• 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!

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  • What is Guaranteed LTL Shipping and When Should I Use It?

    03/02/2017 — Jerry Spelic

    What is guaranteed LTL service? It is a guarantee that your freight arrives by a pre-determined time of your choice on a standard-service delivery day.

    It is very important to understand that LTL freight shipments are typically quoted with an estimated transit time. LTL freight carriers all have their own standard transit times, which take into consideration distance, the shipping lane in which the freight is moving and availability of trucks moving between the freight’s origin and destination. As an example, a carrier may estimate that freight moving between Atlanta and Chicago is two standard delivery days. Transit times are generally reliable, but again, are just an estimate so your shipment may be delayed.

    The standard LTL freight guaranteed delivery is a 5:00pm guarantee, which means that your shipment will be delivered by 5:00pm on your specified date of delivery. Another commonly used guarantee is a noon guarantee, where your freight must be delivered by noon on your specified date of delivery.

    There is also a LTL guaranteed delivery window service, where you specify a time period in which a shipment must arrive (between 1:00pm and 3:00pm, for example).

    When should you use guaranteed LTL service?

    • When you are shipping to a retailer that has strict delivery window requirements, or a MABD (Must Arrive By Date). Missing these delivery dates and / or times may result in chargebacks of around 3% of the value of the purchase order. So if an order valued at $50,000 was early or late, you’d pay a $1500 fine. Paying extra for guaranteed LTL shipping is a small investment.
    • When your customer requires just-in-time (JIT) delivery. If you are shipping components to a manufacturer that utilizes JIT methodologies, a delay in your component arriving may delay their production run, or shut it down completely. This may result in a per-minute fine if your late delivery causes a shutdown in production, or you may lose their business entirely.
    • Similarly, if the delivery is required for an installation in new construction or as a repair or replacement. For example, if you are shipping a stainless steel fermentation tank to a new brewery, it needs to arrive when the construction team needs it so that it can be installed and not cause delays to their build-out schedule.
    • When other shipping activity relies on your shipment arriving at a specified time. For instance, you are shipping squishy stress relief balls to a national non-profit association as part of an event sponsorship. These stress balls, along with other sponsors’ promotional items, will be put into “goodie bags” for event participants and shipped to local chapters across the county for distribution. If your item doesn’t arrive in time, it may be left out, and you may lose the brand impact that your sponsorship was supposed to provide.

    We have a couple of caveats to pass along regarding guaranteed LTL freight shipping. First, your shipment must happen during “business hours” on “business days.” This excludes holidays, so you should never assume that a guaranteed delivery can take place on a holiday.  Second, it is important to find out if a guarantee is even available for your LTL freight shipment before you assume that one is. Some examples that may exclude a guarantee:

    » Collect-on-Delivery (COD) shipments

    » Oversized shipments

    » Hazardous materials shipments

    » Service to some remote areas

    If you have questions about when to use guaranteed LTL freight service, or how to find freight carriers that offer guaranteed freight delivery, contact PartnerShip. We can help you stay competitive by matching your LTL freight shipping needs with the correct service option. Contact us at 800-599-2902 or get a quote now!


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