at a HIP are usually measured in hours, not days.

HIPs are sized to handle daily throughput of several hundred tons in trucking or tens of thousands of parcels in express delivery. They require adequate yard space for trailer staging, receiving docks, and enough floor area for sorting operations. Climate control is rarely present except for temperature-sensitive goods, and security is simpler than at major distribution centers.

The term emerged as networks grew beyond two-tier systems, replacing older language like "secondary distribution center." It remains common in European and Asian logistics vocabularies but is less standardized in North American operations, where companies often use internal naming conventions instead.