the PartnerShip Connection blog
the PartnerShip Connection blog
the PartnerShip Connection blog
the PartnerShip Connection blog
the PartnerShip Connection blog
New Excessive Length Restrictions You Can't Afford to Ignore
09/18/2018 — Jen Deming
It's a tough time for shippers and carriers alike. It's no secret that the current capacity crunch is affecting freight rates and transit times, but now shippers are facing new excessive length restrictions as well. As the number of available freight shipments continues to increase at a record-setting rate, carriers simply cannot keep up. In an effort to free up for space for available loads, XPO will be implementing new restrictions on certain types of shipments. What are the changes being made, and what else can shippers expect from freight carriers as capacity continues to tighten?
XPO will be making a few specific changes that will affect the excessive length policies currently in place. The primary change that will affect customers is the following:
- As of 9/24, XPO will no longer pick up shipments of pipes or bars that are not crated, regardless of length. Leading up to the 24th, all items should continue to move without problem unless over 20ft or more, which would be determined at the service center level
To summarize, if you are shipping pipes or bars of any length, they must be crated - simply palletizing your load will earn you a missed pick-up. Some shippers like to save time by combining multiple commodity types of different classes onto one pallet and one bill of lading. If you are used to combining your multi-class shipments into one load, and it includes bars or pipes, crate them separately from the rest of your freight and create an individual BOL. XPO has created a packaging guide with notable rules of thumb to help properly package your shipments and gives further insight into excessive length articles.
The active phasing out of excessive length shipments by XPO is anticipated to have a favorable impact on current available carrier capacity. It's a safe assumption that other carriers may follow suit. Many common carriers do not have the specific equipment needed to properly move long freight safely and efficiently. Historically, excessive length freight contributes to more damage claim submissions and creates much more wasted space than a standard dimensional shipment. This means less freight can be loaded into a truck at a time, and this can lead to an increase in missed pick-ups and longer transit times for other shippers.
Some carriers have already adopted special charges for small package ground shipments that are considered oversized. FedEx and UPS both charge higher surcharges on these types of shipments in order to discourage shippers from moving them. These fees range anywhere from $80 up to $500 on top of regular service cost, depending on the carrier and package size. Right now, many freight carriers already have excessive length fees in place, and it's entirely possible that carriers that do continue to move oversized freight loads may implement increases or initiate the same sort of surcharge system in the near future.
For customers who are shipping commodities that are consistently rated excessive length, it may be time to consider looking into truckload service options. Moving full truckload is a great alternative for businesses shipping many pallets of product at a time, but it's also a secure and efficient option for those who have fragile, large, or high-value freight. With this option, you pay for the cost of the space you take on a full 53' truck. Freight class doesn't affect your rate, and you may have more flexibility with packaging. Added security and quicker transit times typically are additional benefits. Depending on the length of your haul, a dedicated truck may be costly, but a freight broker can help look into partial truckload options that may better fit your budget. Whatever freight shipping option works best for you, it's a good idea to look into all available choices as the transportation industry continues to evolve.
The capacity crunch is an ongoing challenge, and carriers are responding by changing the industry as we know it. Pricing for both freight and small package services is rising, and policies are being adjusted to make room for an increase in demand. Working with a quality freight broker can help steer you in the right direction and make sure you are shipping smarter. Contact PartnerShip at 800-599-2902 or email sales@PartnerShip.com today.
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5 Key Things to Know About Shipping Stone
09/12/2018 — Jen Deming
One of the most common, and most difficult, commodities being moved either LTL or full truckload is natural stone materials. These are used mostly for construction projects, both residential and commercial. The stone can be cut, crushed, blocked, or moved upright in slabs, and each come with different requirements for packaging and handling. As dense and heavy as stone is, it can be very fragile, brittle, and difficult (not to mention dangerous) to transport. Whether you are going either LTL or full truckload for your stone shipping, there's a slew of potential complications you need to be aware of in order to ship safely and securely.
1. Packing and Packaging
First and foremost, proper packing and packaging materials are very important for stone shipping. In the most ideal of scenarios, smaller freight shipments can be packed in custom crates, with built-in foam material for cushioning. The crate shouldn't be too large, and should contain minimal extra space to limit movement of the product inside. Stone material can be separated in bags within the crate for easier removal and distribution upon delivery. Customized crates can be a little pricey, but it's well worth the extra cost in security. This is especially true if you are moving through an LTL carrier. In that case, your stone will likely be loaded and unloaded several times throughout the process, both initially and through terminals during transit.
Palletizing your stone shipments is another recommended option for larger freight loads, and are often stacked with wrapping materials in between to prevent scraping. Ideally, a specialized piece of equipment should be used to transport stone shipments cut into slabs, called an A-frame. Typically, these are made of both wood and steel and include a base with A-shaped bars angling upward acting as a sturdy support for heavy slabs. They can be used for both storage and transport, and many have wheels that can be locked into place or removed. These frames can be loaded onto the truck by either forklift or crane.
2. Trailer Types
There are many truck types that are able to transport stone, and the equipment required depends on how the stone is packaged.a 53' dry van (enclosed trailer) with swing or roll-up doors will work well for most smaller shipments going LTL. Shipments are loaded at the rear, using a loading dock and forklift. If a loading dock is not available, some trailers have lift-gates, but this additional service does come with a fee and makes it more difficult to find available trucks. It's important to note that palletized shipments of stone are generally not recommended to go LTL, unless plenty of corner guards, foam or other packing materials are being wrapped with the product.
There are a few additional trailer-type options for truckload stone shipping. A flatbed is an extremely popular trailer type that is widely used for its versatility. There are no sides so the deck is open, and freight is typically loaded over the sides and the rear. A step-deck or drop-deck is a variation of a flatbed that consists of both a top and bottom deck. The lower part is designed to haul freight that may be too tall to be hauled with a standard flatbed. Additional open deck options include RGN (Removable Gooseneck Trailers), stretch RGN, or low-boys. All of these options are designed to be used for exceptionally tall or long freight loads. These open types of trailers will most likely require straps, chains, or tarps to help protect the freight from wind or weather damage and will need to be requested by the shipper so that the carrier is prepared. A conestoga is a trailer that comes with a roll-up tarp system that creates sides and a top to offer protection of the freight, which is an added benefit to fragile stone shipping. Keep in mind, due to the specialized nature of these pieces of equipment, they may be more expensive and more difficult to find.
3. Over Dimensional Concerns
It's very common for large stone orders or building materials to be over dimensional when going full truckload. Knowing what to expect when it comes to legal requirements and how your shipment may be affected are very important in planning the haul. Every state has different legal requirements for obtaining a permit in order to transport over-sized freight. There are not only restrictions on hours of operation varying by state, but also restrictions on drivers for hours of service - meaning there is less time your shipment can be on the road. As the shipper, it's crucial to plan as much as possible beforehand and to give accurate estimates for transit time. It may be smart to plan an extra day or two when communicating with your customer. Since the load will more than likely go through checkpoints in each state it travels, each stop stop can potentially hold up your load. Make sure your drivers are prepared with the necessary permits, paperwork, and commodity information (likely including product spec sheets and packing slips).
4. Insurance Coverage
Due to the fragility and potential hazards and risk for damage in shipping stone, making sure you have proper insurance coverage is crucial. Carrier liability is typically limited, especially for LTL common carriers. So, if your shipment and damaged in transit, the probability that you will receive full compensation for the value of your product is very unlikely. Usually, in LTL shipments, the payout depends on a dollar per pound amount based on the class and commodity. In order to get this payout, you will need to go through all of the necessary steps to file a claim and prove the carrier is at fault for damaging your shipment. It can be a tedious process with a very limited return. Many shippers find it much more beneficial to obtain additional freight insurance to have more complete coverage of their freight.
Truckload carriers are required by the FMCSA to meet specific primary insurance minimums. Cargo liability is the type of insurance that covers your freight while it is in transit. Typically, up to $100,000 in cargo liability is covered, but it's important to note not all types of commodities are covered. Restrictions can vary depending on insurance company, so it's always a good idea to look into purchasing additional cargo insurance to be sure your freight is covered.
5. Accessibility of Site/ Unloading Teams
Another huge challenge for shippers moving stone materials is accessibility of the pick up and delivery locations. Oftentimes, these loads are being picked up directly at the quarry, and it can be difficult for the driver of a 53' dry van or a flat bed to maneuver in these locations. Delivery can be at construction sites, or even residential lots, which poses even more difficulty for drivers. It's important to know that the driver of your delivery truck typically will not assist in the loading or unloading of your freight. And with thousands of pounds of hard-to-move, bulky product, you need to be prepared and have a well-trained and reliable team ready at your disposal - possibly even after hours. Most truckload carriers charge detention after 2 hours for loading/unloading, which means extra money in fees off your bottom line. The time can go quickly, so have any equipment and areas cleared that are needed for loading and unloading. Being better prepared on the front side can save you lots of money and time wasted later on.
Stone shipping is one of the most challenging and problematic types of freight shipping out there. It's also very common. As both commercial and residential builders are more frequently using natural stone in their designs, the demand for transporting these materials is increasing exponentially. Stone shippers have to equip themselves with as much knowledge as possible about the many issues that may arise both during and before and after transit. Being well-informed is the best way to ship as smart and as securely as possible while minimizing the potential for costly damage. Working with a freight broker can lend you some expertise from finding reliable and vetted carriers, to knowing just what type of equipment you need to get your freight to its destination safely. Contact PartnerShip for your next stone shipment!
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For Good Measure: How to Avoid Freight Reweighs
07/26/2018 — Jen Deming
LTL shipping requires plenty of diligence and double checking on behalf of the shipper. All may seem in order: you've used proper packaging, paperwork is up to date, shipping addresses reviewed, accessorial requirements checked, and you are confident you are using the proper freight class. Then it happens. Your shipment is delivered safe and sound, but when the invoice arrives, your bill is nearly $100 over what you had anticipated. On further review, you learn you've been hit with a reweigh fee by the carrier. How did this happen?
Freight reweighs are becoming more and more frequent, especially as dimensional and density based pricing becomes more common. It's important to understand what constitutes a reweigh, and what puts your shipment at risk. Many shippers, particularly small businesses, do not have certified scales that are large enough to accurately measure a larger LTL (less-than-truckload) shipment. This means that many of the weights listed on the BOL (Bill of Lading) are approximations, and carriers are pretty vigilant at checking for inaccuracies with their own certified equipment. A freight reweigh occurs when a carrier inspects and weighs the shipment and when the actual weight and the weight listed on the BOL do not match. One of the primary factors used to determine freight cost is weight, and in many cases, affects freight class as well. Often, a carrier will charge not only for the difference in weight, but also a fee for the freight reweigh itself.
To avoid a freight reweigh, it is so important that shippers try to avoid "guessing" their shipment weight. If your business does have a certified commercial scale, you are a step ahead of many other shippers. Be sure to have it calibrated and checked frequently to avoid miscalculations. If you do not have a scale, it is key to obtain accurate measurements and weights for ALL of the materials being shipped. This can be even more challenging if you are shipping an assembled, finished product made up of several separate pieces and different classifications. Add up materials used on product spec sheets, catalogue listings, and product invoices to get as accurate a weight as possible. It can be beneficial to look at any inbound shipping invoices for any pieces of your finished product that were shipped to you as a supply order. In short, don't be tempted to take shortcuts. It pays to take the time to measure individually and make educated and precise estimates.
Another mistake that many shippers make that encourage freight reweighs is neglecting to include packaging/packing materials in their calculation of gross weight. An average 48x40 pallet weighs around 30-40 lbs, and if you are shipping a multi-pallet load, that extra weight adds up fast. While it's always best to avoid guessing your shipment's weight, in the case shippers aren't able to weigh their shipments on a calibrated scale, it is important to factor this figure in the total. Additional materials used to protect your shipment such as molded plastic corner reinforcements, fiberboard, wooden stabilizers, and even foam inserts can increase weight, especially if you have a larger LTL shipment.
It's key to remember that accurate weight is not the only factor that affects your shipment- it helps to determine your freight class, as well. For heavier, denser items that fall into the lower NMFC classifications, total weight of the shipment is used to calculate at price-per-pound. For less dense shipments that take up more volume, your freight class can be higher and your shipping more expensive. If you happen to overestimate the weight of your shipment, and it falls into one of these higher freight classes, you will be charged more at the higher freight class. It is crucial for shippers to know their precise weight, freight class, and your freight density in order to estimate accurate shipping charges.
Even if you feel you've got everything in order, freight shipping can always lead to some surprises. While it's never a good idea to cut corners or knowingly try to mislead a carrier in the hopes of saving a couple bucks, sometimes even thorough shippers can get hit with some unforeseen charges. Don't let freight reweighs be one of them. The freight experts at PartnerShip have your back and can help make sure you are shipping smarter. If you have questions about determining your freight class or how working with a 3PL can help lower your shipping costs, call 800-599-2902 or email sales@PartnerShip.com to learn more.
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Keys to Success for Vendor Compliance and Inbound Shipping
07/10/2018 — Leah Palnik
For many retailers, obtaining vendor compliance and maintaining smooth inbound shipping operations may seem like a tall order. However, with the right planning and follow through, it is achievable. By following these keys to success, you’ll be on your way to reducing your freight costs, avoiding chargeback issues, and creating efficient operations.
Developing an effective routing guide
The very foundation of achieving vendor compliance is developing an effective routing guide. Routing guides provide shipping instructions to your vendors that help you gain control of your inbound shipments. They often include modes and carriers for specific lanes, as well as rate and service requirements.
In order to create routings that are best for your business, you’ll need to consider several factors. Price, transit time, and reliability are all important when selecting a carrier and determining how to have your product shipped. For different services and weight breaks, you want to designate a carrier that provides you with the best rate and can deliver your product in the time you need.
Conducting an in-depth analysis of your inbound shipments can be time-consuming but necessary when determining your routing instructions. This is where working with the right freight broker can make a huge difference. The broker you work with should provide inbound management services that help determine the routings that will be best for your business and will create the routing guide for you – saving you valuable time.
Maintaining good relationships with your vendors
For smooth inbound shipping, you want to have a good rapport with your vendors. Like any other relationship, communication is key. For example, when you send your routing guide out to your vendors, it’s a good idea to include a request for confirmation. However, you won’t always receive one. If that’s the case, following up and opening the lines of communication will be your best bet to ensure vendor compliance.
If your vendors aren’t using your routing instructions after receiving your routing guide, you’ll need to follow up with a call or email. When you have a good relationship with your vendor, you’ll have the right point-of-contact and will be able to resolve the issue quickly. If not, you could have a harder time achieving vendor compliance.
Maintaining a relationship with your vendors can be difficult and time-consuming. This is another area where working with the right freight broker can make a difference. When selecting a freight broker, ask about experience in your industry. Quality freight brokers familiar with your industry will already have an established relationship with many of your vendors, which will help with compliance efforts.
Perfecting your order forecasting
Managing your inventory can be challenging. But the advantages of forecasting and planning your orders ahead of time are too great to ignore. When you don’t plan ahead and then need your product within a shorter time-frame, you will have to rely on costly expedited services. Spending the time up front to make sure your orders are placed with ample time will be better than spending the extra money in the long-run.
Also, with more lead time, you’ll be in a better position to handle any issues that arise. For example, if your shipment gets lost or damaged in transit and you need your product immediately, you’ll be out of luck. In that event, you’ll need to file a freight claim which doesn’t always guarantee compensation and is often a lengthy process.
If you’re not able to place your orders ahead of time, it’s a good idea to consider freight insurance. Unlike relying on carrier liability coverage, you won’t have to worry about if the carrier is found liable or not and often times you’ll get paid out much faster – making it easier to resume operations as normal.
Conducting regular reviews for improvements
Once you do have a routing guide in place and have vendor compliance, you can’t just set it and forget it. It’s best to review your routing instructions periodically so that you’re always getting the best rates and service possible.
You can choose to set aside a specific time each year to do a review. But if you make any changes throughout the year with your orders or any other factor that affects your shipments, you’ll want to take that time to evaluate and update if necessary.
It’s also important to stay on top of carrier rate increases, accessorial changes, and NMFC updates. These kinds of changes can have a significant effect on your freight costs and you'll want to make sure that you fully understand how these changes will affect your specific shipments. For example, carriers announce general rate increases every year and will present an average increase. If you simply use that average to judge how your costs will be affected, your budget will most likely be off. The increases vary greatly across the board depending on a number of characteristics, so it's important to evaluate them based on your specific shipments.
Partnering with the right freight broker
The keys to vendor compliance and inbound shipping management are easy to master when you work with the right freight partner. PartnerShip can help conduct a complete inbound shipping analysis, create a routing guide, and send routings on your behalf for vendor compliance. Contact us today to get started, or download our free white paper to learn more about managing your inbound shipments!
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Pallet Packing Mistakes to Avoid
06/27/2018 — Leah Palnik
Pallet packing isn’t something you can take lightly. One wrong move and the whole shipment could lose strength and stability – risking damage to your freight. Rather than conducting your own experiments, check out these common pallet packing mistakes so you know what to avoid.
Mistake #1: Choosing the wrong pallet
Pallet packing begins at the very foundation of your shipment – the pallet itself. It may be tempting to reuse old pallets for your shipments but if you’re not looking out for structural integrity, you could be in trouble. Avoid using pallets with broken boards or protruding nail heads.
Using an alternative material pallet can also cause some issues. Wooden pallets are the standard, but pallets made from metal, plastic, and corrugated materials have all entered the market. However, not all pallets are created equal. These pallets are good alternatives for certain specialized needs, but issues like weight, movement, and pallet strength make them not suitable for all types of freight. Before you consider swaying from wooden pallets, make sure to do your research.
Mistake #2: Not properly packing individual boxes
Before you can stack your pallet, you need to pack your individual boxes or cartons. Even if your boxes are secure on the pallet, the contents inside the cartons can shift. Leaving excess space and not providing proper impact protection is a common mistake that many shippers make. Start by right-sizing your boxes – leave just enough room for the product and the needed impact protection. Anything more is wasted space that you will need to fill with cushioning like paper pad or packing peanuts.
Mistake #3: Stacking inadequately
You may think that the way you stack your cartons is just about making it fit on your pallet. However, neglecting to follow certain best practices that increase strength can be a fatal mistake. During pallet packing, not evenly distributing weight and not placing the heaviest boxes at the bottom is a quick way to increase your risk of damage. Using pallets that are too small and thus leaving overhang is also a common mistake that will make your freight vulnerable.
The stacking patterns you use when packing your pallet are also extremely important. One of the biggest offenders is pyramid stacking. This kind of pallet packing pattern leaves the cartons at the top at greater risk of being damaged and makes the load less secure. When possible, an aligned column pattern is best. Stacking your pallet in a way that ensures it is level and flat will put you in the best position to avoid damage.
Mistake #4: Skimping on stretch wrap
If you don’t currently use a stretch wrap machine, you want to make sure your manual wrapping technique is up to par. There are a couple common mistakes to look out for. First, make sure you’re wrapping around the pallet enough. You should be making at least 5 wraps around the entire shipment. Second, twisting the wrap is something that is often overlooked. You should twist the wrap every other rotation to increase the durability.
Mistake #5: Not labeling correctly
After you go through all that work of ensuring you’ve packed your pallet in a way that reduces its risk of damage, you don’t want to run into issues just because you neglected to label your shipment properly. One label is not enough. You want to make sure the shipping label is on each side of your pallet, with the consignee information clearly visible.
Pallet packing may seem simple, but these missteps can create complicated issues. If you’ve discovered that you’ve made any of these common mistakes and want to learn more about packaging best practices, download our free white paper!
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It All Adds Up: The Operational Costs of Moving Freight
06/22/2018 — Jerry Spelic
Moving freight is getting more difficult, and therefore, more expensive. If you’ve ever had “sticker shock” from a freight quote, you’re not alone. There are a lot of cost factors that go into the price you pay to move freight, so we want to explain them so you can be an informed shipper and ship smarter.
Every LTL or truckload freight shipment has fixed and variable costs that are calculated into the rate you pay to ship your freight. Let’s start by looking at the fixed costs.
- Truck Payment. Owned or leased, drivers and operators have the expense of their equipment (trucks and trailers) to consider when quoting your freight. New trucks can be leased for $1,600 to $2,500 per month and used trucks can be leased for $800 -- $1,600 per month; a new truck can be purchased for $2,250 a month (purchase price of $125,000 with 5-year financing). On average, truck payments are 16% of the cost of moving freight.
- Insurance. The FMCSA requires individual owner-operators to carry a minimum of $750,000 to $5 million in liability coverage. On average, liability and damage insurance can cost between $6,000 – $8,000 per year, with newly-granted authorities typically paying between $10,000 and $16,000 their first year. Truck insurance accounts for 5% of the cost of freight shipping.
- Driver Salary. This is the largest operating cost of moving freight. Commercial truck driver salaries are based on the distance driven, and although drivers spend a lot of time in traffic, at the dock being loaded or unloaded, etc., their operating costs are only derived from miles traveled. With an average salary of $78,200, driver pay and benefits accounts for 43% of operational costs.
- Office and Overhead. This fixed cost includes a building lease or mortgage, and includes electric, phones, internet, computers, and office support. These costs can vary widely.
- Permits and Licenses. Permits and license plate costs account for $2,300 annually, or 1% of operational costs.
There are also many miscellaneous items that can factor into overall freight costs:
- Fuel. The second largest operating cost of moving freight is diesel fuel. A commercial truck can easily consume 20,000 gallons ($64,000) of diesel fuel per year, accounting for 21% of operational costs.
- Tires. Retreaded truck tires are less expensive than new tires and cost on average $250. Annual tire expense accounts for $3,600, which is roughly 2% of operational costs.
- Maintenance and Repairs. Trucks need constant maintenance and do occasionally break down. Issues with air lines and hoses, alternators, wiring, and brakes are all common in commercial trucks, and can cost $17,500 annually or 10% of operational costs.
- Meals. The truck isn’t the only part of LTL and truckload freight shipping that needs fuel! 10 meals a week at $12 each equals a meals expense of $6,500 a year.
- Tolls. With nearly 5,000 miles of toll roads in the US, chances are good that your freight will be traversing at least one of them, and this will be factored in your cost. For example, a load moving from Chicago to Baltimore will encounter toll roads in Illinois, Indiana, Ohio, and Pennsylvania, costing $225.75. Sometimes a carrier can avoid toll roads, but this will frequently increase the number of miles driven, which also increases your cost. On average, tolls add $2,500 a year, 2% of the total cost of freight shipping.
- Coffee. Did you know that truck stops sell more coffee than convenience stores? The average commercial truck driver spends more than $600 a year on coffee. Its effect on cost is negligible but we thought it was interesting!
- Profit. Remember, freight carriers are in business to make a profit. Owners, operators and drivers are funding their kids’ education or dance lessons, paying their mortgages, and buying food and necessities, so please don’t expect them to move your freight for free.
The bottom line is that a lot of factors go into the cost you pay for LTL or truckload freight shipping. The costs listed here are conservative and are probably on the low end, so your costs may be higher.
- Electronic Logging Devices (ELD), which have decreased driver productivity approximately 15%. When drivers spend less time driving, transit times increase and drivers move fewer loads, which pushes costs up.
- Telematics services, such as vehicle and trailer GPS tracking.
- Driver turnover; not just the cost of recruiting and training, but also the opportunity cost of empty trucks not hauling freight because they have no drivers.
- Finding loads to move can take up a sizable chunk of every day. Every hour spent not driving loaded miles is an hour a driver isn’t making money.
The struggle is real: moving freight is getting more difficult and more expensive. By shedding light on the costs that go into each and every LTL or truckload freight move, we hope that you’re better informed so you don’t experience “sticker shock” next time you get a freight quote. If you find yourself battling rising freight costs and need some help, contact the freight shipping experts at PartnerShip. We have significant experience in both the LTL and full truckload markets and can help you ship smarter so you can stay competitive.
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Factors Contributing to the 2018 LTL Rate Increases
06/19/2018 — Leah Palnik
LTL freight rate increases are unavoidable. And in this current tight capacity market, it’s no surprise that many carriers have taken their general rate increases (GRIs) earlier than in previous years. Just like in the truckload market, costs are been driven up by the ELD mandate, the driver shortage, and hours of service (HOS) rules. Coupled with the strong U.S. economy, freight demand is surging and straining the market.
Along with the tight capacity market, trends towards shorter supply chains and smaller, lighter loads have led to more demand for LTL services. The rise of ecommerce has played a large role in the increased demand. Products that consumers never would have dreamed of ordering online years ago, like furniture, have now become commonplace for ecommerce. However, these types of shipments are less desirable for carriers. With more deliveries being made to more remote areas without backhaul opportunities, the costs are significantly higher for them.
With the driver shortage, it is easier for carriers to find and recruit LTL drivers, compared to truckload. They are more appealing jobs, with shorter lengths of hauls and less time away from home and families. However, there are fewer LTL carriers entering the market when compared to truckload. The complex networks of terminals that LTL carriers rely on are much more difficult to establish, making it a significant barrier to entry.
With all of those factors to contend with, LTL carriers have been announcing their GRIs throughout the first half of 2018.
- FedEx Freight: 4.9% effective January 1
- YRC Freight: 5.9% effective February 19
- XPO: 5.9% effective March 5
- UPS Freight: 5.9% effective March 26
- ABF: 5.9% effective April 16
- Estes: 5.9% effective May 7
- Old Dominion: 4.9% effective June 4
Rates aren’t the only thing on the rise. Many carriers are charging more for accessorials like inside delivery or Saturday delivery. Carriers are also implementing tools and technology that help them determine what types of freight are profitable and which ones aren’t – and charging accordingly. Dimensional pricing is one example of this. Many carriers have invested in dimensioning machines, which calculate the amount of space a shipment will need in the truck, leading to less dependency on the National Motor Freight Classification (NMFC) system.
As with any announced rate increases, the important thing to remember is that the averages may not reflect the actual increases you’ll see in your freight bills. Depending on the lane and shipment characteristics like weight or class, the increase could be significantly more.
To determine what you can expect and what you can do to offset the rising costs, start by taking a look at the increases for your typical lanes. That will give you a better idea of what cost increases you can budget for, rather than relying solely on the reported averages. Then determine ways to reduce those costs. Consider working with a freight broker, to benefit from their industry expertise. A quality broker will have the knowledge to help you navigate the market and will be able to find solutions that can help to reduce your costs.
PartnerShip can help you ship smarter. For a competitive rate on your next LTL shipment, get a free quote!
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Your Guide to Proper Packaging
05/30/2018 — Leah PalnikProper packaging is a critical step in the shipping process. Just one mistake can expose your shipment to costly and time-consuming damages. Not only do you need to use quality materials, but you also need to package your products in a way that will increase strength and durability. Packaging is not a one-size-fits-all game, but it does start with some basic best practices.
Small Package Shipments
When picking a box for your products, you want one that is in good condition (no holes, rips, or dents) and is sized just right. There should be just enough space for the needed cushioning and no more. If you use a box that is excessively large you run the risk of being charged according to your dimensional (DIM) weight, which can get quite pricey.
How you cushion your contents will depend on the product you’re shipping. In general, you can protect the contents of your package with bubble wrap, foam cushioning, paper pad, or packing peanuts. This will help to prevent damages caused by movement and vibration that occur during transit.
Then it’s time to seal and label your package. Use packing tape rather than duct tape or masking tape, and seal your box using the H taping method. Remove any old labels from the box and place your label on the largest surface. Labeling is an important step for proper packaging, because it helps get your shipment to the right place without any unnecessary delays.
When deciding how to package your freight, consider the size and weight of your shipment and how it will be handled. What kind of protection will it need? Will it be on a dedicated truck or will it be moved on multiple vehicles?
Palletizing your freight will give it a solid base and will make movement on and off the truck easy and safe, making it a good choice for many different types of loads. Wooden pallets are the most common, and are typically recommended by carriers like FedEx and UPS Freight. However, you may consider metal, plastic, or corrugated pallets depending on what you’re shipping.
For the cartons on your pallets, make sure the contents inside are packaged properly with the needed impact protection and each carton is labeled with the shipper and consignee information. While stacking, you need to consider how it will affect the strength of your shipment. Start by placing heavier cartons on the bottom with lighter boxes at the top, and distribute the weight evenly. Use an aligned, column pattern while stacking and make sure there is no overhang.
Once your pallet is stacked, you’ll want to secure it with stretch-wrap and banding. The stretch-wrap should go around the cartons several times and be twisted every other rotation for increased durability. For banding, use sturdy steel, rayon, polypropylene, nylon, or polyester straps.
You may also want to consider crating if you’re shipping fragile freight. First, select a crate that is constructed from quality lumber. Most carriers will recommend plywood rather than oriented strand board (OSB), medium-density fiberboard (MDF), or particleboard. You also want to make sure your crate is sized appropriately, with excess space kept to a minimum.
Proper Packaging Is Key
Avoiding damaged freight and a claims nightmare starts with proper packaging. Along the way, you’ll also save yourself from costly DIM weight charges and increase the durability of your shipments. The time you spend up front to make sure you have proper packaging will be well worth it. Get in-depth instructions by downloading our free white paper – The Ultimate Guide to Packaging Your Shipments!
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High Freight Rates and Tight Capacity: What You Can Expect
01/22/2018 — Leah Palnik
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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Need It Yesterday? A Guide to Time-Critical Shipping
11/27/2017 — Jen Deming
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 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 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 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
Pick-up Mon, 12/4 = Delivery Fri, 12/8 by noon
Pick-up Mon, 12/4 = Delivery Thurs, 12/7
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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LTL vs. Truckload Freight. What’s the Difference?
08/16/2017 — Jerry Spelic
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.
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.
LTL: The most significant difference between LTL and truckload shipping is 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.
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 at 800-599-2902 or email sales@PartnerShip.com 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 You Need to Know About Freight Class Changes
08/10/2017 — Jen Deming