• High Freight Rates and Tight Capacity: What You Can Expect

    01/22/2018 — Leah Hyland

    High Freight Rates: What You Can Expect

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

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

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

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

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

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

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

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

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

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

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  • Season of Giving: Rainey Institute

    12/21/2017 — Jen Deming

    Rainey Institute Art

    At PartnerShip, we are wrapping up our week of holiday visits with our five charitable organizations. Every organization helps to spread the theme of compassion and community not only during this season, but all year long. We've presented debra of America, Downs on the Farm, the Gathering Place, and Music on a Mission. Today, we visit the Rainey Institute on Cleveland, Ohio's east-side.

    The Rainey Institute was founded on the belief that kids who participate in visual and performing arts are impacted on an interpersonal level by encouraging self-esteem and positive social interaction. By exploring dance, drama and theater, music, sewing and art, students of the Rainey Institute learn to be leaders and positive role models in both school performance and in daily life.

    The organization was established in 1904 by Eleanor B. Rainey, which began by creating reading and lunchroom program for boys and young workmen in the local Eastern European community. These programs provided physical fitness, literacy studies, and industrial training in a wholesome recreational environment. In the 1960s, program focus shifted exclusively to the arts and a deeper curriculum was developed for the growing community in Cleveland, aligning with the Cleveland Music School Settlement. This cooperation extended to a modern program list that includes music theory, therapy, dance and private instrumental classes for students.

    Currently, the organization has grown to include more than 2,500 children and young adults age 3 and up, where they attend Rainey after school, on Saturdays, and during summer camps. The program listing has become more sophisticated, but the essential message at Rainey remains the same: that regardless of background, socio economic levels, and skill set, a child who is influenced by the arts is a child who has an outlet for creativity and self expression. 

    Check for Rainey

    We are inspired by the Rainey Institute and the staff's efforts to help Cleveland's kids gain exposure to the arts and confidence in themselves. Get involved and support the Rainey Institute through fundraising, community events, and donations, and learn more about their various programs for kids.

    Check out more pictures from all of our visits on our facebook and learn more about these amazing local organizations that have given so much and helped so many!


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  • Season of Giving: Music on a Mission

    12/20/2017 — Jen Deming

    Barnegie Hall

    The holiday season is one of giving, and this year PartnerShip has once again chosen 5 charitable organizations to donate to and spread holiday cheer!  These organizations are about the people behind the scenes and the message they want to spread, and we want to spread the word on their amazing work!  We've touched on debra of America, Downs on the Farm, and the Gathering Place. Today, we would like to recognize Music on a Mission.

    Music on a Mission believes in the power that music has to heal and enrich the lives of every individual. By providing access to everyone, including those with special needs through their wide variety of free programs, the organization helps develop physical and emotional health as well as create an environment that fosters positive social interaction and inspires self-confidence. Music on a Mission provides therapeutic programs for the young and elderly, veterans and nursing home residents. Through group sing-alongs, choir performances, dancing activities, and one on one sessions with artists and writers, music motivates these individuals through vocalization, socialization, and self-care.

    Our PartnerShip team was invited to tour the facility in Avon Lake, Ohio, to check out the onsite music venue lovingly known as "Barnegie Hall". An exclusively volunteer team donated their time and energy over the course of 14 months to repurpose and renew an older barn standing on the property. Storing equipment and in disrepair, the building was renovated and equipped with sound equipment, band instruments, and full seating space for visiting artists and musicians. Proceeds of any performances support the programs of Music on a Mission.

    Upon immediate entry, the warmth and care put into the place can be felt through the high windows, bright light streaming through. The large stage is ready and waiting for its next performance, and the seating area is surrounded with memorabilia and photos of important visitors and moments in The Barn's history. An outside deck with string lights hugs the tree-lined outdoor space and provides an additional place to gather. A good energy resides here, leftover from the hard work of kind people, dedicated to creating musical opportunities for individuals who need them most.

    Check Photo

    All Music on a Mission programs are offered free for individuals, and the organization is supported mostly by vital private donations. Encouraging mental and physical development, as well as essential self-confidence to individuals who may not otherwise have the support and opportunity to do so is essential, and rent and payroll expenses add up. Click here to learn more about the different ways you can support Music on Mission, from donations to booking live events at Barnegie Hall!

    Take a look at our facebook page to check out more amazing pictures from our visit and don't forget to check back tomorrow when we highlight another fantastic local non-profit that embodies strength of community and warmth of heart.


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  • Season of Giving: the Gathering Place

    12/19/2017 — Leah Hyland

    Gathering Place

    At PartnerShip, we’re in the holiday spirit! Once again, we’ve selected five charitable organizations to donate to this season. They are all amazing organizations and we think they deserve all the recognition they can get. So far, we’ve showcased debra of America and Downs on the Farm. Today, we are talking about the Gathering Place.

    The Gathering Place offers a wide variety of free programs and services addressing the emotional and physical needs of individuals and families currently coping with cancer. They help manage the stress associated with a cancer diagnosis and provide a number of enrichment programs. The work that the Gathering Place does provides people with a space where they can feel safe, connect with others, and find peace during a time of chaos.

    A few of us were treated to a tour of their west side location in Westlake, Ohio. The atmosphere is very relaxing and it feels more like home than a care facility. They have a very impressive area for art therapy, a massage therapy room, and plenty of calming spaces for support groups. One of the most touching parts of our tour was seeing and learning about the Regina Brett Wig Salon, which provides a free wig to women with cancer-related hair loss. It’s very moving to see all the components of complete care that the Gathering Place offers.

    Gathering Place

    The most incredible part is that all of the programs and services the Gathering Place offers are completely free. Dealing with a cancer diagnosis is not only stressful but is also a huge financial burden. To provide a place where those affected by cancer can go for premium care and not have to worry about expenses is very admirable. Click here to learn all of the different ways you can support the Gathering Place – from donations to fundraising and community events!

    Check out more pictures from our visit on facebook and make sure to come back to the blog tomorrow when we featuring another amazing local non-profit that has touched our hearts!


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  • Season of Giving: Downs on the Farm

    12/18/2017 — Leah Hyland

    Downs on the Farm

    To help spread holiday cheer, PartnerShip has once again selected five charitable organizations to donate to. On Friday we profiled debra of America, a non-profit that supports a cause very close to our hearts. Today, we’re going to tell you a little bit about Downs on the Farm of Amherst, Ohio.

    Downs on the Farm provides animal therapy to children with special needs. They have combined two very meaningful causes into one very special non-profit organization by rescuing mistreated and neglected animals in need of finding loving forever homes and enriching the lives of special needs kids. Through animal assisted activities, kids have the opportunity to improve skills, increase their self-esteem, and reduce anxiety.

    When we visited Downs on the Farm, the owners Shawna and David, gave us a warm welcome and were kind enough to give us a tour. Their property is incredible and we were quickly greeted by a number of their animals. Goats, alpacas, and horses oh my!

    Black and white goat

    During our visit we learned about some of the awesome fundraisers Shawna and David have up their sleeves. Goat yoga is a popular event, and they just launched a new Escape Room that sounds like a blast. There certainly isn’t a shortage of fun activities around the farm, even in the winter months.

    Along with individual programs for animal assisted therapy, kids can also enjoy a petting zoo, pony rides, and train rides. Downs on the Farm even has a big playground where kids and kids (the baby goat kind) can play together. It is a great experience for the whole family.

    If you’re interested in supporting a worthy cause, there are several ways to get involved or you can choose to donate! To see more pictures from our visit, check out the album on our facebook page. Be sure to check back on the blog this week as we profile the remaining three organizations we picked this year!


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  • Season of Giving: debra of America

    12/15/2017 — Leah Hyland

    In the spirit of the season, PartnerShip is donating to five charitable organizations that speak to our hearts and lift up our community. This tradition started several years ago and it’s our way of giving back and saying thank you to those who inspire us. The hardworking elves in the PartnerShip holiday planning committee have made their selections and we couldn’t be more excited to share them with you! We hope that by hearing their stories you’ll be as inspired as we were to hear about what they do.

    First up is debra of America. This organization is dedicated to finding a cure for Epidermolysis Bullosa (EB), which affects 1 out of every 20,000 live births in the United States. EB is a rare genetic connective tissue disorder that is painful, often debilitating, and is in some cases lethal. There is no treatment or cure. Daily wound care, pain management, and protective bandaging are the only options available.

    There’s a reason it’s often referred to as the “worst disease you’ve never heard of.” Children living with EB are affectionately referred to as “Butterfly Children” because their skin is as fragile as a butterfly’s wing. They live with painful blisters that cause them to endure constant pain and suffering.

    debra of America is committed to funding research toward a cure, while also providing direct services and support to patients and their families. debra of America works to improve the quality of life for people with EB, their families, and caregivers. They have several different programs that include services like educating nurses, distributing wound care supplies, and providing care packages to families with newborns with EB.

    We admire everything that debra of America does to help those affected by EB. If you’re interested, here’s how you can get involved or donate

    Next week, we'll feature the remaining four organizations, so make sure to check back!


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  • 2018: The Year of the Truck Driver

    12/06/2017 — Jen Deming

    Truck Driver

    Ringing in the New Year means starting fresh and anticipating big changes for future, and truck drivers may be looking forward to 2018 more than anyone. The ELD mandate, driver shortages, fuel costs, and e-commerce boom are all components that leverage trucking companies' ability to determine cost and coverage.

    As we covered in our previous blog post, truckload rates are going up due to a number of different factors. That means that drivers and trucking companies are going to be behind the wheel when it comes to determining how much shipping lanes will be going for. Having this leverage pushes the shipper to the passenger seat, with the potential for less bargaining power and high shipping costs heading into the new year.

    A significant factor contributing to the higher truckload rates is due to an overall shortage of willing and capable truck drivers. Trucking analyst John Larkin suggests that the slow but steady economic increase will result in stronger demand with tighter supply. "The primary driver of the supply/demand tightness is the economy-wide shortage of skilled, blue collar labor," he says. "While driver pay scales began to rise in the 2nd half of 2017, the starting point for wages was so low, that it may take multiple wage hikes before we see any alleviation of this chronic challenge." The ELD mandate, which will be fully implemented on Dec 18, 2017, may add increased tension to an already volatile scenario. Many drivers view the mandate as an invasion of privacy, and may push an already limited number of qualified and experienced drivers from the pool of available carriers.

    The amount of freight being hauled by trucks is expected to increase more than 3% annually over the next five years, as reported by the American Trucking Association. The industry has already seen a 2.8% increase over the past year, and the ATA estimates it could accelerate as much as 3.4% before slowing down again slightly. A notable increase in shipping economy means that though the available trucker pool has dwindled, those who are qualified are more in demand than ever. In addition, because those drivers may have to travel outside their normal area of operations, they can charge a premium. The ATA also reports that trucking will continue to be the dominant freight mode, and in 2017 "approximately 15.18 billion tons of freight will be moved by all transportation modes." The growing economy will further push demand and stretch the pool of available carriers. The ATA estimates that the current 50,000 driver-deficit could expand to 174,000 by 2026.

    With that economic push, and labor shortage, truck drivers will demand higher wages and shippers will have to pay. The third-quarter hurricanes are also said to have played a factor, with drivers understandably asking more for lanes they had run at lower rates previously. Additionally, Florida and Texas, the two states hit the hardest by the storms, are typically some of the most reliable recruiting markets for new drivers. Until the economy recovers in these states, the pool of new drivers will be limited, with many potential recruits choosing the recent wave of construction positions over trucking. A jump in driver pay may keep them interested. According to Bob Costello, the American Trucking Association's economist, observes, "We've already seen fleets raising pay and offering other incentives to attract drivers." The driver pay structure is also evolving. Where once most carriers were being paid by load, many are now moving to an hourly pay model, specifically as the ELD mandate takes effect. Either way, with the anticipated changes for the new year, it's safe to say truck drivers and carriers are going to have a huge influence on shipping rates for the near future.

    So, now that truck drivers have extra leverage, what can shippers do to help keep down their shipping costs in 2018? Working with a freight broker like PartnerShip can help add value and flexibility to your current shipping options. We shop rates and put in the legwork for you, negotiating on your behalf with carriers for both your LTL and your Truckload moves. If you have questions on how PartnerShip can help manage your shipping costs, call us at 800-599-2902 or get a free quote today!

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  • Need It Yesterday? A Guide to Time-Critical Shipping

    11/27/2017 — Jen Deming

    Holiday Time Critical Shipping

    Holiday fulfillment and expedited freight deadlines are as much a part of the holiday season as cookies, cocoa, and hasty gift wrapping. Shipping managers are very much like the St. Nick of logistics, making sure every order is out—and delivered—on time and accurately to every customer. Between weather delays, unexpected inventory depletion, and rush order fulfillment, planning your winter shipping strategy is a crucial part of your holiday preparation. By being mindful of carrier schedules and deadlines, subsequent holiday surcharges, and familiarizing yourself with time-critical options, you will know which services best fit you and your customers’ needs.

    Sometimes, despite how prepared we think we are, a deadline catches up to us and standard shipping services just are not going to cut it. It’s important to understand the differences between shipping services offered, so that you can make informed decisions that meet your needs while not stretching your budget. Let’s take a look at whether your organization may benefit from time-critical shipping services during a heavy shipping season, and which services may make the most sense for your business.

    There are certain industries that may require expedited freight services more often, and on a more regular basis, not only during the holiday heavy season. Common industries using expedited services include medical, pharmaceutical, manufacturing, and particularly the automobile industry. It's crucial to understand that during the holiday season, there are going to be additional shippers using both standard and special expedited freight services due to time constraints, further congesting shipping lanes and significantly decreasing carrier capacity.

    Most carriers offer tiered services based on window of delivery, transit time, and dedicated truck type. We will look at the 4 most common types of special services for your urgent holiday shipments: guaranteed, accelerated, time-critical (one-day, two-day), and dedicated truckload. Let's use a freight shipment example, a one-pallet 500 lb load moving from popular shipping hub, Chicago, IL (60638) to delivery in San Francisco, CA (94107). For the purpose of this example, we will assume standard 8am-5pm shipping hours, regular, non-oversized shipment dimensions, and non hazardous materials. Typical transit time for this standard LTL service with most carriers is 5 full business days.

    Guaranteed Services
    Guaranteed LTL shipping services are great for those shippers who may not necessarily need to shave a day or two off of transit time, but definitely need a pre-determined delivery within a certain window during a standard service day. This fee-based service is available on direct-point shipments and can be tailored to either guaranteed morning (before 12pm) or "end of day" (typically 5pm) for delivery. The fee for guaranteed service is minimal and very commonly used, especially during holiday times for retailers

    Accelerated Services
    Accelerated LTL shipping services are suited for shippers who are looking for a faster standard shipping option. Accelerated shipping options fit between standard and time-critical premium services, typically cutting one or two days off of typical transit. The average price for the faster service is about 15% higher than standard LTL services, but differ based on the distance and type of shipments.   

    Time-Critical/Expedited Services
    Time-critical and expedited freight options are premium services offered by national carriers, specifically created to meet stringent delivery deadlines as determined by the shipper. An expedited shipment typically travels directly from pick-up to delivery, with no loading or unloading at terminals and often with dedicated equipment. Teams of drivers often haul in shifts in order to decrease transit times. In especially urgent situations, multiple modes of transit may be used, such as a combination of truck and air freight. Common urgent delivery services include same day, next day, and cross-town deliveries and while there is no limit on distance, the more extreme the request, the higher the shipper will pay.

    For a clearer picture of delivery timelines through various urgent services, we've created the table below:

     

       Expedited Freight Service

     

        Pick-Up and Delivery Timeline  

     

    Guaranteed Services

     

           Pick-up Mon, 12/4 = Delivery Fri, 12/8 by noon

     

    Accelerated Services

     

            Pick-up Mon, 12/4 = Delivery Thurs, 12/7

     

    Time-Critical/Expedited

     

         Pick-up Mon, 12/4 = Delivery by YOUR specified deadline


    Though urgent services are often viewed as "problem-solving" freight solutions in emergency scenarios, more and more shippers are using planned time-critical options as part of their holiday shipping strategy. Just-in-time manufacturers also utilize these services in order to fulfill and meet demand. Though these expedited freight services may come with a higher price tag, oftentimes the cost is offset by reducing inventory costs. An extra benefit to using these services is the added safety and security of the shipment, due to decreased reloading and an escalated level of tracking.

    Even despite solid holiday planning and logistic strategies, shippers may encounter scenarios that require guaranteed or urgent shipping services. If you're not sure which time-critical LTL shipping services are right for your shipment, our shipping experts can find solutions that make the most sense for your business and your wallet. Get a free expedited freight quote today!

    Get An Expedited Quote



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  • The 2018 FedEx and UPS Rate Increases: A Closer Look

    11/20/2017 — Leah Hyland

    FedEx and UPS Rate Increases for 2018

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

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

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

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

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

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

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

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

    Download the free white paper: A Closer Look at the 2018 FedEx and UPS Rate Increases


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  • Holiday Shipping Schedule 2017

    11/16/2017 — Leah Hyland

    Thanksgiving is coming up, and Christmas and New Years are just around the corner! It's a busy time of year, so we've put together a shipping schedule that you can use to plan around carrier closures. 

    check out the 2017 holiday shipping schedule

    Days of operations for PartnerShip are listed as well. As always, we're here to help you ship smarter during the holidays. If you need help, give us a call at 800-599-2902 or email sales@PartnerShip.com. 


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