Record High Diesel Prices Will Affect Your Freight Costs

03/09/2022 — Leah Palnik

It’s been hard to miss the high gas prices at the pump and the headlines about the rising cost of crude oil. Not only does this affect the average American driver, but this also has a large impact on the drivers moving our freight. In fact, the national average for on-highway diesel fuel has shot up to the highest it’s ever been since the U.S. Energy Information Administration started tracking the prices in 1994.

The cost of doing business just got a lot more expensive for trucking companies, and that will be reflected in your freight rates. We’re currently seeing fuel surcharges as high as 42% with some of our carriers. While it’s a hard pill to swallow, this is something to keep in mind and budget for.

As for how long you can expect fuel surcharges to be high, that’s hard to say. Many experts note that even when oil prices start to go back down, gas and diesel prices aren’t likely to fall as quickly as they’ve risen.

To learn more about the record high diesel prices, check out this article on Overdrive.

If you're curious about how oil prices drive the cost of gasoline and diesel, check out this segment from Marketplace.

It’s more important than ever to work with a freight broker. Our team is available to help you find the best rate for your freight and help you navigate through logistics challenges. Contact us to consult with one of our shipping experts.

The Current State of Freight: What You Can Expect

08/31/2021 — Leah Palnik

To say the freight market is strained right now might be an understatement. If you’ve experienced significantly higher rates and less reliability from your carriers, you’re not alone. As someone who is shipping freight, it’s critical to keep your finger on the pulse of what’s happening in the market in order to navigate the challenges that are coming with it. Let’s break down the factors that have led us here and what we can expect moving forward.

Key factors that have led to challenges in the transportation industry
Like so many other industries, freight transportation has been rocked by the COVID-19 pandemic and all of the cultural shifts that have come along with it. The pandemic not only created new challenges, but also exasperated existing pain points in the market – leading to the perfect storm. It all boils down to a case of supply vs. demand.

• Consumer buying is strong and is driving up demand. While the world was locked down, we weren’t spending money on vacations or going out to eat. In many cases those spending dollars went towards buying goods instead. Retailers are doing what they can to keep up with demand and as a result, have an increased need for trucks to deliver their much needed inventory.
• There is a truck driver shortage. The driver shortage is old news, but it is still very relevant now. Sometimes there just simply aren’t enough drivers available to take on new loads. For years, there have been more drivers retiring and leaving the profession than there have been new drivers entering the market. Unfortunately, the open road hasn’t been as attractive to this generation of the workforce as it once was.
• Building new tractors are constrained by parts availability. Not only is it hard to move freight with less available drivers, but now we are also seeing a limit on new trucks on the road. Supply chains for many goods have been seriously disrupted thanks to the pandemic, and parts that are needed to build new tractors are no exception.

How LTL carriers are responding
With such volatile market conditions, LTL carriers are forced to respond. As no surprise, a major course of action they’ve taken is to increase rates. Simple economics tells us that an increased demand means they can charge more for their services.

Not only are they increasing rates, but they’re also looking to shed less desirable freight from their networks. Loads deemed less profitable, or more trouble than they’re worth, are harder to get covered because carriers want to prioritize loads that allow them to work efficiently and profitably.

LTL freight observations from the front lines
Many of our customers are exhausted dealing with carrier issues. In a survey we conducted earlier this year, 78% of respondents cited rising shipping costs as a challenge they were currently facing. Along with that, 47% noted they were experiencing longer transit times and 36% were dealing with poor carrier performance.

Our team has also noticed several concerning trends pop up with freight carriers. As if raising base rates wasn’t enough, we’ve seen them put in extra effort to collect on everything they can. Accessorial fees that you may not have seen on your bill in the past are now showing up for services you’ve always received. The carriers just aren’t as lax as they may have been in the past for charging for these extra services.

Because freight networks are so strained, we’re also seeing an uptick in missing shipments. If this has happened to you, you know how stressful it can be. The carriers are also doing everything in their power to deny claims for both missing and damaged shipments. They’re wanting to see them filed sooner than ever before and are requiring a great deal of evidence.

Estimated transit times for LTL freight has never been guaranteed, but now more than ever, we’re seeing shipments miss that predicted window. Unfortunately, longer transit times and missed pick-ups are becoming extremely prevalent, again due to how ill equipped carriers are to meet the current freight demand.

What can you do?
You may want to live by the old adage about how you can’t change others, only yourself. It’s not within your power to control carrier performance or consumer demand, but you can educate yourself and act accordingly.

• Use a quality broker, like PartnerShip. While brokers have no control over what a carrier ultimately does with a shipment, a quality freight broker will provide the communication and creative solutions you need when caught up in an issue.
• Follow the tried-and-true best practices for overcoming capacity challenges. Expand your current carrier network, build in extra time at every step of the shipping process, consolidate your shipments, and consider alternative services. While it’s not always possible to implement these strategies, following them any time the market is experiencing tight capacity can be very advantageous to your operations.
• Become a shipper of choice. This means making your freight desirable to carriers. You probably aren’t able to change what you’re shipping, but there are some factors you can control. Being flexible with pick-up and delivery times, ensuring ease of access for the truck, and avoiding long detention times are all things carriers ultimately appreciate.

Moving forward
Back to school season is upon us and the holidays are right around the corner. In short, demand is not expected to drop anytime soon. Will the supply side be able to catch up? Not likely. Recruiting and retaining the needed labor force will continue to be one of the biggest challenges in the industry. And as we enter hurricane season and another COVID-19 surge, we could see even more network disruptions.

At this point, it’s important to manage expectations. You’ll want to budget for higher freight costs and be mindful of potential delays, so you’re not caught off guard. For everything in-between, our team has the expertise to help you navigate these challenges. Contact PartnerShip today and lean on us when you need it most.

Coronavirus Updates

04/06/2020 — Leah Palnik

While you’ve been burdened with adjusting to the new normal that the coronavirus (COVID-19) outbreak has created, know that we are committed to supporting you and keeping your shipments moving.

Though this is an ever-changing situation, we will remain open. We are taking every possible measure to ensure the safety of our staff while also providing you with the same level of service you’ve come to expect from PartnerShip. Our goal is to minimize any further disruptions to your business.

We continue to monitor the situation and will make any changes needed to continue to serve you. If you have any concerns, we are here to help. 

Service Updates

• Service guarantees for all UPS Freight LTL services from and to all locations are suspended, with the exception of UPS Freight Urgent Services. Read more.
• UPS Freight is prioritizing freight that is deemed essential in areas impacted the most by COVID-19.  
• All YRC Worldwide companies, including YRC, Holland, New Penn, and Reddaway, have suspended reimbursement for service failures on both guaranteed and time-critical shipments. Read more.
• FedEx is suspending its Money Back Guarantee and has adjusted signature guidelines. Read more.
• UPS has suspended the UPS Service Guarantee for all shipments. Read more.
• Effective April 5, UPS implemented a temporary surcharge on UPS Worldwide Express, UPS Worldwide Express Freight, and UPS Expedited shipments originating from China Mainland or Hong Kong SAR to North America and Europe regions. As of April 12, that surcharge has increased. Read more.  
• Effective April 6, FedEx implemented a temporary surcharge on all FedEx Express and TNT international parcel and freight shipments. As of April 27, that surcharge has increased for shipments originating from China. Read more.
• Effective May 31, UPS implemented temporary peak surcharges. Read more.
• Effective June 8, FedEx implemented temporary peak surcharges. Read more.

Tips

• To avoid redelivery fees or returned shipments, check with your recipient and confirm the delivery location will be open and available to accept your freight.
• Many manufacturers are switching their production lines for the common good, making ventilators, face masks, and other essential items that are in high demand right now. If what you’re shipping has changed, make sure you’re using the right freight class and noting the proper weight on your BOL to avoid reclassification and reweigh fees.
• Transit times for standard LTL shipments are never guaranteed, but now more than ever they’re less predictable. If your shipment is time-sensitive, you may benefit from using partial truckload services. Contact our team to determine your best options.
• Make sure you’re following social distancing best practices with drivers by communicating more over the phone and not relying on driver assist services.

Latest News

• How coronavirus could affect supply chain and freight shipping
• Market updates in response to COVID-19
• FMCSA waives HOS nationwide for COVID 19-related movement
• Dry van demand rises as stores restock empty shelves 
From supply chains to truck shows, coronavirus knows no boundaries
• Will coronavirus change trucking demand and rates? Watch these 4 factors 
• Cargo handling continues at US ports despite coronavirus spread
• Airlines begin pulling passenger seats to make room for cargo

2020 FedEx and UPS Rates Explained

12/10/2019 — Leah Palnik

UPS and FedEx rates are slated to go up in 2020 by an average of 4.9%. The changes will go in effect for UPS on December 29, while the FedEx rates go into place on January 6.

If you’re planning to budget for your costs to go up 4.9% in the next year, you better think twice. The announced average doesn’t paint a complete picture. The rates for some packages will be increasing less than 4.9%, but that means that the cost to ship other packages is increasing far more. What you’re shipping, where you’re shipping it to, and what service you’re using will ultimately determine how much you should budget for your shipping costs in the new year.

• FedEx 2020 standard list rates
• UPS 2020 daily rates

FedEx and UPS surcharges
The rates, however, are only one part of the equation. You also have to take into account the additional fees that UPS and FedEx tack on. It’s more important than ever to be mindful of what could qualify your packages for these surcharges. Not only do the costs increase year over year, but the carriers also make adjustments to how the charges are defined – making it more likely that your packages will be hit with them.

A prime example of this is the change both FedEx and UPS made to their Additional Handling fee for 2020. They’ve lowered the weight threshold to 50 pounds from 70 pounds, which means your costs could go up significantly if you ship packages within that window.

• FedEx surcharge updates for 2020
• UPS surcharge updates for 2020

Industry trends
Online shopping has had a profound effect on the parcel industry and the way that FedEx and UPS operate. The carriers are moving more residential deliveries and an increased amount of larger packages, as consumers have become accustomed to being able to order almost anything online and receiving it in 2 days or less.

The changes FedEx and UPS have instituted in recent years and are making in 2020 are a direct response to these industry trends. In the past several years, they’ve broadened the use of dimensional weight pricing, added new peak surcharges, and drastically increased the surcharges for larger packages.

Understanding the 2020 rate increases
We know how daunting it is to analyze the 2020 FedEx and UPS rates, so we’ve done the hard work for you. In our free white paper, we break down the new rate charts and simplify some of the complicated changes. It’s the best way to find out what will cost you the most in the year ahead. Looking for ways to offset the rate increases? We can also help with that. Contact us to find out if you qualify for one of our discount shipping programs.

UPS and FedEx Peak Surcharges Announced for 2019

09/24/2019 — PartnerShip

UPS and FedEx have both announced that they will not apply peak season surcharges on residential deliveries this holiday shipping season. However, both companies will continue peak surcharges on large shipments and those requiring additional handling during the holidays.

During the 2018 holiday season, UPS applied a per package residential peak delivery surcharge of $0.28 for ground and $0.99 for air shipments. This year, the company is leveraging its expanded air and ground capacity, and automated sorting hubs and processing facilities, to pass cost savings on to customers in the form of no residential delivery peak surcharge. More than 75% of UPS's small package volume will pass through these automated facilities in peak 2019.

“We delivered a record-setting 2018 peak season in terms of both on-time delivery performance and operations execution,” said David Abney, UPS Chairman and CEO. “We will build on the lessons learned last year and leverage our new efficient air and ground capacity to make the 2019 peak season another success for customers, investors and other stakeholders.”

This is the third holiday season FedEx has not added additional peak surcharges on residential deliveries. With UPS and FedEx both not applying a residential delivery surcharge this year, it is great news for e-commerce retailers and online shoppers. Online sales are expected to grow 14% to 18% this holiday season, and in the past, these residential delivery surcharges were passed along to shoppers in the form of higher shipping costs.

It’s important to remember that both UPS and FedEx are implementing peak surcharges this holiday season on larger packages and those that require additional handling.

UPS peak surcharges will apply to larger packages from October 1 through January 4:

• $31.45 per package for shipments that qualify as large (a 20% increase from 2018)
• $250.00 per package for shipments that qualify as over maximum limits (a 51.5% increase)

FedEx and UPS rates will be going up after the holiday season! Make sure you know what to expect so you can mitigate the impact to your bottom line. Our free white paper breaks down where you'll find the highest increases and explains some of the complicated changes you need to be aware of.

Why Shippers Should Care About the CVSA Roadcheck

06/03/2019 — Leah Palnik

Coming to a highway near you, the Commercial Vehicle Safety Alliance’s (CVSA) International Roadcheck will take place June 4-6. On average, 17 trucks will be inspected every minute in Canada, the United States, and Mexico during the 72-hour period. The CVSA-certified inspectors will primarily conduct the North American Standard Level 1 Inspection and could render trucks out of service or place drivers out of service for violations. In fact, nearly 12,000 trucks and buses were placed out of service last year.

Both the drivers and their vehicles are put through a 37-step inspection which includes checking items such as the braking system, securement of cargo, exhaust system, frame, fuel system, lights, tires, wheels and rims, and other critical components. Each year, the CVSA places special emphasis on a specific category of violations. This year’s focus will be on steering and suspension systems due to their importance to highway safety.

Drivers and their trucks are subject to these same inspections year-round, but the International Roadcheck event brings a significant increase in inspections that has a notable ripple effect.

What can shippers expect?

• Capacity will tighten which will likely increase freight rates. Many smaller carriers and owner operators will take the days off to avoid the potential hassle. This can make it more difficult for shippers to find trucks during this time – driving up the load-to-truck ratio and therefore driving up rates.
• Delivery times will be affected. Not only do all of these inspections take time, but some loads may be delayed if drivers are pulled out of service due to violations. Even something as simple as a cracked windshield could cause a vehicle to be pulled out of service. In general, it’s a good idea to allow for some extra time just to be on the safe side.

Finding a truck during Roadcheck week is easier when you’re working with a quality freight broker like PartnerShip. We’ll help you find the best option and let you know what you can expect. Get a free quote today!

Your Guide to the 2019 FedEx and UPS Rate Increases

12/17/2018 — Leah Palnik

FedEx and UPS rates will be going up in 2019, and it’s more important than ever that shippers know how to mitigate the impact to their business. In November, FedEx announced that its small package rates will increase an average of 4.9% as of January 7, 2019. In December, only a few weeks before the change is set to take place on the 26th, UPS announced the same average increase.

If you’re thinking that means you can budget your costs to go up by 4.9%, you are sorely mistaken. There is a lot to unpack with these rate increases. For starters, some services are increasing at a higher rate than others – meaning that depending on the services you commonly use, your costs could go up significantly more than the announced average.

Other factors determine how much more you will pay for your FedEx and UPS shipments in 2019. You will need to look at the new rates based on your package characteristics, as well as how far your shipments are being sent. Here are the released rates for 2019:

• FedEx 2019 standard list rates
• UPS 2019 daily rates

FedEx and UPS surcharges
The announced average increase only covers the base rates. You’ll also need to consider what fees and surcharges apply to your shipments. Many of these surcharges are increasing quite a bit. Here are the announced changes:

• FedEx surcharge updates for 2019
• UPS surcharge updates for 2019

One surcharge to take note of is the Third-Party Billing fee. A couple years ago, UPS introduced this in response to the growing popularity of drop shipping. Right now if you use third-party billing, you will incur a charge of 2.5% of total cost. Beginning December 26, UPS will be increasing that charge to 4.5%. FedEx is leaving its Third-Party Billing charge unchanged at 2.5% for 2019. This is just one example of why it’s important to evaluate the changes that come out each year from UPS and FedEx. One small difference can have a huge impact on your costs.

The most costly surcharges continue to be those that apply to shipments that qualify as “Unauthorized” or “Over Maximum Limits.” If you send a package with UPS that weighs more than 150 lbs., exceeds 108 inches in length, or exceeds a total of 165 inches in length and girth combined, you’ll be looking at a $850 charge on top of your base rate. That same package will incur a $675 charge if you ship it with FedEx. Either way, you’ll be paying a huge premium to ship larger, bulkier packages.

Peak season strategies
It’s also important to note that ahead of the 2019 general rate increase (GRI), FedEx and UPS both announced peak season surcharges. For those larger packages, the carriers applied additional surcharges during the busiest time of year. A huge difference between the two, however, was an additional charge on residential shipments. UPS applied a $0.28 peak surcharge on residential ground shipments, while FedEx decided that for the second year in a row, it wouldn’t follow suit. If you’re a retailer that delivers a large amount of customer orders over the holidays, that charge can add up fast.

Trends in the small package industry
If you zoom out on all of these changes from FedEx and UPS, there are a few insights to glean.

1. FedEx and UPS tend to institute similar pricing strategies. The carriers have a habit of matching each other when announcing average increases, and when one introduces a new charge or a different way to account for something, the other tends to do the same down the road. That doesn’t mean that it doesn’t matter which carrier you use. Instead, it’s important to stay on top of the changes and evaluate your options on a regular basis so you’re always using the service that works best for your budget.
2. Many of the changes over the years have been put in place as a result of the ecommerce boom. With more shipments coming from online orders, comes more trends that strain the carriers’ networks. For example, ecommerce has led to more residential deliveries and more deliveries of oversized packages. That’s why you’ll see the carriers making changes that help them to recoup some of the costs associated with these trends.
3. Both carriers have been making changes throughout the year, instead of just during the GRI. For example, FedEx and UPS both increased their Additional Handling surcharges ahead of the new year – in September and July respectively. When UPS first introduced peak surcharges for residential ground shipments, that was also done outside of the annual announcement. This just highlights how important it is for shippers to stay aware throughout the year.

We know you don’t want to comb through every tedious page of the 2019 FedEx and UPS service guides and compare them to your current rates. That’s why we did the leg work for you. In our free white paper, we break down where you’ll find the highest increases and explain some of the complicated changes you need to be aware of. If you’re looking for ways to offset the rate increases, we can also help with that. If you’re a member of one of the many associations we work with, you can get access to exclusive discounts. Contact us and we’ll find a way to help you save.

ELD Enforcement: Are We There Yet?

05/07/2018 — Jen Deming

According to several reports, it appears that the majority of carriers are now using electronic logging devices to track their hours of service, with as many as 95% becoming ELD compliant. While many small carriers originally insisted that they would not comply and figured it was time to make their exit, the capacity crunch and need for experienced drivers has boosted the trucker's market, outweighing the inconvenience of switching over. According to a DAT Solutions survey, over 60% of these carriers have added the compliant devices within the past three months, following the deadline date.

Survey respondents are, however, confessing that the ELD mandate has a huge impact on day-to-day business, with 87% reporting that the mandate is changing the way they prioritize loads. The most significant factor impacting carriers? A significant increase in detention time – basically any time taking over the given 2 hours. Many shippers fail to recognize that time for loading/unloading freight counts as active "on duty" hours for the driver. The strict HOS (Hours of Service) rules can decrease an already limited amount of hours available for transit time.The good news is, with trucker time being more accurately logged, drivers can now prove exactly how long they were held up during loading. Carriers then have leverage to choose precisely who they want to ship with, and determine who may create problems for them on future loads. While this creates a positive environment for truck drivers, it can leave shippers in the backseat. But don't fret, there are several things shippers can do in order to to create appealing loads for carriers, which we will get into a bit later.

The data taken from the ELD devices can actually help shine some light on existing safety issues within a fleet. Predictive modeling can determine safety concerns that may arise in the future, such as probability a truck may be involved in a roadside accident. By looking at historical data, it will be easier to determine potentially dangerous routes, trucking equipment, hours of operation, and operators. So far, utilizing data in order to better determine areas of opportunity for increased driving safety is the most positive application of the new mandatory ELD technology.

So what's to come? As expected, with drivers spending less time at the wheel in one run, transit times will continue to lengthen. This means that drivers have to take less loads per week as well, with 67% stating that they drive fewer miles than they did before the devices. Parking space is in a crunch as well, with more trucks spending mandatory rest breaks at stops. This is also related to yard congestion, or several trucks arriving on time for delivery within a small window. Proper warehousing protocol and smooth receiving and loading procedures is crucial. It may be a good idea for shippers to extend their warehouse hours to offset the congestion. Having properly staged freight ready and waiting with an adequately sized team can also help decrease time spent at the loading dock, freeing up hours available for your driver to be on the road. Another option for shippers is to consider drop trailer freight programs. A carrier will haul a tractor to a shipper's loading dock and pick up a previously loaded and left behind trailer. This can increase efficiency by decreasing detention time and likelihood of deadhead.

One thing is clear: the initial push-back from owner-operators to make changes in order to become ELD compliant has mostly disappeared. Those originally looking to leave the industry are adapting to new policies and procedures, but there is still a significant learning curve. The biggest take-away is the impact of detention time and a newly invigorated intolerance for running into overtime. Drivers are vigilant, and shippers need to be even more prepared for a smooth and quick load time. PartnerShip can help businesses manage LTL freight moves and connect you with vetted, reliable truckload carriers. Stay competitive and ship smarter with PartnerShip – get a quote today!

ELD Updates: From Exemptions to Enforcement

03/12/2018 — Jen Deming

As a review, several industries and specific groups have extensions and exemptions that are currently in effect, or will be approaching an expiration date. Most carriers will be required to adhere to the mandate, unless qualified by a series of standards set by the Federal Motor Carrier Safety Administration (FMCSA). If you are not currently required to keep a record of duty status, you do not need to equip your vehicle engine with electronic logging technology. Additionally, if you keep RODS (Record of Duty Status) less than 8 days in a 30 day period, you are exempt as well. If you are a "driveaway/towaway" driver, or your vehicle's engine (not body, cab, or chassis) was made prior to 2000, the new ELD mandate does not apply to you. Rental truck drivers and those covered under the 90- day agricultural extension also are exempt for now. Agriculture and livestock haulers will have to file again, or install approved ELD devices by March 18. If they do not, fines and citations can be issued, but drivers will not be put out-of-service until April 1.

Since the official implementation of the mandate in December, many additional groups have filed for further exemption requests. The Owner-Operator Independent Drivers Association (OOIDA) has been very transparent in its opposition of the mandate, and has asked for an oversight hearing in order to express its concerns over the mandate and it's implementation. The organization's main issue with the mandate concerns technical issues and malfunctioning, which is an ongoing concern with many of the approved devices. System failures and crashing, issues with GPS tracking and reporting, and mechanical difficulties linking to the truck engine are all cited challenges with the current ELD devices being used. On top of that, the current FMCSA list of approved ELD vendors includes many "self-certified" providers who are NOT actually compliant with requirements. It's a complicated vetting process that leaves many questions and lots of confusion for both truck drivers and law enforcement officials.

Enforcement of the mandate up until this point has been spotty as well, due to the technical issues with the devices and insufficient training of both drivers and enforcement personnel. In fact, 17 states have decided not to enforce at all until April 1, with the remaining states leaving it up to the individual officer's discretion. The FMCSA has given direction to use a specific code, 39522A, in order to report violations in order to track ELD compliance, but to this time, the code has not been showing up in reports. Namely, this is due to the complicated nature of the devices and the wide range of types being used. Put simply, both drivers and enforcement officers are finding it difficult to recognize whether a carrier's chosen ELD is truly compliant. As a result, drivers are required to carry cards indicating proof they are compliant, as well as instructions on how to operate their software, report device errors, and alternative options to record their hours of service.

With less than 3 weeks away to a more strict enforcement period, many carriers and truck drivers have yet to move ahead with becoming ELD compliant. Some are battling training issues or troubleshooting their current ELD technologies. Many small enterprises are simply waiting out the soft enforcement period and then find it easier to leave the industry entirely. Either way, it's safe to say that major changes will be occurring in the next few weeks and that the crunch in capacity will continue to affect shipping rates. PartnerShip can help make sure your shipments are covered at a competitive rate. Ship smarter with PartnerShip, get a quote today!

High Freight Rates and Tight Capacity: What You Can Expect

01/22/2018 — Leah Palnik

If you’ve been experiencing sticker shock from unpredictable freight rates lately, you’re not alone. Shippers are seeing a lot of volatility in the truckload and LTL market, with no end in sight.

2017 ended with tightened capacity and record rates. By December, the average van rate was $2.11 per mile (DAT) – an all time high. The load-to-truck ratio was also breaking records at the end of the year, with 9 load postings for every truck posting in December.

Coming off of a record high December, capacity continues to be tight in January – particularly with reefers since they’re needed to keep freight from freezing in the coldest parts of the country. DAT reported that the national load-to-truck ratio at the beginning of the year was the highest ever recorded at 25.2 reefer loads per truck. During which, the reefer rate was at a high $2.71/mile. Van rates have also been breaking records. According to DAT, they were at $2.30/mile on January 6.

So what can shippers expect going forward? Let’s look at the trends. We saw a bit of a recession in 2015 and 2016 with rates and load-to-truck ratios declining, but that appears to be over. Rates climbed throughout 2017 and we can continue to expect increases in 2018.

Overall, the U.S. economy is healthy right now and is growing, increasing freight demand. In contrast, the trucking industry is dealing with the aftermath of the ELD (electronic logging devices) mandate. Not only do they need more drivers and more equipment on the road to handle the same amount of freight, but they are also contending with a long running driver shortage. All of this equals tightened capacity, which is becoming the new normal in the industry.

Recent weather events have been driving up rates as well. Areas of the U.S. that don’t typically experience extreme cold or snow have been hit by treacherous weather that has led to dangerous conditions including low visibility and icy roads. In a tight capacity market, these conditions drive up rates even more.

In February we can expect to see capacity loosen some (barring any winter storms or other troublesome events), as this is typically the slowest time of year for freight. However, you’re likely to see higher rates than you have in years past, because of the long-term trends.

In April, drivers not complying with the ELD mandate will be put out of service. Up until then, inspectors and roadside enforcement personnel are simply documenting and issuing citations if a truck isn’t equipped with the required device. As a result, we may see some ripple effects. There could be fleets that have held out or hoped to fly under the radar until April. There could also be another wave of trucking companies exiting the market, which will leave a void in the already tight market.

Now it’s more important than ever to find ways to mitigate the impact of this tightened capacity. Plan ahead so you can be flexible. Providing more lead time and giving your carrier a longer pickup window rather than a specific time can lessen the strain on its network. Planning ahead can also help you shift to more committed freight and away from the spot market. The spot market is more sensitive to disruptions and subject to reactionary pricing spikes.

Luckily you don’t have to navigate the freight market alone. When you work with PartnerShip, you benefit from our large network of carrier partners and our shipping expertise. We help you ship smarter with competitive rates and reliable service. Get a quote today!

The 2018 FedEx and UPS Rate Increases: A Closer Look

11/20/2017 — Leah Palnik

With the New Year approaching, it’s time to look at the UPS and FedEx rate increases for 2018 and how they will affect your costs. In September, FedEx announced an average increase of 4.9% on Express and Ground services. UPS joined the party in October, announcing that they will also be increasing their rates by an average of 4.9%. The new 2018 UPS rates will take effect on December 24, 2017, while FedEx will be instating them a week later on January 1, 2018.

The averages might be the same, but the rates vary. With higher increases for some services and lower increases for others, you can’t budget based on your costs increasing 4.9%. It’s important to look at what services you use, your package characteristics, and the locations you’re shipping to, and then evaluate the new rate charts to find your biggest cost offenders from the 2018 FedEx and UPS rate increases.

On top of the FedEx and UPS rate increases for 2018, there are additional updates that are likely to affect your shipping costs. First, UPS is lowering its dimensional (DIM) weight divisor from 166 to 139 for domestic packages less than or equal to one cubic foot (1,728 inches) in size. With this change, UPS and FedEx are back in line with each other on how they calculate dimensional weight. Both carriers will now use 139 for all domestic and international packages.

It’s been a wild ride the past few years with multiple changes to which packages DIM weight pricing applies to and how it’s calculated, so this is a welcome stabilization. However, a lower divisor means a higher chance that your package will get billed at your DIM weight, rather than your actual weight. If you ship packages one cubic foot or under with UPS, it’s important to take note and make changes to eliminate any unused space in your packaging or consolidate orders when possible.

Surcharges are also increasing, with some at alarming rates. Most notably, in 2018 FedEx and UPS are coming after larger, oversized packages. Not only are they increasing at a higher rate than most surcharges, they are by far the most costly. For example, the FedEx Unauthorized Packages fee is increasing from $115 to $300 and the UPS Over Maximum Limits charge is increasing from $150 to $500. The shipping trends that have resulted from the rise of e-commerce has taken its toll on the carriers and they’re having to move more and more oversized packages that can’t go through their automated systems. Time is money, so they’re tacking on hefty fees to make up for it.

Ahead of the new FedEx and UPS rate increases for 2018, new holiday peak season charges will also apply. UPS is adding peak surcharges on domestic residential packages during the busiest shipping days of the year – from November 19 to December 2 and from December 17 to December 23. These fees will add up quick when you have an increased amount of orders over the holidays. 

In a notable departure from UPS, FedEx decided not to add a peak season surcharge this season. Instead they opted to increase surcharges for packages that are big or bulky enough to require special handling. UPS is also increasing the cost of larger packages by adding additional peak season surcharges on top of the already existing surcharges. The 2018 UPS rate announcement included increases for these surcharges for the next holiday season, so you can expect this trend to continue.

The 2018 FedEx and UPS rate increases are proof that the carriers are getting smarter, hitting shippers where it hurts most. Luckily, you don’t have to navigate the changes alone. The shipping experts at PartnerShip have evaluated the new rate charts and we have completed a detailed analysis, so it’s easier for you to assess the impact on your shipping costs. Download our free white paper today!

FedEx Announces General Rate Increases for 2018

10/05/2017 — Leah Palnik

You may have heard that FedEx announced its General Rate Increases (GRI) for 2018. In the past few years, UPS has been the first of the two major small package carriers to make an announcement for the coming year, but this time FedEx is taking the lead.

Here are the announced average increases that will take effect January 1, 2018:

• 4.9% for FedEx Express domestic and international services
• 3.5% for FedEx One Rate
• 4.9% for FedEx Ground and FedEx Home Delivery
• 4.9% for FedEx Freight

As it’s important to remember every year, these averages don’t paint a complete picture. The zones you typically ship to and the services you typically use could dramatically affect the actual increase you’ll see on your invoices. Some are much higher than the average, while others are much lower or remain the same. UPS is likely to make its announcement for 2018 rates soon and if history is any indication, the averages will be similar to its competitor. 

FedEx and UPS traditionally have similar average rate increases, but in the last few years their base rates have diverged a bit. Ground base rates used to be nearly identical, but in 2017 the two carriers took different increases in different zones, making it harder to compare apples-to-apples. On top of that, they also implemented slightly different approaches to dimensional (DIM) weight pricing, by using different DIM factors. As a result, looking at what would be most cost effective for you and how your rates will change has become more complicated.

Another trend that we’ve seen from UPS and FedEx is the announcements of additional changes throughout the year, separate from the GRIs. The announced averages have gone down in recent years, but these mid-year adjustments can sometimes have a larger impact.

One example of this is the new peak season surcharges that UPS is implementing for the holidays this year. UPS recently announced that it will apply a 27-cent charge on all ground residential packages during its busiest weeks in November and December. FedEx is taking a notably different approach and forgoing any additional holiday residential surcharges except for  packages that are big or bulky enough to require special handling.

Both UPS and FedEx attribute charges like this to the rise of e-commerce, which has brought a sharp increase in residential shipments, particularly oversized items like furniture and exercise equipment. These kind of parcel shipments put a strain on their networks and their sorting machinery, and they've been finding ways to make up for these costs.

FedEx is also making a couple of additional moves to address the changing nature of parcel shipments in 2018. It will now apply a surcharge for shipments with third-party billing – mimicking a move that UPS made at the beginning of 2016. FedEx will also begin applying a DIM factor of 139 to all SmartPost parcels, effective January 22. UPS already applies DIM weight pricing to SurePost packages, but uses a higher DIM factor for packages 1,728 cubic inches and under.

Every year, when the new rates for UPS and FedEx are out, PartnerShip does a complete analysis so you can determine what effect it will have on your business. Subscribe to the PartnerShip Connection blog to be alerted when it’s out so you can start planning for the new year and learn how to mitigate the rising costs of small package shipping. 

The Aftereffects of Hurricane Harvey on Shipping – What to Expect

09/01/2017 — PartnerShip

One of the most devastating storms of the past century, Hurricane Harvey, has left its destructive mark on Houston, Texas, and its impact will create a ripple effect on shipping that will be felt for months, if not years.

The entire PartnerShip team holds everyone impacted by Harvey in our thoughts, and we'd like to thank everyone that has assisted in the relief efforts.

According to DAT, inbound and outbound freight volume for Houston was down 10 - 15%, and its analysts expect that number to hit 75 or 80 as storm clean-up begins.

Logistics research firm FTR predicts similar countrywide supply chain effects and increases in rates. “Look for spot prices to jump over the next several weeks with very strong effects in Texas and the South Central region,” according to FTR economist Noël Perry. FTR noted that rates gained 7 percentage points in the five months after Hurricane Katrina in 2005 and spot market rates jumped 22% in the weeks following massive snowstorms in 2014.

FTR states that the most immediate effect on capacity is caused by trucks waiting for the area to become passable so they can resume operation. Longer-term effects to capacity will include the relief shipments, additional construction supplies as the area rebuilds, reduced productivity due to freight lane shifts and rerouting, and increased congestion at loading docks caused by these supply chain disruptions.

Other considerations for shippers:

• Harvey has shut show about 20% of US oil refining capacity in Corpus Christi, Port Arthur, Lake Charles and Houston. The disruption will drive up fuel prices and the fuel surcharges carriers charge for every load.
• As noted, carrier capacity is going to get tighter. FEMA and other agencies are putting pressure on the market to move equipment and supplies to the area. This capacity tightening should first affect flatbeds to move heavy equipment, then reefers to move food, then dry trailers for dry goods and other supplies.
• It is likely carriers may struggle keeping their commitments to you in the short-term as FEMA and other agencies will pay a premium to move needed equipment and supplies. You may need to shift your carriers around in order to secure the capacity you need.
• Your transportation costs will increase. Be prepared to pay 5 - 22% more in the short term.
• Your customer demand will change. Your customers or suppliers may cancel shipments, or add shipments, or reroute shipments. Until operations in the Houston area resume and get back to normal, there will be interruptions in every industry’s supply chain.

What You Need to Know About Freight Class Changes

08/10/2017 — Jen Deming

Weight, density, distance, and freight classification are all important variables that help to determine your LTL freight rate. Periodically,the National Motor Freight Traffic Association (NMFTA) will update and rework these freight classes in order to keep up with industry changes when needed. One such change went into effect on August 5, 2017 and has adjusted the NMFC class breakdowns on several categories of freight shipments. What are these changes and how will they affect you as a shipper?

The most significant change is seen in the categories of LTL freight that are classed according to a shipment's density or pounds per cubic foot.Typically, the lower the density, the higher the shipment will be classed (and the higher your rate will climb). Commodities such as Plastic Articles (15660), Wire Goods (198080) and Clothing (49880) are affected by this freight class update in addition to 138 other density-based freight classes.

The good news for shippers is that the new 11-tier system will provide a lower freight class for LTL shipments that are VERY dense (over 22.5 lbs per cubic foot).  If you are currently shipping loads that fall within this category, the lower freight class will potentially save you money going forward.

The other change affects mid-ranged LTL freight shipments with a class of 4-6 pounds per cubic foot previously set at class 150. With the new 11-tier breakdown, these shipments will be increasing to an updated class 175. Illustrated below, is the adjusted 11-tier classification system that will be replacing the former 9-tier model. Bold-faced density descriptions (subs) are the revised breakdowns.

It's important to mention that shippers with a FAK on certain types of commodities will also be affected. For example, if a shipper has been regularly shipping actual class 150 items at a FAK 100, and the density is 4-6 lbs per cubic foot, the shipment will now move at actual class 175 and the FAK will no longer apply.

What can shippers do to empower themselves and ensure they are doing the most they can to keep their LTL freight shipping costs low? At PartnerShip, you work directly with a dedicated freight specialist who will assist in calculating the accurate density of your shipments, and their proper freight class. Additionally, PartnerShip expertly audits your freight bills and will check for common invoicing errors, such as incorrect discounts and carrier mistakes—which cost your company money and affect your bottom line! If you are unsure on how to proceed with classifying your freight, or have a shipping challenge and don't know where to begin, PartnerShip can help point you in the right direction.

Find your freight class online!

New Food Safety Rule Will Impact Shippers

05/18/2016 — Leah Palnik

Over the years, refrigerated (reefer) trucks have revolutionized the way perishable goods are transported. This technology provides shippers with the ability to reach larger markets and gives consumers better access to things like produce, pharmaceuticals, and personal care products. Most commonly, shippers and receivers of fresh fruits and vegetables, meats, and dairy products rely on this refrigerated technology to do business. However, with broadening opportunity, often comes increased regulation – especially when it comes to food safety.

In 2011, the Food Safety Modernization Act (FSMA) was passed by Congress and signed into law to ensure the safety of the U.S. food supply. Most recently a FSMA rule was finalized that will affect shippers, loaders, carriers, and receivers. The rule on Sanitary Transportation of Human and Animal Food is one of seven foundational rules proposed since January 2013 that aim to help create a solid framework for food safety.

The rule specifies conditions for cleaning vehicles between shipments, pre-cooling trucks, keeping accurate records on temperature controls, conducting training, and other protective measures.

Specifically, the rule establishes requirements for:

• Vehicles and transportation equipment: The design and maintenance of vehicles and transportation equipment to ensure that it does not cause the food that it transports to become unsafe. 
• Transportation operations: The measures taken during transportation to ensure food safety, such as adequate temperature controls, preventing contamination of ready to eat food from touching raw food, protection of food from contamination by non-food items in the same load or previous load, and protection of food from cross-contact, i.e., the unintentional incorporation of a food allergen. 
• Training: Training of carrier personnel in sanitary transportation practices and documentation of the training. This training is required when the carrier and shipper agree that the carrier is responsible for sanitary conditions during transport. 
• Records: Maintenance of records of written procedures, agreements and training (required of carriers). The required retention time for these records depends upon the type of record and when the covered activity occurred, but does not exceed 12 months.

Some operations are exempt from the rule, including those engaged in food transportation operations that have less than $500,000 in average annual revenue. Small businesses (businesses other than motor carriers who are not also shippers and/or receivers employing fewer than 500 persons and motor carriers having less than $27.5 million in annual receipts) will have two years to comply, while other businesses have one year from publication to comply.

If you ship or receive food, it’s important to understand these changes and the effect they’ll have on your operations. When your shipment requires a refrigerated trailer, you need a carrier that has superior capabilities and a price that won’t break your bottom line. PartnerShip provides competitive pricing on refrigerated truckload shipments and only works with the most reputable carriers. Get a free quote today!

PartnerShip Named Diamond Broker by Internet Truckstop

01/20/2016 — Matt Nagel

PartnerShip is proud to announce that we’ve joined Internet Truckstop’s Diamond Broker Program. Additionally, PartnerShip has secured a $100,000 bond which is a significant increase of what is mandated for all brokers and freight forwarders by law.

For a broker to stay in the program they must maintain an “A” credit rating and experience with Internet Truckstop. The broker also must abide by the TIA code of ethics. 

About Diamond Broker Program
Participating members receive a diamond designation attached to every load they post with Internet Truckstop. The Diamond Broker quickly delivers valuable assurances to Carriers regarding credit, performance history and the quality of their bond.  In addition to these competitive advantages the Diamond Broker receives experienced support to protect their bond, their credit score and their good name. 

About Internet Truckstop
Founded in 1995, Internet Truckstop is the first and largest freight matching service on the web. Internet Truckstop offers more tools than any other freight matching service available. These easy to use tools, one of the largest freight databases, and a commitment to the transportation industry make Internet Truckstop the leader in Internet freight matching.

PartnerShip is very excited to be part of this great program! We always strive to provide our carrier partners with a quality experience!

LTL Freight Rate Increases

11/11/2015 — Matt Nagel

Over the past month or so, freight carriers have been announcing general rate increases (GRIs) for this fall/winter. We’ve already provided some information about the small package increases but now PartnerShip has compiled some details for your benefit so you can make well-informed, money and time saving decisions about the best way to handle your freight shipping.

Let’s start with defining GRIs. GRIs are just what they sound like — increases in freight rates. There are many reasons why these increases are necessary, but the main reason is a sharp increase in costs that carriers face every year due to things like fuel, maintenance, insurance, labor costs, and driver shortages.

Listed to the right, we've compiled GRIs for five of the larger national LTL freight carriers, the percentage at which their rates will be increasing, and the dates these increases will go into effect. One important thing to remember is that these rate increases are only averages across all origin and destination ZIP code combinations served by each individual carrier. The effect of the rate increase will vary for individual customers and shipments based on geography, product classification, lane, weight, and dimensions.

Remember, PartnerShip is here to help you offset these increases. We've negotiated with carriers on your behalf to bring you the best rates in the industry with the most reliable national and regional carriers. In addition to great rates, PartnerShip brings a dedicated freight team, free money-saving services like invoice auditing and inbound management, and easy-to-use online freight tools ... all designed to save your company time and take the guesswork out of freight shipping (click here to create a PartnerShip.com account if you haven't already).

If you would like more information on these GRIs, please contact PartnerShip at 800-599-2902 or email sales@PartnerShip.com. Click here for a free, no-obligation shipping analysis to help you determine which carriers and which lanes will save you the most money on your freight shipping.

Why You Should Care About Truck Driver Availability Issues

10/21/2015 — Matt Nagel

Why should you care about truck driver availability issues? For one, it directly affects how much you pay to ship your freight. The more truck drivers available to transport loads across American roadways means more competition for your load, more capacity available, and lower prices on freight transportation. It also means that you have less of a headache trying to find someone to take your freight to less desirable locations in the country.

Now that you know why you should care, we’ll take a look at what is causing this issue, what steps are being taken to address this issue, and how you can offset this problem for your company’s shipping operations right now.

What is causing the driver shortage?

• Age – One of the largest factors today is the average age of the existing workforce which is 55 as compared with 42 for all US workers. With an aging demographic of labor, there aren’t enough newer generations looking for jobs in the trucking industry. Coupled with the age gap, the industry has struggled historically to attract enough qualified applicants to drive a truck. Carriers need to be highly selective when hiring drivers because they have made safety and professionalism their main concern.
• Industry Growth – There is more freight on our roadways today than ever and all signs point to that continuing to increase - with overall revenue in the trucking industry expected to rise 66% and tonnage forecasted to increase 22% by 2022. More freight means the need for more drivers.
• Lifestyle – New generations are not exactly flocking to the trucking industry, as the romance of the open road doesn’t seem to be enough to entice drivers to spend significant amounts of time away from their families.
• Gender – The majority of the workforce is predominantly male. Females only comprise of 6% all truck drivers which leads to a very large untapped portion of the population.
• Job Market – With the job market improving over the years there are more job opportunities available for would be potential truck drivers.
• Federal Regulations – While normally in the interest of safety, changes to Hours of Service (HOS) regulations, CSA and Electronic Logging Devices continue to play a large role as they can reduce driver productivity and ultimately earning potential.

How are driver availability issues being addressed?

• Driver Pay – Perhaps the most important attractor to truck driving is that pay is increasing for this profession. The average annual pay is up about 28% since 2000 and that trend shows no signs of changing. In an effort to attract quality candidates, sign-on bonuses are now very common within the industry along with family-friendly work schedules.
• Working Conditions – Technology updates such as a shift to automatic transmissions, new diagnostic tools, and digital communication and tracking are being implemented to attract tech-savvy generations to a traditionally un-technology focused industry. Secondly, long-haul trucks are being made more comfortable with amenities like kitchenettes, pet accommodations, and more comfortable interiors that are taking the edge off of long trips.
• Lowering the Driver Age – The minimum age for interstate driving in the trucking industry is 21. By lowering the age limit to 18, the industry will open up to those 18-20 year olds that may have already found another trade by the time they are 21.
• Increasing the Labor Pool – Initiatives are being created to help foster a positive image of truck driving as a satisfying career. Carriers are also developing programs to help with the training and development of their existing talent.
• Autonomous Trucks – New technologies like driverless trucks might not be on the roads today, but it's a technology that is gaining steam and could be here sooner rather than later. Platoon driving might be the first technology down the pike that, while still requiring equipment operators, provides the opportunity to decrease driver involvement by using a lead truck connected to others. The lead truck would then control the following (linked) vehicles through controlled breaking and acceleration.

How can I offset issues for my shipping operations due to current driver shortages?

The American Trucking Associations (ATA) estimates that the U.S. is short 35,000-40,000 truck drivers and has the potential to go much higher. And, as we mentioned before, less truck drivers means less competition for your freight and, in turn, a higher price to move your shipment. While there are steps being taken to correct 35,000 driver gap, it definitely won’t happen overnight. It’s important to take corrective steps now to realize present and future savings for your company.

The right price for your load is usually out there, you just have to put in the time to find the rate. Working with a 3PL partner, someone completely dedicated to finding you the right rate, is one way many companies are offsetting the current time and price commitment reality in the trucking industry. A good 3PL should put a great deal of effort into concentrating on the market, developing solid relationships with carriers and drivers alike, and leveraging that stability into savings and service for their customers.

Visit PartnerShip.com if you would like to know more about truckload services through PartnerShip, our carrier partners, or to contact us with questions.

Safety Truck lives up to name

10/13/2015 — Matt Nagel

We’ve all been there; driving behind a semi that is chugging up a long hill or taking its time on a two lane road. Sometimes, it’s OK, you’re not in a hurry, but other times you’re already late and the truck is making a bad situation worse! The choice you’re left with is safely waiting it out and following the truck to your destination, or weaving in and out of oncoming traffic to find the perfect moment to legally pass the semi-truck. Most of us choose the more dangerous, but quicker, second option.

The good news is that Samsung is actively working on a solution to this very problem. Over the summer, Samsung released video of its Safety Truck in action (below)!

The Safety Truck works by using a safety camera attached to the front of the truck, which is connected to a video wall made of four monitors located on the back of the truck. The monitors provide any driver behind the truck with a full, unobstructed view of the road ahead.

While the technology is currently targeted for use abroad, where there are more serious traffic safety issues, the possibility of seeing this on United States roadways definitely exists. We just hope the technology is in fact used for displaying roads and not for serving for more FanDuel advertisements…

PartnerShip Celebrates Manufacturing Day!

10/01/2015 — Matt Nagel

PartnerShip joins North America in celebrating manufacturers! This year, MFG DAY will be celebrated on October 2nd, and is a celebration of modern manufacturing meant to inspire the next generation of manufacturers. MFG DAY addresses common misconceptions about manufacturing by giving manufacturers an opportunity to open their doors and show what manufacturing is — and what it isn’t. By working together during and after MFG DAY, manufacturers will begin to address the skilled labor shortage they face, connect with future generations, take charge of the public image of manufacturing, and ensure the ongoing prosperity of the whole industry.

MFG DAY is designed to amplify the voice of individual manufacturers and coordinate manufacturers that have common concerns and challenges. The rallying point for a growing mass movement, MFG DAY empowers manufacturers to come together to address their collective challenges so they can help their communities and future generations thrive.

Tomorrow is an important day for PartnerShip and the hundreds of manufacturing companies to which we provide shipping services. If you would like to learn more about MFG DAY, visit mfgday.com. There, you can find resources to help you get involved, sign up to host an event, view sponsors, and get up-to-date news. We would also recommend visiting the MFG DAY YouTube channel for great videos about events and manufacturing in general!

FedEx Announces 2016 Rate Increases

09/17/2015 — Leah Palnik

This week, FedEx announced its general rate increases (GRI) for 2016. Effective January 4, 2016, FedEx Express will increase shipping rates by an average of 4.9% for U.S. domestic, U.S. export and U.S. import services. FedEx Ground and FedEx Home Delivery will increase shipping rates by an average of 4.9%. FedEx SmartPost^® rates will also increase and FedEx One Rate^® pricing will change.

Shipping fees and surcharges will also be changing. Here are a few examples of surcharge changes that will apply in 2016:

A couple of changes are coming ahead of the New Year and will be in effect starting on November 2, 2015. Fuel surcharge tables will be updated for FedEx Express and FedEx Ground, with full details becoming available on fedex.com by September 23, 2015. Also, the FedEx Ground Charge for Unauthorized Packages will increase from $57.50 per package to $110 per package. This charge applies to: 

• Any package measuring more than 108 inches in length
• Any package measuring more than 165 inches in length and girth combined
• Any package weighing more than 150 lbs.

If you ship small packages these rate increases will likely affect your business. When FedEx and UPS provide the full details of their GRIs, you can count on PartnerShip to provide you with a breakdown of what these new rates will mean to you and your business in 2016. 

In the meantime, it's important to start evaluating how you can combat these rises in shipping costs. Through a PartnerShip-managed shipping program, you receive significant discounts on select FedEx services - resulting in savings that can offset these rate increases. If you're not sure if you qualify for one of our small package shipping programs contact us and we'll find the solution that's right for you. 

PartnerShip Thanks America's Truck Drivers

09/14/2015 — Matt Nagel

This week, PartnerShip joins the American Trucking Association (ATA) in celebrating a group of workers playing a large part in the American economy – truck drivers. National Truck Driver Appreciation Week, September 13-19, 2015, is when America takes the time to honor all professional truck drivers for their hard work and commitment in tackling one of our economy’s most demanding and important jobs. These 3.4 million professional men and women not only deliver our goods safely, securely and on time, they also keep our highways safe.

If you would like to learn more about National Truck Driver Appreciation Week, visit trucking.org for more information on the event and the ATA. Also, watch the short video below from ATA that salutes America’s truck drivers.

Drivers Gear Up for the "Super Bowl of Safety"

08/11/2015 — Matt Nagel

The National Truck Driving Championships are here again and the country’s top truckers are ready to compete for the right to be crowned the Bendix National Truck Driving Championships Grand Champion! More than 400 top professional truck drivers from across the country will head to St. Louis for the 78th annual “Super Bowl of Safety,” the 2015 National Truck Driving Championships and National Step Van Driving Championships, hosted by American Trucking Associations.

“Safety is the trucking industry’s top priority,” said ATA Chairman Duane Long, chairman of Longistics, Raleigh, N.C., “and each year, the industry’s commitment to safety is displayed at the NTDCs. The competitors here are the safest drivers on the highway and an example for us all.”

Over three days, 431 competitors from all 50 states, including 39 first-time participants, representing 85 different companies will vie for honors in one of eight different classes and the title of Bendix National Truck Driving Championships Grand Champion.

The festivities begin on August 13 with the Breakfast of Champions, followed by three days of competition behind the wheel on a challenging driving course and other tests of their knowledge of safety and of the industry.

Competition concludes on August 15 with the crowning of the Bendix National Truck Driving Championships Grand Champion, as well as with awards for drivers in every vehicle class and for the top state delegation.

The Allied Committee for the Trucking Industry is premiere sponsor of the 2015 National Truck Driving Championships and National Step Van Driving Championships, taking place August 11-15 at the America’s Center Convention Complex and Edward Jones Dome in St. Louis.

Many of the PartnerShip core carrier partners have drivers competing this week and PartnerShip is proud to maintain alliances with some of the most safe and reliable carriers in the industry!

Thinking about checking out the competition first-hand? Click here to take a look at the schedule of events for the competition. We’ve also included the video below of highlights from the 2014 National Truck Driving Championships in Pittsburgh to give you a better idea of the competition makeup and what to expect.

PITT OHIO Expanding Core Service Area

07/27/2015 — Matt Nagel

PITT OHIO, one of the PartnerShip carrier alliances, plans to expand service to Kentucky, specifically the Louisville market, starting Monday, August 17^th.

PITT OHIO is headquarted in Pittsburgh, PA and services the mid-Atlantic and Mid-West regions. PITT OHIO has continuously grown over the last 35 years and is expanding into the Louisville market to increase their services and direct coverage area.

"Our focus on providing customer-centric solutions to shippers has lead PITT OHIO to expand our core service area to include the metro Louisville market," said Geoffrey Muessig, Chief Marketing Officer and Executive Vice President. "Customers tell us that we can enhance their supply chains by providing reliable and dependable LTL service between the Mid-Atlantic states and Louisville."

"Current PITT OHIO clients and new customers can anticipate the same level of performance in Louisville expected from PITT OHIO elsewhere," Brad Caven, Vice President of Operations remarked. "Our Cincinnati terminal is well-equipped to exceed expectations to and from these markets in Kentucky."

Standard service times will be 1-2 days in most areas of PITT OHIO’s direct service area. Service to Louisville Kentucky will start Monday, August 17. Customers with freight in PITT OHIO´s current direct coverage area destined for Louisville can begin scheduling pickups on Friday, August 14.

If you are interested in receiving a PITT OHIO rate quote for an upcoming freight shipment, log on to PartnerShip.com, or create a web account if you haven't already done so.

Are Self-Driving Trucks the Future of Shipping?

06/16/2015 — Matt Nagel

Technology innovations, like in every industry, play a huge part in pushing the trucking industry forward and keeping efficiencies for customers and carriers at the forefront. From pallets to packaging and everything in between, there are always improvements to be made and a better way to operate. So what’s the next big innovation for transportation? It may very well be something that Peterbilt Motors Company has been working on and recently showcased at the ITS World Congress in Detroit – self-driving trucks, or an “advanced driver-assist system” as Peterbilt refers to the technology. This innovation reduces active driver steering by 80-85% and requires a well-marked highway so cameras can read road lines and position the vehicle.

Among other technologies, the vehicle uses:

• Radar-based adaptive cruise control (ACC) which automatically accelerates and decelerates, maintaining safe distances.
• Lane departure warning systems (LDWS) that uses cameras to detect lane edges and striping to alert drivers when the vehicle is drifting.

At the bottom of this post is a brief video (of a video) that was taken at the 2015 Mid-America Trucking Show. The video, while not the greatest quality, gives a very nice visual of the self-driving technology in action.

As you may be able to guess, there is still a lot of testing to be done and red tape to navigate before you should expect to see an unmanned semi on the highway. Even if/when this technology does come into use, you can still expect to see a driver, but more as a spectator rather than a primary operator.

There is technology that you may see on the road sooner rather than later and it’s called “platoon” trucking. A platoon is described as a convoy of trucks linked electronically to a lead truck with an active driver. This practice is said to increase fuel efficiencies up to 15% by limiting wind resistance. Producers and purveyors of this technology estimate that it could be on United States roadways in as little as a few years (click here to see a video of platoon trucking demonstrated by Volvo Trucks taking place in Spain a few years back).

There are many truck producers working to perfect these technologies and change the future of the trucking industry. As with most big ideas, it’s just a matter of time.

Happy National Small Business Week!

05/04/2015 — Matt Nagel

PartnerShip prides itself on being able to help businesses of all shapes and sizes save on their shipping costs. Small businesses are an integral part of the United States economy and, every year since 1963, the President of the United States has issued a proclamation announcing a National Small Business Week recognizing the critical contributions of America’s entrepreneurs and small business owners. More than half of Americans either own or work for a small business, and they create about two out of every three new jobs in the U.S. each year. This year, May 4-8th has been designated as the week to highlight the impact of outstanding entrepreneurs, small business owners, and others from all 50 states and U.S. territories.

The U.S. Small Business Administration (SBA) is the organization that coordinates this yearly event, and has designated this year's theme as "SBA: Dream Big. Start Small."

The week will highlight small businesses with events in Miami, Los Angeles, San Antonio, New York City and culminating in Washington, D.C. where national winners will be recognized and awarded.  Additionally, recognition events throughout SBA’s 10 Regions and 68 Districts will be held throughout the months of May and June.

If you're interested in learning more about National Small Business Week, you can visit the SBA website. There you'll find a schedule of both live and online events and other helpful information.

The GROW AMERICA Act turns attention and funds to transportation

04/22/2015 — Matt Nagel

As always, there’s been a lot of talk in Washington about different bills and budgets. One conversation in particular caught our attention as it would have a direct effect on the transportation industry – The GROW AMERICA Act. Brought to the forefront by the United States Department of Transportation (U.S. DOT) (something they haven’t done in almost a decade), the GROW AMERICA Act is a $478 billion, six year transportation reauthorization proposal that provides increased funding for the nation’s highways, bridges, transit, and rail systems. We’ll leave it to the politicians to line up and take sides on the finer points of the Act, but below is a description of some of the overarching themes presented (from the U.S. DOT's fact sheet):

Specifically, the GROW AMERICA Act will provide –

• $317 billion to invest in our nation’s highway system and road safety. The proposal will increase the amount of highway funds by an average of about 29 percent above FY 2015 enacted levels, emphasizing “Fix-it-First” policies and reforms that prioritize investments for repairs and improvements to the safety of our roads and transit services, with particular attention to investments in rural and tribal areas. The proposal will also provide more than $10 billion for the National Highway Traffic Safety Administration (NHTSA) and Federal Motor Carrier Safety Administration to improve safety for all users of our highways and roads, providing a benefit of $21 for every Federal dollar used for infrastructure-related safety investments.
• $115 billion to invest in transit systems and expand transportation options. The proposal increases average transit spending by 76 percent above FY 2015 enacted levels, which will enable the expansion of new projects that improve connectivity (e.g., light rail, street cars, bus rapid transit, etc.) in suburbs, fast-growing cities, small towns, and rural communities, while still maintaining existing transit systems. The GROW AMERICA Act proposes a powerful, $5.1 billion increase in investments to address public transit’s maintenance backlog to reduce bus and rail system breakdowns; create more reliable service; and stop delays that make it harder for all commuters to get to work. The proposal also includes the innovative Rapid Growth Area Transit Program, which will provide $3.4 billion over six years to fast growing communities for bus rapid transit and other multimodal solutions to get ahead of the challenges caused by rapid growth.
• Tools and resources to encourage regional coordination and local decision making. The proposal includes policy reforms to incentivize improved regional coordination by Metropolitan Planning Organizations (MPOs), which are local communities’ main voice in transportation planning. The GROW AMERICA Act also strengthens local decision making in allocating Federal funding so that local communities can better realize their vision for improved mobility. High-performing large MPOs will be granted control of a larger portion of funds under two federal transportation programs – the Surface Transportation Program (STP) and the Transportation Alternatives Program (TAP) – and these MPOs will also receive funds through a set aside under the new Fixing and Accelerating Surface Transportation (FAST) program.
• Improved tools to protect the public from dangerous vehicle and tire defects. The GROW AMERICA Act will give NHTSA the authority to issue imminent hazard orders requiring vehicle manufacturers to immediately take action to alleviate harm in cases where there is an imminent risk of injury or death. Additionally, it will improve vehicle and tire recall efforts by taking steps to ensure the public is informed of recalls at franchise dealerships, independent tire stores and state departments of motor vehicles. The Act also provides consumers more time to get tire defects fixed for free.

In short, the GROW AMERICA Act is a six-year bill that would increase investment in transportation by 45%. All sides in Washington see a need for fund allocation to transportation and infrastructure in the United States; the debate is currently circling around whether or not the GROW AMERICA Act is the right direction to take. Deadlines for a decision on plans for transportation funds have been bandied about, but nothing is set in stone. From our perspective, it’s good to know that there is a spotlight on transportation as the shipping industry would benefit from improvements to a major component in the shipping equation.

Feel free to leaf through the entire 361 page GROW AMERICA Act at your leisure!

The U.S. DOT is busy spreading the word and gaining support for the bill. Recently, they went on a bus tour to promote the Act and, earlier this month, released a video detailing the tour.

Shop Small on Small Business Saturday

11/25/2014 — Leah Palnik

Small Business Saturday is a day dedicated to supporting small businesses across the country and has grown into a powerful movement throughout the past few years. Falling this year on November 29th, this day has been celebrated on the Saturday after Thanksgiving every year since being founded by American Express in 2010.

Not only is PartnerShip a small business, but we also actively support thousands of other small businesses across North America with discounted shipping services and unique, value-added shipping solutions. We're glad to support this annual event which is promoted by American Express, and also supported by FedEx - one of our key alliance partners - and countless other organizations.

Visit the Small Business Saturday website to read some success stories, find out what you can do to promote your small business, and discover where to shop small this weekend. For more information on PartnerShip services and how we can help support your small business, click here to contact us.

Freight Industry Impact from Hours of Service Regulation Changes

08/06/2014 — Matt Nagel

The transportation and logistics industry is regulated by the Federal Motor Carrier Safety Administration (FMCSA) through the development and enforcement of safety regulations. One of these regulations is the Hours of Service (HOS) rules which dictate the working hours of anyone operating a commercial motor vehicle (CMV) in the United States — this includes truck drivers.

Last July the FMCSA made a ruling on HOS which altered provisions of the regulations. Changes that took effect in July of 2013 include:

• The limiting of the maximum average work week for truck drivers to 70 hours, a decrease from the previous maximum of 82 hours.
• Allowing truck drivers who reach the maximum 70 hours of driving within a week to resume if they rest for 34 consecutive hours, including at least two nights when their body clock demands sleep the most - from 1:00-5:00 a.m.
• Requiring truck drivers to take a 30-minute break during the first eight hours of a shift.

There are many reasons for these HOS changes, but the main reason is to combat accidents on the rise due to fatigue. The FMCSA cites increases in crashes due to fatigue the further a driver gets away from a break in driving. The FMCSA's goal is to obviously limit this statistic by inserting more breaks and limiting drive times.

These rules have now been in effect for over 1 year and the influence of the ruling can be seen throughout the industry — impacting every transportation and logistics company as well as their customers.

As you can imagine, one of the major issues that arose from HOS changes is that transit times are now longer. A shipper that is used to seeing a 625 mile next-day-delivery is now seeing that same shipment extended to 26 hours due to a 500 mile per 24 hours limitation change to the regulations. The increased transit times are leading to shipment pile-ups and congestion — a result of the changes that continues to snowball as time goes on.

Another difference that customers are seeing is a bump in prices. With drivers spending more time off of the road than before, rates are escalating to offset that lost time and wages. These changes to HOS regulations, and their effects, are making shippers and carriers reexamine their processes and practices to stay as efficient as possible. Offsetting shipping industry changes and prices can often be achieved by working with a 3rd Party Logistics (3PL) company which brings administrative and financial efficiencies to businesses that otherwise lack the resources to negotiate with carriers and navigate the ever-changing world of logistics.

If you're interested in learning more about the HOS changes, you can read more about them on the FMCSA website. There you can find a summary of HOS regulations, HOS FAQs, and a comparison of old and new HOS rules, among other resources. If you're interested in learning more about working with a 3PL partner, click the button below to download our free electronic white paper on the subject.

2014 Freight General Rate Increases

05/01/2014 — Matt Nagel

It's that time of year again. Freight carriers have been announcing their general rate increases (GRIs) this spring. As we did last year, PartnerShip has compiled some details for your benefit so you can make well-informed, money and time saving decisions about the best way to handle your freight shipping.

If you're a seasoned freight shipper, you probably know all too well the ins and outs of the GRIs. However for our more novice shippers, the GRIs are just what they sound like — increases in freight rates. There are many reasons why these increases are necessary, but the main reason is a sharp increase in costs that carriers face every year due to things like rising fuel, maintenance, insurance, and labor costs.

As straight forward as the reasoning for the increases sound, there are also some less obvious nuances to the GRIs that, as your shipping connection, we can help to clear up. One of the more important things to remember is that these rate increases are only averages across all origin and destination ZIP code combinations served by each individual carrier. The effect of the rate increase will vary for individual customers and shipments based on geography, product classification, lane, weight, and dimensions. Using geography as an example, if there's an "average" GRI of 6%; some areas may see a 3% increase and some may see a 9% increase in freight charges. The customer in the area with a 9% increase will obviously see a larger bump in cost, especially if distribution is regional.  

Listed to the right, we've compiled GRI for the five largest national LTL freight carriers, the percentage at which their rates will be increasing, and the dates these increases will go into effect.

Remember, PartnerShip is here to help you offset these increases. We've negotiated with carriers on your behalf to bring you the best rates in the industry with the most reliable national and regional carriers. In addition to great rates, PartnerShip brings a dedicated freight team, free money-saving services like invoice auditing and inbound management, and easy-to-use online freight tools ... all designed to save your company time and take the guesswork out of freight shipping (click here to create a PartnerShip.com account if you haven't already).

If you would like more information on this year's GRIs, please contact PartnerShip at 800-599-2902 or email select@PartnerShip.com. Click the button below and we'll be happy to provide you with a free, no-obligation shipping analysis to help you determine which carriers and which lanes will save you the most money on your freight shipping.

How Commercial Trucking Changed the World

09/30/2013 — Scott Frederick

The following guest blog post is being published compliments of Steve Updike Vice President / Principal at Updike Distribution Logistics, LLC, a Phoenix, Arizona-based distribution company.

The commercial trucking industry revolutionized the transportation of products when it arrived on the scene. Before trucks were used for transport, America's goods were shipped via railroads. However, trucks would soon prove to be faster and more efficient.

Advancements in technology

The combustion engine was invented in the mid-1800s, making trucking a viable alternative to the railroads. Solitary trucker-owners eked out a living, before even the invention of closed containers to protect goods. Roads were cobblestone and tires were solid rubber, making the journey a precarious one.

Economic prosperity in the 1920s, along with advancements in wheel technology, brought the first real boom in trucking. The advent of covered containers on trucks also helped to protect goods during transit and expanded possibilities for the nascent industry. Soon, however, the Depression put many growing companies out of business and essentially paused the industry until the economy rebounded after World War II.

Diesel engines expanded opportunity

Through the 1950s and 60s, diesel engines came into use, making longer journeys possible. Other technological advancements, such as multiple axles that allowed trucks to carry heavier weights, increased the trucking industry's capability to meet rising demands for consumer goods.

New laws spurred commercial trucking growth

In 1956, the federal government authorized an interstate highway system, which would make long-haul trucking faster and more cost effective than other methods of distribution. The development of the interstate highway system coincided with the rapid growth of suburbs, making truck transportation even more vital because railroads stopped mostly in major cities.

Market complexity prompted innovation

Over time, as trucking emerged as the most common method of transporting merchandise, trucking companies became larger and more complex. Third party logistics (3PL) providers would ultimately work with companies to navigate those complexities, helping businesses find the most efficient ways to distribute products.

Starting in the 1970s and 80s, the trend toward outsourcing to 3PLs gained speed. Congress passed the Motor Carrier Act in 1980, which deregulated the commercial trucking industry. This deregulation paved the way for companies to begin providing multiple services across transportation sectors.

Before 1980, for example, companies mostly provided trucking services, operated on the railroads or stored goods. Companies entering the market were required to prove their entry didn't financially harm an existing company. Deregulation removed the barriers to entry and companies began offering multiple services and expanding their reach into the supply chain.

As technology became even more advanced in the 1980s and 90s, possibilities for tracking products and analyzing routes became even more complicated. The technology side of 3PL became one of the industry's main selling points for companies looking to become more efficient in an increasingly competitive world.

Today, with the supply chain so complex and with so many variables, many companies turn to third party logistics providers to manage their supply chain distribution.

Trucking has come a long way since its inception, and continuing advances in technology, including fuel efficiency, mean that it will likely stay an important part of how goods get distributed across the nation.