the PartnerShip Connection blog
the PartnerShip Connection blog
the PartnerShip Connection blog
the PartnerShip Connection blog
the PartnerShip Connection blog
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Carrier Liability vs. Freight Insurance. What’s the Difference?
12/04/2023 — PartnerShip
Freight damage and loss is a reality of shipping. It’s not a matter of if it will happen to you; it’s a matter of when. When damage or loss occurs, your first thought is often, “how will I be compensated?” To answer the question, you need to understand the difference between carrier liability and freight insurance.
Carrier LiabilityEvery freight shipment is covered by some form of liability coverage, determined by the carrier. The amount of coverage is based on the commodity type or freight class of the goods being shipped and covers up to a certain dollar amount per pound of freight.
In some cases, the carrier liability coverage may be less than the actual value of the freight. It’s common to see liability restricted to $0.25 per lb. or less for LTL or $100,000 for a full truckload. Also, if your goods are used, the liability value per pound will be significantly less than the liability value per pound of new goods. Liability policies can vary, so it’s very important to know the carrier’s liability for freight loss and how much is covered before you arrange your freight shipment.Freight damage and loss is a headache. In order to receive compensation, a shipper must file a claim proving the carrier is at fault for the damaged or lost freight. Carrier liability limitations include instances where damage is due to acts of God (weather related causes) or acts of the shipper (the freight was packaged or loaded improperly). In these cases, the carrier is not at fault. Additionally, if damage is not noted on the delivery receipt, carriers will attempt to deny liability.
If the carrier accepts the claim evidence provided by the shipping customer, then they will pay for the cost of repair (if applicable) or manufacturing cost, not the retail sell price. The carrier may also pay a partial claim with an explanation as to why they are not 100% liable. The carrier will try to decrease their cost for the claim as much as possible.
Freight Insurance
Freight insurance (sometimes called cargo insurance or goods in transit insurance) does not require you to prove that the carrier was at fault for damage or loss, just that damage or loss occurred. Freight insurance is a good way to protect your customers and your business from loss or damage to your freight while in transit. There is an extra charge of course, and it is typically based on the declared value of the goods being shipped. Most freight insurance plans are provided by third-party insurers.
As mentioned earlier, your freight might have a higher value than what is covered by carrier liability, such as shipping used goods. Another example is very heavy items. Carrier liability may only pay $0.25 per pound for textbooks that have a much higher value. This is a great example of when freight insurance is extremely helpful in the event of damage or loss.
Carrier Liability vs. Freight Insurance in the Claims Process
If your freight is only covered by carrier liability coverage:
· Your claim must be filed within 9 months of delivery
· The delivery receipt must include notice of damage
· Proof of value and proof of loss is required
· The carrier has 30 days to acknowledge your claim and must respond within 120 days
· Carrier negligence must be proven
If your shipment is covered by freight insurance:
· Proof of value and proof of loss is required
· Claims are typically paid within 30 days
· You are not required to prove carrier negligence
Deciding which option is best for your shipment
Anything that comes at an added cost needs to be evaluated critically and freight insurance is no different. There are a few things to consider as you weigh the potential cost and risk of damage and loss versus the cost and benefit of insurance. You'll need to think about the commodities you're shipping, how time critical your shipment is, and if you'd be able to weather the financial burden that comes with a denied or delayed claim payout.
Understanding your carrier's liability coverage and knowing the ins and outs of freight insurance can be tricky. If you have questions like “how much does freight insurance cost?” or “what does freight insurance cover?” the team at PartnerShip can help.
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Freight Shipping Documents 101
11/13/2023 — Leah Palnik
If you're new to freight shipping, there are a few documents you will come across frequently that you may be wondering what they are, why they are used, and what the differences of each are. For instance, what's the difference between a freight bill and a bill of lading; what do BOL and POD stand for; and what is a weighing-and-inspection report? Knowing these documents and their purpose can help avoid misunderstandings that might undermine an otherwise mutually beneficial business relationship between you and your third party logistics provider, carriers, suppliers, or even customers.
What is a Bill of Lading?
The bill of lading, or BOL as it is often called, is a required document to move a freight shipment. The BOL works as a receipt of freight services, a contract between a freight carrier and shipper, and a document of title. The bill of lading is a legally binding document providing the driver and the carrier all the details needed to process the freight shipment and invoice it correctly. The BOL also serves as a receipt for the goods shipped. Without a copy signed by the carrier, the shipper would have little or no proof of carrier liability in the event the shipment was lost or destroyed.
When you schedule a shipment through PartnerShip, the BOL is automatically generated based on the shipment details entered during the quoting and shipment creations process. You are welcome to use our BOL or you can use your own if your order system already generates one. Either way, the BOL should be provided to the carrier on pickup and will be delivered to the consignee on delivery.
When composing a BOL, it is important to provide weight, value, and description of every item to be shipped. The BOL spells out where the freight will be collected, where it will be transported, and any special instructions on when and how the freight should arrive. Traditionally, the BOL also serves as title to the goods thus described; in other words, it can serve as an official description of loan collateral.
What is a Freight Bill?
Freight bills, or freight invoices, are different from bills of lading in that they do not serve as a key piece of evidence in any dispute. The freight bill is the invoice for all freight charges associated with a shipment. While freight bills should match up closely to their BOL counterparts, they can also include additional charges (such as accessorials), information, or stipulations that serve to clarify the information on the BOL. When you are looking for an invoice to examine as part of a shipping analysis, you will generally use the freight bill rather than the original BOL since it will have the freight cost information on it.
In effect, freight bills are similar to other invoices for professional services your business might collect. Although they may seem less important during the freight shipping process, they should be retained long term and audited to catch any errors. PartnerShip customers can easily access copies of their freight invoices online at PartnerShip.com.
What is a Proof-of-Delivery?
A proof of delivery, or POD, is a document that is used when a shipment is delivered. The consignee signs this document to confirm delivery. Some carriers will have the consignee sign the BOL as confirmation of delivery. In other cases, carriers will use their own delivery receipt (DR), or even a copy of the freight bill. The consignee, when accepting delivery of the goods, should note any visible loss or damage on the delivery receipt (or whatever is used as the POD). It is your right as the freight shipper to request a copy of the POD at any time.
What is a Weighing and Inspection Report?
A weighing and inspection report, or W&I report, is a document you may encounter less frequently. The W&I report comes into play as part of a carrier's process to inspect the freight characteristics of a shipment to determine that it accurately matches the description that is on the BOL. If the actual shipment weight is different than the weight that is shown on the BOL, then a W&I report is completed noting the change.
When a customer receives a freight bill with charges greater than what was originally quoted, often times this is due to this sort of weight discrepancy. The customer has the right to request a copy of the W&I report from the carrier if needed to confirm the reweigh was performed and is valid.
What is a Cargo Claims Form?
A cargo claims form, or simply claims form, is a document that carriers will require a customer to complete if there is any sort of shortage, loss, or damage "claim" with a shipment. A claim is a demand in writing for a specific amount of money that contains sufficient information to identify the shipment received by the originating carrier, delivering carrier, or carrier in which the alleged loss, damage, or delay occurred within the time limits specified in the BOL.
Claims should be filed promptly once loss or damage is discovered. Time limit for filing a claim is 9 months from date of delivery, or in the event of non-delivery, 9 months after a reasonable time for delivery has elapsed. If a claim is not received by the carrier within this time, payment is barred by law. A claim may be filed by the shipper, consignee, or the owner of the goods. Be certain to clearly show the name and complete address of the claimant. If you need help filing a claim with a carrier, feel free to contact PartnerShip and we'll help you through the process to ensure your best interests are protected.
PartnerShip is here to help
As always, your friends at PartnerShip stand ready to help our customers every step of the way through the shipping process. We know you have a business to run – that's why you can count on PartnerShip to help you get the best shipping rates, the best carriers, and the best service for your LTL freight and truckload shipping needs. Contact us today to learn how we can help you ship smarter.
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Freight Carrier Closures: Important Dates for the 2023 Holiday Season
11/01/2023 — Jen Deming
With the holiday season just around the corner, shippers need to be extra mindful of their LTL schedules. In addition to the usual cyclical increase in freight loads, the industry has also had a volatile year, with carrier closures and limited capacity causing more hiccups. As a result, transit times are a bit uncertain.
We want to make sure that your shipments reach their destinations on time and without any drama along the way. When planning, be sure to check which days carriers will be closed in our helpful guide below:
Freight carrier closures
- Saia LTL Freight – will be closed November 23 – 24, December 25 – 26, and January 1.
- XPO Logistics – will be closed November 23 – 24, December 22 – 25, and January 1.
- ArcBest – will be closed November 23 – 24, December 25, and January 1.
- R+L Carriers – will be closed November 23 – 24, December 25, and January 1.
- Estes – will be closed November 23 – 24, December 25 – 26, and January 1.
- Dayton Freight – will be closed November 23 – 24, December 25 – 26, and January 1.
- Pitt Ohio – will be closed November 23 – 24, December 25 – 26, and January 1.
- AAA Cooper – will be closed November 23 – 24, December 25 – 26, and January 1.
- Midwest Motor Express – will be closed November 23 – 24, December 25 – 26, and January 1.
- Dohrn Transfer Company – will be closed November 23 – 24, December 25 – 26, and January 1.
- TForce Freight – will be closed November 23 – 24, December 25 – 26, and January 1.
To keep things running smoothly and avoid any unnecessary stress, it's crucial to plan your shipping schedule carefully during these final months of the year. Don’t forget, PartnerShip can help you navigate your LTL loads so your season stays merry and bright!Please note that our office will be closed November 23 – 24, December 25, and January 1 so that we can celebrate with our families. Happy Holidays!
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Your Essential Guide to the 2024 FedEx and UPS Rate Increases
10/27/2023 — Leah Palnik
FedEx and UPS will be increasing their rates by an average of 5.9% in 2024. While that is lower than last year’s General Rate Increase (GRI), don’t start celebrating just yet. The frustrating truth is that your actual shipping costs will likely go up more than 5.9% in the new year. The changes that FedEx and UPS are making are more complex than meets the eye - it’s essential to understand them so you know how your costs will be affected and what you can do about it.
Here's your guide to the FedEx and UPS rate increases for 2024. Jump to:
- A look back at the FedEx and UPS GRIs
- Important changes for 2024
- How the FedEx and UPS rate changes will affect your costs in 2024
- What you can do to mitigate the effects of the FedEx and UPS rate increases
A look back at the FedEx and UPS GRIs
FedEx and UPS have a long history of mirroring each other’s pricing. They typically announce the same GRI and appear to have very similar pricing strategies. Bottom line, published rates aren’t a major differentiator between the two carriers.For 2024, both FedEx and UPS are facing a slowdown in demand, as indicated by a GRI that is less aggressive than the increase we saw for 2023. Let's do a quick history lesson. In 2022 the carriers took a 5.9% increase and then bumped that up to an all-time high of 6.9% in 2023. That was thanks, in part, to all of the supply chain disruptions and surges in demand that resulted from the pandemic. For several years prior to that, both carriers had been raising their rates annually by an average of 4.9%.
This year, FedEx made their GRI announcement earlier than they typically do, and many speculated it was a way to put the pressure on UPS. Over the summer, UPS faced threats of a driver strike and during the heated negotiations, the carrier lost some business to its competitors. While UPS and the Teamsters eventually averted a strike and came to an agreement, the new contract comes with a steep increase to labor costs. Many were expecting a higher GRI in 2024 from UPS as a result.
Some important quick facts about the new FedEx and UPS rates:
- The new FedEx rates take effect on January 1, 2024, while the UPS rates take effect a week earlier on December 26, 2023.
- The 5.9% average doesn’t take surcharges into account - many of which are increasing by more than 5.9%.
- How much your costs actually go up in 2024 will depend on several different factors. The services you use, your shipment dimensions and weight, and how far your shipments are traveling all have an effect.
Important changes for 2024
So you already understand that FedEx and UPS rates are going up in the new year. What does that look like exactly? First, you'll want to review the released service guide previews:If all of those tables and numbers are making your head spin, you're not alone. But there are some key takeaways. Let’s take a look at a few of the general observations from the base rate changes:
- In general, longer zones are getting hit with higher increases than shorter zones. Many of those increases are higher than the announced average.
- For Ground Commercial services, many of the rates come in lower than the 5.9% average increase, especially for lightweight packages.
- Many of the highest increases can be found on Express/Air services.
- Both FedEx and UPS have increased their Ground Minimum charge to $10.70
When you are reviewing your shipping costs, you can’t look at the base rates alone. Surcharge fees often make up a significant chunk of the amount you end up paying. Here are a few noteworthy surcharge updates:
- Fees for larger, more difficult to move packages continue to rise to hefty prices. These fees are already very costly, and in 2024 they're rising significantly higher than the GRI and other surcharges. You could be paying an extra $1,250 for a shipment that qualifies for the Unauthorized Packages fee by FedEx or the Over Maximum Limits fee by UPS.
- Pickup fees are also changing. With regular pickups being a necessity for many businesses, it’s critical to factor in those costs when budgeting for the new year.
- Many other common surcharges are increasing, with a significant amount increasing by more than the 5.9% GRI.
There are also a couple of other changes that are important to be aware of:
- FedEx is joining UPS in renaming “peak surcharges” to “demand surcharges”. Several years ago FedEx and UPS started implementing peak surcharges to address the increased demand the holiday season brings. Then the pandemic hit, leading to UPS and FedEx implementing additional peak surcharges to address the atypical surge in demand straining their networks. The decision by FedEx to rebrand these fees matches the change UPS made last year. Calling them “demand surcharges” signals the carriers will implement them anytime there is an uptick in demand, rather than based on seasonal predictability like the “peak surcharges” of the past.
- UPS is changing the list of zip codes for zones and the Delivery Area Surcharge. Depending on where you’re shipping, you may have to pay based on a longer zone than before. On top of that, you could get hit with a Delivery Area Surcharge on a shipment that it didn’t apply to in the past. It’s changes like these that make budgeting for your annual cost increase very challenging.
How the FedEx and UPS rate changes will affect your costs in 2024
You can’t take the announcement of a 5.9% increase at face value, unfortunately. You’ll need to determine which services you use the most, how far your shipments travel on average, and how much of your invoice charges can be attributed to fees.Most shippers will see their costs go up over the announced 5.9% average. With that in mind, let’s look a few factors that could put you at risk for higher-than-average cost increases:
- If you’re shipping larger packages or your packages require special handling. For the past several years, FedEx and UPS have been raising these fees at an alarming rate. 2024 is no different. Any shipment they can’t run through their normal systems costs them more time and money, and these fees are a way to discourage those types of shipments from entering their networks.
- If a high percentage of your shipments go to longer zones. It’s always been true that the further your package travels, the more expensive the rate. This year that’s especially true. Longer zones are seeing more increases above the announced average than shorter zones.
- If you’re using Express/Air services. These faster delivery services continue to be the most expensive. They’re seen as a premium service that other smaller carriers can’t compete with thanks to the robust networks that FedEx and UPS have. But this year, with some of the highest increases being on Express/Air services, you’ll pay even more.
- If you ship a lot of low density packages. The pricing structure that FedEx and UPS have in place punishes larger, lighter shipments. The carriers prefer denser packages that take up less space because they’re able to fit more packages on their delivery vehicles. If your package dimensions cause your shipment to be rated at a higher weight due to dimensional (DIM) weight pricing, your cost increase could be compounded. Many of the higher weight breaks are getting hit the hardest with increases over the average this year.
What you can do to mitigate the effects of the FedEx and UPS rate increases
- Right-size your packaging. While FedEx and UPS rates are based on weight, that’s not actually the whole story. If your dimensional weight is higher than the actual weight, your package will be rated using the dimensional weight - meaning you’ll be paying more. This makes any excess space within your package extra costly. Focus on packaging that allows space for the items you’re shipping and the necessary cushioning and nothing more.
- Consider opening or using a new distribution center. Shipments with the longest distance to travel cost you the most every year. But in 2024, this will be even more important as the longest zones are seeing the highest increases. Getting closer to your customers could be a great strategy for keeping those costs down.
- Evaluate the services you’re using. Ground services are the more economical option and often the transit times are comparable to what you can get with some Express/Air services. Where you can, utilize Ground services to save on your costs.
- Take advantage of discounts available to you. Thanks to our unique alliance with FedEx, PartnerShip is able to provide your business with industry-leading discounts. Small and mid-sized businesses can enjoy competitive pricing that is typically reserved for high volume shippers - without any minimum shipping requirements. Save at least 40% off FedEx Express and at least 25% off FedEx Ground. Enroll today to access the discounts.
Wrapping your head around all of the changes for 2024 FedEx and UPS rates can be challenging. But, using this guide to understand what's behind the announced average and published service guides is a good first step. Use this information to properly budget for the new year and set up any mitigation tactics that work best for your business.
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Uncovering the Top 5 Benefits of Regional LTL Freight Carriers
10/10/2023 — Leah Palnik
In the complex world of logistics, the carrier network you utilize can either optimize your shipping operations or bring them to a grinding halt. One strategy that is often overlooked is partnering with regional less-than-truckload (LTL) freight carriers. Regional LTL carriers play a crucial role in the supply chain ecosystem by offering a focused and localized approach to freight transportation. Unlike their national counterparts, regional carriers operate within specific geographic areas, so they've got the inside scoop on what makes your local logistics tick. It's like having a shipping partner who knows the shortcuts, secret spots, and best routes – because they're in your backyard.
In this article, we'll delve into the top 5 advantages of leveraging regional LTL carriers for your shipping needs and explore how they can transform your supply chain efficiency.
- Lower Damage and Loss Claims. Minimizing freight damage and loss is a top priority for any shipper. Consider regional LTL carriers as your secret weapon in the battle against damage. They excel in this aspect by offering better handling and protection of shipments. With a smaller service area, these carriers can ensure more direct routes and fewer touchpoints, reducing the likelihood of damage during transit. This commitment to careful handling translates into fewer claims and greater peace of mind for shippers.
- Lower Minimum Charges. There’s no way around it - minimum charges are a buzzkill. National carriers typically have higher minimum charges due to their extensive network coverage. Regional LTL carriers, on the other hand, offer a more favorable structure for small to medium-sized businesses. By catering to a smaller service area, these carriers can maintain cost-effective minimum charges, making them an attractive choice for shippers looking for a cost advantage.
- Shorter Transit Times through a Smaller Carrier Footprint. Efficient supply chains rely heavily on fast transit times. Regional carriers shine in this aspect as their smaller service footprint translates to quicker deliveries. With less ground to cover, shipments can move swiftly through streamlined routes, reducing overall transit times. Real-world examples have shown that regional LTL carriers consistently outperform national carriers when it comes to delivering on time.
- Top Notch Customer Service and Communication. Who doesn't love getting the VIP treatment? Customer service plays a pivotal role in freight shipping, where timely updates and proactive support are crucial. Regional LTL carriers excel in this domain by providing a more personalized and responsive customer experience. You can establish direct lines of communication with local carrier representatives who possess an in-depth understanding of the regional landscape, ensuring effective troubleshooting and issue resolution.
- Cost-Effective Shipping Solutions. For businesses that frequently ship within a specific geographic area, regional LTL carriers offer budget-friendly solutions. The proximity of the carrier's service area to the shipper's location means reduced transportation costs and potentially fewer accessorial charges. Say goodbye to excessive charges, and hello to optimizing your freight spend.
The Regional LTL Carrier Advantage is Clear
It’s clear - using regional LTL carriers puts you on track to shipping smarter. From minimizing damage to providing faster transit times and superior customer service, these carriers are tailor-made for businesses seeking localized, cost-effective, and efficient freight transportation. As you evaluate your shipping options, consider the strategic benefits that regional LTL carriers bring to the table. By making the right carrier selection, you can optimize your supply chain and elevate your shipping strategy. PartnerShip has a vast network of reputable carriers, including regional LTL freight carriers that service your area.Contact our team today to uncover how you can benefit from utilizing regional carriers.
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Freight Class Made Easy: Top Resources for Every Shipper
09/07/2023 — Jen Deming
When it comes to shipping goods via less-than-truckload (LTL), understanding freight class is essential. Freight class is a numeric code that categorizes different types of products or commodities for shipping purposes. It plays a crucial role in determining the cost of your shipment and other factors such as weight, distance, and additional services. In this comprehensive list of resources, we will delve into the intricacies of freight class, covering everything from the very basics to tools that can help you determine class.
Resources that will help you understand everything you need to know about freight class:
- Understanding the basics of a freight class.
Freight classification is a crucial component of LTL shipping, but the system can be complicated. Factors such as density, storage/stowability, and liability all impact class, and the higher the number usually means the higher the rate. This article will help you understand the basics of freight class, and includes information about a valuable tool, ClassIT, that can help shippers accurately determine their product classification. - Grasp the impact of density in freight shipping.
Packaging, commodity type, and specs all impact the cost of your freight, but some products have an added layer of mystery (and math) when it comes to class - density. Density is calculated by measuring the height, width, and depth of the shipment, including skids and packaging. Learn more from our insights about why carriers are putting such an emphasis on shipment density and how it affects your freight costs. - Decipher the complicated nature of an FAK.
An FAK is a class agreement between a carrier and a shipper, allowing the shipper to move multiple products of different classes at one standardized freight class. Sounds simple, right? The catch is that carriers have held back in entering these agreements more now than they used to. This article takes a closer look at what defines an FAK, what shippers are likely to qualify, and if it’s something that makes sense for your business. - Master the factors that affect your freight class.
Freight classification is an essential process in LTL shipping that involves categorizing products based on specific criteria like density, stowability, liability, and handling. Understanding these variables is crucial for calculating the class and cost of shipping. This infographic can help you more easily understand the factors that determine class and how to get it right.
Tools that will help you determine your freight class:Shippers should have access to the tools they need, when they need it. That’s why we've made two resources available online that can help sort through some of the toughest parts of freight shipping - calculating density and freight classification.- Let the freight experts determine class for you.
Finding a freight class can be complicated but working with the team at PartnerShip can help take out the guesswork. By providing details on our online form such as the dimensions, weight, density, and product type, our team can help sort through the jargon and provide you with an accurate class for your shipment.
- Calculate density accurately with this free tool.
A density calculator is a tool that helps shippers determine the density of their shipments. It measures how heavy a shipment is relative to its size. By inputting the weight and dimensions of the shipment into our calculator, you can easily determine the density and check your estimated freight class.
Get a handle on freight class with the right resources and tools
Freight class is a critical component of shipping your LTL loads, but it's confusing and making a guesstimate is risky business. Your shipment's freight class plays a huge part in everything from your initial rate estimate to your payout for any potential damage claims. How can a little number mean so much? The team of experts at PartnerShip can help put an end to your freight class frustration. Say goodbye to head-scratching and hello to efficient solutions. Contact us to learn more.
Click to read more... - Understanding the basics of a freight class.
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What is the Difference Between Cross-Docking and Transloading?
08/21/2023 — PartnerShip
It's common in logistics and warehousing to be asked: What is cross-docking? What is transloading? What is the difference between cross-docking and transloading?
Cross-docking is unloading inbound freight from one truck, holding it in a warehouse or terminal for a very short period of time, and loading it onto another truck for outbound shipping.Let's look at an example of cross-docking: A manufacturer needs to ship 20 pallets of products from the east coast to destinations in Texas, Florida and California. The 20 pallets are first shipped to a third-party warehouse in Cleveland, Ohio. A day later, 5 pallets are sent to Florida, 10 to Texas, and 5 to California on trucks bound for those destinations. Since the pallets were never unpacked and were only in the warehouse long enough to move them from one truck to another truck (and from one dock to another dock), they have been cross-docked.
Transloading is when inbound freight is unloaded, the pallets are broken down, and their contents sorted and re-palletized for outbound shipping.
Using the same Cleveland, Ohio third-party warehouse, here is an example of transloading: 5 suppliers of a manufacturer ship a year’s supply of components to the warehouse. The components are stored until they are needed, at which time the warehouse picks them, assembles them into a single shipment, and ships it to the manufacturing facility.
To recap, cross-docking is the movement of an intact pallet (or pallets) from one truck to another, and transloading is the sorting and re-palletizing of items.
Both cross-docking and transloading services are specific logistics activities that can create benefits for businesses; especially ones that utilize a third-party warehouse.
Benefits of cross-docking- Transportation costs can be reduced by consolidating multiple, smaller LTL shipments into larger, full truckload shipments.
- Inventory management is simplified because cross-docking decreases the need to keep large amounts of goods in stock.
- Damage and theft risks are reduced with lower inventory levels.
- With a decreased need for storage and handling of goods, businesses can focus their resources on what they do best instead of tying them up in building and maintaining a warehouse.
- Businesses can store goods and products near customers or production facilities and have them shipped out with other goods and products, decreasing shipping costs.
- Businesses can ship full truckloads to a third-party warehouse instead of many smaller LTL shipments.
- With storage and logistics managed by others, the need for building and maintaining a warehouse is eliminated.
The bottom line is that these benefits translate directly into cost savings. To learn more about the full range of third-party logistics (3PL) services that PartnerShip has provided for three decades, and how cross-docking and transloading in our conveniently located 200,000+ square foot Ohio warehouse can benefit your business, call us at 800-599-2902 or send an email to warehouse@PartnerShip.com.
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LTL vs. Truckload Freight. What’s the Difference?
07/12/2023 — PartnerShip
Less-than-truckload (LTL) and truckload freight shipping may appear to be similar but they are two very different shipping services. Many shippers exclusively use one or the other, but they can be used together. To help you ship smarter, here are the four main differences between LTL and truckload shipping and rates.
Transit time and handling
LTL: LTL shipping combines shipments from multiple customers so your freight isn’t the only freight on the truck; it shares space (and cost) with other company’s freight and will make multiple stops at terminals between the shipper and consignee. For example, the freight you are shipping from Cleveland to Houston may make stops in Indianapolis, Nashville and Dallas before reaching its final destination. At each stop, your freight is unloaded and reloaded and must wait for the next truck, increasing transit time and handling, and the possibility of damage.
Truckload: When you ship full truckload, your freight is the only thing on the truck. The carrier will make a pickup at the origin and drive straight to the destination. Aside from driver rest breaks, fuel and equipment issues, the truck doesn't stop, resulting in much faster transit times. In addition, your freight never leaves the truck, resulting in much less handling and fewer opportunities to be damaged.
Weight and shipment size
LTL: Less-than-truckload shipments are typically between one and six pallets and weight from 200 to 5,000 pounds. LTL freight usually takes up less then 12 linear feet of the trailer, and since the typical pallet measures 40” x 48”, 6 pallets arranged side-by-side would take up exactly 12’ of linear space on each side of the trailer.
Truckload: A full truckload shipment can range from 24 to 30 pallets and up. With truckload freight, the space your shipment takes up in the trailer has more of an impact than weight, so truckload shipments commonly range from 5,000 pounds to 45,000 pounds and up.Pricing
LTL: The most significant difference between LTL and truckload shipping is the pricing. LTL freight pricing is regulated by the National Motor Freight Traffic Association (NMFTA) which is a nonprofit membership organization made up primarily of interstate motor carriers. It classifies all freight based on its commodity, density, and ease of transport. LTL carriers each have standard LTL rates which are determined by your origin and destination, your freight’s NMFC class, the amount of space it occupies on the truck, and any accessorials you require. All of these variables are factored into the LTL rate you pay.
Truckload: Truckload freight pricing is completely dependent upon the market. With no pre-established rates, truckload freight negotiations happen as needed over the phone or through email. Truckload rates fluctuate, sometimes by the week, day or even by the hour. Factors that drive pricing include the origin and destination, weight of the shipment, seasons (such as harvest season or even back-to-school season), truck capacity and location, the shipping lane or route, and fuel and operating costs. Typically, there are no contracts with truckload carriers, which can vary from an owner/operator with one truck to huge truckload shipping companies with thousands of trucks in their fleet.
Reefer availability
LTL: Refrigerated LTL shipments are a bit more difficult to find and secure than dry van LTL shipments. Most reefer LTL carriers have schedules that are determined by lanes and temperatures. As an example, an LTL reefer carrier might pick up in southern California on Wednesday and may run at 45 degrees with a set delivery route and schedule. This can make finding an available reefer LTL carrier difficult, especially for one-off shipments or on short notice.
Truckload: Reefer trailers are common and readily available. Reefer trailers can range from below zero to seventy degrees, and since only your freight is on the trailer, the shipment can move on whatever schedule and temperature you need it to. Aside from the temperature control and being a bit more expensive, refrigerated truckload shipments aren’t much different from dry truckload shipments.
PartnerShip is an expert at providing you the best rates on both LTL and truckload freight shipping so you can stay competitive. Contact our shipping experts whenever you need to ship smarter.
Get a free quote on your next LTL freight shipment or truckload freight shipment!
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What is a Drop Trailer? Discovering the Advantages and Applications
06/30/2023 — PartnerShip
Is it time for your business to consider a drop trailer and / or drop and hook freight program?
First, let's answer what is a drop trailer? 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.
What is a drop trailer used for? Many shippers consider drop trailer programs because of the 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.
What is a drop trailer doing for 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.
- Less congestion in docks, improving overall safety of operations.
- 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. What is a drop trailer cost? 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. Because of this, produce and perishable goods aren't well suited for drop trailers, since keeping the goods fresh is necessary.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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Freight Brokers vs. Carriers: What Are the Real Differences?
06/20/2023 — Jen Deming
The freight industry can be a confusing place. It's pretty easy to get lost in terminology, and even experienced shippers can find themselves puzzled by basic questions. For example: what's the difference between a freight broker and carrier?
It turns out there are actually three key distinctions between the two parties, and understanding how each factor affects your load is important for smooth shipping.
Key Distinction #1: Responsibility to shipper
When looking at a freight broker and carrier, it's important to understand the primary responsibility of each party in the physical transportation of your freight.
What is a carrier?
A carrier refers to the company, or operator, that directly handles the transportation of your shipment. Common national carriers include TForce Freight, YRC Freight, ArcBest, and more. Carriers can specialize in less-than-truckload (LTL), dedicated truckload freight, or even specialized services such as refrigerated or oversized freight equipment.
What is a freight broker?
A freight brokerage is a company that serves as a transportation intermediary rather than directly operating a truck fleet and physically moving your freight. A freight broker's job is to contract available loads with a carrier and find an acceptable rate within a specified time frame according to the shipper. The freight broker cuts down the time and effort it may take for a company to look for its own carriers and may decrease costs by shopping quotes.
Key Distinction #2: Geographical restrictions
Freight carriers and brokerages serve distinct areas in the U.S. and sometimes overseas. Knowing their strongest network locations can guide your business decision.
Where do carriers operate?
Common carriers, like XPO Logistics, primarily move freight loads. They have hubs in high-demand areas offering maximum truck availability and competitive pricing. For regions outside these hubs, they may have limited schedules or collaborate with regional carriers for rural deliveries. These regional carriers are smaller businesses operating within a specific area and have exceptional proficiency within their zone. Essentially, national carriers can deliver anywhere in the U.S., but for remote areas, they might need to involve regional carriers which could result in longer delivery times.
Where do freight brokers operate?
Third-party logistics providers don't need to manage assets or trucks, so they can operate from any location. Many have main offices in popular shipping areas and satellite offices across the country. Some specialize in certain industries, like oversized freight or cross-border shipping. A broker can also focus on building relationships with transportation carriers for increased flexibility and specialized service.
Key Distinction #3: Liability for claims
In damage claims, carriers are generally legally liable due to the Carmack Amendment, while brokers aren't. However, brokers can and should aid in dispute resolution. With blurred lines between the two parties, it's important to explore them in detail.
What is a carrier's liability?
Per the Carmack Amendment, the carrier owns the items while they are being transported. When the carrier agrees to transport something, a deal is made based on the shipper load and count on the bill of lading (BOL). The shipper signs this document, saying that they packed and counted everything correctly. From the moment the goods are picked up until they are delivered, the carrier is in charge. If anything gets lost or damaged, the carrier has to answer for it. If there's a problem, you make a claim with the carrier, not the broker who set up the transportation.
What is a broker's liability?
From a legal perspective, carriers, not freight brokers, are responsible for any freight damage. However, good freight brokers have claims experts who know about shipper rights, liability limits, and claims filing. While carriers must handle damaged freight, brokers have the ethical duty to guide shippers and assist during complex situations like damage or loss claims.
The advantage of using a freight broker
When you work with a quality freight broker, you gain expertise, increase operational flexibility, and add a cost-saving alternative that you may not have when working directly with a carrier. Working with PartnerShip can ensure you have a team in your corner to help you navigate even the most unique shipping challenges.
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Navigating the Potential UPS Strike: How to Protect Your Supply Chain
05/25/2023 — Leah Palnik
In today's interconnected business landscape, small businesses heavily rely on efficient and reliable shipping services to maintain their supply chains and meet customer demands. With the potential UPS strike looming, it is crucial for small businesses to understand the implications and take proactive measures to safeguard their operations. In this article, we’ll delve into the details of the potential UPS strike, why small businesses should care, and provide actionable steps to protect their supply chains during this uncertain period.
Understanding the UPS Strike
Negotiations between UPS and the Teamsters, the union representing UPS employees, are ongoing and have reached a critical point. While it is uncertain whether a strike will occur, it is essential for small businesses to be prepared for such a scenario. The Teamsters and UPS have until August 1 to reach an agreement. The impact of a UPS strike can be significant, disrupting supply chains and causing delays in deliveries, which can have far-reaching consequences for businesses of all sizes.Implications for Small Businesses:
- Disrupted Operations: Small businesses heavily reliant on UPS services may face disruptions in their day-to-day operations, such as delays in receiving inventory, shipping products to customers, and meeting delivery deadlines. This can lead to dissatisfied customers, decreased revenue, and potential damage to the brand reputation.
- Increased Costs: In the event of a UPS strike, small businesses might be forced to seek alternative shipping solutions, which could come at a higher price. Exploring other shipping carrier options and securing competitive pricing now will be a necessary lifeline.
- Supply Chain Bottlenecks: A UPS strike can cause a ripple effect throughout the entire supply chain. Suppliers, manufacturers, and distributors relying on UPS may experience delays in receiving raw materials or components, leading to production slowdowns and potential stock shortages. Small businesses need to proactively address these bottlenecks to mitigate the impact on their operations.
Protecting Your Supply Chain:
- Diversify Shipping Partners: Small businesses should consider partnering with alternative shipping providers such as FedEx, DHL, or regional carriers. Research and negotiate discounted rates with these providers well in advance, ensuring they can handle the business's shipping volume during a UPS strike.
- Plan Ahead: Developing contingency plans and forecasting potential disruptions is crucial. Small businesses should communicate with suppliers, manufacturers, and customers, informing them of potential delays and seeking alternative arrangements if necessary. Implementing buffer inventory or safety stock can help mitigate supply chain disruptions during this period.
- Explore Local Sourcing: In case of a UPS strike, small businesses can explore local sourcing options for raw materials or components. This reduces the reliance on long-distance shipping and minimizes the impact of any potential disruptions in the transportation network.
- Optimize Inventory Management: Efficient inventory management becomes paramount during uncertain times. Small businesses should analyze their inventory levels, streamline their procurement processes, and leverage technology solutions to track and manage inventory in real-time. This ensures the availability of essential products and reduces the risk of stockouts during a UPS strike.
- Communicate with Customers: Proactive and transparent communication with customers is crucial during periods of disruption. Small businesses should keep customers informed about potential delays, set realistic expectations, and provide updates throughout the process. Customer loyalty can be maintained by offering alternative shipping options or discounts during this challenging period.
- Control Your Costs: One effective way for small businesses to safeguard their supply chains and keep costs under control during a potential UPS strike is by exploring discounted shipping options. PartnerShip works with over 130 associations to provide members with substantial discounts on FedEx services through the FedEx Advantage program. By signing up for the program, businesses can mitigate the financial impact of a UPS strike while maintaining reliable shipping services. These discounts can help offset any potential increase in shipping costs and ensure that businesses can continue to fulfill orders and meet customer expectations without compromising their bottom line. Contact our team to find out if you qualify for the FedEx discounts and how to get started.
From Disruption to Resilience
While the potential UPS strike poses challenges for small businesses, it also presents an opportunity to reassess and strengthen their supply chain strategies. By diversifying shipping partners, planning ahead, exploring local sourcing options, optimizing inventory management, and maintaining open communication with customers, small businesses can navigate through potential disruptions and emerge stronger. Being prepared for contingencies ensures business continuity and safeguards the customer experience, even during challenging times.
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What are Accessorial Charges? A Guide to LTL Freight Fees
04/27/2023 — Leah Palnik
No one likes surprise fees. Unfortunately, there are quite a few extra costs that are likely to pop up with LTL freight. Known as accessorial fees, these charges cover a wide variety of extra services and can add up fast. In this post, we'll answer the question, "what are accessorial charges?" and provide a list of common LTL accessorial fees to help you better understand and manage your freight costs.
What are accessorial charges?
Accessorial charges are fees for services performed by the carrier that are considered to be beyond the standard pickup and delivery. These fees make up just one part of your freight rate, but can be challenging to manage. Understanding which accessorial charges you can plan for and which ones you can avoid is necessary if you want to keep your freight costs in check.What are some common LTL accessorial charges?
You might be wondering what is considered an extra service, and you’re not alone. We’ve compiled some common LTL accessorial fees so you know what to look out for.- Lift Gate Service
When the shipping or receiving address does not have a loading dock, manual loading or unloading is necessary. A lift gate is a platform at the back of certain trucks that can raise and lower a shipment from the ground to the truck. Having this feature on trucks requires additional investment by an LTL carrier, hence the additional fee. - Residential Service
Carriers define a business zone as a location that opens and closes to the public at set times every day. If you are a business located in a residential zone (among personal homes or dwellings), or are shipping to or from a residence, the carrier may charge an additional residential fee due to complexity in navigating these non-business areas. - Collect On Delivery (COD)
A shipment for which the transportation provider is responsible for collecting the sale price of the goods shipped before delivery. The additional administration required for this type of shipment necessitates an additional fee to cover the carrier's cost. -
Oversized Freight
Shipments containing articles greater than or equal to twelve feet in length. Since these shipments take up more floor space on the trailer, additional fees often apply. - Fuel Surcharge
An extra charge imposed by the carriers due to the excessive costs for diesel gas. The charge is a percentage that is normally based upon the Diesel Fuel Index by the U.S. Energy Information Administration. - Inside Pick Up/Inside Delivery
If the driver is required to go inside (beyond the front door or loading dock) to pick up or deliver your shipment, instead of remaining at the dock or truck, additional fees will be charged because of the additional driver time needed for this service. - Advance Notification
This fee is charged when the carrier is required to notify the consignee before making a delivery. - Limited Access Pickup or Delivery
This fee covers the additional costs required to make pickups or deliveries at locations with limited access such as schools, military bases, prisons, or government buildings. - Reweigh and Reclassification
Since weight and freight class determine shipment base rates, carriers want to make sure the information on the BOL is accurate. If the carrier inspects a shipment and it does not match what was listed, they will charge this fee along with the difference.
Navigating the many nuances of LTL freight accessorial fees to determine which services you need and which you can avoid will help ensure the most cost effective price. Carriers generally publish a document called the "Rules Tariff 100" which provides a list of current accessorial services and fees. The shipping experts at PartnerShip are well versed in these documents and are happy to help with any questions you may have.
Want a more in-depth look into freight accessorial fees and how to avoid or offset the added costs? Check out our free white paper!
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Forget Boxes: When to Use Poly Mailer Packaging
04/05/2023 — Jen Deming
If you’re a retailer, you probably know that there is a wide variety of packaging options available to ship your customer orders. In addition to traditional options like boxes, poly mailers are quickly becoming the preferred choice of many shippers. With perks like low supply costs and quick assembly, poly mailers sound like a rock star solution, but how can you be sure they are right for you? Looking at some very specific scenarios can help determine when to use a poly mailer.
Scenario 1 - When you need assembly to be fast and efficient
No one wants to waste time packaging shipments - and poly mailers are a great option when you want to streamline your shipping process. Unlike boxes, which require assembly, tape, and internal elements like foam core, poly mailers are ready to use right off the shelf. Once you select which mailer style to use, all you need to do is insert the item, seal the mailer, and add the shipping label.
An added bonus is that poly mailers can streamline and simplify storage for your packing materials. They take up less space, which means you can store more of them in your warehouse. If you have limited storage space, and a smaller team to manage your shipping, these efficiencies can be a lifesaver.
Scenario 2 - When you want to keep shipping supplies costs low
Keeping shipping supplies on hand can get pricey, especially if you need to order custom-sized items like boxes for packaging. If you’re looking to save money on supplies, poly mailers are a great option. They are typically less expensive than boxes - on average they cost $0.25 a mailer compared to $1.25 for a box of a similar size. For extra protection, you can find bubble mailers, which have padding built in. Bubble mailers don't require additional packing materials like Styrofoam peanuts, so you're saving some money there. All types of mailers are able to be purchased in bulk, which helps with cost savings.
Another perk you get with poly mailers is that if your supplies unexpectedly run low they are easy to find at places like office supply or grocery stores. While it’s always best to keep an appropriate amount of packaging on hand, if you’re in a pinch, finding more won’t be difficult or break the bank. These factors all add up to significant savings over time, especially if you ship a moderate to high volume of products.
Scenario 3 - If you want to avoid high DIM weight charges
As many retailers know, small package carriers use dimensional weight (DIM weight) pricing to calculate shipping costs. Carriers do not like to waste space on their trucks, so shipping large, lightweight packages is a no-no. These bulky packages will cost you, and this is a significant expense that quickly adds up for many retailers. A smart way to offset these high costs is to make sure you are minimizing wasted space, and that’s where poly mailers come in.
Poly mailers are small, thin, and flexible - they can be folded and resized to best fit the product inside. These small, dense packages allow for greater efficiency for the carrier, and will cost you less in the long run.
Scenario 4 - When you want a specific type of protection
Poly mailers are economical and convenient, but they are not suitable for all types of products. If you’re shipping fragile items, or those too large and heavy to fit securely in a mailer, you may need to use a different type of packaging.
Poly mailers are ideal for soft goods like clothing, bedding, purses and backpacks, and some accessories like belts or scarves and knit hats. Padded mailers that offer additional lightweight protection are great for books and printed materials, DVD and blu ray discs, some jewelry, cosmetics and skincare items, and select types of home goods like flatware.
If you’re shipping the right items that are not easily damaged, poly mailers can offer excellent protection. They are made from durable materials that can withstand normal handling during shipping. They are tear resistant, and also offer dirt and weather protection that is ideal for small items going to residential mailboxes.
Scenario 5 - When eco-friendly shipping is important
Finally, if you’re committed to eco-friendly shipping practices, poly mailers can be a great option for your business. They are often made from fully compostable or recyclable materials. You can often drop off poly mailers at the same places that would recycle plastic bags and containers. Poly mailers are also generally lightweight compared to boxes, which is more energy efficient for carriers.
Most significantly, poly mailers are often completely reusable. Many options have a secondary adhesive strip that allows them to be used for return shipping of orders, or even reused by the consumer for other shipping purposes. Even those without a second strip can be folded over at the opening and secured with tape - their durable material can withstand multiple journeys through a shipping network. These factors combined make poly mailers a great choice for retailers who want to reduce their environmental impact by reducing packaging waste.
Poly mailers are a great option for retailers - when it’s the right product
Poly mailers are a versatile and cost-effective option for small package shipping, and work very well for many ecommerce retailers. They can help streamline your order fulfillment process, enforce brand awareness, and help avoid high DIM weight costs. You may be able to save even more on your small package shipping if you belong to an association or chamber that works with PartnerShip. Contact our team to find out what options are available to your business.
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5 Hard Truths About Freight Quotes
03/27/2023 — Jen Deming
LTL freight quotes can be tricky and are often full of surprises - which isn't exactly fun when invoices are involved. Even experienced freight shippers may encounter some stumbling blocks, so it's essential to stay on top of the factors that impact your quote. From lead times to accessorial fees, we are breaking down five brutal realities about freight quotes that you must know to ship successfully.
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Your One Week Action Plan to Lower Manufacturing Shipping Costs
03/09/2023 — Jen Deming
Right now, the manufacturing industry is tough. Our economy is unpredictable, and both labor and raw materials expenses are high. When looking for cost-saving opportunities, it’s critical that manufacturers assess areas of the business where you may have the greatest degree of control, such as shipping. With a little bit of planning, your team can tackle one cost-saving strategy a day to ensure lower freight charges within a work week.
Day 1 - Audit your top freight classes
Freight classification is an important part of LTL shipping, and it’s important to make sure the ones you are using are accurate. If they are incorrect, your freight may be reclassified and you will pay a fee, which is both expensive and disruptive.
Make sure your team is reviewing your most commonly used freight classes and checking them against current NMFTA codes. Manufacturers have an extra challenge due to the sheer volume of materials being shipped, often within one load. Product classes for items like parts, tools, or built-machinery can vary wildly, especially if they fall within a density-based category. Codes are updated regularly, so you can’t just look it up once and think you’re good to go on every shipment you move. Even small changes in weight, dimensions, or packaging type can affect your class and freight charges.
You should regularly audit your freight invoices for discrepancies between what class you’ve used to quote and what shows up on your final bill. If you see any class codes that are regularly corrected, make sure you’re adjusting that for the future. For new products, always review resources like ClassIT or speak with an experienced freight professional who can help you decode your freight class.
Day 2 - Optimize your packing strategies
The way you approach packing procedures for your freight shipments can greatly affect your shipping costs. Palletizing your loads keeps your products together and improves the structural integrity of your shipment as it travels through the LTL network. Being intentional in your packing choices keeps freight charges under control by managing density and protecting against damages.
Take a look at your current pallet-stacking strategies to see where you can make positive changes. You may be able to improve density by adjusting which products you are grouping together on a pallet. Small, dense shipments typically have a lower freight class, so don’t overstack pallets with large, lightweight materials. Your team should also review how often you are losing money due to loss or damaged shipments.
Manufacturers have options to better protect freight with a few specific tweaks, like using custom crates for extra fragile loads or using recycled-plastic pallets instead of wood. Recycled-plastics pallets are sturdier and more durable than wood, and are also less likely to break over repeated trips. For any pallet type, you can also add shrink wrap or corner protection for additional security. Prevention is the best strategy when it comes to lowering damage costs.
Day 3 - Look for ways to consolidate
When it comes to spending less on freight, consolidating shipments is an area many manufacturers may overlook. By finding opportunities to ship more efficiently, you can greatly lower costs. One way to do this is to make the most out of every load by eliminating the extra ones.
Review your inbound order cycles for items like parts or tools that you need to regularly replace or service. Plan these orders ahead of time so they can be shipped at the same time to save money. Discuss any opportunities to combine orders with your customers who ship most frequently. For example, if you’re shipping product components monthly, review if the order amount can be adjusted and sent quarterly. Strategies like this may lower costs for you and improve efficiency for both parties in the long run.
Day 4 - Evaluate opportunities to limit accessorials
Freight charges can quickly add up when you overspend on extra services. Accessorial fees like liftgates or driver assist can be avoided if your team has the proper loading equipment. The real struggle starts when you’re hit with fees at your customers’ locations that you didn’t budget for. Make sure that your customer knows any extra help with loading or specialized equipment costs extra. Requests like these need to be made early on so that you can accurately build freight charges into your customer orders.
Manufacturers shipping to rural areas have a higher risk than other shippers of incurring less common accessorial fees. Put simply, limited access is applied whenever a location is tough to get to or has unusual business hours. Manufacturers within the agriculture industry who are shipping equipment to rural dealer locations or farms experience this charge most often. Do your homework and make sure you’re familiar with your customers' needs.
Day 5 - Get a freight shipping audit from a quality broker
Freight charges can be complicated and time consuming to manage, making it hard to become an expert in LTL when tackling other areas of business. Fortunately, freight brokers can help look for cost savings and inefficiencies by reviewing current freight invoices. At PartnerShip, we understand the difficulty manufacturers face when trying to save on freight, and our experts can help you look for opportunities that can save time and money.
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Time-Saving Shipping Tips Any Small Business Can Try
03/01/2023 — Jen Deming
If you're a small-business owner, you know that shipping your products can be a time-consuming and frustrating task. When you have limited resources and staff, every wasted second counts. But it's time to take action - there are ways to make small package shipping easier, and faster, for you and your business.
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If You're Shipping Clothes, Don't Sleep on These Pro Tips
02/20/2023 — Jen Deming
The online apparel industry is kind of a big deal. In fact, apparel and accessories accounted for 29.5% of all ecommerce sales in 2021 in the US alone. While shipping clothes seems pretty straightforward, you must master packaging, item weight, returns, and more to be successful. We’ve compiled the definitive list of unique tips for clothing retailers that will help ensure you’ll have the competitive edge.
Tip 1: Keep costs low with flexible packaging options
Apparel shippers have a unique advantage over other ecommerce retailers: more packaging flexibility. This ability to use a variety of different packaging types allows greater cost control. Malleable items like clothing are tougher to damage than rigid, breakable items such as home goods, for example. Because of this, many apparel retailers can ship in alternative packaging types like poly mailers, envelopes, or recyclable bags instead of boxes, which can cost less and also offer greater customization options.
Another unique advantage of clothing is that it can be adjusted within the package to avoid higher shipping charges due to dimensional (DIM) weight. Most lightweight items are at an increased risk, but pliable fabric items like clothing can be folded and fitted to reduce extra space more easily. Whatever you can do to avoid wasting space will help you out in the long run.
Tip 2: Use apparel’s high return rate to your advantage
Retail returns are a particularly impactful affliction when it comes to the apparel industry, especially with online shopping. In fact, 88% of customers have reported returning clothing in the past. Sizing, color, fit, pricing, or something as simple as buyer’s remorse may encourage a customer to return their product. The key to navigating returns starts with shifting your perspective on them in the first place. Returns actually give you an opportunity to further engage with customers, and can convert online-only shoppers into brick-and-mortar customers. Your customer may initially prefer the quick refund of an in-store return, but after checking out your products in person, they may be more likely to exchange or accept a store credit for later use.
Shifting your attitude away from returns as a necessary evil to a more impactful part of your business strategy as a growth driver is essential. When used correctly, returns can actually result in higher net sales from your most profitable customers. Receiving excellent customer service during a return will increase confidence in a brand. Helpful measures such as adding return packaging and instructions, or sending follow-up emails to assess the buying experience, can strengthen the customer relationship and keep them coming back for more.
Tip 3: Offer free shipping more successfully with scalable threshold strategies
With free shipping as a major expectation amongst consumers, ecommerce retailers can struggle with how to implement a strategy that is viable. Apparel retailers have it a bit easier than other shippers, due to the variety of options available. Implementing free shipping by using a threshold (“minimum order”) strategy often is the easiest way to give customers what they want while remaining a profitable business.
First, you must figure out what your minimum threshold should be by looking at gross profit margin and average shipping costs. After you come up with that figure, consider offering the following value-centric options so that it’s easier to hit a specific order amount:
- Product bundles - consider bundling options of most commonly-purchased items that customers go for in multiples, and pricing the bundle at your threshold. Example: 6 pairs of socks for $25
- BOGO offers - offer BOGO deals that will get your average order value up and hit the minimum. Example: buy a pair of jeans for $40, get the second pair half off to hit a threshold of $60
- “Shop this outfit” - spotlight entire outfits, from basics to accessories. Make the price of each item clear, and display in virtual showrooms grouped by theme, like a season or occasion. Customers love to visualize how to put pieces together, and clearly breaking down the price for each item will help customers do the mental math to get to that threshold.
If you do offer free shipping, you cannot over-communicate the minimum order amount. It’s important that the shopper knows how much they must spend during every step of the order process. That way, they don’t reach the checkout and abandon their cart due to shipping frustrations.
Tip 4: Take advantage of shipping discounts exclusive to clothing retailers
No matter what industry you’re in, you should be aiming to keep your shipping costs low. Optimizing your packaging, ensuring you have accurate shipping details, and leveraging returns can all help, but checking into discounts is always smart.
Some carriers may offer limited-time promotional pricing or volume-based discounts, but your business needs reliable discounts that don’t have an expiration date. Many association groups and trade organizations within the retail industry offer shipping discounts as a member benefit. PartnerShip works with over 130 groups to provide members discounts that can offset daily shipping costs. Contact our team to see what’s available to you.
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Meet the People Who Help You Ship Smarter: Taresa
01/20/2023 — Leah Palnik
If you’ve ever wondered who keeps the wheels in motion at PartnerShip, look no further than Taresa Gannon. As a Senior Key Account Specialist, she prioritizes caring for our customers above all else. She may quote, schedule, and track shipments, but her role is so much more than that. It’s her reliable communication and problem solving skills that make her invaluable to the shippers who work with her.
Something you should know about Taresa
She loves dogs! Taresa and her husband James have a full house with 5 of their own. She even hopes to open a dog rescue shelter someday.Expert advice
Taresa’s favorite part of her job is all of the challenges. And she’s an expert at navigating them. We asked her to share some things she’s learned along the way.- What industry trends are you seeing that you think shippers should be aware of?
Production delays, staff shortage/labor issues, and lack of warehouse space/scheduling availability. - If you could give customers one piece of advice for smart shipping, what would it be?
Keep an eye on demand, plan ahead, and entertain flexible options such as drop trailer service.
How to apply these tips to your freight
It’s clear - planning is essential if you want everything to go smoothly with your freight. Wondering where to start? A quality freight broker can help. If you’re curious how, we have a couple of great resources:- Five Important Reasons You Should Be Using a Freight Broker
- Five Freight Broker Benefits You Can't Afford to Pass Up
Taresa also brings up a good point about entertaining flexible options. There are several ways you can do that, and if you need some ideas, we have you covered:
- Drop trailer programs
- cross-docking vs transloading
- Partial truckload vs volume LTL
- Consolidating freight
- Regional freight carriers
If you’re ready to discuss your options with a freight expert like Taresa, contact us today.
Click to read more... - What industry trends are you seeing that you think shippers should be aware of?
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3 LTL Freight Fees That Are Actually Worth Your Money
01/19/2023 — Jen Deming
Keeping shipping costs low should be a goal for any LTL freight shipper, and is a smart tactic to successfully manage business expenses. What you may not know is that there are some scenarios where spending a little bit more can actually be beneficial. In certain cases, paying extra for an LTL freight fee may help avoid headaches, improve service, and create more efficiency. Let’s take a look at three scenarios where the fee is worth the extra cost.
Spend on: Freight Insurance
Probably the most important added fee that is worth the cost is extra freight insurance. The fact is that despite your best intentions (and packing procedures), your freight will at some point encounter damages and loss. Thinking that you’re safe with a claim payout from the carrier will lead to trouble.
We hate to break it to you, but payouts are usually pretty low, and don’t often approach the actual value of your shipment. The process is slow, tedious, and complicated - it's very easy to make a misstep that can jeopardize the approval of the claim. If you do acquire approval, your payout is based on dollar per pound and freight class, which can complicate things. Lower freight classes typically have lower dollar per pound payouts, so a discrepancy between actual shipment value can make it challenging to recoup your losses. Other freight classes, especially those that include used items, may not be covered at all.
Freight insurance usually comes at nominal cost with major extra coverage. The payout is based on the actual value of your freight, and you won’t have the responsibility of proving that it was the carrier that caused damage to your shipment. You also won’t be so hard-pressed for time in submitting a claim, and your payout will be faster. A quality broker should offer options to add on insurance coverage to your loads. When requesting a quote, just make sure to mention that you’re interested in additional coverage - for a minimal fee, you should be protected.
Spend on: Special Services
It’s always a smart idea to make sure your warehouse is well-stocked with proper loading equipment, and that your staff is adequately trained. But, sometimes you simply don’t have the resources.
Shipping locations without docks, small teams with low staff, and limited access businesses or special loads all warrant the extra money. Carriers offer a slew of extra services that cost money, but can be a life-saver depending on what you need to safely move your load. Liftgates, refrigerated trucks, and conestogas all fall into this category. You can also request driver assistance with loadings or delivery. While this isn’t a typical responsibility for the driver, if you’re willing to pay a little more, you can secure the extra help.
The most important thing about adding on these premium services is planning for the extra cost so that your invoice isn’t a surprise. Make sure you quote accurately, and include any additional options at the time of your request. If you’re unsure whether something may come with a hefty price tag, consult your broker or the carrier directly - especially since these services usually vary in cost across carriers.
Spend on: Carrier Appointments
Certain types of businesses require very specific shipping procedures and protocols. This happens often with high volume shippers that have trucks arriving all day long. These businesses frequently require appointments for delivery and pick-up. Grocers like Whole Foods or Trader Joe’s, and mass box stores such as Walmart and Target fit into these categories. Appointments help curtail truck pile-up and keep perishable goods stable.
Some businesses are designated as limited access, and may also operate within restricted shipping hours, like schools, universities, prisons, churches, or construction sites. Appointments can help ensure arrivals fall within that open window and avoid unexpected deliveries that may disrupt business operations or cause scheduling issues.
Neglecting to follow any business’s shipping and receiving protocols may result in a driver being sent away, which will likely incur missed appointment or redelivery fees. If you are shipping fresh produce and other perishable goods, any major delays are disastrous, resulting in damages to the load. Make sure you know whether or not your load will require appointments, and schedule them in a timely manner. Be extra mindful of any new locations you may be working with, and make sure any changes are communicated between all shipping parties.
Don’t be afraid to spend when the circumstances are right
It’s important to be budget-minded, but the most successful shippers know when to shell out versus when to save. If you need freight insurance, special services, or appointments for arrival, it makes sense to pay just a bit more to ensure less headaches down the line. These extra services ultimately help your freight - but you need a plan. PartnerShip can help determine which “extras” make the most sense for your business.
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3 Freight Claim Mistakes That Carriers Love You're Making
01/06/2023 — Jen Deming
Freight damages and lost shipments are the worst. Submitting a freight claim in order to receive compensation from the carrier can be challenging, and if you don't do it right, you're unlikely to get much of a payout. In fact, certain mistakes that you might be making can pretty much guarantee a denial or low payout - and have the carrier jumping for joy.
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Why Offering Free Shipping for Your Business is Easier Than You Think
12/13/2022 — Jen Deming
As a consumer, the words “free shipping” can create a huge incentive that pushes you to purchase. The expectation for most shoppers is that there will be some sort of free option. However, many retailers are still hesitant to offer free shipping, or stuck on how to make the choice available to consumers while still protecting their bottom line. Let’s take a look at the three most common misconceptions about offering free shipping, and how you can implement strategies to make it work to your business’s advantage.
Misconception #1 – Absorbing shipping costs will cut into my bottom line
If we’re really being honest here, it’s important to note that free shipping isn’t really “free”. Transportation services require time and effort from the carrier, so someone has to pay for it. If it’s not your customer, then it will have to be you. If not addressed correctly, you will have to absorb costs, and this will decrease your margins, overall.
The good news is that offering free shipping to your customer can have a major positive impact on your sales because it’s viewed as a huge value-add. In fact, most consumers are willing to spend up to 30% more online if they know they won’t be paying for shipping. As a top incentive, a further 93% of shoppers say they will take action to qualify for free shipping by adding more items to their order. By offering free shipping, you are going to boost sales and increase your average order spend. In time, the increase in revenue will ideally offset your shipping costs.
Pro tip: Set a minimum amount threshold to qualify for free shipping.
To make free shipping a viable strategy, it’s probably not smart to offer the service on just any order that is placed. Because shipping costs fluctuate, it can be hard to predict consistently. By setting a minimum order amount, you’ll help ensure that the revenue from the sale will offset the costs of transportation. Determine your minimum order value in advance, and be strategic about communicating that minimum amount during every step of checkout.
Misconception #2 – Building shipping cost into product price will scare customers
To counter the cost of shipping, it may make sense to increase your product price. But this can sound like a scary notion. Raised prices turn off customers and decreases your competitive advantage, right? The truth is, by increasing prices even minimally, while offering a high-value service like free shipping, you will see a boost to your net margin. 49% of all cart abandonment occurs due to sticker shock at the shipping point of checkout, not due to product price. Moderate price increases are generally justified by the customer, as long as fulfillment expectations are being met.
Pro tip: Product pricing should match what your customers are willing to spend and the type of customer you are trying to attract.
When building shipping costs into the price of your products, it’s always important to keep in mind who your target consumer base is. For example, a premium, brand-name shoe retailer can get away with a higher minimum price point than a book seller. Adding the cost of shipping into product price is a legitimate tactic that ensures you're covering your bases, just keep your price points fair and realistic.
Misconception #3 – The demand for free shipping isn’t there for my business
Unless you’ve been living under a rock, you know that free shipping has pretty much become the industry standard. Thanks to large ecommerce companies like Amazon, consumers expect shipping to be fast, free, or a combination of both. No matter whether you’re selling t-shirts or toolkits, the demand for free shipping is there for any industry. In fact, 66% of consumers want free shipping on all orders, regardless of the total, and 88% expect it when their order exceeds a certain amount. Even more alarming, 61% of shoppers say they are “somewhat likely” to cancel their order if free shipping isn’t offered – that’s a big old ‘yikes’. In short, when the majority of your consumer base expects some type of free shipping, it’s time to stop stalling and decide how to offer the service instead.
Pro tip: Explore ways to “test out” free shipping with offers and promotions.
You don’t have to jump right into a committed strategy right off the rip – dipping your toes in can help determine which tactics work best for you. Consider offering new customers, or rewarding existing ones, with a free shipping promotion. Implement VIP or loyalty programs that allow your customers to sign up and receive free shipping as an incentive. You may even benefit from offering free shipping on select items (perhaps those with a higher price point). By testing out different methods, you can really look at the shipping costs you incur, what your minimum order threshold should be, and refine your strategy from there.
Discounted shipping options help you and your customers
No matter which tactic you decide is best when offering free shipping to your customers, it’s extra important to keep your shipping costs low. You might not know that there are often shipping discounts available through memberships within trade associations, chambers, and industry groups. PartnerShip works with over 130 groups to provide their members with discounts on FedEx services. Contact our team to find out if you qualify.
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4 Questions You Must Ask About Your Freight Broker's Carrier Network
11/09/2022 — Jen Deming
When it comes to the carriers that can move your freight, "more is better", right? While that may be true for some, the quality of your partner carriers may be more valuable than quantity. If you're looking to add new carriers to the mix by working with a freight broker, make sure to ask the big questions to determine if their network is right for your needs.
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Freight Carrier Closures for the 2022 Holiday Season
11/03/2022 — Jen Deming
As we near the end of 2022, it’s crucial to plan ahead for shipping through the holiday season. Freight demand is starting to show signs of decreasing but continues to strain available carrier capacity. As a result, transit times are still a bit unpredictable.
Planning your shipping schedule during the final months of the year will be extra important. To avoid extra stress, take note of when your carriers will be closed during the holidays.
Freight carrier closures
- Saia LTL Freight – will be closed November 24 - 25, December 23 - 26, and January 2.
- YRC Freight – will be closed November 24 – 25, December 24 – 26, 31, and January 2.
- XPO Logistics – will be closed November 24 – 25, December 23 – 26, and January 2.
- ArcBest – will be closed November 24 – 25, December 24 – 25.
- R+L Carriers – will be closed November 24 - 25, December 24 - 26, and January 2
- Estes – will be closed November 24 – 25, December 23 – 26, and January 2.
- Dayton Freight – will be closed November 24 – 25, December 23 – 26, and January 2.
- Pitt Ohio – will be closed November 24 – 25, December 23 – 26, and January 2.
- AAA Cooper – will be closed November 24 – 25, December 23 – 26, and January 2.
- TForce Freight – will be closed November 24 – 25, December 23 – 26, and January 2.
Avoid being left out in the cold this holiday season
Freight shipping during peak shipping months can be extra-challenging, but you’re not alone. With over 30 years of holiday seasons under our belt, the freight experts at PartnerShip can help you ship smarter.
Please note that our office will be closed November 25-26, December 26, and January 2 so that we can celebrate with our families. Happy Holidays!
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Which Shipping Strategy is Right for Your Retail Business?
10/26/2022 — Jen Deming
Choosing the right shipping strategy can help increase profitability, conversion, and repeat business from your customers. But, how do you know which one is right for you? We take a look at the three most common small package shipping strategies for retailers, so you can decide what makes sense for your business.
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FedEx and UPS Holiday Shipping Deadlines for 2022
10/21/2022 — Leah Palnik
As you prepare your store for the influx of orders that come with the holiday season, you’re going to want to keep an eye on the shipping deadlines. Both FedEx and UPS have announced the last dates you can ship your orders and make it in time for a Christmas delivery.
It’s important to note these deadlines because demand surges this time of year. The carriers' networks are already strained, and it’s only going to get worse the closer we get to the holidays. To keep your customers happy and set the right expectations, we recommend clearly communicating the shipping cutoff dates and adding in extra days in case of delays.
FedEx has published a complete visual list of the last days to ship. Here are some highlights for domestic shipments:
- December 8 for FedEx Ground Economy
- December 14 for FedEx Ground and FedEx Home Delivery
- December 20 for FedEx Express Saver
- December 21 for FedEx 2Day and 2Day AM
- December 22 for FO, PO, SO, and Extra Hours
- December 23 for FedEx Same Day
UPS has also created a list of the last days to ship for Christmas delivery. Unfortunately, one thing that is missing is a specific cutoff date for Ground shipments. You will need to get a quote on the UPS website instead. For domestic UPS air shipments, the dates are as follows:
- December 20 for UPS 3 Day Select
- December 21 for UPS 2nd Day Air
- December 22 for UPS Next Day Air services
It’s also important to note that service guarantees are currently suspended for both FedEx and UPS ground services. It's also suspended for select air/express services. The main takeaway? You’ll want to encourage your customers to order early and do what you can to add in extra days when setting delivery expectations.
If you're looking for any additional guidance or need a way to lower your small package costs, PartnerShip can help. Contact our team today.
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How To Best Protect Your Freight From Freezing
10/13/2022 — Jen Deming
Winter is coming, and that means large parts of the nation will be impacted by cold, freezing temperatures, and adverse weather conditions. Certain types of freight, like beverages, electronics, and pharmaceuticals, are especially at-risk for damage during the winter months. The good news is that there are ways to protect your freight from freezing, which can help avoid both damages and cost challenges during the winter months. But you must be vigilant and follow three essential strategies.
Strategy 1 – Ensure your prep and packaging can handle cold temperatures
Protecting your freight starts with you, the shipper, and proper packaging and preparation. To make sure that your freight kicks off its journey safely, make sure to use the following tactics to avoid issues:- Know your product: Different types of products have varying temperature minimums, so first and foremost, you should determine what temperature ranges are safest for your freight.
- Group like products together: When palletizing or crating your loads, make sure similar product types (and temperature ranges) are grouped together for maximum safety.
- Use insulated packaging: When boxing up your product, make sure items are packed with insulating materials, like foam core, cotton or paper fiber, or insulated box liners.
- Wrap packed pallets: Insulated pallet covers, or specialty cargo blankets can help trap heat inside, making sure your products stay a warm and consistent temperature.
- Track temperature variations: Many shippers opt to use smart thermometers that can help track shipment temperature and detect any shifts that may impact the product.
- Load quickly and efficiently: Your loading team doesn’t have the luxury of time during the winter. Load carrier trucks quickly to minimize exposure to low temperatures and other weather risks like rain and snow.
To be completely honest, the equipment you choose will make or break your freight. Most carriers, especially large national carriers like TForce Freight and YRC Freight, offer temp-controlled services and have specialized trucks in their fleet that can manage freeze-protection. 'Reefer' (refrigerated) trucks aren't just used to haul frozen products during the summer. They can also be used to maintain a constant temperature for at-risk freight during the colder months.
When arranging your temp-sensitive freight, it’s important to contact your preferred carrier and learn about what options they offer. Communicate your shipment’s needs, starting with product type and what the required temperature range must be. Carriers can help secure a reefer truck, offer heated truck options, or even may provide alternative heating solutions, like portable or built-in trailer heating units.
After communicating with the carrier and deciding which temperature-control options are right for you, it’s important to note temperature requirements on your bill-of-lading. As with most special requests, this not only gives the carrier direction on your needs, but it can also be used as a point of reference for liability should something go wrong during transit.
Keep in mind, that temperature-control services are considered accessorials, and will incur charges and fees that may vary by carrier. Building those fees into your shipping costs is best done early on in the transportation process.
Strategy 3 – Stay on top of delays and weather conditions
Not every part of the United States will be impacted by inclement winter weather – but most of it will be. Snow, rain, ice, and even wind can create major issues for truckers during the winter season. It’s super important to research the path that your shipment will be taking. Don’t let your load fall prey to the common “out of sight, out of mind” misconceptions some shippers succumb to.
When shipping LTL, your load won’t travel from point A to point B in one straight shot. The further your load travels, the more varied its path will be. If your shipment enters any of the high-risk zones like the Midwest, New England, or Central U.S., it’s extra crucial you stay on top of weather updates for your shipping lane. When the weather is bad enough, it’s in your best interest to delay shipping until it clears, if you can swing it. Road closures and rerouting may be hard to predict, so it’s always smart to build extra time into your transit.
Shipping over the weekend is always tricky, even in the best-case weather scenarios. But in the colder months, you will likely encounter extra challenges. Because weekends are considered “dead freight” time, your loads will sit and be exposed. Your best bet is to ship early in the week and avoid weekends all together, but if you have to, make sure you communicate with the carrier about keeping the temperature-control running while idle.
Because freight transit can be so unpredictable during cold weather, always keep in mind that you should be keeping alternate shipping options open. If you have a larger freight shipment, a dedicated truck may be a viable alternative. While pricey, keeping room in the budget for emergency scenarios like weather delays is a smart plan of action.
Shipping freight safely in winter is possible
Winter weather freight shipping can be tricky, but it’s not out of the question. You will need to strategize even more than you’re used to, and take every precaution necessary to avoid slip-ups. Keep in mind that now is not the time to take any unnecessary risks just in an effort to save a buck. PartnerShip can help you keep on top of cold weather shipping issues, including communicating with carriers and staying on budget. If you’re going to be shipping this winter, make sure to contact our freight experts so your freight is delivered safely.
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What Manufacturers Want: We Talk Shipping Tips With an Industry Insider
10/07/2022 — Jen Deming
Manufacturers are kind of a big deal. Take a look around, and you’ll notice that the products, supplies, equipment, and tools they produce are everywhere. Lately, conversations about manufacturing are shifting, as the industry itself is evolving to meet new expectations and demands. In order to gain some insider perspective, we reached out to our industry contacts and association partners. Holly at Jatco Machine &Tool Company, Inc., NTMA member and PartnerShip customer, was generous enough to provide some expert insight.
- What specific shipping challenges do manufacturers face? What do they do to combat those issues?
Holly: Some specific shipping challenges would be the balance between cost and delivery times, items arriving on time and undamaged, difficulty of creating/placing shipment. Some things we do to combat those issues are utilizing PartnerShip and packaging our items up ridiculously well. Partnership offers us savings by combining shipments, and they make it so easy to create a shipment. They literally do it all for you! - What is the most important factor related to shipping for manufacturers and why?
Holly: It’s hard to choose one. Obviously, safety goes without saying and should just be a standard for everyone. Other than that, it would be delivery times. Sending an item to a subcontractor can become a process. Two days to ship freight, maybe two or three days for them to do the work, and then another two days back is a full 7 days eating into our deadline. We’d like to get freight to a subcontractor overnight and vice versa. And honestly, two days is not terrible! - How can PartnerShip make life easier for manufacturing businesses?
Holly: I think that they really do all that they can to be efficient and easy to work with. I enjoy calling and having someone fill everything out correctly, search for rates, and give me the best options. - What do we, and others in the industry, need to know about manufacturers and how to best address their shipping needs?
Holly: We have one-two shipments with Partnership per month. I’m sure others have more or varying amounts. It’s nice to know that we can receive great rates based on merely being a partner verses number of times we ship. We are a small business doing big things all over the country. Shipping will always be a part of that. Partnership makes that aspect as easy as possible.
- Key Considerations for Shipping High-Value, High-Risk Freight
- 5 Foolproof Ways to Take on Manufacturing Shipping Challenges
- Types of LTL Carriers and When You Need Them
- 4 Ways Consolidating Your Freight Will Make Your Life Easier
- 5 Freight Broker Benefits You Can’t Afford to Pass Up
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Meet the People Who Help You Ship Smarter: Dillon
10/05/2022 — Leah Palnik
Above all else, at PartnerShip we value the relationships with our customers and partners. Keeping them happy and ensuring their freight is managed properly is the backbone of what we do. Our Association Program Manager, Dillon, is a prime example of that. He is the main point of contact for our college bookstore associations and is the go-to resource for many of our customers - a role that is as unique as he is.
About Dillon
If you get the chance to speak with Dillon, be sure to congratulate him - he recently got engaged to his longtime girlfriend! They have lived together in their beachfront apartment in California for 6 years and enjoy everything the oceanside life offers. When he’s not working, you can find him enjoying a nice meal with his fiancé, playing beach volleyball, or biking down the beach path.Expert advice
Dillon has earned his chops as a Certified Transportation Broker (CTB) and sits on the board for the California Association of College Stores (CACS). Between that and his 7 years of experience at PartnerShip, he’s in a solid position to help our customers ship smarter. We asked him to share some advice.- What industry trends are you seeing that you think shippers should be aware of?
The most obvious industry trend that I can identify is transit times being affected by the demand on the system. You can easily avoid this issue by taking extra time to communicate with your broker, specifically on how early you should order your product and what your realistic expectation for delivery should be. - If you could give customers one piece of advice for smart shipping, what would it be?
My major piece of advice for customers is to communicate with your logistics broker. Many problems can be avoided or instantly fixed when a customer and their broker communicate to understand any shipping issues that may arise.
Taking it a step further
Communication is key in Dillon’s eyes and for good reason. A quality freight broker can be your advocate when issues arise with carriers, you’re dealing with deadlines, or have unique needs. But that open dialogue is essential for your broker to do their job right. Curious about the benefits of working with a broker? We’ve got you covered:- 5 Freight Broker Benefits You Can’t Afford to Pass Up
- How to Select a Freight Broker: Top 8 Factors Shippers Should Consider
Dillon also hits the nail on the head when it comes to challenges with transit times. If you want to understand what’s happening in the freight industry and how to tackle the resulting issues, there are a couple resources you might find useful:
- The Current State of Freight: What You Can Expect
- 6 Surefire Ways You Can Overcome Freight Capacity Challenges
Without question, having someone like Dillon on your side to manage your freight is essential these days. If you’re interested in finding out more how our team can help, contact us today.
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3 Blunders That Can Sabotage Your Blind Freight Shipment
09/22/2022 — Jen Deming
LTL freight shipments come in many forms, but one of the most confusing types you may have heard of is blind freight shipping. In blind freight shipping, the identity of the shipper, receiver, or both parties is hidden. It’s most commonly used when a business is shipping orders directly from the manufacturer to the customer.
If you think that sounds complicated, that’s because it is, but there are distinct advantages to taking this route when arranging a freight shipment. The most common reason a business would choose to do this is to keep other parties within your supply chain confidential from your customers, such as manufacturers or distributors. The idea is that they would then be deterred from going directly to those sources for a product instead of your business. Sounds good, right? Well, the challenge is that managing blind freight shipments can get pretty dicey, and most missteps fall within three major areas.
- Blind Freight Paperwork Mistakes
Properly preparing and distributing freight shipping paperwork is a stumbling block for many shippers, on even the most standard loads. In blind shipping, up to three separate BOLs must be prepared, depending on which parties aren’t being disclosed. In double-blind shipping, you will have one for the shipper, one for the receiver, and a conventional BOL for the carrier’s use. All three of the BOLs should include accurate shipment details, including weight, dimensions, and product description.
They should also include accurate freight classes so that the load is billed properly. Each of them will, however, have slight but crucial differences to ensure your blind freight stays “blind”. A shipper’s BOL will have all of the usual info, but also include PO# or other identifying information. The receiver may be omitted in order to keep the customer anonymous. Likewise, on the receiver/customer’s BOL, the supplier’s identifying info and address will be concealed. The carrier BOL must contain all relevant information that is typically used on the BOL, including both shipping parties full information.
Failing to prepare BOLs properly, or handing them off to the incorrect party, can result in major headaches. A shipment can be misrouted or lost, billed incorrectly, or the blind freight’s purpose may even be defeated by accidentally disclosing parties to one another. The best thing you can do when managing a blind freight shipment is confirm that the carrier has all of the accurate details when setting up the shipment, including the true addresses of both shipping parties.
- Not Accounting for the Additional Costs Associated With Blind Freight
It’s always smart to assume that if a shipment has any extra services or needs “special” attention, a carrier is going to add some extra fees for their trouble. Due to blind freight shipping complexity, there are extra costs associated with this service. Every carrier charges different amounts, and we’ve seen them anywhere from $50-$150. Check your carrier’s website to determine costs. As seen here with YRC, cost is stated clearly, as well as instructions to prepare a blind freight shipment per their standards. Research these fees and make sure you’re building them into your budget to avoid surprises.
On top of regular fees for the service, you have to remember that any errors you make when arranging a blind freight load can end up costing you even more. For example, if you handed off the wrong BOL, and the address is incorrect, rerouting and redelivery fees may apply. This can really inflate your final bill, as well as create on-time delivery complications and stress with your customer.
- Not Being Aware of Blind Freight Restrictions
Just as we see with blind freight costs, requirements and restrictions on these types of shipments can vary with each carrier. Some carriers have a pretty relaxed approach, while many need additional paperwork or approval beforehand. It’s always important to notify your carrier that a shipment is blind at the start of the process so that you can iron out details.
Many carriers, such as YRC, require a form or document to be prepared online before pick-up, so that an “official” notice is on file for the request. Carriers may also require paperwork to protect their interests in the case of blind shipping. There may also be a waiver to sign, notifying you that while they will do everything in their power to honor the request, if something goes wrong, it’s not on them. Some may even include stipulations, such as a note that re-delivery will not be attempted due to issues associated with paperwork errors. It really just depends on the shipper, so be sure to visit carrier websites and search for policies on blind freight shipping. If there isn't information made front and center, always download the latest rules tariff and read the fine print. It's not fun, but it may help you avoid mistakes.
While blind freight shipping can sound totally overwhelming, the opportunity to use this type of freight service should be considered for anyone working as a “middleman” between customers and suppliers. A great freight broker can help manage all of the details, including paperwork and communication between all parties to ensure accuracy. With the right assistance, you can be sure that your blind freight shipment will go smoothly. If you think your business might benefit from blind freight shipping, get in contact with a PartnerShip freight expert to learn more.
Click to read more... - Blind Freight Paperwork Mistakes
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Meet the People Who Help You Ship Smarter: Amanda
08/30/2022 — Leah Palnik
If you’ve ever wanted to know more about the people who help keep your freight moving, you’re in the right place. It takes creative problem solving and years of experience to expertly navigate the world of shipping. At PartnerShip, we’re proud of our team members who use their expertise to help our customers ship smarter. One person who fits that bill is Amanda Bixler.
Get to know Amanda
As the Customer Service Manager, Amanda helps her team and our customers ship smarter by staying current with issues in the industry and sharing what she learns. Assisting her team with handling difficult customer situations, creating shipment quotes, scheduling shipments, and running shipping analyses are all in a day’s work for her.Outside of work
You can’t keep Amanda away from the water. When she’s not kayaking, you can find her walking the beaches to collect Lake Erie beach glass for making jewelry. She also loves spending time with her family. She’s happily married to her husband of 10 years, Trevor. She also has two daughters - Autumn and Alexis, and two Grandbabies - Lillyana and Xavier.Some shipping wisdom
Amanda has been with PartnerShip for 7 years, and her team is often the first call when a shipping issue arises. As a Certified Transportation Broker (CTB) she is well versed in what to look out for and how to keep your shipments running smoothly. We asked her for her thoughts on a couple of key questions.- What industry trends are you seeing that you think shippers should be aware of?
The demand for shipping continues to increase daily. There is more freight than there are drivers to move it. The freight is often being put on the rail resulting in longer transit times. I proactively inform my customers of these potential issues so there aren't any surprises. - If you could give customers one piece of advice for smart shipping, what would it be?
I often tell our customers to package their freight in a manner in which it can be identified easily in the event it is lost/damaged.
How to apply these tips to your freight
Amanda’s insights touch on one of the most pressing issues in LTL freight shipping today - longer, more unpredictable transit times. This has become an unfortunate reality of the business. While much of that is out of your control, the best thing you can do is plan ahead and work with a quality broker so you have an advocate in your corner. If transit times have been a pain point for you recently, we have some resources you may be interested in:- The Top 4 Reasons Your Freight is Late
- The Current State of the Freight Industry and What You Can Expect
- 5 Freight Broker Benefits You Can’t Afford to Pass Up
Another reality of the business that Amanda mentions is dealing with missing and damaged freight. If a carrier loses or damages your freight while in transit, it can feel like so much is out of your control. However, you can take some precautionary measures and educate yourself ahead of time on the actions to take if you need to file a claim. To get you started, check out these resources:
- Everything You Need to Know About Freight Claims
- Logistics and Legal Rights: Where Do Shippers Stand?
- Your Guide to Proper Packaging
The benefits of working with a knowledgeable team are undeniable. If you could use a freight expert on your side, contact us today.
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The Full Scoop on Inside Delivery
08/24/2022 — Jen Deming
When you don't have a loading dock for your freight, your options can seem pretty limited when it comes to delivery. Luckily, many LTL freight carriers offer inside delivery - a convenient service that comes at an extra cost. Learn all about inside delivery in our newest video.
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5 Impactful Ways to Maximize Your Small Logistics Team
08/19/2022 — Jen Deming
These days, businesses are expected to do more with less, and that doesn’t stop at freight shipping. Small logistics teams need to be efficient multitaskers, and the demand to juggle so many responsibilities can be overwhelming. As a business owner, you can help set your logistics team up for success with a little extra planning and five tactics to maximize a small workforce.
Tip #1: Stay on top of industry updates and make resources available
Staying in the loop with freight industry news is great advice for any-sized shipping team, but it’s extra important for those operating with limited manpower. Be on the lookout and be proactive about communicating updates that are released by carriers, such as tariff changes, rate increases, service interruptions, and deadlines. Commit to publishing a regular newsletter or bulletin that communicates these changes. Post them in your warehouse and breakroom along with notices of any upcoming holiday service disruptions.
Be sure to implement regular training sessions with staff. It’s also best practice to keep a running list of solid freight shipping resources that your team can refer back to, as needed. With a small logistics team you’ll need to ensure your everyone has at least a base level of knowledge for each shipping function.
Tip #2: Prioritize your relationship with the carrier
While larger businesses may be able to operate on a more transactional level with carriers, developing relationships with transportation companies and their drivers is super important for smaller teams. By strengthening these connections, a business is more likely to become a shipper of choice, which is key when your logistics staff may run into unforeseen challenges. The current state of the freight industry can present obstacles. Limited truck availability means a carrier can either choose to move or pass up your freight, and in this volatile market any leg up on the competition can help.
Offer amenities for drivers like Wi-Fi, plenty of overnight parking, and free coffee. Be friendly and flexible with arrival times and communicate any delays or hang-ups. Paying it forward and becoming a preferred customer with the carrier can go a long way. A happy driver is more likely to help bail your team out in times of trouble or go the extra mile to help out.
Tip #3: Be extra mindful of minimum charges for LTL shipments
Smaller businesses generally ship smaller LTL loads, so it’s extra important that your team understands minimum charges to avoid sabotaging your freight costs. Minimum charges are the lowest prices that a carrier will set for its’ service and are implemented to offset operating costs. Each carrier may refer to the charge differently, but they are commonly known as an “Absolute Minimum Charge” or “Minimum Floor Charge”. Usually, the charge is applied for loads that are under 500 lbs.
In order to get the most bang for your buck, there are a few strategies that your packing team can implement. Maximize the amount of available pallet space by improving stacking technique and planning the layers of your load. Pack like-sized products together to improve density and overall volume.
Keep in mind that you can optimize your freight by consolidating loads. There may also be additional opportunities to group multiple small package orders into one, larger freight shipment. Review your smaller parcel shipments and determine if there are openings to use a freight service for cost savings and better efficiency.
Tip #4: Spend your money on quality loading equipment
It’s probably a pretty safe bet that if you’re working with a small logistics team, you’re likely working with limited resources. That may include restricted dock space – or a complete lack of a dock. If that’s the case, it’s critical that your team and warehouse/loading areas are well-stocked with fully functioning, safe loading equipment.
Investing in equipment like forklifts, pallet jacks, dollies, hand trucks, and hoists are all necessary to help with the loading process. More importantly, these tools can help avoid costly accessorial fees associated with extra services like liftgates and driver assist fees. While these loading supplies may have a high initial cost, this one-time expense can spare you hundreds of dollars in fees and help avoid overtaxing your team.
Tip #5: Work with a freight broker to access more savings and the right answers
You don’t have to tell us twice – freight shipping is super complicated and can be a lot to manage. It’s impossible to know everything when you have limited time, workforce, and resources. We know your small logistics team can pull out the stops, but partnering with a freight broker can offer invaluable help. Freight experts can help fill in any gaps when specialists are required, and offer competitive pricing options you may not typically have access to.
Knowledgeable freight brokers can also help identify areas you may be spending more than you need to or are experiencing operational inefficiencies. The freight professionals at PartnerShip can supplement your existing workforce and help shoulder some of the weight so you’re not overtaxing your team.
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Meet the People Who Help You Ship Smarter: Dante
07/22/2022 — Leah Palnik
You might be familiar with PartnerShip and how our organization helps customers ship smarter. But we’re more than a freight brokerage business. The people behind PartnerShip and our collective expertise are truly what make the difference. First up, we’d like to introduce you to Dante Donofrio.
How you might know Dante
As one of our Senior Account Representatives, Dante helps our customers move their freight. He works hard to collect all the important info about your shipment so he can match it with the best carrier for the job, at the most competitive price. Understanding all your specific needs - from required equipment to receiving hours - he leaves no detail unchecked to ensure everything goes smoothly.Some shipping wisdom
Dante has been with PartnerShip for over 4 years and has witnessed first-hand what shippers are dealing with in these times of disrupted supply chains and unprecedented freight demand. We asked him a couple questions to share what he’s learned.- What industry trends are you seeing that you think shippers should be aware of?
In the less-than-truckload (LTL) market, if you've shipped recently then you know that transit times are not what they were. Carriers are more often than not, NOT able to make their estimated arrival times and, unfortunately, there's not discounts for late shipments. Also, carriers are taking every opportunity to re-weigh, re-measure and even re-class your freight so it just comes back to accuracy and making sure you have the right classification, weight and dimensions. Our team does a great job of helping with freight class so that surprise rate increases from reclassification can be avoided. - If you could give customers one piece of advice for smart shipping, what would it be?
Try to tell us more than we want to know about your freight. Small details can be important so don't be afraid of giving too much information. I love thorough customers who give us lots of information. That said, if you don't do that, be prepared for me to come at you with lots of questions but it's all in the name of getting your freight there and controlling cost!
Something you may not know about Dante
Dante played guitar in a high school garage rock band but quit when he was working and attending night school. After a bit of a hiatus, he took it up again about 5 years ago and now even has a collection of guitars hanging up on his office wall. When asked if his life was made into a movie what the title would be, Dante says it would be “Shipper Guitar Hero”.Your freight
With all the current challenges in the shipping industry, working with an expert like Dante is imperative. Reach out to our team to start controlling your freight costs and ship smarter. In the meantime, check out these resources that help you determine what details are important when you're preparing your shipment, like Dante advises:- [Tool] Find Your Freight Class
- [Article] Why It's Never a Good Idea to Fudge Your Freight Dimensions
- [Article] For Good Measure: How to Avoid Freight Reweighs
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4 Ways Consolidating Your Freight Will Make Your Life Easier
07/18/2022 — Jen Deming
Combining multiple, smaller palletized loads into one larger freight shipment can really pay off in the long run. From saving on costs to increasing fulfillment efficiency, both your business and your customer relationships will benefit from well-planned freight consolidation.
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4 Freight Mistakes You're Making This Summer and How to Keep Your Cool
07/07/2022 — Jen Deming
Your LTL freight shipments have an arduous journey and can encounter any number of obstacles while traveling the long, winding road to their destination. Certain seasons of the year can lead to increased risk, and shipping in the summer is no exception. In addition to temperature sensitivity, there’s a variety of other factors that can make summer shipping extra prone to issues. We’ve boiled down the major summer freight shipping mistakes that you should avoid, to keep your costs and blood pressure low in the summer heat.
Mistake 1: Neglecting the boom in summer shipping volume
Summer is a busy time for many industries, from retailers who are busy boosting inventory to farms and growers sending produce loads to grocery distributors. We see a huge increase of freight shipments hitting the road in the summer months. This can affect carrier capacity and make it even more difficult to find available trucks. Time-sensitive loads will be more difficult to cover, too, since last-minute truck booking will be harder to accomplish. It’s nearly impossible to understate how much this boost in volume affects the market.
Solution: Make your loads desirable to the carrier
To claim first dibs on your favorite carriers, you need to make sure that your loads are as appealing as possible. Stay in good standing with the driver – have a clear loading dock, organized loading process, and make sure your packaging is ideal and easy to transport. The main goal for a driver during these busy seasons is to get in, get out, and get on the road. The more time wasted on navigating your parking lot, loading your shipment, or collecting paperwork is going to set them back for the day. Making life easy for your carriers might be the boost you need to get your loads covered quickly in the summer.
Mistake 2: Assuming rates will be the same year-round
Freight rates are directly related to capacity, and in seasons when it’s extra crunched, you’ll see them go up. Other variables like fuel costs can fluctuate unexpectedly as well, so keep these factors in mind when you are building shipping costs into your customer orders. Always keep in mind that a freight quote you received months ago in preparation for a load will no longer be accurate. And if the freight rate is more costly in the present, you can’t exactly go back and ask for more money to cover the difference.
Solution: Check spot rates regularly and build in extra cost
Your best tactic for getting an accurate estimate on freight costs is to run sample quotes periodically, through every season. Gather several from a variety of carriers, being mindful of accessorial costs and other extras. Take an average and use this rate to build in the cost of shipping in your customer orders. It’s always a great idea to cut costs as much as possible in less busy months, as well, to offset the increase during the summer. Creating a nice buffer for your budget can go a long way.
Mistake 3: Taking risks with temperature sensitive loads
It goes without saying that summer’s soaring temperatures can cause extra risk to your loads. Creating a protective environment for your product is key to limiting damages during transit. Frozen goods and fresh produce are commonly known risky loads, but items like pharmaceuticals, electronics, chemical agents, and more all need some extra love during the summer. Now is not the time to risk an “economy” or budget carrier for the sake of saving a few bucks.
Solution: Research and use quality specialty carriers
Just as in any industry, freight carriers can leverage expertise and specialize, as needed. Make sure you are looking at carrier companies that are experts in temperature-controlled services and employ refrigerated vans. Understand that these types of specialized equipment are in high demand, and will be more expensive and harder to find. When reviewing reefer carrier options, ask questions on how the equipment is maintained, how loads are stored and separated, and what they do to address potential delays while in transit. Even if you have a product that may walk the line between needing a reefer or regular dry van, taking the chance during extreme heat isn’t going to work in your favor.
Mistake 4: Miscalculating summer freight transit timesIf you haven’t figured it out already, shipping freight in the summertime can create a two-fold risk for your shipment. Warmer weather can cause product to deteriorate quickly, and capacity issues may lead to more delays than during slower times of the year. Combined with extreme weather, you have a recipe for disaster, namely damaged freight. Also, keep in mind that while many areas of the U.S. will welcome temperate weather in the summer months, other areas can experience heavy rains, impact from hurricanes and tornados, and severe drought or wildfires – all events that affect transit times.
Solution: Be extra mindful when scheduling long-haul shipments
Planning and being proactive about any potential delays is your best bet for success. Try to avoid shipping over weekends and holidays – most carriers will stay off the road and your freight will be left waiting. By avoiding those blackout dates, you can help protect your freight and also keep your costs low – rates skyrocket for carriers willing to move loads. If your load is liable to deteriorate due to temperature or transit-time related risk, you should always opt for services that can offset those factors.
Keep your cool this summer
Shipping freight in the summer doesn’t need to cause extra headaches and stress – it just requires better planning and a thorough knowledge of your product needs. By selecting the right carrier and equipment, planning for efficiency, and being proactive about truck capacity, you can minimize risk and ensure you’re shipping safely. The freight experts and PartnerShip can help answer any questions about your temperature-controlled loads and help navigate your summer freight successfully.
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3 Smart, Stress-Free Ways You Can Ship Freight to Rural Areas
06/29/2022 — Jen Deming
Transporting LTL freight through rural areas is inefficient for the carrier, and can be challenging for you. When you're juggling long transit times, limited service schedules, and tricky accessorials, it can become overwhelming very quickly. Luckily, we've put together some best practices that can help you ship to rural locations, stress-free.
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3 Warning Signs Your Business Needs a Freight Broker
06/14/2022 — Jen Deming
Managing your growing business can present some unique challenges. On one hand, orders are coming in, your sales are increasing, and your customer base is thriving. The flipside to that success, however, may mean new operational issues that eat up your time and bottom line.
Shipping freight successfully during this growth period is a stumbling block for many business owners and logistics teams. You may find yourself needing more time and a larger workforce – at some point you may even wonder whether it’s time to outsource help. A freight broker can help manage many of your freight challenges, from overarching issues like lowering costs to tackling day-to-day issues like ensuring delivery accuracy. The bottom line is that you shouldn’t be stressing out more than enjoying the success of your business. If you’re experiencing any of these three signs your business needs a freight broker, it’s time to get the help from the experts .
Warning Sign #1 – You are making big mistakes when shipping orders
More sales is something to celebrate, but trying to keep up with the increase in orders without accommodating the volume is impossible. To make matters worse, packing and shipping is a very detail-oriented business, and rushing to get orders out quickly means an increased chance for error. There’s plenty of opportunity for mistakes that can snowball quickly.
Issues such as labeling or paperwork inaccuracies or even quoting errors can quickly escalate and create major problems. For example, something as simple as a wrong address on your freight shipment can, at best, cause delays. That means inconvenienced and aggravated customers. If your customer is paying for shipping, and you’ve quoted the cost incorrectly, you can’t go back and ask for more money – that’s your loss. You need to make sure you’re quoting freight accurately the first time by using exact details and the correct classification.
Mistakes like these cost you time and money, as well as customer satisfaction, which is pivotal when you’re a growing business. If you’re seeing shipping errors like those mentioned above, it’s definitely a sign that your business would benefit from a freight broker. A quality freight broker has a dedicated staff of freight experts who can help offer advice and resources on how to tackle the details that trip up many freight shippers.
A great freight professional can help you avoid mistakes by assisting with every step of the freight shipping process:
- Offer guidance on product classification and freight NMFC codes
- Collect competitive and accurate quotes from carriers who fit your needs
- Create necessary paperwork for delivery
Warning Sign #2 – Your billing department is becoming overwhelmed
Unless you’re an established, larger-sized business, it’s likely that your employees are juggling several different responsibilities. It’s not uncommon for a business owner to be playing the part of shipping manager and billing specialist to boot. Being burnt out and behind schedule is a pretty clear warning sign your business needs some help from a freight broker.
When your business is growing, it’s safe to say your shipment volume is increasing, and you may even be shipping with several different carriers or using a variety of services. Managing all of these invoices can be overwhelming, especially when you’re checking for accuracy, meeting payment due dates, and processing claims.
A freight broker can help simplify the billing process for your freight shipments by acting as an extension of your own team. Most will offer consolidated invoicing which can help cut down on billing chaos. You’ll also benefit from auditing services to double check for errors and savings opportunities. Should you experience damages, your broker can act as your advocate and help navigate the very particular requirements for filing your claim. Relying on these services can help shoulder some of the responsibility that your business just may not have the time or resources to do thoroughly on its own.
Warning Sign #3 – Your shipping costs are digging into your bottom line
Let’s face it, running a business is expensive, and while more customers mean a greater chance at making a profit, it can also mean that your shipping budget needs to increase. Between packing materials, labor, and freight transportation, these expenses can multiply quickly.
It’s key to make sure your freight rates make sense for your growing business. This can be done through carrier discounts and other means like order consolidation or taking a look at what types of LTL service providers work best for your business. Securing discounts and identifying savings opportunities can be challenging, especially if you’re not running a large corporation or shipping huge volumes of freight daily.
The great news is that through established carrier relationships and collective buying power, working with a broker can give your business access to higher freight discounts that are typically reserved for higher volume shippers. A quality freight broker will also a conduct cost savings analysis for your business to see where you are overspending on both inbound and outbound shipments. Lastly, they can also quote and compare among carriers to make sure you’re getting competitive pricing to help combat the current freight market.
Let us help you
Everyone wants to see their business grow and succeed, but keep in mind that as you do, new challenges will arise along the way. If you’re encountering major freight shipping issues like quoting inaccuracies, invoicing headaches, or rising costs, managing on your own may have run its course. These mistakes are signs that working with a broker may benefit your business, and PartnerShip can help get you started.
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3 Smart Ways to Ship Freight in the City
05/24/2022 — Jen Deming
Too much traffic, too few parking options, and an overabundance of air pollution are all obstacles that shippers will encounter when shipping city freight. Before you jump in headfirst, make sure you are brushing up on these key strategies that can help avoid urban shipping headaches.
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Ranking the Top 3 Retail Shipping Mistakes
05/05/2022 — Jen Deming
Successful retailers have to be next-level multitaskers. However, with so many operating as small businesses, a large portion are running things without a dedicated shipping department. Doing this may be necessary, but it’s easy to make costly mistakes. By looking at what errors are the most important to be wary of, retailers can better sort out the correct way to manage their small package shipping. Let’s take a look at the top three retail shipping mistakes to avoid, starting with #1.
Mistake 1 - Giving inbound shipment control to your vendors
When you’re receiving inbound shipments, oftentimes the shipping is arranged by vendors. This may seem like the easy way to go, but you could be overpaying on each shipment from every vendor, compounding cost and other challenges that may affect your business. When the vendor arranges your shipping, they choose the carrier and control the cost of transportation, making this a very common retail shipping mistake.
Why choose inbound collect over vendor prepaid?
Choosing inbound collect shipping over vendor prepaid can give you better control over what you’re spending on your shipments and which carrier is used. You can also control which services your business needs, such as specialized equipment or accessorials like liftgates. Additionally, being invoiced directly by the carrier may eliminate any handling or markup fees your vendor could add into the total charges.
PartnerShip can help simplify the process
While managing your inbound orders may seem like a lot of work, partnering with a 3PL can help reduce the amount of effort you have to put in. A quality 3PL like PartnerShip can provide you with competitive pricing and determine if switching from vendor prepaid to inbound collect makes for your business. Inbound experts at PartnerShip can also help create routing instructions and review and enforce vendor compliance.
Mistake 2 - Ignoring DIM weight pricing
Dimensional (DIM) weight pricing is a strategy implemented by carriers to offset the cost, time, and energy spent on moving large or bulky shipments through the small package network. This pricing structure focuses on the amount of space your shipment takes up in relation to its actual weight. Overlooking the impact of DIM weight pricing on your total costs is a crucial retail shipping mistake.
Your DIM weight is determined by the dimensions of your shipment. To cut down on time wasted in your already-packed schedule, we have created a DIM weight calculator. If the figure you calculate is higher than your actual weight, then that is what you will be billed on.
Luckily, there are some strategies that retailers can use to help limit DIM weight charges:
- Right-size your packages by minimizing wasted space inside boxes
Consolidate orders to reduce the total amount of packages being sent
Why retailers need to be mindful of DIM weight
Retailers ship a lot of small packages, whether you’re receiving orders from suppliers or shipping purchases out to customers. In fact, a large component of retail sales are comprised of ecommerce. Due to the sheer volume of packages being shipped, costs can multiply rapidly, especially if your packages are subject to DIM weight pricing. Retailers must be strategic about how orders are packaged.
Mistake 3 - Not taking advantage of shipping discountsThe worst shipping mistake that retailers can make is assuming the current rates you’re getting are the best available to you. While large retailers may be able to negotiate substantial discounts directly with FedEx or UPS, it’s more challenging for smaller businesses, especially when many of the discounts are based on volume or may just be promotional.Small businesses can succeedSmaller retail businesses can still obtain discounts through their affiliations. Trade associations, chambers of commerce, or other organizations will oftentimes offer discounts to businesses. By partnering with a variety of service providers, your membership dues can be offset by the benefits and discounts you receive.PartnerShip works with over 130 trade associations and other groups, including several well-known retail organizations, like NSRA and NAMM. By leveraging carrier relationships and industry connections, we help make exclusive FedEx discounts available to retailers, no matter the size of your business or shipping volume.Avoiding mistakes is the first step to successful small package shippingSmall package shipping can be challenging for any team, especially for smaller retail businesses who may not even have a dedicated shipping department. Retailers must keep in mind that they have a few extra important shipping mistakes to avoid that could cause you to pay more for shipping than necessary.No matter the size of your retail business, avoiding these common pitfalls can ensure smooth shipping and lower costs. PartnerShip can help with every one of these challenges, including obtaining competitive pricing. Get in touch with the small package experts at PartnerShip to learn more.
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Key Considerations for Shipping High-Value, High Risk Freight
04/27/2022 — Jen Deming
If you're shipping high-risk freight, you know that your load is valuable and easily-targeted by cargo thieves. Understanding which factors can impact the security of your freight is the first step in protecting yourself against theft. In our newest video, we take a look at the three most important variables smart shippers must address to safeguard their high-risk loads and minimize loss.
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How to Save on Shipping While Reducing Packaging Waste
04/11/2022 — Jen Deming
We love shopping online. Nothing beats the convenience of delivery, variety of product options, and satisfaction of adding things to a virtual cart and clicking ‘buy now’. Unfortunately, the perks of ecommerce do have a flipside - the environmental impact of shipment packaging waste. Ecommerce shipping actually has about four times as many touch-points as regular retail. This means more packing and unpacking individual orders to customers – leading to even more packaging waste. Savvy e-retailers are minimizing their environmental impact by using eco-friendly shipping tactics and by using less wasteful packaging procedures. Even better, reducing your shipment packaging waste is a sustainable practice that is both eco-friendly and a smart way to lower shipping costs, through these three easy tips.
Tip 1: Reduce the amount of your packaging
If you’re a shrewd retailer, you know that your choice of packaging can protect your product, prevent damage, and enhance the value of your brand through the unboxing experience. But not every product ordered online needs to be shipped within layer upon layer of branded boxes and plastic packaging. Taking a “less is more” approach can help balance both cost and structural integrity, in addition to lowering packaging waste.
When you’re considering what types of shipment packaging to use, retailers have a ton of options. Packaging materials include paper, plastic, or chipboard boxes, foil or poly envelopes, bubble mailers, jute, vinyl, or cotton bags, and many other options. Dunnage, or the internal “protective” material inside the shipment can be Styrofoam, cardboard, kraft paper, soft or rigid plastics, and bubble wrap. Each option has its own cost, key benefit, and impact on the environment. Research what types of shipment packaging make the most sense to adequately protect your product, and then eliminate the use of unnecessary extra materials. Always keep in mind that you can reduce your initial cost and environmental impact by choosing simple, but effective shipment packaging that makes sense for your product and consumer.
Tip 2: Reduce the weight and dimensions of your shipment
It’s clear that wasteful packaging procedures can drive up initial costs, but keep in mind that any unnecessary materials can also affect your shipment rates due to weight and density. Your parcel rate is determined in large part by region, distance traveled, and weight. Heavy shipments put more strain on trucks and utilize more fuel when hauling loads. As a result, carriers will charge you more for added weight.
Another factor that can affect your shipment cost is dimensional weight. DIM weight pricing is used by carriers to offset the cost of moving large and bulky shipments in their network. This pricing strategy focuses not just on the actual weight, but also the amount of space your shipment takes up. Your DIM weight is determined by the dimensions of your shipment. If the calculated DIM weight is higher than the actual weight, your shipment will be rated on that.
Elaborate packaging with multiple components inside runs the risk of wasted interior space, so making sure that you right-size your package is important. Ensure that there is no empty space within your shipping box after the product and protective materials are added in. Reducing wasted space within your shipment can lower your final bill, and greatly reduces packaging waste that can be harmful to the environment.
Tip 3: Encourage your customer to use your packaging for returns
With more people preferring to shop online, the need for convenient returns options increases. Being intentional in how you approach your returns can help lower reverse logistics costs while remaining environmentally conscious.
Every online shopper knows that preparing to ship a return can be a pain. No one loves rummaging through a garage of broken-down boxes hoping to find one adequate for use. It’s not as simple as grabbing an empty box - the package must be structurally sound and free of pre-existing labels to avoid hiccups on the road.
Do your customers (and yourself) a favor, and make this process even easier by utilizing return-ready packaging for your orders, including resealable boxes, envelopes, and mailers. Include pre-printed shipping labels with return addresses and packing slips to help make the process even simpler. By providing return-ready packaging, you’re ensuring that the package is right-sized for pre-paid shipping labels and services. As a retailer, you’re taking steps to avoid possible damages or loss by providing packaging options that securely protect your product while in transit.
In short, by providing return-ready packaging, you’re taking back control of return shipments by managing several variables that may lead to costly surprises and packaging waste.
Reducing packaging waste benefits everyone
Retailers have a unique opportunity to improve the eco-footprint left by their businesses. Environmentally friendly shipping practices can help lower emissions on the road, reduce packaging waste headed for landfills, and lower costs. To further improve your environmental impact, consider working with a sustainably minded shipping provider, like PartnerShip. We elect to work with carriers that prioritize energy efficiency in trucks and facilities, minimize air-pollution, and offer transparency through data about fuel usage and impact. Optimizing your packaging is a smart place to start – learn how with our downloadable, free white paper.
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5 Freight Broker Benefits You Can’t Afford to Pass Up
03/23/2022 — Jen Deming
If you’re shipping freight, then it’s likely you’ve heard the term ‘freight broker’. But maybe you’ve wondered what they actually do or why you should bother using them. A freight broker acts as an intermediary between a shipper and a carrier - they help shippers find quality transportation providers for their loads. Brokers, also known as 3PLs, can manage every step of the shipping process and help alleviate some work, especially if you’re low on time and manpower. Whether or not you consider yourself a seasoned freight shipper, here are five freight broker benefits that will help level-up your shipping procedures.
Benefit #1 – Freight brokers offer guidance if you’re just getting started
If your business needs have shifted recently, and you need to start using services for larger loads, your shipping department may be a little stuck getting past the basics. Stepping up from shipping small packages to shipping freight is an entirely different ball game. Packaging and pricing strategies differ, as well as the amount of work your team needs to put in during loading. Now is the time to look for assistance from experts, because by going in blindly, you may encounter a variety of pitfalls that result in damaged shipments or expensive bills.
Freight brokers can help get you started off on the right foot by getting to know your business and what you need to ship. They can assist by researching freight classes and determining any special equipment or packaging needs. A great broker can also help with quoting and booking procedures, by scheduling pick-ups and getting all parties any necessary paperwork. After pick-up, they will proactively track your shipment and provide updates, so you can stay on top of your freight’s progress.
New freight shippers can be surprised how many checkpoints a load will encounter throughout transit. And with that, how many chances something may go wrong. For issues along the way, such as transit delays, inspections, or missed deliveries, freight brokers can troubleshoot quickly. Fixing these obstacles can take a lot time, a bit of run-around, and quite a few phone calls, so working with a broker can help shippers avoid that stress entirely. Many freight challenges stem from a lack of communication between shippers, consignees, and carriers, so brokers can act as conduit between the three and clear up matters quickly.
Benefit #2 – Brokers are your inside access to better freight rates
If you could save money on your freight shipping, you’d do it right? Better prices sound appealing, but it can be hard for small and medium-sized businesses to have enough clout with a carrier to get great discounts. 3PLs have strong shipping volumes, and working alongside one can be that extra boost you need to access better pricing. Freight brokers can both leverage carrier relationships for discounts (passing them on to you), and may have a broader pool of carriers that offer budget-friendly options.
To really evaluate where you are at with your freight spend, brokers can also conduct audits on your current procedures. By looking at your past invoices, brokers can identify any areas that you may be spending more than average and check for opportunities to cut costs or increase efficiency. For example, by reviewing accessorial charges like recurring liftgate fees that are being implemented by the carrier, a quality 3PL can help identify potential solutions to eliminate or offset those costs. This may mean suggesting equipment solutions at your warehouse, or looking into alternate carriers who charge less for extra services. There are many ways you can manage your freight budget, but without expert assistance, you may be stuck wasting money while trying to find solutions.
Benefit #3 – Brokers are your advocates in the case of freight claims
Freight claims are a dirty word in this business, and a top stressor for any shipper. Should you find yourself in that predicament, however, working with a freight broker can give you a leg up during the claims process. Freight carriers can be difficult to work with – their primary goal is to limit payouts whenever possible. Because there are so many steps and policies you have to follow, it’s best to have an expert on your side who’s done this a few times before.
A broker can often help set you up for success by making sure you have as many pieces of documentation backing up your claim as possible. They can educate you on the process and make sure you’re submitting the proper paperwork and adhering to any necessary deadlines. A qualified broker can help you understand the differences between carrier liability and freight insurance, and be your advocate during any negotiations and follow-up.
Benefit #4 – Freight brokers give you access to more quality carriers
Freight brokers work with many different carriers, and by using a broker, your pool of shipping options broadens greatly. This is a great benefit on a variety of levels. For example, if you’re experiencing consistent issues like damages, timeliness, and reliability with one of your carriers, having access to some new options could be just what you need to eliminate the problem.
With the worldwide freight crisis hanging overhead, it’s also a smart move to have as many carrier options available as possible. Many shippers have found it challenging to secure a quality carrier that meets their needs and budget. The more options you have, the more likely your freight is going to be picked-up and delivered on time.
Benefit #5 – If you’re stumped on a load, they’ve got options
Freight brokers are experts at putting out fires - they’ve seen it all. If you have a shipment that needed to be delivered yesterday, brokers can help navigate expedited options that balance service level and budget needs. Or maybe your load needs a specialized piece of equipment like a box truck or flatbed. A freight broker will be able to quickly access a large pool of carriers to ensure you have the coverage you need. For any kind of tricky freight loads, a quality broker can help guide you through the process.
The case for using a freight broker
Gaining the benefits associated with working alongside a freight broker can be a game-changer for your business. The ins-and-outs of freight shipping can be complicated, and while you can try to navigate them on your own, it’s always better to have an expert on your side. PartnerShip can help guide your team and help answer any questions you may have on whether working with a broker is right for your business.
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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.
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.
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Why Carriers Hate Difficult Freight and How to Fix It
02/18/2022 — Jen Deming
Have you ever thought about whether your LTL freight loads are worthwhile for the carrier? Your freight shipments must be worth the amount of effort that’s invested in moving them. If the payoff isn’t there, your loads will be regarded as “difficult freight”. This can lead to declined loads, infrequent pick-ups, or a tense relationship with your carrier. To get your freight prioritized, the first step is determining whether you have difficult freight, then taking the steps needed to become a shipper of choice.
Reason 1: Your pick-up or delivery location is tough to access
One way to determine whether your freight is cringeworthy can be as simple as walking through the door of your business and scanning the surrounding lot. Ask yourself, are my freight pick-ups a pain to complete? Maybe you don’t even have a lot, but your business is located on a side street or an alley in the city. A standard LTL dry van being dispatched by the carrier is 52 feet long, which definitely takes skill to maneuver safely. If your business location is in a challenging place, such as a cramped area that restricts maneuverability or doesn’t have a dock, pick-up is tough for the driver to complete.
On the other hand, maybe you have the space to maneuver, but it’s such a rural location that the carrier only services the area infrequently. If you’re in an isolated region that doesn’t have many other local businesses moving freight, the work to payoff ratio is pretty unbalanced. Either way, carriers have a term for these hard-to-reach locations. High-traffic metropolitan areas, remote construction zones, and extremely rural regions all fall within the definition of limited access.
The best thing you can do to avoid this particular pitfall is to create as much flexibility as possible for the carrier. You might not be able to move your business, but if the physical location of your pick-up has some structural challenges, you need to communicate that to the carrier beforehand. Informing the carrier allows them to plan for the proper equipment, such as dispatching a smaller box truck for arrival. If you can swing it with your warehouse team, consider shipping to or from a freight terminal, rather than your business. Busy freight terminals are located in desirable geographic areas that you know the carrier will visit regularly. This helps ensure your shipment gets moving and will spare you extra limited access fees.
Reason 2: Your freight is a prohibited commodity
Want to know another reason that your shipment may be marked as “difficult freight”? The commodity you are shipping may be prohibited by the carrier. This is usually due to liability, governmental regulations, or company policy. The act of prohibiting certain items exists for two main reasons:
High risk/high value - These types of products can be difficult to put an exact value on, or may be easily damaged or stolen. Commodities include bank bills, credit cards, gold or precious stones, currency, original artwork, furs, or other high-value items. Your chosen carrier may be willing to accept certain items, but you must prove you have the appropriate insurance coverage.
Regulated – These shipments may be excluded due to government regulation or may be hazardous in nature. This may also include perishable items that require controlled storage requirements. Items in this category include aerosols, chemicals, assembled guns, alcohol, combustible materials, hazardous materials, and live plants and animals.
So, since this type of “difficult freight” can include so many different commodities, what can you do? Your first goal should be to learn just how your carrier views these products. Evaluate your carrier’s terms and conditions before you even start planning your pick-up. Restricted or prohibited items will be listed there, as well as any liability and claims information. Inspections regularly occur during transit, so if you aren’t sure if you’re safe, call the carrier and find out their policy.
If you are consistently moving these types of risky shipments, make sure that you are working with carriers that are properly certified. Many carriers specialize in these types of loads, so you can ensure your shipments are moving safely and legally. For some types of cargo there may be state-mandated regulations, as in the case of transporting alcohol. Be sure to have the proper permits and to adhere to the necessary policies. Any type of shipment that has restrictions will likely have very specific packaging requirements and requisite paperwork.
Reason 3: Your warehouse hours don’t mesh with the carrier
Maybe the location of your business isn’t the thing preventing a carrier’s arrival, but your facility’s operating hours are what create further problems. Due to the nature of certain establishments, arrival times may be heavily policed or limited. Places like schools, prisons, or storage facilities often have restricted hours for arrival and loading – and sometimes they’re after a carrier’s business hours.
All a driver wants to do is arrive onsite, get loaded quickly, and then to get back on the road. Having to work around odd hours can complicate the daily schedule. To make matters worse, some locations may require an appointment for arrival. If you have a small loading window that requires the driver to stick to a very fixed schedule, this is going to present some issues. Traffic issues or detours can throw off an entire day’s work. If a driver arrives just short of the appointment time, the shipment may need to be put back on the board for the next day.
Create flexibility in your loading hours whenever possible. If you must require delivery appointments, make sure your loading team is efficient and organized so that you don’t run over. Allowing weekend arrivals, extended hours for pick-ups, and having a team “on call” can greatly reduce the stress a driver will experience and boost the chances the carrier will work with you again.
Reason 4: Your reputation proceeds you
When you are auditing carriers, and measuring up how well they’re working out for you, realize that carriers are doing the same thing. With capacity as limited as it is, freight carriers want to work with customers who have their shipping processes down pat and are pleasant to do business with. If you are anything but that, they will take their business elsewhere.
One major disruption for carriers is the subject of detention. Carriers usually allot two hours for loading, and any time it takes over that is considered detention. Detention holds up drivers, wasting time and preventing them from moving on to the next load. It’s pricey too, as most carriers will pass on a detention fee to offenders. Keep in mind, drivers are not going to help you load your cargo. Some may assist, but be warned, that will rack up some hefty fees too.
In order to avoid these fees and stay in good graces with the carrier, you need to have a well-trained and efficient warehouse team that also has the proper loading equipment. If you don’t have a dock for loading, that’s okay, but you should have a forklift or another alternative ready and working at pick-up.
Be helpful and accommodating to the driver. Amenities like accessible parking options, a comfortable resting area, and food and coffee will be greatly appreciated by the driver. Keep in mind, when it comes to difficult freight, your reputation is the one factor you can truly control. Becoming a shipper of choice takes planning and a little bit of thoughtfulness, but it goes a long way in helping the carrier look forward to your loads.
Reason 5: Your business has above average claim submissions
It probably seems pretty obvious, but if you’re submitting a lot of claims, the carrier is going to be wary of your cargo. Freight claims cause headaches for everyone involved. While the burden of proof is on the shipper to prove carrier negligence, claims submissions take a lot of time, research, and possibly loss of revenue for the carrier. Whether you win the claim or not, damage and loss claims mean the carrier will think twice about moving your shipments.
If your company has a history of damages, your freight carrier is going to evaluate a few risk factors. It may be possible that you are shipping extraordinarily fragile, or perishable, commodities that create a lot of risk. For example, a landscaping business shipping live plants may want to use LTL services for smaller freight loads. While possible, doing so is hazardous. Any delays in shipments or extra handling may cause an above-average risk to the integrity of the product.
The other issue may be with your packaging. A business that is shipping built furniture may experience increased risk of damage to their product. Custom crating your product can help avoid some damages, but the risk may still be too high, and standard carriers may decline to move your loads at all.
If you are shipping any sort of fragile or high-risk shipment, your first step should be to perfect your packaging procedures. It may be costly to invest in custom packaging, but using standard pallets and shrink wrap is not going to be enough to protect your freight. It’s more important to consider whether specialty shipping services may be the right option for your cargo. White glove shipping services can be pricey, but they prioritize safe handling and security. Refrigerated options or even using dedicated truckload services will limit the handling of your product, and may speed up transit as an added benefit.
Reason 6: Seasonality is shifting carrier priorities
During certain times of the year, there are huge spikes in available freight shipments for carriers to move. Depending on the industry, these periods vary by region and season, and sometimes there may be some cross-over. Some examples include produce season in places like Florida, the Midwest, and California, construction season in the spring, or nationwide during the winter holiday season. Because there are so many available loads to choose from, carriers will prioritize the loads that, you guessed it, have the highest payoff for minimal effort.
If you’re shipping during these busy seasons, you need to be flexible. LTL rates will go up and transit times will increase. You should always be practical about your budget, but consider the long-term goal. It’s not the time to tighten the belt on your budget during busy seasons - aim to lower costs year-round so that you have room when you need it. Since transit times will be longer, consolidating loads whenever possible will decrease your overall risk for late deliveries. Expanding your pool of carriers by working with a freight broker will increase the likelihood your shipment gets moved. As always, make your freight as appealing as possible so that when carriers are frazzled by the seasonal onslaught, they can count on your shipments to be fast and easy.
Make difficult freight a thing of the past
Nobody wants to be seen as a “problem shipper”, but the good news is that with time, and a little foresight, you can turn the situation around. It all starts with putting yourself in the carrier’s shoes. Would you want to work with your business? It’s your responsibility to make your cargo desirable, and encourage a strong relationship with your carrier. PartnerShip can help, by guiding your business to make the right choices for your loads, and connecting you with the right carriers who want to move your freight.
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6 Surefire Ways You Can Overcome Freight Capacity Challenges
01/18/2022 — Jen Deming
Sometimes, it’s just hard to find a truck. With a capacity crunch that’s been ongoing for as long as we can remember, the struggle to get your LTL loads covered is old news. But, it’s still relevant news. In fact, it seems like things are projected to get even tougher as more freight enters the network. So, while the capacity challenges continue, how can you get your loads covered without breaking the bank?
Why are there capacity challenges?
First, it’s important to understand why capacity is so tight in the first place. It all boils down to an oversaturated freight network – there’s simply not enough trucks on the road available to move every existing freight load. More money is being spent on goods than services, we’re looking at a 6% year over year growth in demand, and this shift in consumer spending is really tightening things up. While the trend has existed for years, the effects of COVID further propelled a push in consumer spending. Due to a diminished staff, freight is being held up within transit at distribution centers and terminals. All of these factors create the perfect storm that make it harder to find trucks for your freight.
Why should you care?
While the effects of a capacity crunch can seem pretty obvious, there may be more challenges than you expect. The immediate issue is getting your freight shipment covered at all. LTL freight carriers are becoming more particular about the loads they want to move and locations they want to visit. Pick-ups may be infrequent, and if your shipment is particularly challenging, like oversized, for example, it may be refused.
Transit times are becoming longer, with 87.9% of shippers reporting a delay in deliveries. Some carriers are also suspending or amending time-critical and guaranteed options. Base rates are higher than ever before, and LTL carriers are now charging detention fees in some cases when loading is delayed. This accessorial fee is typically just associated with truckload shipping, but with a driver’s time being a vital commodity, carriers are pushing back and using it for LTL shipments as well.
What Can You Do to Overcome Capacity Challenges?
- Expand your current network
One of the first things you should do to increase the odds that your freight will get covered, is taking a hard look at your current carrier options to see where you can improve or expand. Conducting a freight audit can help determine if your business needs are truly being met. Look for reoccurring challenges like missed pick-ups or high accessorial fees. Some carriers may visit locations where demand isn’t as high only one or two times a week, which can create a big issue with your shipping schedule. Accessorials like limited access can vary by carrier and it’s possible the one you are currently using may be charging more than a competitor carrier would. Exploring alternative carriers to review service levels and pricing is a great place to start. If you are finding several carriers that may fit your needs, keep them on file so you can rate shop between them and choose accordingly as back-ups.
- Build in extra time for everything
- Review alternative services for applicable shipments
- Consolidate your shipments
- Utilize regional carrier options
- Become a shipper of choice
Want to know a surefire way to combat freight capacity issues? Become a shipper of choice. This means to do everything possible to leverage your relationships with carriers to make your shipments as desirable as possible. The freight load itself, your location, and your business practices combined should create an easy, efficient, and positive experience for the carrier.
A good way to start is making sure your shipping location is set up for easy navigation. Signs and directional assistance, communication, and a safe, clear dock location are all things drivers look out for. Flexible delivery times and plentiful parking options help eliminate some extra stress for the driver, as well. Above all else, doing what you can to eliminate potential detention time is critical. Staged shipments that are primed and waiting with a well-trained and ready-to-go loading team help ensure the truck will be loaded within the 2-hour limit. That way, the driver can get back on the road to the next location with minimal delay. Nurturing these carrier relationships by improving the experience for the driver is important, and it matters. When there’s lots of freight waiting to be picked up nationwide, be the one that the carrier wants most.
Time is the name of the game in shipping. One of the smartest things that you can do to combat freight capacity challenges is building in extra time at every step of the shipping process. When you get an idea of a project or order you will be working on, start quoting as soon as you know details. If you have reoccurring orders for an established customer, approach carriers with the opportunity to explore contract pricing and get commitments for the length of the project. Carriers are looking for reliable, predictable loads that are going to guarantee business while creating minimal headaches. If you can prove your business can meet these expectations, they are going to be even more willing to commit for the long-haul. An added bonus - they are likely to negotiate terms and better pricing for your business as well. Packing and staging your shipments early so that they are ready for pick-up and will be loaded smoothly is going to go a long way in the eyes of the arriving carrier.
While choosing alternative freight services for your loads won’t always work to combat freight capacity issues, it’s a valid option for certain shipments. If you have a large LTL shipment that could benefit from truckload services, this could be a great back up choice. Using a dedicated truck can increase security, minimize damage, and expedite your transit.
While truckload moves typically consist of 8-10 pallets or more, some truckload carriers will offer a partial option where your load will share space with another shipper’s freight. This can add some perks of truckload shipping like added security, while benefitting from a more competitive price than paying for the entire truck. It’s important to note, however, that in partial truckload shipping, it’s possible your shipment may encounter delays due to the other customer on board. Depending on the order of delivery, you may end up waiting on the first delivery location if they don’t have everything in order. Building in extra time is still a good tactic to take here, but knowing you have alternative freight service options for your larger shipments is good to know if you are in a crunch.
The less often you ship, the less you risk not finding a truck for your loads. By consolidating your freight shipments, you create an efficient way of both lowering costs and ensuring you have LTL truck coverage. It may take a bit of communication and working with your customers, but reworking replenishment schedules so that you’re shipping larger, less frequent loads can be a smart long-term strategy. Moving your shipping to off-peak periods, if possible, also takes extra stress off of a carrier network that is already stretched thin. This not only allows for increased truck availably, but it also helps you avoid seasonal closures that will affect your shipments.
When receiving inbound orders, collaborative distribution is also an option. Collaborative distribution combines vendor orders from different shippers at one common distribution center and channels them into a single-truck delivery. This option is a type of consolidation, but happens much earlier in the supply chain. Finding the balance between identifying which shipments can be consolidated over a more flexible length of time while meeting delivery deadlines and customer expectations is key.
Most shippers are familiar with the large, recognizable national freight carriers, but regional freight carriers can also be a great option for coverage. Regional carriers specialize in concentrated geographic areas, usually within state-lines or city locales. In addition to adding them as options within your existing freight network, there are important advantages to working with regional carriers. Regional carriers have in-depth knowledge and first-hand experience navigating these areas on a daily basis and can speak to potential challenges like traffic trends or limited access issues. While a national carrier may be unfamiliar with these hang-ups, a regional driver’s knowledge of the area means increased transparency with the shipper regarding these obstacles, so precautions can be taken.
Oftentimes, regional carriers charge less for the same services that national carriers do. Regional carriers don’t have delivery area surcharges and costs for liftgates and accessorial fees are lower. Because regional carriers travel shorter distances, expedited or guaranteed services are generally less expensive, as well.
Finally, because these are smaller companies, they tend to offer more personalized solutions that emphasize customer experience. Relationships with these carriers tend to be less transactional, and place importance on problem resolution and service. Adding a regional carrier to the pool is an underutilized and potentially game-changing way to ensure your LTL loads are getting covered.
Final thoughts
Freight capacity is a challenge, and it’s not changing any time soon. The best thing that you can do is create a plan of action that tackles these challenges before you have freight waiting on the dock. Working with a 3PL like PartnerShip can help audit your current shipping procedures and identify areas of improvement that go beyond getting your loads covered. Contact our freight experts to help get your freight where it needs to go.
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5 Foolproof Ways to Take on Manufacturing Shipping Challenges
01/11/2022 — Jen Deming
The manufacturing industry is vital to our economy, but producing components and materials is just the first step in the fulfillment process. Manufacturers have to make sure products are shipped efficiently, arrive on time, and don’t experience damage. In addition to rising costs and other issues we’ve seen across all industries, manufacturers face a unique set of logistics obstacles. You may be shipping large, fragile shipments that are expensive and hard to handle. Services and equipment needs can vary day-to-day, so it’s important to find the right shipping solutions that meet your specific needs. Read on to learn five foolproof ways to take on manufacturing shipping challenges.
- Prioritize the safety of your loads
Manufacturers ship a wide variety of commodities, from small parts and components, to fully-assembled heavy machinery. For any-sized load, you need to take the safety and security of your shipments into consideration in order to limit damage and other issues. Start with regularly auditing your parcel and freight carriers to ensure their service levels meet your business expectations. Spec out your shipping safety “need to haves,” such as security during transit, carrier reputation, and damage statistics. Keep track of what’s working, as well as any issues you are experiencing with current carriers. If they aren’t making the cut, do some research. Who do your customers and colleagues prefer working with and why? Try out new carrier options and look into alternate service levels that may better offset your shipping challenges. Most importantly, ensure that your preferred carriers are communicated to your shipping department and warehouse team as well as any outside parties such as suppliers who may be arranging your shipping.
Because security is of the utmost importance, ensure that your packaging is perfected, whether you are shipping small parts via parcel services or large freight orders. You should use quality materials and keep some basics in mind:
- Don’t reuse packaging to ensure structural integrity
- Limit extra space to avoid shifting and breakage during transit
- Use pallet wrap to keep loose components together
- When shipping assembled machinery, consider using custom crates rather than pallets
- Double-down on service options that encourage timely delivery
Manufacturing any type of product typically involves several different parties who tackle specific steps during fabrication, from start to finished product. If anything goes wrong logistically during that process, it can disrupt the entire supply chain and lead to more shipping challenges. It’s crucial that your business is utilizing shipping providers and services that prioritize timely, expedient delivery.
Both FedEx and UPS offer different service levels depending on the urgency of your parcel shipment. If you’re in a crunch, FedEx can help make a speedy delivery with options like FedEx Priority Overnight® or FedEx 2Day A.M®. UPS also offers expedited services, such as UPS Express Critical® and UPS Next Day Air®.
If you have a true freight emergency, take a look at estimated transit times between carriers and their services. It’s probably not the time to use low-cost or asset-light carriers, as they typically have longer transit times. Many LTL freight carriers offer time critical, expedited, and guaranteed options. Just-in-time delivery options can also ensure your shipments are delivered as soon as possible. Because these services often use dedicated trucks or air/ground solutions to maximize efficiency, they can be pricey. Be mindful of your budget, and stay on top of any emergencies when you can. If expedited services are necessary, make sure you quote with several carriers and explore all options in order to keep costs low.
Confirm your freight class before you ship
Manufacturing businesses ship diverse products or commodities to any number of delivery locations. Whether your business is in the field of precision medical equipment, mold builders, automotive engineering, or any other specialty field, a major manufacturing shipping challenge is being an expert on your products’ specific freight class and NMFC codes.
The challenge with not knowing these codes can affect everything from your total freight cost to the result of any claims filed. A common mistake many shippers make is using an outdated or blanket NMFC or class code. For example, the ‘machinery’ group NMFC code is 11400. There are over fifty major categories that specify exactly what type of machinery, and they range anywhere from class 55 to 500. That’s hundreds of dollars difference in a final bill. The class for your specific shipment is determined not only by the product itself, but also density, dimensions and weight, packaging type, whether it’s assembled or in parts, and other factors. On top of that, these designations and codes are updated regularly. If you haven’t shipped this product very recently, you need to check it again, especially if any packaging specs have changed.
In the event that you enter the incorrect class code on your BOL, your freight will likely be flagged by the carrier. This will lead to an inspection, and some additional fees that are going to both inflate your bill and delay your delivery. Because freight class can be complicated, especially for manufacturers, it’s important to have more than a basic understanding of how LTL freight rates are determined. If you have any trouble finding the most accurate class code for your shipment, and you probably will, don’t hesitate to call the carrier or work with a freight broker who can help you.
- Make sure the value of your load is covered
Damage is a huge concern, especially based on the types of products being shipped. Freight shipping involves tons of handling and frequent stops at terminals. As a result, it’s probably not a matter of if, but when, you’ll get hit with damages. We don’t want to jinx your shipment, but let’s explore the event that your load encounters some damages or loss while on the road.
Freight damage is frustrating from the start because it’s expensive, can hold up the fulfillment of an order, and potentially complicate relationships with your customers. Because many manufacturers’ shipments are extra fragile, hard to maneuver, and worth a lot of money, the problem can be compounded. It’s the shipper’s responsibility to prove the carrier is at fault if damage occurs, and frankly, a freight carrier will do everything they can to avoid responsibility. Even if you do win a claim and receive reimbursement, there are limits to carrier liability coverage and payouts. They may not meet the entire value of your load.
To avoid extra headaches, make sure that you have your own freight insurance that will fully cover the value of your load. It also does not require that you prove the carrier is at fault for damage or loss, just that the damage occurred. While there is an extra charge for the insurance, it’s usually based on the declared value of your freight, and it is extremely worthwhile should damage occur.
Use a freight provider that offers custom shipping solutions
There’s not always enough time in the day or people in your shipping department to stay on top of the many manufacturing shipping challenges. Let’s face it, a one-size-fits-all approach is not going to work for an industry that has to constantly reinvent itself and adapt to consumer needs, tech advancements, and other changes. A third-party freight provider can help identify the unique needs of your business, without cutting any corners.
Cutting costs is always at the top of the priorities list, and taking a fresh look at your shipping procedures can be a fruitful place to start. A 3PL can help leverage carrier relationships and buying power to acquire better shipping discounts for your business. PartnerShip is connected to many manufacturing and industrial trade associations, like NTMA and PMPA. As a benefit provider to members, PartnerShip helps manufacturing businesses save on shipping costs with competitive rates with carriers who prioritize safety and better shipment handling.
Working with a freight provider can take on several of your shipping challenges at once.
- Conducting carrier audits for better pricing and service.
- Managing claims and acting as your advocate, by touching base with carriers and making sure proper documentation is in order.
- Determining if and when you may need to use expedited freight services, and helping to quote and schedule your day-to-day shipments.
- Finding special equipment options that will balance cost and safety if you have an extra special load.
There are a lot of shipping obstacles to keep track of, and they can be a burden to navigate. Depending on your business size, your budget, and the time you have available, it’s not always possible to become an expert on your own. PartnerShip has the experience and proficiency to help take on your greatest shipping challenges, so you can get back to business. Download our all-encompassing guide to freight claims to learn more about how you can effectively resolve a top shipping obstacle for manufacturers.
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2021 Year-End Planning for Your FedEx and UPS Shipments
11/15/2021 — Leah Palnik
The end of the year is usually pretty hectic for a lot of businesses, but 2021 is proving to be one for the books. As you navigate the holiday season and prepare for the year ahead, you’ll want to heed our warnings for your FedEx and UPS parcel shipments.
Ship early
We can’t stress this enough. Delays are becoming more common and will likely get worse the closer we get to Christmas. The FedEx and UPS networks are very strained right now. Fueled by the pandemic and all of its ripple effects, demand for parcel services is at an all-time high. Both FedEx and UPS have suspended service guarantees for their ground services and some of their air/express services, which means you can’t leave things up to chance. Ship early and build in plenty of extra time where you can so you don’t run into major disruptions.Review holiday shipping deadlines
For retailers, this is especially important. As customers place their orders for holiday gifts, they’ll want to know that they’ll receive them before the big day. FedEx and UPS have released their shipping deadlines, so make sure to review them and plan accordingly. That way you’ll be able to manage expectations appropriately and keep your customers happy.Prepare for the 2022 rate increases
Don’t sleep on the fact that after you make it through the holiday season, your FedEx and UPS rates will be going up. Both carriers announced that they will be increasing their rates by an average of 5.9%. It’s tempting to take that announced average and budget for your costs to go up by that much, but unfortunately it’s not that simple.How much your rates will go up in the new year will largely depend on which services you use, your package characteristics, and where you’re shipping to/from. That 5.9% average also doesn’t account for surcharges which can drive up your costs even more. If this all sounds like a major analysis that you don’t have the time to conduct, you’re not alone. That’s why we’ve reviewed the updated rate charts for you. Download our free guide to see a full analysis of what you can expect.
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Types of LTL Carriers and When You Need Them
11/10/2021 — Jen Deming
Working with a less-than-truckload (LTL) carrier is a great way to move your larger, palletized loads efficiently and often with some cost-saving benefits when compared to other services. But, even within the LTL service category, there are a few different business models - each offering a different mix of security, speed, and cost. Understanding the benefits of each will help you choose what works best for your business.
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Freight Carrier Closures for the 2021 Holiday Season
11/03/2021 — Jen Deming
2021 has been another challenging year. The freight market continues to be oversaturated with available loads while simultaneously suffering from a capacity crisis. Transit times are delayed, so to ensure timely delivery (you can't count on eight tiny reindeer), you must plan ahead and create a flexible shipping schedule. You'll also need to be mindful of carrier closure dates. We've compiled a list to keep on hand when you're executing your holiday shipping strategy.
Freight carrier closures
- Saia LTL Freight - will be closed November 25-26, December 23-24, and December 31.
- YRC Freight – will be closed November 25-26, December 24, and December 31.
- XPO Logistics – will be closed November 25-26, December 23-24, and December 31.
- ArcBest – will be closed November 25-26, and December 24.
- R+L Carriers – will be closed November 25-26, December 24, and December 31.
- Estes – will be closed November 25-26, and December 24.
- Dayton Freight – will be closed November 25-26, December 23-24, and December 31.
- PittOhio – will be closed November 25-26, December 23-24, and December 31.
- AAA Cooper – will be closed November 25-26, December 23-24, and December 31.
- TForce Freight - will be closed November 25-26, December 23-24, and December 31.
Santa has his elves, you have a team at PartnerShipWith extra challenges facing your business this year, keep in mind that the freight experts at PartnerShip can help you successfully manage your holiday shipping. Our office will be closed November 25-26, December 24, and December 31 so that we can spend time with our families. Happy Holidays!
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7 Strategies to Conquer Peak Season Returns
10/25/2021 — Jen Deming
Shipping during the holidays can be a quite a challenge. Getting packages delivered on time is tough enough, but peak season returns can be an even greater headache. Return shipping is just a part of the retail experience, but with proper planning it is possible to control. Review these seven strategies before you create that plan to help to ensure a more seamless process for your peak season returns.
Strategy #1: Commit to full transparency regarding your return policy
When you think about your own shopping preferences, it becomes clear that reviewing a return policy before purchase is standard procedure. This is especially important if your peak season return policy is different than the rest of the year. Shoppers want to know what they’re getting into before they click “place my order.” When a retailer makes return information easily accessible, the buyer is more likely to make a purchase because there is less risk.
Proactively communicate the policy in places like order confirmations and follow-up emails. It’s also key to stay in contact during all stages of the buying process. Send order tracking links in emails, send delivery notifications, and create a clear FAQ section on your website that includes contact options. The more information you have readily available for customers, the more confident your buyers will be.
Strategy #2: Optimize your packaging procedures
Shipment volume is alarmingly high, and will be compounded during the holidays. During peak times, your packages will spend more time in transit and encounter more stops along the way. That means more handling at service terminals, which can result in added damages. Take a hard look at your return rates related to damaged shipments. If you’re seeing an above-average trend, consider whether your packaging procedures need to be adjusted. It may make sense to use boxes rather than mailers, for example. Minimizing extra space and adding more bubble wrap or packing foam can better protect your products. If you’re sending out large items, consider breaking them down for transit rather than shipping them assembled. Don’t underestimate how much your packaging can affect your return rate due to damages.
Strategy #3: Limit returns that are caused by late deliveries
There are always last-minute holiday shoppers — you might even know a few. Late deliveries often lead to returns during the peak season, since they didn’t arrive in time for the big date. Ensure that you make it very clear for customers what the cutoff dates are for their order to be shipped in time for Christmas. An easy-to-scan reference table of this information will help your shoppers avoid late arrivals.
To determine those cutoff dates, be sure to review the deadlines published by your carrier. You may also want to add in some buffer days in case of any unforeseen delays. During the peak season when demand is high, unfortunately there can be a higher risk of your orders not being delivered in time.
Make sure you’re also offering expedited options at check-out, to provide a solution for shoppers who need a quicker turnaround. For serious stragglers, offer in-store pick-up if you have a brick-and-mortar option.
Strategy #4: Improve your returns plan by auditing your process yearly
It’s never a good idea to assume this year’s peak season returns strategy should be the same as last year. Every year, your returns plan and options need to be reviewed. Your first step should be to take a look at your returns rate and the reasons for the returns. Find out whether items are being returned due to product performance, or other issues like damages or late delivery. If it turns out that you have a shipping issue, make sure you’re following our tips mentioned above.
After you take care of any shipping challenges, look at what returns options measure up with what you can feasibly afford. Free shipping of any kind is a perk, but you need to be mindful of your budget and compensate for that expense. Consider a flexible policy, such as free returns on full-price items, or within a certain window of time. Think about charging for delivery, but keeping returns free. When you’re reviewing whether these options will fit your budget, don’t forget to check carrier rate changes and peak surcharges, both of which affect your shipping costs. From there, you can adjust your returns plan as-needed.
Strategy #5: Consider on-demand warehousing to simplify orders and returns
The overhead costs involved in setting up and maintaining a warehouse are expensive. Due to the cyclical nature of the industry, many retailers don’t find it worth it to use in-house solutions. On-demand warehousing is a great opportunity for businesses that need short-term fulfillment options but don’t want to be under contract. This strategy helps increase flexibility by housing inventory only when needed. If you have seasonal inventory overflow, on-demand options can help eliminate long-term commitments. For businesses that do not need a warehouse year-round, on-demand warehousing is the way to go.
Strategy #6 Give your customers a variety of return options
Consumers want return options that fit into their busy lives. Don’t complicate the relationship you have with your customers by making an already disappointing situation even worse. Offer methods that fit preferences and convenience, such as a choice to return product online and in-store. In-store returns give retailers more facetime with the customer and offer a better chance of turning the transaction into an exchange. However, many shoppers want the convenience and time-saving choice of shipping back their order. Consider using carriers like FedEx that allow drop offs at a variety of locations, including FedEx Ship Centers, drop-off boxes, Office Depot, Walgreens, and more.
Strategy #7 Make shipping peak season returns as easy as possible for your customer
While you probably want to avoid returns as often as possible, don’t try to dodge them completely by making the process super complicated. Smart retailers know that they cannot always be avoided — the ultimate goal is to use returns as an opportunity to increase brand satisfaction. Remind your customer of your returns and replacement policy throughout the buying process. Include return information on your order confirmation page and within follow up emails. Choose secure packaging that can be reused if needed, and include labels and instructions for returns with the product you’re shipping out. Think long-term — customers that have a bad experience with a retailer this year, will actively avoid them in the future. Making returns easy creates a positive buying experience, and increases confidence for both you and the customer.
Putting the strategies into action
Retail and peak season returns go hand-in-hand. They aren’t ideal, but if you know how to prepare, manage, and use them to your advantage, your business can thrive during the holidays. PartnerShip has strong relationships with a variety of retail groups, and we are uniquely positioned to help strategize your returns process in a way that works best for your business. From on-demand warehouse solutions to saving money on the costs of returns, we can help make your holiday season a success.
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