• It All Adds Up: The Operational Costs of Moving Freight

    06/22/2018 — Jerry Spelic

     It All Adds Up The Operational Costs of Moving Freight

    Moving freight is getting more difficult, and therefore, more expensive. If you’ve ever had “sticker shock” from a freight quote, you’re not alone. There are a lot of cost factors that go into the price you pay to move freight, so we want to explain them so you can be an informed shipper and ship smarter.

    Every LTL or truckload freight shipment has fixed and variable costs that are calculated into the rate you pay to ship your freight. Let’s start by looking at the fixed costs.

    Fixed Costs:

    • Truck Payment. Owned or leased, drivers and operators have the expense of their equipment (trucks and trailers) to consider when quoting your freight. New trucks can be leased for $1,600 to $2,500 per month and used trucks can be leased for $800 -- $1,600 per month; a new truck can be purchased for $2,250 a month (purchase price of $125,000 with 5-year financing). On average, truck payments are 16% of the cost of moving freight.
    • Insurance. The FMCSA requires individual owner-operators to carry a minimum of $750,000 to $5 million in liability coverage. On average, liability and damage insurance can cost between $6,000 – $8,000 per year, with newly-granted authorities typically paying between $10,000 and $16,000 their first year. Truck insurance accounts for 5% of the cost of freight shipping.
    • Driver Salary. This is the largest operating cost of moving freight. Commercial truck driver salaries are based on the distance driven, and although drivers spend a lot of time in traffic, at the dock being loaded or unloaded, etc., their operating costs are only derived from miles traveled. With an average salary of $78,200, driver pay and benefits accounts for 43% of operational costs.
    • Office and Overhead. This fixed cost includes a building lease or mortgage, and includes electric, phones, internet, computers, and office support. These costs can vary widely.
    • Permits and Licenses. Permits and license plate costs account for $2,300 annually, or 1% of operational costs.

    Variable Costs:

    • Fuel. The second largest operating cost of moving freight is diesel fuel. A commercial truck can easily consume 20,000 gallons ($64,000) of diesel fuel per year, accounting for 21% of operational costs.
    • Tires. Retreaded truck tires are less expensive than new tires and cost on average $250. Annual tire expense accounts for $3,600, which is roughly 2% of operational costs.
    • Maintenance and Repairs. Trucks need constant maintenance and do occasionally break down. Issues with air lines and hoses, alternators, wiring, and brakes are all common in commercial trucks, and can cost $17,500 annually or 10% of operational costs.
    • Meals. The truck isn’t the only part of LTL and truckload freight shipping that needs fuel! 10 meals a week at $12 each equals a meals expense of $6,500 a year.
    • Tolls. With nearly 5,000 miles of toll roads in the US, chances are good that your freight will be traversing at least one of them, and this will be factored in your cost. For example, a load moving from Chicago to Baltimore will encounter toll roads in Illinois, Indiana, Ohio, and Pennsylvania, costing $225.75.  Sometimes a carrier can avoid toll roads, but this will frequently increase the number of miles driven, which also increases your cost. On average, tolls add $2,500 a year, 2% of the total cost of freight shipping.
    • Coffee.  Did you know that truck stops sell more coffee than convenience stores? The average commercial truck driver spends more than $600 a year on coffee. Its effect on cost is negligible but we thought it was interesting!
    • Profit. Remember, freight carriers are in business to make a profit. Owners, operators and drivers are funding their kids’ education or dance lessons, paying their mortgages, and buying food and necessities, so please don’t expect them to move your freight for free.

    There are also many miscellaneous items that can factor into overall freight costs:

    • Electronic Logging Devices (ELD), which have decreased driver productivity approximately 15%. When drivers spend less time driving, transit times increase and drivers move fewer loads, which pushes costs up.
    • Telematics services, such as vehicle and trailer GPS tracking.
    • Driver turnover; not just the cost of recruiting and training, but also the opportunity cost of empty trucks not hauling freight because they have no drivers.
    • Finding loads to move can take up a sizable chunk of every day. Every hour spent not driving loaded miles is an hour a driver isn’t making money.

    The bottom line is that a lot of factors go into the cost you pay for LTL or truckload freight shipping. The costs listed here are conservative and are probably on the low end, so your costs may be higher.

    The struggle is real: moving freight is getting more difficult and more expensive. By shedding light on the costs that go into each and every LTL or truckload freight move, we hope that you’re better informed so you don’t experience “sticker shock” next time you get a freight quote. If you find yourself battling rising freight costs and need some help, contact the freight shipping experts at PartnerShip. We have significant experience in both the LTL and full truckload markets and can help you ship smarter so you can stay competitive.

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  • Factors Contributing to the 2018 LTL Rate Increases

    06/19/2018 — Leah Palnik

    Factors Contributing to the 2018 LTL Rate Increases

    LTL freight rate increases are unavoidable. And in this current tight capacity market, it’s no surprise that many carriers have taken their general rate increases (GRIs) earlier than in previous years. Just like in the truckload market, costs are been driven up by the ELD mandate, the driver shortage, and hours of service (HOS) rules. Coupled with the strong U.S. economy, freight demand is surging and straining the market.

    Along with the tight capacity market, trends towards shorter supply chains and smaller, lighter loads have led to more demand for LTL services. The rise of ecommerce has played a large role in the increased demand. Products that consumers never would have dreamed of ordering online years ago, like furniture, have now become commonplace for ecommerce. However, these types of shipments are less desirable for carriers. With more deliveries being made to more remote areas without backhaul opportunities, the costs are significantly higher for them.

    With the driver shortage, it is easier for carriers to find and recruit LTL drivers, compared to truckload. They are more appealing jobs, with shorter lengths of hauls and less time away from home and families. However, there are fewer LTL carriers entering the market when compared to truckload. The complex networks of terminals that LTL carriers rely on are much more difficult to establish, making it a significant barrier to entry.

    With all of those factors to contend with, LTL carriers have been announcing their GRIs throughout the first half of 2018.

    Rates aren’t the only thing on the rise. Many carriers are charging more for accessorials like inside delivery or Saturday delivery. Carriers are also implementing tools and technology that help them determine what types of freight are profitable and which ones aren’t – and charging accordingly. Dimensional pricing is one example of this. Many carriers have invested in dimensioning machines, which calculate the amount of space a shipment will need in the truck, leading to less dependency on the National Motor Freight Classification (NMFC) system.

    As with any announced rate increases, the important thing to remember is that the averages may not reflect the actual increases you’ll see in your freight bills. Depending on the lane and shipment characteristics like weight or class, the increase could be significantly more.

    To determine what you can expect and what you can do to offset the rising costs, start by taking a look at the increases for your typical lanes. That will give you a better idea of what cost increases you can budget for, rather than relying solely on the reported averages. Then determine ways to reduce those costs. Consider working with a freight broker, to benefit from their industry expertise. A quality broker will have the knowledge to help you navigate the market and will be able to find solutions that can help to reduce your costs.

    PartnerShip can help you ship smarter. For a competitive rate on your next LTL shipment, get a free quote!

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  • PartnerShip Loves Our Carriers! Here is Our May Carrier of the Month

    06/15/2018 — Jerry Spelic

    PartnerShip Loves Our Carriers! Here is Our May 2018 Carrier of the Month

    We love our carriers, because we know that if it weren’t for our top-quality freight carrier partners, our customers couldn’t ship and receive their freight in a timely and cost-effective way. Our carriers help us help our customers ship smarter. 

    Our May Carrier of the Month is Stankovic Transport, Inc. of Brunswick, OH! They have been in business since 2009 with more than 50 owned and operated trucks and trailers.

    The PartnerShip Carrier of the Month program recognizes carriers that go above and beyond in helping our customers ship and receive their freight. Our truckload team members nominate carriers that provide outstanding service in communication, reliability, and on-time performance.

    For being our May 2018 Carrier of the Month, we’re providing Stankovic Transport lunch for the whole office and a framed certificate to proudly hang on their wall. The gestures may be small but our appreciation is huge!

    Interested in becoming a PartnerShip carrier? We match our freight carriers’ needs with our available customer loads because we understand that your success depends on your truck being full. If you’re looking for a backhaul load or shipments to fill daily or weekly runs, let us know where your trucks are and we’ll match you with our shippers’ loads. If your wheels aren’t turning, you’re not earning.

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  • Freight Insurance: Is It Right For Your Business?

    06/13/2018 — Jen Deming

    Freight Insurance Blog Post

    Let's face it: ship happens. Even though many shippers prepare for the worst and do their very best to protect their freight, loss and damage are an unfortunate reality of the business. Freight insurance is a vital tool that business owners can use to offset the costs of freight damage and limited carrier liability. Unfortunately for many shippers, freight insurance coverage can be complicated to understand and is often misunderstood. How do you know if you should be using freight insurance?

    First and foremost, it is important to understand the difference between freight insurance and carrier liability. Carrier liability is an industry term used to describe the responsibility of the carrier as it relates to losses, damages, and delivery delays to compensate the shipper. Of course, exceptions are put in place by the carrier, such as whether the damage or loss is a result from the action of a shipper (ex. improper packaging), an act of God, public authority, or due to the inherent nature of the goods.

    It is the responsibility of the shipper to prove that the damage or loss of their shipment is a direct result of the carrier's own negligence. To accomplish this, it is important to take pictures of your packaged freight before the pick-up is completed, and inspected thoroughly once it is delivered. Any damage or loss MUST be noted on the delivery receipt. If your shipment does not encounter any issues, it is important to properly follow the claim filing process within 9 months of the delivery date. You have even less time with a concealed claim. At 5 days max, it is extra crucial to get the process moving along promptly.

    But here's the thing about carrier liability: even if you can win a claim against the carrier, the payout often doesn't cover the total cost or value of your freight shipment. Every carrier has an established payout amount, usually per pound and depending on the fright class and limit of liability. Additionally, there are many exceptions and limitations as well as restricted types of freight that are compensated for even less, such as some electronics, artwork, and furniture types. The good news? Freight insurance does not require the shipper to prove that the carrier was at fault for the damage or loss, simply that the damage occurred. It's a great way to protect you and your customers and to be sure your shipment can be covered for its full value. Freight insurance is often offered by third-party insurers at a fee on top of your carrier rate for transit. So how do you know if it's worth the extra cost?

    Fragile Shipments

    If you are shipping products that are fragile and may break easily, it's a good idea to seek out additional freight coverage. Most carriers have their best interest in mind, and only offer limited coverage on these types of shipments, knowing there is a higher potential that they may break in transit. So if there is damage, it's unlikely you will get the full value of what has been lost. Proper packaging can help mitigate the likeliness that damage may occur, but the loading and unloading process doesn't always go as planned. Damage can occur at pick-up and destination delivery, as well as the many times your freight may be loaded at various terminals throughout transit. There are carriers who specialize in the transport of fragile shipments, commonly referred to as white glove service providers, but this alternative can be costly and still may have limited coverage. Freight coverage purchased through an insurance provider is typically based on the declared value of your freight and can help give shippers peace of mind.

    High Value Freight

    Similar to those who ship fragile products, businesses who are transporting high-value goods need to be mindful of how much coverage they receive through limited carrier liability. Just because your shipment isn't particularly breakable, doesn't mean your freight is protected in the event that it can go missing or may be delayed. While unlikely, it's always a good idea to have a plan that will cover your back, and your bottom line. Carriers typically pay out by the pound. For example, it's not uncommon to see a pay out of $0.25 per lb or even less on restricted items for less-than-truckload, with a max cap of $100,000 per truckload. With many types of freight insurance coverage through different providers, the total value of the shipment is covered, despite whether the carrier accepts responsibility or not. Of course, it's always crucial that shippers are diligent and fully understand the terms of their third-party insurance coverage, no matter which provider they go with.

    Inbound Shipments

    Another important consideration for businesses concerns their supply order or inbound shipments. Typically, a vendor will determine this portion of the shipping process- choosing carrier, service type, and rate. Taking control of your inbound shipping is crucial, both in reducing costs and selecting the carrier that best suits your needs. But, apart from that, how can you better protect your inbound shipments against damage during transit, especially when as the receiver, you aren't even there to check on proper packaging and material handling? Enrolling in an inbound freight insurance coverage plan can help mitigate the cost of damage and help business owners take back control on their inbound freight.

    It's safe to say that if you are shipping high value freight, fragile products, or receive inbound shipments, it is crucial to take a look at supplemental freight insurance options. At PartnerShip, we want to offer better coverage than the typical limited liability offered by the carrier because "one size fits all" just doesn't cut it. The shipping experts at PartnerShip can help you decrease your risk and increase your peace of mind. Contact us at 800-599-2902 or email sales@PartnerShip.com for more information about freight insurance, or get a quote today.

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  • Local Girl Scout Troop Brings An Exciting New Game to Their School

    06/07/2018 — Leah Palnik

    Gaga Pit Opening 2018

    If you’ve never heard of gaga ball, you’re not alone. But to millions of kids around the world, it’s the hottest game on the playground right now. The game, played in an octagon pit, is simple. Similar to dodgeball, the goal is to be the last one standing and players use a soft foam ball to knock out their opponents.

    Gaga ball is a fast paced game that keeps kids on their toes. Once in the pit, players hit the ball with one open or closed hand without throwing, carrying, or dribbling. Players are out if the ball hits them below the knee at any time.

    The best part of the game is how inclusive it is. You don’t have to be the tallest, the strongest, or the most athletic to join in the fun. The games also have a fast turnover so everyone can have a turn, and even after getting knocked out, it’s not long before you can jump back in again.

    That’s why when a local Girl Scout troop contacted PartnerShip about helping to sponsor their gaga pit project, it was an easy decision. Supporting our community is important to us and providing a place where kids of all abilities can come together is a great way to do it.

    The Girl Scouts of Troop 168 in Westlake, Ohio saw a need in their community for something that would bring kids together and make everyone feel included. Girl Scout Tina Cirincione said she first learned of gaga ball from camp and knew it would be perfect for their Silver Award Project. From there Tina and her troop members began developing a plan. They researched possible locations and reached out to members of the community to put their plan into action.

    By working with the city of Westlake and Westlake City Schools, Troop 168 selected the grounds of Dover Intermediate School to build their gaga pit. This is the first gaga pit in Westlake – a huge accomplishment for the girls and their school.

    On a beautiful spring day, the gaga pit officially opened. At the site on Dover Intermediate School grounds, the Girl Scout troop invited everyone who supported their project to join them as they celebrated this addition to their community. Members of Westlake City Schools, Mayor Dennis M. Clough, and other community leaders joined the troop to celebrate.

    The members of Girl Scout Troop 168 were beaming with pride while Mayor Clough congratulated them on a job well done. Then it was time to jump in! The girls played the inaugural game and it was immediately apparent how much fun they were having. Even the adults played a round, proving it truly is a game for everyone to enjoy.

    Now that the gaga pit is open to the community and in a location that makes it easily accessible to kids in the area, it’s sure to attract a lot of activity. There aren’t many games that bring kids together the way that gaga ball does. Most organized sports require a certain skill level or will separate boys and girls. The way gaga ball is played allows for kids of all different backgrounds and skills to play together. Sports play a very important role in developing self-esteem, improving social skills, and staying active so having a game that can include kids that may otherwise miss out is a huge win.

    Girl Scout Troop 168 did an amazing job on this project. From gathering support, to making a plan and building the gaga pit, they put in a great deal of hard work. What Girl Scout Troop 168 did for their peers can serve as a lesson for all of us. Supporting your community in a small way can make a big difference.


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  • Your Guide to Proper Packaging

    05/30/2018 — Leah Palnik

    The Ultimate Guide to Proper PackagingProper packaging is a critical step in the shipping process. Just one mistake can expose your shipment to costly and time-consuming damages. Not only do you need to use quality materials, but you also need to package your products in a way that will increase strength and durability. Packaging is not a one-size-fits-all game, but it does start with some basic best practices.


    Small Package Shipments

    When picking a box for your products, you want one that is in good condition (no holes, rips, or dents) and is sized just right. There should be just enough space for the needed cushioning and no more. If you use a box that is excessively large you run the risk of being charged according to your dimensional (DIM) weight, which can get quite pricey.

    How you cushion your contents will depend on the product you’re shipping. In general, you can protect the contents of your package with bubble wrap, foam cushioning, paper pad, or packing peanuts. This will help to prevent damages caused by movement and vibration that occur during transit.

    Then it’s time to seal and label your package. Use packing tape rather than duct tape or masking tape, and seal your box using the H taping method. Remove any old labels from the box and place your label on the largest surface. Labeling is an important step for proper packaging, because it helps get your shipment to the right place without any unnecessary delays.

    Freight Shipments
    When deciding how to package your freight, consider the size and weight of your shipment and how it will be handled. What kind of protection will it need? Will it be on a dedicated truck or will it be moved on multiple vehicles?

    Palletizing your freight will give it a solid base and will make movement on and off the truck easy and safe, making it a good choice for many different types of loads. Wooden pallets are the most common, and are typically recommended by carriers like FedEx and UPS Freight. However, you may consider metal, plastic, or corrugated pallets depending on what you’re shipping.

    For the cartons on your pallets, make sure the contents inside are packaged properly with the needed impact protection and each carton is labeled with the shipper and consignee information. While stacking, you need to consider how it will affect the strength of your shipment. Start by placing heavier cartons on the bottom with lighter boxes at the top, and distribute the weight evenly. Use an aligned, column pattern while stacking and make sure there is no overhang.

    Once your pallet is stacked, you’ll want to secure it with stretch-wrap and banding. The stretch-wrap should go around the cartons several times and be twisted every other rotation for increased durability. For banding, use sturdy steel, rayon, polypropylene, nylon, or polyester straps.

    You may also want to consider crating if you’re shipping fragile freight. First, select a crate that is constructed from quality lumber. Most carriers will recommend plywood rather than oriented strand board (OSB), medium-density fiberboard (MDF), or particleboard. You also want to make sure your crate is sized appropriately, with excess space kept to a minimum.

    Proper Packaging Is Key
    Avoiding damaged freight and a claims nightmare starts with proper packaging. Along the way, you’ll also save yourself from costly DIM weight charges and increase the durability of your shipments. The time you spend up front to make sure you have proper packaging will be well worth it. Get in-depth instructions by downloading our free white paper – The Ultimate Guide to Packaging Your Shipments!


    Download the free white paper! The Ultimate Guide to Packaging Your Shipments


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  • Top 10 Trucking Movies of All Time

    05/24/2018 — Jerry Spelic

    It’s an argument decades old: what is the best trucking movie of all time? When you work in logistics and shipping, it’s an even more passionate argument.

    “It’s gotta be Kris Kristofferson and Ali MacGraw in ‘Convoy!’” “Nope, nope, nope! Patrick Swayze in 'Black Dog.' “What about ‘Breaker! Breaker’ with Chuck Norris? That’s as good as it gets.” “Seriously? Burt and Sally in ‘Smokey and the Bandit’ is the best of the best!”

    Everybody has their favorite and since we couldn’t definitively settle the argument, the freight and shipping pros at PartnerShip decided to vote on it and create our own list of the best trucking movies in history.

    So here it is: Our pedal to the metal, shiny side up, cross-country driving, east bound and down “PartnerShip Top 10 Trucking Movies of All Time” list.

    #10 - High-Ballin’ (1978)
    Two truck drivers fight off a gang of hitchhikers who have been hired to drive them out of business. There were so many trucking movies in the 1970s that it actually spurred a nickname for the genre: trucksploitation!

    High Ballin’ Movie Poster
    Starring: Peter Fonda and Jerry Reed

    #9 - Duel (1971)
    A terrified motorist driving a Plymouth is stalked on remote and lonely California canyon roads by the unseen driver of a 1960 Peterbilt truck. This was the full-length film directing debut of Steven Spielberg.
    Duel Movie Poster
    Starring: Dennis Weaver, Jacqueline Scott and Eddie Firestone

    #8 - Black Dog (1998)
    An ex-con tries to start his life over as a truck driver but when his family is taken hostage he is forced to transport a shipment of illegal weapons. Fans of big rigs and big explosions will dig this one.
    Black Dog Movie Poster
    Starring: Patrick Swayze, Randy Travis and Meat Loaf

    #7 - Over the Top (1987)
    A struggling trucker who arm wrestles on the side to make extra cash competes in the World Armwrestling Championship to win the grand prize of $100,000 and a brand new truck to start his own trucking company. The music, montages, and hair alone scream 1980s!
    Over The Top Movie Poster
    Starring: Sylvester Stallone, Robert Loggia and Susan Blakely

    #6 - Breaker! Breaker! (1977)
    A trucker, who is a martial arts expert, goes looking for his brother after he disappears in the small corrupt town of Texas City, California, which has a nasty reputation for entrapping truckers. If you like movies that feature a guy in bell bottoms side kicking drunken cops in the chest repeatedly, this is the film for you!
    Breaker! Breaker! Movie Poster
    Starring: Chuck Norris, George Murdock and Terry O’Connor

    #5 - Convoy (1978)
    Which came first? The song “Convoy” or the movie “Convoy?” This movie is based on the song by C. W. McCall and Chip Davis. So now you know; the song came first. The plot involves a corrupt official, truckers and a convoy. In the late 70s, you couldn’t escape the CB radio craze.
    Convoy Movie Poster
    Starring: Kris Kristofferson, Ali MacGraw and Ernest Borgnine

    #4 - Every Which Way But Loose (1978)
    A trucker with a pet orangutan named Clyde gets involved with the law, bikers, and a female thief. Hilarity ensues. Actually, Clyde steals the show in this one.
    Every Which Way But Loose Movie Poster
    Starring: Clint Eastwood, Geoffrey Lewis and Sondra Locke

    #3 - Big Trouble in Little China (1986)
    Directed by John Carpenter, so you know it’s weird.  An all-American trucker gets involved in a centuries-old mystical battle in San Francisco.
    Big Trouble in Little China Movie Poster
    Starring: Kurt Russell, Dennis Dun and Kim Cattrall

    #2 - Maximum Overdrive (1986)
    A comet causes a radiation storm on Earth, causing machines to come to life and turn against their makers. A group of survivors holed up in a
    North Carolina truck stop must fend for themselves against a horde of murderous trucks. That could happen, right?
    Maximum Overdrive Movie Poster
    Starring: Emilio Estevez, Pat Hingle and Laura Harrington

    #1 - Smokey and the Bandit (1977)
    It was a neck and neck race with Maximum Overdrive, but Burt and Sally pulled it out at the end to claim the #1 position in the “PartnerShip Top 10 Trucking Movies of All Time” list.

    The Bandit makes a bet to transport a load of beer in record time and picks up a hitchhiker along the way. His enemy for 1 hour and 36 minutes is Sheriff Buford T. Justice. In 1977, “Smokey and The Bandit” was the second highest grossing film behind Star Wars! 

    Smokey and the Bandit Movie Poster
    Starring: Burt Reynolds, Sally Field, Jackie Gleason and Jerry Reed

    We hope you enjoyed our light-hearted list of the best trucking movies ever. All of the main characters in these movies had one thing in common: they had a job to do, and so do we, to help you ship smarter and stay competitive. Next time you need to move freight, whether it be local or cross-country, LTL or truckload, or four hundred cases of beer from Texarkana to Atlanta, you can count on the experience of the shipping experts at PartnerShip. We might not be movie stars, but our service is worthy of an Oscar!

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  • We ❤ Our Carriers! The April 2018 Carrier of the Month Is…

    05/18/2018 — Jerry Spelic

    We ❤ Our Carriers! The April 2018 Carrier of the Month

    At PartnerShip, we love our carriers. We offer quality service to our customers because of the quality of our freight carrier partners; if it weren’t for them, our customers couldn’t ship and receive their freight in a timely and cost-effective way. Simply put, our carriers help us help our customers ship smarter. 

    This month, we celebrate our first-ever Carrier of the Month, Royalton Star Inc. of Parma, OH! They have been in business since 2009 and operate 12 trucks.

    The Carrier of the Month program recognizes carriers that go above and beyond in helping our customers ship and receive their freight. PartnerShip truckload team members nominate carriers throughout the month that provide outstanding service in communication, reliability, on-time performance and flexibility to our shippers, receivers and our team.

    For being our April 2018 Carrier of the Month, Royalton Star receives lunch for their entire office, a sincere letter of thanks from our team, and a snazzy framed certificate to proudly hang on their wall! The gestures may be small but the appreciation is huge!

    Interested in becoming a PartnerShip carrier? We match our freight carriers’ needs with our available customer loads because we understand that your success depends on your truck being full. If you’re looking for a backhaul load or shipments to fill daily or weekly runs, let us know where your trucks are and we’ll match you with our shippers’ loads. If your wheels aren’t turning, you’re not earning.

    Become a PartnerShip Carrier


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  • Is it Time to Consider a Drop Trailer Program?

    05/14/2018 — Jerry Spelic

    Is it Time to Consider a Drop Trailer Program?

    Is it time for your business to consider a drop trailer and / or drop and hook freight program? The current capacity crunch and driver shortage has caused serious issues in many businesses’ supply chains and has increased the demand for drop trailer and drop and hook shipping programs.

    What is a drop trailer program? It is when a carrier brings a tractor to the loading dock and picks up a previously loaded trailer. Drop and hook takes drop trailer shipping one step further. A carrier will arrive with an empty trailer to drop, pick up a loaded trailer, and continue on to the destination.

    Many shippers are now considering drop trailer programs mainly because of the new hours of service rules issued by the Federal Motor Carrier Safety Administration (FMCSA) which are more strictly monitored by the ELD mandate.

    Before the change to the hours of service rules, if a driver waited three or four hours or more while their trailer was loaded, they could make up the time by driving more hours. Now, with an ELD required for every tractor, load time and detention is a significant consideration because it cuts into the 14-hour on-duty shift rule.

    To illustrate, if a carrier has to drive an hour to the shipping origin, then wait five hours to get loaded, that means he can only drive for 8 hours after leaving for the destination. If he averages 60 mph, he can travel 480 miles. If the same driver picked up a loaded trailer, he could drive 10 hours before reaching the 11-hour driving limit. If he averages 60 mph, he can travel 600 miles.

    A drop trailer program can also have a significant impact on the efficiency of your supply chain. Drop trailer programs help shippers and carriers plan more effectively for deliveries and outbound shipments so it is important for them to align their schedules. Without drop trailers, a carrier must arrive within a narrow appointment window for employees to load or unload the trailer. Depending on how the appointment fits into their on-duty schedule, and considering traffic conditions, weather, breakdowns and other unexpected events, the driver could be forced to wait for hours, or miss the appointment altogether. In these situations, late delivery fees, detention fees, and a negative vendor scorecard are typically the unpleasant results.

    Drop Trailer Benefits for Shippers:

    • Smoother supply chain operation. You can load or unload a trailer at your convenience or when staffing levels are adequate; no more paying overtime to load or unload when a truck is early or late.
    • Great for time-consuming loads, like floor-loaded freight.
    • Avoid costly driver or truck detention accessorial charges.
    • Higher on-time delivery percentages. On-time freight departure times substantially increase the odds of an on-time arrival.
    • Decrease fines. With strict retail Must Arrive By Date (MABD) requirements becoming more common, drop-trailer shipping can help your carrier arrive on time and minimize the fines associated with missing a delivery window.
    • Better retailer relationships. When you fulfill MABD requirements, your vendor scorecard improves and you are seen as a more desirable vendor partner.

    Drop Trailer Benefits for Carriers:

    • Better planning. You decide when you pick up (and drop off) trailers.
    • No more waiting to pick up a load or be live-loaded; spend more time driving to the destination.
    • Great for time-consuming loads, like floor-loaded freight.
    • Higher on-time delivery percentages.


    There are a few circumstances of which to be aware when considering a drop trailer program. There may be an initial cost to implement a program. Every trailer that a carrier takes out of over-the-road service is lost revenue, so to recoup it, there will be a cost for a drop trailer, either on the front end or back end (or both). Of course, this cost will pay for itself because there should never be any detention fees.

    Drop trailers should not become warehouses; the maximum time a trailer should sit is a week. In most drop trailer programs, trailers turn two or three times a week.

    Finally, there is a lot of up-front work to implement a drop trailer program. Not all carriers do drop trailers so finding one that does can be time-consuming. Trailers make carriers money so if one of your carriers doesn’t want to drop a trailer, simply look at using a different one.

    A drop trailer or drop and hook program is a perfect opportunity to use a freight broker. Working with a broker allows you to tap into their network of carriers and take advantage of their expertise in finding carriers that will drop trailers. The truckload shipping experts at PartnerShip will work with you to find a drop trailer or drop and hook carrier and get you the best freight rates possible. We know the lanes, we know the rates and we will help you ship smarter. Contact us today to learn more about setting up a drop trailer program!


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  • ELD Enforcement: Are We There Yet?

    05/07/2018 — Jen Deming

    ELD Mandate Compliance: Are We There Yet It's been just over a month since the "soft enforcement period" has ended for ELD regulation, and while the shipping industry is seeing huge improvements with compliance, there are still a number of challenges facing shippers. While most of the crunch was felt at beginning of the year, when the initial ELD deadline went into effect, it's going to take some time before we see the industry normalize. As we head into the summer and a heavier shipping season, what can shippers and carriers expect to encounter along the way?

    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!

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