3 Useful Tips to Help Reduce Your Freight Claims

07/28/2017 — Jen Deming

“Damage” and “Claims” are four letter words in the world of freight shipping, and can be a real headache to logistics managers and coordinators alike. On both the outbound and receiving end, there are several ways you can reduce these risks and help keep freight damage to a minimum.

Packaging
Proper packaging for your freight shipment is key, whether you are shipping boxed items or palletized loads, and one of the most avoidable mistakes contributing to damage claims is insufficient preparation and packaging.  These materials cost typically less than an approximated 10% of overall shipping expenditures, so it doesn’t pay to cut corners in the short run when you are essentially increasing your risk overall. Containers and boxes should be in good, solid condition and sized to allow for just enough room to provide proper cushioning around your product. Use foam sheets, bubble wrapping, and cardboard inserts within the container, and wrap each item separately to maximize security.

To avoid freight damage, palletized shipments need to be secure as well, with items stacked uniformly and evenly distributed. Try to avoid product overhang on the edge of the pallets and anchor stacked boxes or multiple products into place with shrink wrap, plastic banding, or a breakaway adhesive. Being thorough and adhering to these standards can help limit the risk of damage.

Labeling and Paperwork
Precise shipment labeling also helps limit freight claims and losses by listing correct contact details, product descriptions, and ensuring accurate transit and delivery. To be sure that these instructions are clear, remove or completely cover old labels. Place the label on the top of the container or make it clearly visible on the side of each individual pallet, and include the total pallet count. For added safety, place a copy of the address label inside the container should the original be removed during transit.

A properly completed Bill of Lading (BOL) must be included with your shipment and serves three essential functions: a receipt for the goods being shipped, a document of titles, and evidence as the contract between the carrier and the shipper. Be sure to precisely class your shipment, include product description and item count, as well as list your billing party. If the event that you do receive damaged boxes and product, it is important to inspect and note details of the freight damage on the delivery receipt before signing for receipt of your freight. All of these details are essential should your shipment encounter any bumps in the road and you do need to file a freight claim with a carrier.

Choose the Correct Service
Knowing which particular type of freight shipping service best suits your shipment type can also help reduce damage and claims. Keep in mind, that standard Less-Than-Truckload shipments are loaded and unloaded several times at various carrier terminals as they make their way from your origin to its final destination. With each additional stop, your risk for freight damage increases. If the security of your shipment is a special concern, it may be worthwhile to consider moving your larger, multiple pallet loads with a dedicated or partially dedicated truckload service. With no extra stops, your freight does not need to be moved on and off the truck and remains significantly more secure with a quicker transit time, speeding up the delivery of your product.

These suggestions are just a few ways you can be vigilant about protecting your freight shipments against damage and claims. While there’s no sure fire way to avoid these occurrences completely, PartnerShip can help you measure your shipping options and determine the best ways to help protect your freight. Contact us at 800-599-2902 or get a quote now!

Expedited LTL Shipping - What Is It and When Should You Use It?

07/19/2017 — PartnerShip

• When you have strategic partners that rely on you for goods that are components needed to finish a product, such as seats shipped to an automobile manufacturing facility that has a just-in-time inventory management strategy. If your shipment doesn’t arrive when it is needed, the entire plants may need to be shut down until the freight arrives
• When you are shipping to a retailer that has strict delivery window requirements. Missing these delivery dates and / or times may result in chargebacks of around 3% of the value of the purchase order. So if an order valued at $50,000 was early or late, you’d pay a $1500 fine. Paying extra for expedited LTL shipping to avoid fines is a small investment
• When you are shipping high-value goods. Remember, expedited shipping has fewer touch points and fewer opportunities for damage and / or theft to occur
• When you employ a just-in-time or lean inventory supply chain strategy to lower your inventory costs
• When critical machinery breaks down and replacement parts are required to keep an operation functioning

LTL Rate Increases You Need to Know About

07/13/2017 — Leah Palnik

Freight carriers are catching shippers off guard this year by taking their general rate increases (GRIs) earlier than before. Last year, the LTL rate increases came in the fall, but this year many of the major carriers increased their rates in May and June.

• ABF increased an average of 4.9% on May 22

• YRC Freight increased an average of 4.9% on May 29

• XPO Logistics increased an average of 4.9% on June 5

• Estes increased an average of 4.9% on June 26

• UPS Freight increased an average of 4.9% on June 26

Planning and budgeting for your freight
When you look at average LTL rate increases, it’s important to note that you can’t take the average at face value. If you’re trying to determine what kind of effect this increase will have on your freight costs, you will need to look at the specific increases in your typical lanes. Some lanes will have drastically lower or higher increases than the average.

Factors affecting price
There are several factors that contribute to the cost of your freight, and there are several trends that have had an impact recently. In recent years freight carriers have made a push to become more efficient in measuring and classifying freight. Many LTL carriers have invested in dimensioning machines, which makes measuring dimensional weight a lot easier. This means shippers need to be extra careful when choosing a freight class on the BOL to avoid costly reclassifications.

Another factor is capacity. The manufacturing industry is expanding steadily, creating more demand, while the trucking industry is experiencing a driver shortage. The new ELD mandate and hour of services changes will only continue the trend. When capacity is tight, the power is in the hands of the carriers and they can charge more – especially on less profitable lanes.

If you’ve been watching the news the last several months, you probably saw the recent wave of retail chains closing many of their brick-and-mortar stores. Ecommerce has had a profound effect on the market and the trucking industry is not immune. Consumers have come to expect free shipping and are buying more and more individual items online. As a result, there are more residential deliveries than ever before and in some cases there has been a some shift in demand from truckload to LTL.

Offsetting the increases
PartnerShip works to negotiate competitive rates on your behalf with the most reputable LTL carriers in the industry. Combat these rising costs by contacting our shipping experts at 800-599-2902 or email sales@PartnerShip.com.

Get a free quote on your next LTL freight shipment!