the PartnerShip Connection blog
the PartnerShip Connection blog
the PartnerShip Connection blog
the PartnerShip Connection blog
the PartnerShip Connection blog
What are Accessorial Charges? A Guide to LTL Freight Fees
04/27/2023 — Leah Palnik
No one likes surprise fees. Unfortunately, there are quite a few extra costs that are likely to pop up with LTL freight. Known as accessorial fees, these charges cover a wide variety of extra services and can add up fast. In this post, we'll answer the question, "what are accessorial charges?" and provide a list of common LTL accessorial fees to help you better understand and manage your freight costs.
What are accessorial charges?
Accessorial charges are fees for services performed by the carrier that are considered to be beyond the standard pickup and delivery. These fees make up just one part of your freight rate, but can be challenging to manage. Understanding which accessorial charges you can plan for and which ones you can avoid is necessary if you want to keep your freight costs in check.
What are some common LTL accessorial charges?
You might be wondering what is considered an extra service, and you’re not alone. We’ve compiled some common LTL accessorial fees so you know what to look out for.
- Lift Gate Service
When the shipping or receiving address does not have a loading dock, manual loading or unloading is necessary. A lift gate is a platform at the back of certain trucks that can raise and lower a shipment from the ground to the truck. Having this feature on trucks requires additional investment by an LTL carrier, hence the additional fee.
- Residential Service
Carriers define a business zone as a location that opens and closes to the public at set times every day. If you are a business located in a residential zone (among personal homes or dwellings), or are shipping to or from a residence, the carrier may charge an additional residential fee due to complexity in navigating these non-business areas.
- Collect On Delivery (COD)
A shipment for which the transportation provider is responsible for collecting the sale price of the goods shipped before delivery. The additional administration required for this type of shipment necessitates an additional fee to cover the carrier's cost.
Shipments containing articles greater than or equal to twelve feet in length. Since these shipments take up more floor space on the trailer, additional fees often apply.
- Fuel Surcharge
An extra charge imposed by the carriers due to the excessive costs for diesel gas. The charge is a percentage that is normally based upon the Diesel Fuel Index by the U.S. Energy Information Administration.
- Inside Pick Up/Inside Delivery
If the driver is required to go inside (beyond the front door or loading dock) to pick up or deliver your shipment, instead of remaining at the dock or truck, additional fees will be charged because of the additional driver time needed for this service.
- Advance Notification
This fee is charged when the carrier is required to notify the consignee before making a delivery.
- Limited Access Pickup or Delivery
This fee covers the additional costs required to make pickups or deliveries at locations with limited access such as schools, military bases, prisons, or government buildings.
- Reweigh and Reclassification
Since weight and freight class determine shipment base rates, carriers want to make sure the information on the BOL is accurate. If the carrier inspects a shipment and it does not match what was listed, they will charge this fee along with the difference.
Navigating the many nuances of LTL freight accessorial fees to determine which services you need and which you can avoid will help ensure the most cost effective price. Carriers generally publish a document called the "Rules Tariff 100" which provides a list of current accessorial services and fees. The shipping experts at PartnerShip are well versed in these documents and are happy to help with any questions you may have.
Want a more in-depth look into freight accessorial fees and how to avoid or offset the added costs? Check out our free white paper!
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- Lift Gate Service
5 Hard Truths About Freight Quotes
03/27/2023 — Jen DemingLTL freight quotes can be tricky and are often full of surprises - which isn't exactly fun when invoices are involved. Even experienced freight shippers may encounter some stumbling blocks, so it's essential to stay on top of the factors that impact your quote. From lead times to accessorial fees, we are breaking down five brutal realities about freight quotes that you must know to ship successfully.
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Your One Week Action Plan to Lower Manufacturing Shipping Costs
03/09/2023 — Jen Deming
Right now, the manufacturing industry is tough. Our economy is unpredictable, and both labor and raw materials expenses are high. When looking for cost-saving opportunities, it’s critical that manufacturers assess areas of the business where you may have the greatest degree of control, such as shipping. With a little bit of planning, your team can tackle one cost-saving strategy a day to ensure lower freight charges within a work week.
Day 1 - Audit your top freight classes
Freight classification is an important part of LTL shipping, and it’s important to make sure the ones you are using are accurate. If they are incorrect, your freight may be reclassified and you will pay a fee, which is both expensive and disruptive.
Make sure your team is reviewing your most commonly used freight classes and checking them against current NMFTA codes. Manufacturers have an extra challenge due to the sheer volume of materials being shipped, often within one load. Product classes for items like parts, tools, or built-machinery can vary wildly, especially if they fall within a density-based category. Codes are updated regularly, so you can’t just look it up once and think you’re good to go on every shipment you move. Even small changes in weight, dimensions, or packaging type can affect your class and freight charges.
You should regularly audit your freight invoices for discrepancies between what class you’ve used to quote and what shows up on your final bill. If you see any class codes that are regularly corrected, make sure you’re adjusting that for the future. For new products, always review resources like ClassIT or speak with an experienced freight professional who can help you decode your freight class.
Day 2 - Optimize your packing strategies
The way you approach packing procedures for your freight shipments can greatly affect your shipping costs. Palletizing your loads keeps your products together and improves the structural integrity of your shipment as it travels through the LTL network. Being intentional in your packing choices keeps freight charges under control by managing density and protecting against damages.
Take a look at your current pallet-stacking strategies to see where you can make positive changes. You may be able to improve density by adjusting which products you are grouping together on a pallet. Small, dense shipments typically have a lower freight class, so don’t overstack pallets with large, lightweight materials. Your team should also review how often you are losing money due to loss or damaged shipments.
Manufacturers have options to better protect freight with a few specific tweaks, like using custom crates for extra fragile loads or using recycled-plastic pallets instead of wood. Recycled-plastics pallets are sturdier and more durable than wood, and are also less likely to break over repeated trips. For any pallet type, you can also add shrink wrap or corner protection for additional security. Prevention is the best strategy when it comes to lowering damage costs.
Day 3 - Look for ways to consolidate
When it comes to spending less on freight, consolidating shipments is an area many manufacturers may overlook. By finding opportunities to ship more efficiently, you can greatly lower costs. One way to do this is to make the most out of every load by eliminating the extra ones.
Review your inbound order cycles for items like parts or tools that you need to regularly replace or service. Plan these orders ahead of time so they can be shipped at the same time to save money. Discuss any opportunities to combine orders with your customers who ship most frequently. For example, if you’re shipping product components monthly, review if the order amount can be adjusted and sent quarterly. Strategies like this may lower costs for you and improve efficiency for both parties in the long run.
Day 4 - Evaluate opportunities to limit accessorials
Freight charges can quickly add up when you overspend on extra services. Accessorial fees like liftgates or driver assist can be avoided if your team has the proper loading equipment. The real struggle starts when you’re hit with fees at your customers’ locations that you didn’t budget for. Make sure that your customer knows any extra help with loading or specialized equipment costs extra. Requests like these need to be made early on so that you can accurately build freight charges into your customer orders.
Manufacturers shipping to rural areas have a higher risk than other shippers of incurring less common accessorial fees. Put simply, limited access is applied whenever a location is tough to get to or has unusual business hours. Manufacturers within the agriculture industry who are shipping equipment to rural dealer locations or farms experience this charge most often. Do your homework and make sure you’re familiar with your customers' needs.
Day 5 - Get a freight shipping audit from a quality broker
Freight charges can be complicated and time consuming to manage, making it hard to become an expert in LTL when tackling other areas of business. Fortunately, freight brokers can help look for cost savings and inefficiencies by reviewing current freight invoices. At PartnerShip, we understand the difficulty manufacturers face when trying to save on freight, and our experts can help you look for opportunities that can save time and money.
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3 LTL Freight Fees That Are Actually Worth Your Money
01/19/2023 — Jen Deming
Keeping shipping costs low should be a goal for any LTL freight shipper, and is a smart tactic to successfully manage business expenses. What you may not know is that there are some scenarios where spending a little bit more can actually be beneficial. In certain cases, paying extra for an LTL freight fee may help avoid headaches, improve service, and create more efficiency. Let’s take a look at three scenarios where the fee is worth the extra cost.
Spend on: Freight Insurance
Probably the most important added fee that is worth the cost is extra freight insurance. The fact is that despite your best intentions (and packing procedures), your freight will at some point encounter damages and loss. Thinking that you’re safe with a claim payout from the carrier will lead to trouble.
We hate to break it to you, but payouts are usually pretty low, and don’t often approach the actual value of your shipment. The process is slow, tedious, and complicated - it's very easy to make a misstep that can jeopardize the approval of the claim. If you do acquire approval, your payout is based on dollar per pound and freight class, which can complicate things. Lower freight classes typically have lower dollar per pound payouts, so a discrepancy between actual shipment value can make it challenging to recoup your losses. Other freight classes, especially those that include used items, may not be covered at all.
Freight insurance usually comes at nominal cost with major extra coverage. The payout is based on the actual value of your freight, and you won’t have the responsibility of proving that it was the carrier that caused damage to your shipment. You also won’t be so hard-pressed for time in submitting a claim, and your payout will be faster. A quality broker should offer options to add on insurance coverage to your loads. When requesting a quote, just make sure to mention that you’re interested in additional coverage - for a minimal fee, you should be protected.
Spend on: Special Services
It’s always a smart idea to make sure your warehouse is well-stocked with proper loading equipment, and that your staff is adequately trained. But, sometimes you simply don’t have the resources.
Shipping locations without docks, small teams with low staff, and limited access businesses or special loads all warrant the extra money. Carriers offer a slew of extra services that cost money, but can be a life-saver depending on what you need to safely move your load. Liftgates, refrigerated trucks, and conestogas all fall into this category. You can also request driver assistance with loadings or delivery. While this isn’t a typical responsibility for the driver, if you’re willing to pay a little more, you can secure the extra help.
The most important thing about adding on these premium services is planning for the extra cost so that your invoice isn’t a surprise. Make sure you quote accurately, and include any additional options at the time of your request. If you’re unsure whether something may come with a hefty price tag, consult your broker or the carrier directly - especially since these services usually vary in cost across carriers.
Spend on: Carrier Appointments
Certain types of businesses require very specific shipping procedures and protocols. This happens often with high volume shippers that have trucks arriving all day long. These businesses frequently require appointments for delivery and pick-up. Grocers like Whole Foods or Trader Joe’s, and mass box stores such as Walmart and Target fit into these categories. Appointments help curtail truck pile-up and keep perishable goods stable.
Some businesses are designated as limited access, and may also operate within restricted shipping hours, like schools, universities, prisons, churches, or construction sites. Appointments can help ensure arrivals fall within that open window and avoid unexpected deliveries that may disrupt business operations or cause scheduling issues.
Neglecting to follow any business’s shipping and receiving protocols may result in a driver being sent away, which will likely incur missed appointment or redelivery fees. If you are shipping fresh produce and other perishable goods, any major delays are disastrous, resulting in damages to the load. Make sure you know whether or not your load will require appointments, and schedule them in a timely manner. Be extra mindful of any new locations you may be working with, and make sure any changes are communicated between all shipping parties.
Don’t be afraid to spend when the circumstances are right
It’s important to be budget-minded, but the most successful shippers know when to shell out versus when to save. If you need freight insurance, special services, or appointments for arrival, it makes sense to pay just a bit more to ensure less headaches down the line. These extra services ultimately help your freight - but you need a plan. PartnerShip can help determine which “extras” make the most sense for your business.
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3 Freight Claim Mistakes That Carriers Love You're Making
01/06/2023 — Jen Deming
Freight damages and lost shipments are the worst. Submitting a freight claim in order to receive compensation from the carrier can be challenging, and if you don't do it right, you're unlikely to get much of a payout. In fact, certain mistakes that you might be making can pretty much guarantee a denial or low payout - and have the carrier jumping for joy.
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4 Questions You Must Ask About Your Freight Broker's Carrier Network
11/09/2022 — Jen Deming
When it comes to the carriers that can move your freight, "more is better", right? While that may be true for some, the quality of your partner carriers may be more valuable than quantity. If you're looking to add new carriers to the mix by working with a freight broker, make sure to ask the big questions to determine if their network is right for your needs.
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How To Best Protect Your Freight From Freezing
10/13/2022 — Jen Deming
Winter is coming, and that means large parts of the nation will be impacted by cold, freezing temperatures, and adverse weather conditions. Certain types of freight, like beverages, electronics, and pharmaceuticals, are especially at-risk for damage during the winter months. The good news is that there are ways to protect your freight from freezing, which can help avoid both damages and cost challenges during the winter months. But you must be vigilant and follow three essential strategies.
Strategy 1 – Ensure your prep and packaging can handle cold temperaturesProtecting your freight starts with you, the shipper, and proper packaging and preparation. To make sure that your freight kicks off its journey safely, make sure to use the following tactics to avoid issues:
- Know your product: Different types of products have varying temperature minimums, so first and foremost, you should determine what temperature ranges are safest for your freight.
- Group like products together: When palletizing or crating your loads, make sure similar product types (and temperature ranges) are grouped together for maximum safety.
- Use insulated packaging: When boxing up your product, make sure items are packed with insulating materials, like foam core, cotton or paper fiber, or insulated box liners.
- Wrap packed pallets: Insulated pallet covers, or specialty cargo blankets can help trap heat inside, making sure your products stay a warm and consistent temperature.
- Track temperature variations: Many shippers opt to use smart thermometers that can help track shipment temperature and detect any shifts that may impact the product.
- Load quickly and efficiently: Your loading team doesn’t have the luxury of time during the winter. Load carrier trucks quickly to minimize exposure to low temperatures and other weather risks like rain and snow.
To be completely honest, the equipment you choose will make or break your freight. Most carriers, especially large national carriers like TForce Freight and YRC Freight, offer temp-controlled services and have specialized trucks in their fleet that can manage freeze-protection. 'Reefer' (refrigerated) trucks aren't just used to haul frozen products during the summer. They can also be used to maintain a constant temperature for at-risk freight during the colder months.
When arranging your temp-sensitive freight, it’s important to contact your preferred carrier and learn about what options they offer. Communicate your shipment’s needs, starting with product type and what the required temperature range must be. Carriers can help secure a reefer truck, offer heated truck options, or even may provide alternative heating solutions, like portable or built-in trailer heating units.
After communicating with the carrier and deciding which temperature-control options are right for you, it’s important to note temperature requirements on your bill-of-lading. As with most special requests, this not only gives the carrier direction on your needs, but it can also be used as a point of reference for liability should something go wrong during transit.
Keep in mind, that temperature-control services are considered accessorials, and will incur charges and fees that may vary by carrier. Building those fees into your shipping costs is best done early on in the transportation process.
Strategy 3 – Stay on top of delays and weather conditions
Not every part of the United States will be impacted by inclement winter weather – but most of it will be. Snow, rain, ice, and even wind can create major issues for truckers during the winter season. It’s super important to research the path that your shipment will be taking. Don’t let your load fall prey to the common “out of sight, out of mind” misconceptions some shippers succumb to.
When shipping LTL, your load won’t travel from point A to point B in one straight shot. The further your load travels, the more varied its path will be. If your shipment enters any of the high-risk zones like the Midwest, New England, or Central U.S., it’s extra crucial you stay on top of weather updates for your shipping lane. When the weather is bad enough, it’s in your best interest to delay shipping until it clears, if you can swing it. Road closures and rerouting may be hard to predict, so it’s always smart to build extra time into your transit.
Shipping over the weekend is always tricky, even in the best-case weather scenarios. But in the colder months, you will likely encounter extra challenges. Because weekends are considered “dead freight” time, your loads will sit and be exposed. Your best bet is to ship early in the week and avoid weekends all together, but if you have to, make sure you communicate with the carrier about keeping the temperature-control running while idle.
Because freight transit can be so unpredictable during cold weather, always keep in mind that you should be keeping alternate shipping options open. If you have a larger freight shipment, a dedicated truck may be a viable alternative. While pricey, keeping room in the budget for emergency scenarios like weather delays is a smart plan of action.
Shipping freight safely in winter is possible
Winter weather freight shipping can be tricky, but it’s not out of the question. You will need to strategize even more than you’re used to, and take every precaution necessary to avoid slip-ups. Keep in mind that now is not the time to take any unnecessary risks just in an effort to save a buck. PartnerShip can help you keep on top of cold weather shipping issues, including communicating with carriers and staying on budget. If you’re going to be shipping this winter, make sure to contact our freight experts so your freight is delivered safely.
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What Manufacturers Want: We Talk Shipping Tips With an Industry Insider
10/07/2022 — Jen Deming
Manufacturers are kind of a big deal. Take a look around, and you’ll notice that the products, supplies, equipment, and tools they produce are everywhere. Lately, conversations about manufacturing are shifting, as the industry itself is evolving to meet new expectations and demands. In order to gain some insider perspective, we reached out to our industry contacts and association partners. Holly at Jatco Machine &Tool Company, Inc., NTMA member and PartnerShip customer, was generous enough to provide some expert insight.
- What specific shipping challenges do manufacturers face? What do they do to combat those issues?
Holly: Some specific shipping challenges would be the balance between cost and delivery times, items arriving on time and undamaged, difficulty of creating/placing shipment. Some things we do to combat those issues are utilizing PartnerShip and packaging our items up ridiculously well. Partnership offers us savings by combining shipments, and they make it so easy to create a shipment. They literally do it all for you!
- What is the most important factor related to shipping for manufacturers and why?
Holly: It’s hard to choose one. Obviously, safety goes without saying and should just be a standard for everyone. Other than that, it would be delivery times. Sending an item to a subcontractor can become a process. Two days to ship freight, maybe two or three days for them to do the work, and then another two days back is a full 7 days eating into our deadline. We’d like to get freight to a subcontractor overnight and vice versa. And honestly, two days is not terrible!
- How can PartnerShip make life easier for manufacturing businesses?
Holly: I think that they really do all that they can to be efficient and easy to work with. I enjoy calling and having someone fill everything out correctly, search for rates, and give me the best options.
- What do we, and others in the industry, need to know about manufacturers and how to best address their shipping needs?
Holly: We have one-two shipments with Partnership per month. I’m sure others have more or varying amounts. It’s nice to know that we can receive great rates based on merely being a partner verses number of times we ship. We are a small business doing big things all over the country. Shipping will always be a part of that. Partnership makes that aspect as easy as possible.
- Key Considerations for Shipping High-Value, High-Risk Freight
- 5 Foolproof Ways to Take on Manufacturing Shipping Challenges
- Types of LTL Carriers and When You Need Them
- 4 Ways Consolidating Your Freight Will Make Your Life Easier
- 5 Freight Broker Benefits You Can’t Afford to Pass Up
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- What specific shipping challenges do manufacturers face? What do they do to combat those issues?
3 Blunders That Can Sabotage Your Blind Freight Shipment
09/22/2022 — Jen Deming
LTL freight shipments come in many forms, but one of the most confusing types you may have heard of is blind freight shipping. In blind freight shipping, the identity of the shipper, receiver, or both parties is hidden. It’s most commonly used when a business is shipping orders directly from the manufacturer to the customer.
If you think that sounds complicated, that’s because it is, but there are distinct advantages to taking this route when arranging a freight shipment. The most common reason a business would choose to do this is to keep other parties within your supply chain confidential from your customers, such as manufacturers or distributors. The idea is that they would then be deterred from going directly to those sources for a product instead of your business. Sounds good, right? Well, the challenge is that managing blind freight shipments can get pretty dicey, and most missteps fall within three major areas.
- Blind Freight Paperwork Mistakes
Properly preparing and distributing freight shipping paperwork is a stumbling block for many shippers, on even the most standard loads. In blind shipping, up to three separate BOLs must be prepared, depending on which parties aren’t being disclosed. In double-blind shipping, you will have one for the shipper, one for the receiver, and a conventional BOL for the carrier’s use. All three of the BOLs should include accurate shipment details, including weight, dimensions, and product description.
They should also include accurate freight classes so that the load is billed properly. Each of them will, however, have slight but crucial differences to ensure your blind freight stays “blind”. A shipper’s BOL will have all of the usual info, but also include PO# or other identifying information. The receiver may be omitted in order to keep the customer anonymous. Likewise, on the receiver/customer’s BOL, the supplier’s identifying info and address will be concealed. The carrier BOL must contain all relevant information that is typically used on the BOL, including both shipping parties full information.
Failing to prepare BOLs properly, or handing them off to the incorrect party, can result in major headaches. A shipment can be misrouted or lost, billed incorrectly, or the blind freight’s purpose may even be defeated by accidentally disclosing parties to one another. The best thing you can do when managing a blind freight shipment is confirm that the carrier has all of the accurate details when setting up the shipment, including the true addresses of both shipping parties.
- Not Accounting for the Additional Costs Associated With Blind Freight
It’s always smart to assume that if a shipment has any extra services or needs “special” attention, a carrier is going to add some extra fees for their trouble. Due to blind freight shipping complexity, there are extra costs associated with this service. Every carrier charges different amounts, and we’ve seen them anywhere from $50-$150. Check your carrier’s website to determine costs. As seen here with YRC, cost is stated clearly, as well as instructions to prepare a blind freight shipment per their standards. Research these fees and make sure you’re building them into your budget to avoid surprises.
On top of regular fees for the service, you have to remember that any errors you make when arranging a blind freight load can end up costing you even more. For example, if you handed off the wrong BOL, and the address is incorrect, rerouting and redelivery fees may apply. This can really inflate your final bill, as well as create on-time delivery complications and stress with your customer.
- Not Being Aware of Blind Freight Restrictions
Just as we see with blind freight costs, requirements and restrictions on these types of shipments can vary with each carrier. Some carriers have a pretty relaxed approach, while many need additional paperwork or approval beforehand. It’s always important to notify your carrier that a shipment is blind at the start of the process so that you can iron out details.
Many carriers, such as YRC, require a form or document to be prepared online before pick-up, so that an “official” notice is on file for the request. Carriers may also require paperwork to protect their interests in the case of blind shipping. There may also be a waiver to sign, notifying you that while they will do everything in their power to honor the request, if something goes wrong, it’s not on them. Some may even include stipulations, such as a note that re-delivery will not be attempted due to issues associated with paperwork errors. It really just depends on the shipper, so be sure to visit carrier websites and search for policies on blind freight shipping. If there isn't information made front and center, always download the latest rules tariff and read the fine print. It's not fun, but it may help you avoid mistakes.
While blind freight shipping can sound totally overwhelming, the opportunity to use this type of freight service should be considered for anyone working as a “middleman” between customers and suppliers. A great freight broker can help manage all of the details, including paperwork and communication between all parties to ensure accuracy. With the right assistance, you can be sure that your blind freight shipment will go smoothly. If you think your business might benefit from blind freight shipping, get in contact with a PartnerShip freight expert to learn more.
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- Blind Freight Paperwork Mistakes
The Full Scoop on Inside Delivery
08/24/2022 — Jen Deming
When you don't have a loading dock for your freight, your options can seem pretty limited when it comes to delivery. Luckily, many LTL freight carriers offer inside delivery - a convenient service that comes at an extra cost. Learn all about inside delivery in our newest video.
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5 Impactful Ways to Maximize Your Small Logistics Team
08/19/2022 — Jen Deming
These days, businesses are expected to do more with less, and that doesn’t stop at freight shipping. Small logistics teams need to be efficient multitaskers, and the demand to juggle so many responsibilities can be overwhelming. As a business owner, you can help set your logistics team up for success with a little extra planning and five tactics to maximize a small workforce.
Tip #1: Stay on top of industry updates and make resources available
Staying in the loop with freight industry news is great advice for any-sized shipping team, but it’s extra important for those operating with limited manpower. Be on the lookout and be proactive about communicating updates that are released by carriers, such as tariff changes, rate increases, service interruptions, and deadlines. Commit to publishing a regular newsletter or bulletin that communicates these changes. Post them in your warehouse and breakroom along with notices of any upcoming holiday service disruptions.
Be sure to implement regular training sessions with staff. It’s also best practice to keep a running list of solid freight shipping resources that your team can refer back to, as needed. With a small logistics team you’ll need to ensure your everyone has at least a base level of knowledge for each shipping function.
Tip #2: Prioritize your relationship with the carrier
While larger businesses may be able to operate on a more transactional level with carriers, developing relationships with transportation companies and their drivers is super important for smaller teams. By strengthening these connections, a business is more likely to become a shipper of choice, which is key when your logistics staff may run into unforeseen challenges. The current state of the freight industry can present obstacles. Limited truck availability means a carrier can either choose to move or pass up your freight, and in this volatile market any leg up on the competition can help.
Offer amenities for drivers like Wi-Fi, plenty of overnight parking, and free coffee. Be friendly and flexible with arrival times and communicate any delays or hang-ups. Paying it forward and becoming a preferred customer with the carrier can go a long way. A happy driver is more likely to help bail your team out in times of trouble or go the extra mile to help out.
Tip #3: Be extra mindful of minimum charges for LTL shipments
Smaller businesses generally ship smaller LTL loads, so it’s extra important that your team understands minimum charges to avoid sabotaging your freight costs. Minimum charges are the lowest prices that a carrier will set for its’ service and are implemented to offset operating costs. Each carrier may refer to the charge differently, but they are commonly known as an “Absolute Minimum Charge” or “Minimum Floor Charge”. Usually, the charge is applied for loads that are under 500 lbs.
In order to get the most bang for your buck, there are a few strategies that your packing team can implement. Maximize the amount of available pallet space by improving stacking technique and planning the layers of your load. Pack like-sized products together to improve density and overall volume.
Keep in mind that you can optimize your freight by consolidating loads. There may also be additional opportunities to group multiple small package orders into one, larger freight shipment. Review your smaller parcel shipments and determine if there are openings to use a freight service for cost savings and better efficiency.
Tip #4: Spend your money on quality loading equipment
It’s probably a pretty safe bet that if you’re working with a small logistics team, you’re likely working with limited resources. That may include restricted dock space – or a complete lack of a dock. If that’s the case, it’s critical that your team and warehouse/loading areas are well-stocked with fully functioning, safe loading equipment.
Investing in equipment like forklifts, pallet jacks, dollies, hand trucks, and hoists are all necessary to help with the loading process. More importantly, these tools can help avoid costly accessorial fees associated with extra services like liftgates and driver assist fees. While these loading supplies may have a high initial cost, this one-time expense can spare you hundreds of dollars in fees and help avoid overtaxing your team.
Tip #5: Work with a freight broker to access more savings and the right answers
You don’t have to tell us twice – freight shipping is super complicated and can be a lot to manage. It’s impossible to know everything when you have limited time, workforce, and resources. We know your small logistics team can pull out the stops, but partnering with a freight broker can offer invaluable help. Freight experts can help fill in any gaps when specialists are required, and offer competitive pricing options you may not typically have access to.
Knowledgeable freight brokers can also help identify areas you may be spending more than you need to or are experiencing operational inefficiencies. The freight professionals at PartnerShip can supplement your existing workforce and help shoulder some of the weight so you’re not overtaxing your team.
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4 Ways Consolidating Your Freight Will Make Your Life Easier
07/18/2022 — Jen Deming
Combining multiple, smaller palletized loads into one larger freight shipment can really pay off in the long run. From saving on costs to increasing fulfillment efficiency, both your business and your customer relationships will benefit from well-planned freight consolidation.
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4 Freight Mistakes You're Making This Summer and How to Keep Your Cool
07/07/2022 — Jen Deming
Your LTL freight shipments have an arduous journey and can encounter any number of obstacles while traveling the long, winding road to their destination. Certain seasons of the year can lead to increased risk, and shipping in the summer is no exception. In addition to temperature sensitivity, there’s a variety of other factors that can make summer shipping extra prone to issues. We’ve boiled down the major summer freight shipping mistakes that you should avoid, to keep your costs and blood pressure low in the summer heat.
Mistake 1: Neglecting the boom in summer shipping volume
Summer is a busy time for many industries, from retailers who are busy boosting inventory to farms and growers sending produce loads to grocery distributors. We see a huge increase of freight shipments hitting the road in the summer months. This can affect carrier capacity and make it even more difficult to find available trucks. Time-sensitive loads will be more difficult to cover, too, since last-minute truck booking will be harder to accomplish. It’s nearly impossible to understate how much this boost in volume affects the market.
Solution: Make your loads desirable to the carrier
To claim first dibs on your favorite carriers, you need to make sure that your loads are as appealing as possible. Stay in good standing with the driver – have a clear loading dock, organized loading process, and make sure your packaging is ideal and easy to transport. The main goal for a driver during these busy seasons is to get in, get out, and get on the road. The more time wasted on navigating your parking lot, loading your shipment, or collecting paperwork is going to set them back for the day. Making life easy for your carriers might be the boost you need to get your loads covered quickly in the summer.
Mistake 2: Assuming rates will be the same year-round
Freight rates are directly related to capacity, and in seasons when it’s extra crunched, you’ll see them go up. Other variables like fuel costs can fluctuate unexpectedly as well, so keep these factors in mind when you are building shipping costs into your customer orders. Always keep in mind that a freight quote you received months ago in preparation for a load will no longer be accurate. And if the freight rate is more costly in the present, you can’t exactly go back and ask for more money to cover the difference.
Solution: Check spot rates regularly and build in extra cost
Your best tactic for getting an accurate estimate on freight costs is to run sample quotes periodically, through every season. Gather several from a variety of carriers, being mindful of accessorial costs and other extras. Take an average and use this rate to build in the cost of shipping in your customer orders. It’s always a great idea to cut costs as much as possible in less busy months, as well, to offset the increase during the summer. Creating a nice buffer for your budget can go a long way.
Mistake 3: Taking risks with temperature sensitive loads
It goes without saying that summer’s soaring temperatures can cause extra risk to your loads. Creating a protective environment for your product is key to limiting damages during transit. Frozen goods and fresh produce are commonly known risky loads, but items like pharmaceuticals, electronics, chemical agents, and more all need some extra love during the summer. Now is not the time to risk an “economy” or budget carrier for the sake of saving a few bucks.
Solution: Research and use quality specialty carriers
Just as in any industry, freight carriers can leverage expertise and specialize, as needed. Make sure you are looking at carrier companies that are experts in temperature-controlled services and employ refrigerated vans. Understand that these types of specialized equipment are in high demand, and will be more expensive and harder to find. When reviewing reefer carrier options, ask questions on how the equipment is maintained, how loads are stored and separated, and what they do to address potential delays while in transit. Even if you have a product that may walk the line between needing a reefer or regular dry van, taking the chance during extreme heat isn’t going to work in your favor.Mistake 4: Miscalculating summer freight transit times
If you haven’t figured it out already, shipping freight in the summertime can create a two-fold risk for your shipment. Warmer weather can cause product to deteriorate quickly, and capacity issues may lead to more delays than during slower times of the year. Combined with extreme weather, you have a recipe for disaster, namely damaged freight. Also, keep in mind that while many areas of the U.S. will welcome temperate weather in the summer months, other areas can experience heavy rains, impact from hurricanes and tornados, and severe drought or wildfires – all events that affect transit times.
Solution: Be extra mindful when scheduling long-haul shipments
Planning and being proactive about any potential delays is your best bet for success. Try to avoid shipping over weekends and holidays – most carriers will stay off the road and your freight will be left waiting. By avoiding those blackout dates, you can help protect your freight and also keep your costs low – rates skyrocket for carriers willing to move loads. If your load is liable to deteriorate due to temperature or transit-time related risk, you should always opt for services that can offset those factors.
Keep your cool this summer
Shipping freight in the summer doesn’t need to cause extra headaches and stress – it just requires better planning and a thorough knowledge of your product needs. By selecting the right carrier and equipment, planning for efficiency, and being proactive about truck capacity, you can minimize risk and ensure you’re shipping safely. The freight experts and PartnerShip can help answer any questions about your temperature-controlled loads and help navigate your summer freight successfully.
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3 Smart, Stress-Free Ways You Can Ship Freight to Rural Areas
06/29/2022 — Jen Deming
Transporting LTL freight through rural areas is inefficient for the carrier, and can be challenging for you. When you're juggling long transit times, limited service schedules, and tricky accessorials, it can become overwhelming very quickly. Luckily, we've put together some best practices that can help you ship to rural locations, stress-free.
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3 Warning Signs Your Business Needs a Freight Broker
06/14/2022 — Jen Deming
Managing your growing business can present some unique challenges. On one hand, orders are coming in, your sales are increasing, and your customer base is thriving. The flipside to that success, however, may mean new operational issues that eat up your time and bottom line.
Shipping freight successfully during this growth period is a stumbling block for many business owners and logistics teams. You may find yourself needing more time and a larger workforce – at some point you may even wonder whether it’s time to outsource help. A freight broker can help manage many of your freight challenges, from overarching issues like lowering costs to tackling day-to-day issues like ensuring delivery accuracy. The bottom line is that you shouldn’t be stressing out more than enjoying the success of your business. If you’re experiencing any of these three signs your business needs a freight broker, it’s time to get the help from the experts .
Warning Sign #1 – You are making big mistakes when shipping orders
More sales is something to celebrate, but trying to keep up with the increase in orders without accommodating the volume is impossible. To make matters worse, packing and shipping is a very detail-oriented business, and rushing to get orders out quickly means an increased chance for error. There’s plenty of opportunity for mistakes that can snowball quickly.
Issues such as labeling or paperwork inaccuracies or even quoting errors can quickly escalate and create major problems. For example, something as simple as a wrong address on your freight shipment can, at best, cause delays. That means inconvenienced and aggravated customers. If your customer is paying for shipping, and you’ve quoted the cost incorrectly, you can’t go back and ask for more money – that’s your loss. You need to make sure you’re quoting freight accurately the first time by using exact details and the correct classification.
Mistakes like these cost you time and money, as well as customer satisfaction, which is pivotal when you’re a growing business. If you’re seeing shipping errors like those mentioned above, it’s definitely a sign that your business would benefit from a freight broker. A quality freight broker has a dedicated staff of freight experts who can help offer advice and resources on how to tackle the details that trip up many freight shippers.
A great freight professional can help you avoid mistakes by assisting with every step of the freight shipping process:
- Offer guidance on product classification and freight NMFC codes
- Collect competitive and accurate quotes from carriers who fit your needs
- Create necessary paperwork for delivery
Warning Sign #2 – Your billing department is becoming overwhelmed
Unless you’re an established, larger-sized business, it’s likely that your employees are juggling several different responsibilities. It’s not uncommon for a business owner to be playing the part of shipping manager and billing specialist to boot. Being burnt out and behind schedule is a pretty clear warning sign your business needs some help from a freight broker.
When your business is growing, it’s safe to say your shipment volume is increasing, and you may even be shipping with several different carriers or using a variety of services. Managing all of these invoices can be overwhelming, especially when you’re checking for accuracy, meeting payment due dates, and processing claims.
A freight broker can help simplify the billing process for your freight shipments by acting as an extension of your own team. Most will offer consolidated invoicing which can help cut down on billing chaos. You’ll also benefit from auditing services to double check for errors and savings opportunities. Should you experience damages, your broker can act as your advocate and help navigate the very particular requirements for filing your claim. Relying on these services can help shoulder some of the responsibility that your business just may not have the time or resources to do thoroughly on its own.
Warning Sign #3 – Your shipping costs are digging into your bottom line
Let’s face it, running a business is expensive, and while more customers mean a greater chance at making a profit, it can also mean that your shipping budget needs to increase. Between packing materials, labor, and freight transportation, these expenses can multiply quickly.
It’s key to make sure your freight rates make sense for your growing business. This can be done through carrier discounts and other means like order consolidation or taking a look at what types of LTL service providers work best for your business. Securing discounts and identifying savings opportunities can be challenging, especially if you’re not running a large corporation or shipping huge volumes of freight daily.
The great news is that through established carrier relationships and collective buying power, working with a broker can give your business access to higher freight discounts that are typically reserved for higher volume shippers. A quality freight broker will also a conduct cost savings analysis for your business to see where you are overspending on both inbound and outbound shipments. Lastly, they can also quote and compare among carriers to make sure you’re getting competitive pricing to help combat the current freight market.
Let us help you
Everyone wants to see their business grow and succeed, but keep in mind that as you do, new challenges will arise along the way. If you’re encountering major freight shipping issues like quoting inaccuracies, invoicing headaches, or rising costs, managing on your own may have run its course. These mistakes are signs that working with a broker may benefit your business, and PartnerShip can help get you started.
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3 Smart Ways to Ship Freight in the City
05/24/2022 — Jen Deming
Too much traffic, too few parking options, and an overabundance of air pollution are all obstacles that shippers will encounter when shipping city freight. Before you jump in headfirst, make sure you are brushing up on these key strategies that can help avoid urban shipping headaches.
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Key Considerations for Shipping High-Value, High Risk Freight
04/27/2022 — Jen Deming
If you're shipping high-risk freight, you know that your load is valuable and easily-targeted by cargo thieves. Understanding which factors can impact the security of your freight is the first step in protecting yourself against theft. In our newest video, we take a look at the three most important variables smart shippers must address to safeguard their high-risk loads and minimize loss.
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5 Freight Broker Benefits You Can’t Afford to Pass Up
03/23/2022 — Jen Deming
If you’re shipping freight, then it’s likely you’ve heard the term ‘freight broker’. But maybe you’ve wondered what they actually do or why you should bother using them. A freight broker acts as an intermediary between a shipper and a carrier - they help shippers find quality transportation providers for their loads. Brokers, also known as 3PLs, can manage every step of the shipping process and help alleviate some work, especially if you’re low on time and manpower. Whether or not you consider yourself a seasoned freight shipper, here are five freight broker benefits that will help level-up your shipping procedures.
Benefit #1 – Freight brokers offer guidance if you’re just getting started
If your business needs have shifted recently, and you need to start using services for larger loads, your shipping department may be a little stuck getting past the basics. Stepping up from shipping small packages to shipping freight is an entirely different ball game. Packaging and pricing strategies differ, as well as the amount of work your team needs to put in during loading. Now is the time to look for assistance from experts, because by going in blindly, you may encounter a variety of pitfalls that result in damaged shipments or expensive bills.
Freight brokers can help get you started off on the right foot by getting to know your business and what you need to ship. They can assist by researching freight classes and determining any special equipment or packaging needs. A great broker can also help with quoting and booking procedures, by scheduling pick-ups and getting all parties any necessary paperwork. After pick-up, they will proactively track your shipment and provide updates, so you can stay on top of your freight’s progress.
New freight shippers can be surprised how many checkpoints a load will encounter throughout transit. And with that, how many chances something may go wrong. For issues along the way, such as transit delays, inspections, or missed deliveries, freight brokers can troubleshoot quickly. Fixing these obstacles can take a lot time, a bit of run-around, and quite a few phone calls, so working with a broker can help shippers avoid that stress entirely. Many freight challenges stem from a lack of communication between shippers, consignees, and carriers, so brokers can act as conduit between the three and clear up matters quickly.
Benefit #2 – Brokers are your inside access to better freight rates
If you could save money on your freight shipping, you’d do it right? Better prices sound appealing, but it can be hard for small and medium-sized businesses to have enough clout with a carrier to get great discounts. 3PLs have strong shipping volumes, and working alongside one can be that extra boost you need to access better pricing. Freight brokers can both leverage carrier relationships for discounts (passing them on to you), and may have a broader pool of carriers that offer budget-friendly options.
To really evaluate where you are at with your freight spend, brokers can also conduct audits on your current procedures. By looking at your past invoices, brokers can identify any areas that you may be spending more than average and check for opportunities to cut costs or increase efficiency. For example, by reviewing accessorial charges like recurring liftgate fees that are being implemented by the carrier, a quality 3PL can help identify potential solutions to eliminate or offset those costs. This may mean suggesting equipment solutions at your warehouse, or looking into alternate carriers who charge less for extra services. There are many ways you can manage your freight budget, but without expert assistance, you may be stuck wasting money while trying to find solutions.
Benefit #3 – Brokers are your advocates in the case of freight claims
Freight claims are a dirty word in this business, and a top stressor for any shipper. Should you find yourself in that predicament, however, working with a freight broker can give you a leg up during the claims process. Freight carriers can be difficult to work with – their primary goal is to limit payouts whenever possible. Because there are so many steps and policies you have to follow, it’s best to have an expert on your side who’s done this a few times before.
A broker can often help set you up for success by making sure you have as many pieces of documentation backing up your claim as possible. They can educate you on the process and make sure you’re submitting the proper paperwork and adhering to any necessary deadlines. A qualified broker can help you understand the differences between carrier liability and freight insurance, and be your advocate during any negotiations and follow-up.
Benefit #4 – Freight brokers give you access to more quality carriers
Freight brokers work with many different carriers, and by using a broker, your pool of shipping options broadens greatly. This is a great benefit on a variety of levels. For example, if you’re experiencing consistent issues like damages, timeliness, and reliability with one of your carriers, having access to some new options could be just what you need to eliminate the problem.
With the worldwide freight crisis hanging overhead, it’s also a smart move to have as many carrier options available as possible. Many shippers have found it challenging to secure a quality carrier that meets their needs and budget. The more options you have, the more likely your freight is going to be picked-up and delivered on time.
Benefit #5 – If you’re stumped on a load, they’ve got options
Freight brokers are experts at putting out fires - they’ve seen it all. If you have a shipment that needed to be delivered yesterday, brokers can help navigate expedited options that balance service level and budget needs. Or maybe your load needs a specialized piece of equipment like a box truck or flatbed. A freight broker will be able to quickly access a large pool of carriers to ensure you have the coverage you need. For any kind of tricky freight loads, a quality broker can help guide you through the process.
The case for using a freight broker
Gaining the benefits associated with working alongside a freight broker can be a game-changer for your business. The ins-and-outs of freight shipping can be complicated, and while you can try to navigate them on your own, it’s always better to have an expert on your side. PartnerShip can help guide your team and help answer any questions you may have on whether working with a broker is right for your business.
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Why Carriers Hate Difficult Freight and How to Fix It
02/18/2022 — Jen Deming
Have you ever thought about whether your LTL freight loads are worthwhile for the carrier? Your freight shipments must be worth the amount of effort that’s invested in moving them. If the payoff isn’t there, your loads will be regarded as “difficult freight”. This can lead to declined loads, infrequent pick-ups, or a tense relationship with your carrier. To get your freight prioritized, the first step is determining whether you have difficult freight, then taking the steps needed to become a shipper of choice.
Reason 1: Your pick-up or delivery location is tough to access
One way to determine whether your freight is cringeworthy can be as simple as walking through the door of your business and scanning the surrounding lot. Ask yourself, are my freight pick-ups a pain to complete? Maybe you don’t even have a lot, but your business is located on a side street or an alley in the city. A standard LTL dry van being dispatched by the carrier is 52 feet long, which definitely takes skill to maneuver safely. If your business location is in a challenging place, such as a cramped area that restricts maneuverability or doesn’t have a dock, pick-up is tough for the driver to complete.
On the other hand, maybe you have the space to maneuver, but it’s such a rural location that the carrier only services the area infrequently. If you’re in an isolated region that doesn’t have many other local businesses moving freight, the work to payoff ratio is pretty unbalanced. Either way, carriers have a term for these hard-to-reach locations. High-traffic metropolitan areas, remote construction zones, and extremely rural regions all fall within the definition of limited access.
The best thing you can do to avoid this particular pitfall is to create as much flexibility as possible for the carrier. You might not be able to move your business, but if the physical location of your pick-up has some structural challenges, you need to communicate that to the carrier beforehand. Informing the carrier allows them to plan for the proper equipment, such as dispatching a smaller box truck for arrival. If you can swing it with your warehouse team, consider shipping to or from a freight terminal, rather than your business. Busy freight terminals are located in desirable geographic areas that you know the carrier will visit regularly. This helps ensure your shipment gets moving and will spare you extra limited access fees.
Reason 2: Your freight is a prohibited commodity
Want to know another reason that your shipment may be marked as “difficult freight”? The commodity you are shipping may be prohibited by the carrier. This is usually due to liability, governmental regulations, or company policy. The act of prohibiting certain items exists for two main reasons:
High risk/high value - These types of products can be difficult to put an exact value on, or may be easily damaged or stolen. Commodities include bank bills, credit cards, gold or precious stones, currency, original artwork, furs, or other high-value items. Your chosen carrier may be willing to accept certain items, but you must prove you have the appropriate insurance coverage.
Regulated – These shipments may be excluded due to government regulation or may be hazardous in nature. This may also include perishable items that require controlled storage requirements. Items in this category include aerosols, chemicals, assembled guns, alcohol, combustible materials, hazardous materials, and live plants and animals.
So, since this type of “difficult freight” can include so many different commodities, what can you do? Your first goal should be to learn just how your carrier views these products. Evaluate your carrier’s terms and conditions before you even start planning your pick-up. Restricted or prohibited items will be listed there, as well as any liability and claims information. Inspections regularly occur during transit, so if you aren’t sure if you’re safe, call the carrier and find out their policy.
If you are consistently moving these types of risky shipments, make sure that you are working with carriers that are properly certified. Many carriers specialize in these types of loads, so you can ensure your shipments are moving safely and legally. For some types of cargo there may be state-mandated regulations, as in the case of transporting alcohol. Be sure to have the proper permits and to adhere to the necessary policies. Any type of shipment that has restrictions will likely have very specific packaging requirements and requisite paperwork.
Reason 3: Your warehouse hours don’t mesh with the carrier
Maybe the location of your business isn’t the thing preventing a carrier’s arrival, but your facility’s operating hours are what create further problems. Due to the nature of certain establishments, arrival times may be heavily policed or limited. Places like schools, prisons, or storage facilities often have restricted hours for arrival and loading – and sometimes they’re after a carrier’s business hours.
All a driver wants to do is arrive onsite, get loaded quickly, and then to get back on the road. Having to work around odd hours can complicate the daily schedule. To make matters worse, some locations may require an appointment for arrival. If you have a small loading window that requires the driver to stick to a very fixed schedule, this is going to present some issues. Traffic issues or detours can throw off an entire day’s work. If a driver arrives just short of the appointment time, the shipment may need to be put back on the board for the next day.
Create flexibility in your loading hours whenever possible. If you must require delivery appointments, make sure your loading team is efficient and organized so that you don’t run over. Allowing weekend arrivals, extended hours for pick-ups, and having a team “on call” can greatly reduce the stress a driver will experience and boost the chances the carrier will work with you again.
Reason 4: Your reputation proceeds you
When you are auditing carriers, and measuring up how well they’re working out for you, realize that carriers are doing the same thing. With capacity as limited as it is, freight carriers want to work with customers who have their shipping processes down pat and are pleasant to do business with. If you are anything but that, they will take their business elsewhere.
One major disruption for carriers is the subject of detention. Carriers usually allot two hours for loading, and any time it takes over that is considered detention. Detention holds up drivers, wasting time and preventing them from moving on to the next load. It’s pricey too, as most carriers will pass on a detention fee to offenders. Keep in mind, drivers are not going to help you load your cargo. Some may assist, but be warned, that will rack up some hefty fees too.
In order to avoid these fees and stay in good graces with the carrier, you need to have a well-trained and efficient warehouse team that also has the proper loading equipment. If you don’t have a dock for loading, that’s okay, but you should have a forklift or another alternative ready and working at pick-up.
Be helpful and accommodating to the driver. Amenities like accessible parking options, a comfortable resting area, and food and coffee will be greatly appreciated by the driver. Keep in mind, when it comes to difficult freight, your reputation is the one factor you can truly control. Becoming a shipper of choice takes planning and a little bit of thoughtfulness, but it goes a long way in helping the carrier look forward to your loads.
Reason 5: Your business has above average claim submissions
It probably seems pretty obvious, but if you’re submitting a lot of claims, the carrier is going to be wary of your cargo. Freight claims cause headaches for everyone involved. While the burden of proof is on the shipper to prove carrier negligence, claims submissions take a lot of time, research, and possibly loss of revenue for the carrier. Whether you win the claim or not, damage and loss claims mean the carrier will think twice about moving your shipments.
If your company has a history of damages, your freight carrier is going to evaluate a few risk factors. It may be possible that you are shipping extraordinarily fragile, or perishable, commodities that create a lot of risk. For example, a landscaping business shipping live plants may want to use LTL services for smaller freight loads. While possible, doing so is hazardous. Any delays in shipments or extra handling may cause an above-average risk to the integrity of the product.
The other issue may be with your packaging. A business that is shipping built furniture may experience increased risk of damage to their product. Custom crating your product can help avoid some damages, but the risk may still be too high, and standard carriers may decline to move your loads at all.
If you are shipping any sort of fragile or high-risk shipment, your first step should be to perfect your packaging procedures. It may be costly to invest in custom packaging, but using standard pallets and shrink wrap is not going to be enough to protect your freight. It’s more important to consider whether specialty shipping services may be the right option for your cargo. White glove shipping services can be pricey, but they prioritize safe handling and security. Refrigerated options or even using dedicated truckload services will limit the handling of your product, and may speed up transit as an added benefit.
Reason 6: Seasonality is shifting carrier priorities
During certain times of the year, there are huge spikes in available freight shipments for carriers to move. Depending on the industry, these periods vary by region and season, and sometimes there may be some cross-over. Some examples include produce season in places like Florida, the Midwest, and California, construction season in the spring, or nationwide during the winter holiday season. Because there are so many available loads to choose from, carriers will prioritize the loads that, you guessed it, have the highest payoff for minimal effort.
If you’re shipping during these busy seasons, you need to be flexible. LTL rates will go up and transit times will increase. You should always be practical about your budget, but consider the long-term goal. It’s not the time to tighten the belt on your budget during busy seasons - aim to lower costs year-round so that you have room when you need it. Since transit times will be longer, consolidating loads whenever possible will decrease your overall risk for late deliveries. Expanding your pool of carriers by working with a freight broker will increase the likelihood your shipment gets moved. As always, make your freight as appealing as possible so that when carriers are frazzled by the seasonal onslaught, they can count on your shipments to be fast and easy.
Make difficult freight a thing of the past
Nobody wants to be seen as a “problem shipper”, but the good news is that with time, and a little foresight, you can turn the situation around. It all starts with putting yourself in the carrier’s shoes. Would you want to work with your business? It’s your responsibility to make your cargo desirable, and encourage a strong relationship with your carrier. PartnerShip can help, by guiding your business to make the right choices for your loads, and connecting you with the right carriers who want to move your freight.
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6 Surefire Ways You Can Overcome Freight Capacity Challenges
01/18/2022 — Jen Deming
Sometimes, it’s just hard to find a truck. With a capacity crunch that’s been ongoing for as long as we can remember, the struggle to get your LTL loads covered is old news. But, it’s still relevant news. In fact, it seems like things are projected to get even tougher as more freight enters the network. So, while the capacity challenges continue, how can you get your loads covered without breaking the bank?
Why are there capacity challenges?
First, it’s important to understand why capacity is so tight in the first place. It all boils down to an oversaturated freight network – there’s simply not enough trucks on the road available to move every existing freight load. More money is being spent on goods than services, we’re looking at a 6% year over year growth in demand, and this shift in consumer spending is really tightening things up. While the trend has existed for years, the effects of COVID further propelled a push in consumer spending. Due to a diminished staff, freight is being held up within transit at distribution centers and terminals. All of these factors create the perfect storm that make it harder to find trucks for your freight.
Why should you care?
While the effects of a capacity crunch can seem pretty obvious, there may be more challenges than you expect. The immediate issue is getting your freight shipment covered at all. LTL freight carriers are becoming more particular about the loads they want to move and locations they want to visit. Pick-ups may be infrequent, and if your shipment is particularly challenging, like oversized, for example, it may be refused.
Transit times are becoming longer, with 87.9% of shippers reporting a delay in deliveries. Some carriers are also suspending or amending time-critical and guaranteed options. Base rates are higher than ever before, and LTL carriers are now charging detention fees in some cases when loading is delayed. This accessorial fee is typically just associated with truckload shipping, but with a driver’s time being a vital commodity, carriers are pushing back and using it for LTL shipments as well.
What Can You Do to Overcome Capacity Challenges?
- Expand your current network
One of the first things you should do to increase the odds that your freight will get covered, is taking a hard look at your current carrier options to see where you can improve or expand. Conducting a freight audit can help determine if your business needs are truly being met. Look for reoccurring challenges like missed pick-ups or high accessorial fees. Some carriers may visit locations where demand isn’t as high only one or two times a week, which can create a big issue with your shipping schedule. Accessorials like limited access can vary by carrier and it’s possible the one you are currently using may be charging more than a competitor carrier would. Exploring alternative carriers to review service levels and pricing is a great place to start. If you are finding several carriers that may fit your needs, keep them on file so you can rate shop between them and choose accordingly as back-ups.
- Build in extra time for everything
- Review alternative services for applicable shipments
- Consolidate your shipments
- Utilize regional carrier options
- Become a shipper of choice
Want to know a surefire way to combat freight capacity issues? Become a shipper of choice. This means to do everything possible to leverage your relationships with carriers to make your shipments as desirable as possible. The freight load itself, your location, and your business practices combined should create an easy, efficient, and positive experience for the carrier.
A good way to start is making sure your shipping location is set up for easy navigation. Signs and directional assistance, communication, and a safe, clear dock location are all things drivers look out for. Flexible delivery times and plentiful parking options help eliminate some extra stress for the driver, as well. Above all else, doing what you can to eliminate potential detention time is critical. Staged shipments that are primed and waiting with a well-trained and ready-to-go loading team help ensure the truck will be loaded within the 2-hour limit. That way, the driver can get back on the road to the next location with minimal delay. Nurturing these carrier relationships by improving the experience for the driver is important, and it matters. When there’s lots of freight waiting to be picked up nationwide, be the one that the carrier wants most.
Time is the name of the game in shipping. One of the smartest things that you can do to combat freight capacity challenges is building in extra time at every step of the shipping process. When you get an idea of a project or order you will be working on, start quoting as soon as you know details. If you have reoccurring orders for an established customer, approach carriers with the opportunity to explore contract pricing and get commitments for the length of the project. Carriers are looking for reliable, predictable loads that are going to guarantee business while creating minimal headaches. If you can prove your business can meet these expectations, they are going to be even more willing to commit for the long-haul. An added bonus - they are likely to negotiate terms and better pricing for your business as well. Packing and staging your shipments early so that they are ready for pick-up and will be loaded smoothly is going to go a long way in the eyes of the arriving carrier.
While choosing alternative freight services for your loads won’t always work to combat freight capacity issues, it’s a valid option for certain shipments. If you have a large LTL shipment that could benefit from truckload services, this could be a great back up choice. Using a dedicated truck can increase security, minimize damage, and expedite your transit.
While truckload moves typically consist of 8-10 pallets or more, some truckload carriers will offer a partial option where your load will share space with another shipper’s freight. This can add some perks of truckload shipping like added security, while benefitting from a more competitive price than paying for the entire truck. It’s important to note, however, that in partial truckload shipping, it’s possible your shipment may encounter delays due to the other customer on board. Depending on the order of delivery, you may end up waiting on the first delivery location if they don’t have everything in order. Building in extra time is still a good tactic to take here, but knowing you have alternative freight service options for your larger shipments is good to know if you are in a crunch.
The less often you ship, the less you risk not finding a truck for your loads. By consolidating your freight shipments, you create an efficient way of both lowering costs and ensuring you have LTL truck coverage. It may take a bit of communication and working with your customers, but reworking replenishment schedules so that you’re shipping larger, less frequent loads can be a smart long-term strategy. Moving your shipping to off-peak periods, if possible, also takes extra stress off of a carrier network that is already stretched thin. This not only allows for increased truck availably, but it also helps you avoid seasonal closures that will affect your shipments.
When receiving inbound orders, collaborative distribution is also an option. Collaborative distribution combines vendor orders from different shippers at one common distribution center and channels them into a single-truck delivery. This option is a type of consolidation, but happens much earlier in the supply chain. Finding the balance between identifying which shipments can be consolidated over a more flexible length of time while meeting delivery deadlines and customer expectations is key.
Most shippers are familiar with the large, recognizable national freight carriers, but regional freight carriers can also be a great option for coverage. Regional carriers specialize in concentrated geographic areas, usually within state-lines or city locales. In addition to adding them as options within your existing freight network, there are important advantages to working with regional carriers. Regional carriers have in-depth knowledge and first-hand experience navigating these areas on a daily basis and can speak to potential challenges like traffic trends or limited access issues. While a national carrier may be unfamiliar with these hang-ups, a regional driver’s knowledge of the area means increased transparency with the shipper regarding these obstacles, so precautions can be taken.
Oftentimes, regional carriers charge less for the same services that national carriers do. Regional carriers don’t have delivery area surcharges and costs for liftgates and accessorial fees are lower. Because regional carriers travel shorter distances, expedited or guaranteed services are generally less expensive, as well.
Finally, because these are smaller companies, they tend to offer more personalized solutions that emphasize customer experience. Relationships with these carriers tend to be less transactional, and place importance on problem resolution and service. Adding a regional carrier to the pool is an underutilized and potentially game-changing way to ensure your LTL loads are getting covered.
Freight capacity is a challenge, and it’s not changing any time soon. The best thing that you can do is create a plan of action that tackles these challenges before you have freight waiting on the dock. Working with a 3PL like PartnerShip can help audit your current shipping procedures and identify areas of improvement that go beyond getting your loads covered. Contact our freight experts to help get your freight where it needs to go.
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- Expand your current network
Types of LTL Carriers and When You Need Them
11/10/2021 — Jen Deming
Working with a less-than-truckload (LTL) carrier is a great way to move your larger, palletized loads efficiently and often with some cost-saving benefits when compared to other services. But, even within the LTL service category, there are a few different business models - each offering a different mix of security, speed, and cost. Understanding the benefits of each will help you choose what works best for your business.
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Freight Carrier Closures for the 2021 Holiday Season
11/03/2021 — Jen Deming
2021 has been another challenging year. The freight market continues to be oversaturated with available loads while simultaneously suffering from a capacity crisis. Transit times are delayed, so to ensure timely delivery (you can't count on eight tiny reindeer), you must plan ahead and create a flexible shipping schedule. You'll also need to be mindful of carrier closure dates. We've compiled a list to keep on hand when you're executing your holiday shipping strategy.
Freight carrier closures
- Saia LTL Freight - will be closed November 25-26, December 23-24, and December 31.
- YRC Freight – will be closed November 25-26, December 24, and December 31.
- XPO Logistics – will be closed November 25-26, December 23-24, and December 31.
- ArcBest – will be closed November 25-26, and December 24.
- R+L Carriers – will be closed November 25-26, December 24, and December 31.
- Estes – will be closed November 25-26, and December 24.
- Dayton Freight – will be closed November 25-26, December 23-24, and December 31.
- PittOhio – will be closed November 25-26, December 23-24, and December 31.
- AAA Cooper – will be closed November 25-26, December 23-24, and December 31.
- TForce Freight - will be closed November 25-26, December 23-24, and December 31.
Santa has his elves, you have a team at PartnerShip
With extra challenges facing your business this year, keep in mind that the freight experts at PartnerShip can help you successfully manage your holiday shipping. Our office will be closed November 25-26, December 24, and December 31 so that we can spend time with our families. Happy Holidays!
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Missed LTL Pick-Ups: Key Ways to Get Your Freight on the Road
09/15/2021 — Jen Deming
Question: what’s worse than your LTL shipment running late for delivery? Answer: How about when your shipment isn’t picked up to begin with? Missed LTL pick-ups are a unique shipping challenge because the trouble occurs before the shipment even hits the road. Regardless whether you’re the shipper or the receiver, freight that’s left on the dock can mean delivery delays, playing phone-tag with the carrier, and a few other headaches.
Missed pick-ups are very common in LTL freight shipping, even more so as demand increases and capacity shrinks. They usually occur when errors are made scheduling a shipment, or if a pick-up location is unprepared or inflexible regarding the carrier’s arrival. Sometimes, it’s due to a carrier running late because other shippers ran overtime. The good news is that many missed pick-ups are avoidable and there are steps you can take to ensure your freight gets loaded. We’ve broken down key ways to get your freight moving so missed freight pick-ups aren’t as common.
Understand your carrier’s pick-up schedule
The first step to avoiding missed LTL pick-ups is understanding how a carrier operates. Carriers typically complete deliveries in the morning, and only after those are completed are new loads picked up throughout the afternoon. Carriers create a plan of action early when scheduling pick-ups and deliveries. Missed pick-ups commonly occur when a shipper tries to squeeze it in too late in the day as an attempt to get a jump on transit. In most cases, it’s extremely difficult to get an LTL shipment picked up the same day. If your warehouse has early close times, this makes pick-ups even more difficult, and you’ll likely see a “freight not ready” designation when tracking your freight status.
To ensure your shipment gets moving, be realistic in your timelines and give the carrier 24 hours’ notice. Respect how a freight carrier must operate to complete their schedule. The more you accommodate the carrier, the more likely they are to be flexible with you, as well.
Request special services at the time of scheduling
Special services that are necessary to complete a pick-up are often missed when scheduling with the carrier. For example, if you don’t have a dock or proper loading equipment, you’ll need a liftgate. They are often available, but they are not standard on every freight truck. The carrier must be notified when scheduling so the proper truck is dispatched. The same goes for businesses with tricky locations categorized as "limited access". Should you need a pup or box truck, this must be mentioned to the carrier, because smaller, more maneuverable trucks are harder to find.
If you’re arranging the shipment, but aren’t the pick-up location, make sure you find out from your shipper whether or not they will need these special services. Mention and confirm these requests when scheduling with the carrier. If this is missed, another pick-up is not likely to be attempted the same day. Instead your carrier will return the next business day.
Get a confirmation number and ETA
When you complete a scheduled pick-up successfully, either by phone or online, you will always be given a confirmation number. This number is a simple way to ensure everything was scheduled correctly and you’re “on the board”, a carrier term for scheduled and set to dispatch. The confirmation number contains a code that is unique to certain carriers. At the time of scheduling, you may receive an ETA from the driver. The ETA can help the shipper prepare for arrival, so a pick-up runs smoothly.
When scheduling your pick-up, be sure to note the confirmation code and double-check that it’s accurately representing your chosen carrier. Share this number with whomever will be a part of the pick-up process, so that if there are any delays, you can confirm that it was scheduled correctly.
Create flexibility in your warehouse operating hours
As a general rule of thumb, the more open you are, the better for the carrier. And we mean that literally. Truck drivers are constantly combating delays during transit, whether due to traffic, weather, or even being held up at another location. Time is money, especially in trucking. A simple delay can interrupt a day’s worth of pick-ups, and trouble can snowball quickly.
By extending hours through weekends, or adding as-needed late or early shifts to your warehouse, the carrier will have an easier time completing your pick-up. Keep in mind that the driver wants to check off all of their scheduled stops, so they don’t carry over into the next day. By expanding your dock hours when needed, they will complete their workload and you can rest easy knowing your freight’s moving.
Prepare paperwork and prep the load before pick-up
As we’ve mentioned, to keep on track, carriers must spend the least amount of time possible at each location. Common reasons a driver may be delayed are because the BOL and paperwork aren’t prepared, or the load isn’t packed and prepped in time. As the capacity crunch tightens, carriers are even less flexible than they have been in the past. If your location isn’t prepared, you can bet the driver will leave if you’re running too deep into detention time.
Make sure that if you’re the shipper, you have all paperwork ready. If you are shipping special loads such as hazmat or cross-border freight, those required documents must be in order, as well. Also important, be sure that your freight is properly packaged and staged for easy loading. If you have especially fragile loads, and your packaging isn’t up to par, the driver may choose to leave the shipment due to the added risk.
Check specs to ensure available space on truck
An important point to note is that pallet count, weights, and dimensions aren’t just for calculating your shipping costs. In LTL shipping, you share the truck space with other customers’ loads. The specifications you provide determine rates, but also help the driver plan for what will fit on the truck. Proper measurements reveal how much space is left in the trailer for other shipments. Incorrect specs can throw off a driver’s schedule, preventing other customers from loading after you.
If a carrier decides your shipment’s specs are just too different from what was planned, you guessed it, they’ll leave it on the dock. Keep this in mind if you consider estimating freight dimensions or sneaking on any extra pallets that you have ready. Make sure your measurements and weight match what’s on your BOL. Surprises are great, but not for your arriving truck driver.
It’s important to remember that missed pick-ups are common and sometimes unavoidable. The silver lining, however, is that some are within your control. If you want smooth sailing for your LTL freight, review these best practices to start your shipment’s journey off right.
As more warehouse teams have increasing responsibilities, tracking and managing pick-ups can take up tons of time. 3PLs like PartnerShip can help proactively check on your loads and find out why there may be any holdups – freeing up your time and to-do list.
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The Current State of Freight: What You Can Expect
08/31/2021 — Leah Palnik
To say the freight market is strained right now might be an understatement. If you’ve experienced significantly higher rates and less reliability from your carriers, you’re not alone. As someone who is shipping freight, it’s critical to keep your finger on the pulse of what’s happening in the market in order to navigate the challenges that are coming with it. Let’s break down the factors that have led us here and what we can expect moving forward.
Key factors that have led to challenges in the transportation industry
Like so many other industries, freight transportation has been rocked by the COVID-19 pandemic and all of the cultural shifts that have come along with it. The pandemic not only created new challenges, but also exasperated existing pain points in the market – leading to the perfect storm. It all boils down to a case of supply vs. demand.
- Consumer buying is strong and is driving up demand. While the world was locked down, we weren’t spending money on vacations or going out to eat. In many cases those spending dollars went towards buying goods instead. Retailers are doing what they can to keep up with demand and as a result, have an increased need for trucks to deliver their much needed inventory.
- There is a truck driver shortage. The driver shortage is old news, but it is still very relevant now. Sometimes there just simply aren’t enough drivers available to take on new loads. For years, there have been more drivers retiring and leaving the profession than there have been new drivers entering the market. Unfortunately, the open road hasn’t been as attractive to this generation of the workforce as it once was.
- Building new tractors are constrained by parts availability. Not only is it hard to move freight with less available drivers, but now we are also seeing a limit on new trucks on the road. Supply chains for many goods have been seriously disrupted thanks to the pandemic, and parts that are needed to build new tractors are no exception.
How LTL carriers are responding
With such volatile market conditions, LTL carriers are forced to respond. As no surprise, a major course of action they’ve taken is to increase rates. Simple economics tells us that an increased demand means they can charge more for their services.
Not only are they increasing rates, but they’re also looking to shed less desirable freight from their networks. Loads deemed less profitable, or more trouble than they’re worth, are harder to get covered because carriers want to prioritize loads that allow them to work efficiently and profitably.
LTL freight observations from the front lines
Many of our customers are exhausted dealing with carrier issues. In a survey we conducted earlier this year, 78% of respondents cited rising shipping costs as a challenge they were currently facing. Along with that, 47% noted they were experiencing longer transit times and 36% were dealing with poor carrier performance.
Our team has also noticed several concerning trends pop up with freight carriers. As if raising base rates wasn’t enough, we’ve seen them put in extra effort to collect on everything they can. Accessorial fees that you may not have seen on your bill in the past are now showing up for services you’ve always received. The carriers just aren’t as lax as they may have been in the past for charging for these extra services.
Because freight networks are so strained, we’re also seeing an uptick in missing shipments. If this has happened to you, you know how stressful it can be. The carriers are also doing everything in their power to deny claims for both missing and damaged shipments. They’re wanting to see them filed sooner than ever before and are requiring a great deal of evidence.
Estimated transit times for LTL freight has never been guaranteed, but now more than ever, we’re seeing shipments miss that predicted window. Unfortunately, longer transit times and missed pick-ups are becoming extremely prevalent, again due to how ill equipped carriers are to meet the current freight demand.
What can you do?
You may want to live by the old adage about how you can’t change others, only yourself. It’s not within your power to control carrier performance or consumer demand, but you can educate yourself and act accordingly.
- Use a quality broker, like PartnerShip. While brokers have no control over what a carrier ultimately does with a shipment, a quality freight broker will provide the communication and creative solutions you need when caught up in an issue.
- Follow the tried-and-true best practices for overcoming capacity challenges. Expand your current carrier network, build in extra time at every step of the shipping process, consolidate your shipments, and consider alternative services. While it’s not always possible to implement these strategies, following them any time the market is experiencing tight capacity can be very advantageous to your operations.
- Become a shipper of choice. This means making your freight desirable to carriers. You probably aren’t able to change what you’re shipping, but there are some factors you can control. Being flexible with pick-up and delivery times, ensuring ease of access for the truck, and avoiding long detention times are all things carriers ultimately appreciate.
Back to school season is upon us and the holidays are right around the corner. In short, demand is not expected to drop anytime soon. Will the supply side be able to catch up? Not likely. Recruiting and retaining the needed labor force will continue to be one of the biggest challenges in the industry. And as we enter hurricane season and another COVID-19 surge, we could see even more network disruptions.
At this point, it’s important to manage expectations. You’ll want to budget for higher freight costs and be mindful of potential delays, so you’re not caught off guard. For everything in-between, our team has the expertise to help you navigate these challenges. Contact PartnerShip today and lean on us when you need it most.
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4 Key Factors That Affect Your Freight Class
08/24/2021 — Jen Deming
Freight classification is a type of product categorization unique to freight shipping. It relies on four factors that help determine cost: density, stowability, liability, and handling. Once you have a general understanding of these variables, you can better calculate how your class (and cost) will be determined.
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Freight Quote vs. Invoice: Why Don’t They Match?
08/13/2021 — Jen Deming
One of the most common questions we get is from customers wondering why the heck their final freight invoice doesn’t match the rate they were originally quoted. It’s a valid concern because once you have that bill, it’s next to impossible to get more money from your customer and you’re going to be eating that cost. Your knee-jerk reaction may be to blame the carrier, but the real reason they are different may sting a bit – it’s usually a shipper error. Before you start pointing fingers, review these common reasons your bill doesn’t match that original quote.
Reason 1: Your product is classed incorrectly
One of the most common reasons a quote differs from a final bill is because your product is classed incorrectly. With classification being a huge factor affecting your freight quote, even a small error can impact your price. If you guess or miscalculate, your class may be way off.
The issue may be that sometimes your product is difficult to fit in a particular NMFC category. Take glass jars for example. This type of product falls under NMFC code 87700. It’s not as simple as that, however. Because glass jars are typically fragile, they are broken down by volume, and depending on that calculation, the class can be anywhere from class 65 to 400. In an average freight shipment, that’s a difference of hundreds of dollars. Make sure you are utilizing ClassIT, and consulting freight experts if you have any questions on class, or how to properly calculate density.
Reason 2: A liftgate service inflated your bill
When checking your freight quote vs. invoice, unexpected extra services are the second most common reason for a mismatch. One example we see time after time is for liftgate service. If you didn’t specify you would need a liftgate when you got your quote, but then your carrier provides the service at pick-up, it will cost you. Additionally, if your customer doesn’t communicate they need one for delivery, that can be added on without your approval or knowledge, surprising you once you get the bill.
Communication between both parties and ensuring you have the proper equipment can avoid this completely. Make sure you both understand that the added cost of an accessorial may raise your rate, but will help your shipment get where it needs to. Understanding that these types of special trucks equipped with liftgates are not as common, both parties will know they need to be requested on the front-side.
Reason 3: Too much time has passed
First and foremost, it’s important to know that a freight quote is an estimate to begin with.
So many factors can change - for example, fuel costs fluctuate frequently. Additionally, depending on when you are scheduling your shipment, peak periods can cause capacity issues, and this generally results in higher charges.
As a general rule, we like to inform our customers that quotes for standard LTL service are valid for about a week. That window is even tighter when you’re using time-critical services. If you’re wanting an estimate so you know what to bill a customer, build in some room for your final cost, or requote as close to the actual shipment pick-up date as possible.
Reason 4: Your delivery location has changed
While not quite as common, sometimes a change in delivery address can affect the final cost of your freight. Changes may occur after a load is quoted or may have to be made while the shipment is already in transit. Reasons for this might include a location being closed, or a consignee that isn’t ready to receive the shipment.
LTL freight shipments can be rerouted, but that adjustment will definitely incur costs: distance and fuel will increase if the location is further out. On top of that, special service fees such as a redelivery charge or even location-specific fees like limited access could also be applied. Do your best to requote if any details of your delivery location change. If the change is made at the request of your customer, be sure to communicate that fees will apply. If you want to absorb those charges as a courtesy, be sure to build some room in your customer cost to begin with. Otherwise, make it clear who is responsible for those fees.
Reason 5: The wrong carrier picked up your shipment
You’d be surprised, but the wrong freight carrier picking up an LTL load happens much more often than you’d think. We’ve seen customers quote a general rate with one carrier and then hand it off to whatever carrier arrives that day just to get it on the road and off the dock. Your shipping department is likely very busy, but this sort of simple mistake can cost you so much time and money in the long run.
Not every LTL carrier has the same base pricing, and even accessorial costs fluctuate between carriers.
If you quote with one carrier, and hand it off to another, you could be paying much more if that carrier charges more for their services. Even worse, if you have negotiated pricing with one carrier, the incorrect one won’t know to bill using your discounts. Worst case scenario, you may be billed at full-cost. Make sure your warehouse team is aware of what carriers are to move which loads. Creating color coded carrier labels and marking your shipments can help ensure a quick once-over to avoid this drama completely.
Reason 6: You have a paperwork error that affects billing
When comparing your freight quote to your invoice, also take a look at your paperwork and shipping documents. Billing errors and missing information can create an expensive and exhausting headache.
If you are arranging a shipment, and have special pricing or are using a third-party, make sure an accurate BOL states the correct carrier and “bill-to” party. If you are receiving the load, but responsible for the shipping arrangements, don’t leave it to the shipper to create the BOL. In doing so, you run the risk of an incorrect billing party or other inaccuracies that mean your discounts won’t be applied. Even after the fact, a letter of authorization (LOA) can sometimes fix this by informing a carrier of the correct billing party, but it’s not guaranteed and it definitely delays the process.
Don’t freak out if you’re seeing some discrepancies between your freight quote vs. your invoice. While they can be unexpected and troublesome, educating yourself and your customer about what can change your rate can help you make better decisions when planning your LTL load. Strong communication and a plan of action can help mitigate expensive invoice issues. If you have concerns about your freight quote vs. your invoice, PartnerShip can help dodge the guessing, help choose the correct services based on your shipping needs, and side-step costly errors.
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6 Strategies to Side-Step Concealed Damage Claim Drama
07/27/2021 — Jen Deming
“Freight claim” is a bad word that no one wants to hear in shipping. Submitting a freight claim and hoping that a carrier will fairly reimburse you for replacements and repairs often feels like a shot in the dark. Concealed damage claims, specifically, can escalate pain points because they’re even more challenging to navigate. Concealed claims include damages not immediately noticeable at delivery, such as loss related to temperature changes in the van or shifting of product in the packaging. The good news is that concealed damage claims don’t have to be a death sentence for your freight. There are six ways that you can set yourself up for a win with your concealed freight claim.
Strategy 1 - Do not turn away the driver
Right out of the gate, if you notice that your shipment is damaged at arrival, it can be tempting to turn away the driver and refuse the load. Many shippers erroneously think that by accepting the freight, you are giving the carrier the “all clear” and therefore responsible for any damages. This is not true — the first step in getting compensation is accepting the load. If you refuse the load, the carrier will have to take the shipment back to a terminal for storage. This is especially important in the case of concealed damages, as it increases risk for even more handling issues that aren’t immediately obvious, as well as potentially racking up some extra fees for storage.
Also important to note, many insurance policies state that the freight must be accepted in order to start the claims process. Accepting the freight ensures you are in control of the situation and the next steps for the shipment, not the carrier. Once the load is accepted, you can start reviewing the shipment for concealed damages and start the claims process.
Strategy 2 - Take your time inspecting the delivery
Freight delivery drivers have many stops to make throughout the day and try their best to adhere to a pretty tight delivery deadline. It’s in their best interest to move along quickly by limiting time spent at each stop. So it’s pretty common to feel a driver may be rushing the delivery process in order to get back on the road.
Even though you may feel hurried by the driver, know that as a consignee, you have the right to take adequate time to properly inspect your shipment. Your first step should be a cursory review of outer packaging such as crates, boxes, and binding materials like shrink wrap and packing tape. Confirm you have the correct load by reviewing address labels. Directive stickers like those indicating fragile shipments or temperature-controlled items should be present to help indicate that it was packaged properly in the first place.
With the driver present, open palletized boxes and crates, starting with those that have any visible damage. Make sure anyone accepting the delivery knows what to look for on an initial inspection. Afterwards, conduct a secondary, more detailed inspection of all freight in order to find less obvious, concealed damages.
Strategy 3 - Be thorough on the delivery receipt
Upon delivery, a piece of documentation called the delivery receipt will be presented to the consignee to essentially sign off on the shipment. This serves as legal proof that the load arrived “free and clear”, indicating no damages or loss while moving under the responsibility of the carrier. When marking the delivery receipt, it’s critical to note anything that may seem off or potentially damaged in your shipment. Simply adding that the shipment is “pending further review” on the receipt will not protect you, so it’s especially important to act quickly and thoroughly check for damages at the time of delivery. While reviewing alongside the driver, indicate anything like item counts, broken crates, torn packaging, holes, or stains that may indicate mishandling or tampering.
Oftentimes, these notations will result in an exception. Exceptions are notes on a delivery receipt that indicate anything out of the ordinary, but may not lead to a claim. If packaging is damaged but the product inside is intact, you can rest easy knowing that you have your findings on file. That way, if concealed damages are found on secondary review, you have evidence that something was amiss with the delivery from the start. Finally, be sure when signing the delivery receipt that you have the driver confirm and sign as well.
Strategy 4 - Take plenty of pictures
The first rule of damage claims is especially important for concealed damages — the more evidence you submit, the more you protect yourself against a denied freight claim. To supplement any documentation you may submit for the claim, it is in your best interest to take pictures or video of different points in the load’s progress, starting with the shipper’s packing procedures. That way, you have the proof that the load was handed off in perfect condition when it was tendered to the carrier.
Photograph the initial inspection and secondary review. Snap pictures throughout the delivery inspection from start to finish, including unopened boxes, visible damage, as well as photos of packed product once opened. If you find damages, make sure you take photos or video of the found damages from every angle, with and without flash or in different lighting scenarios. Backing up documentation with supplemental pictures of the paperwork noting damages is also helpful to have.
Strategy 5 - Act quickly when filing
A common misconception is that carriers automatically start the claims process when notified of any damages. This is a fatal mistake for your concealed damage claim. In general, concealed damage claims typically need to be filed with the carrier within five days. If filed in that time, you have to prove that it didn’t happen at the destination.
Knowing you have a very strict timeline when filing your freight claim can make an already tense situation harder to handle. If you work with a 3PL broker, you get some extra help in meeting deadlines for filing and setting up a inspection appointment with the carrier. You’ll also get advice on what documentation you need to be set up for success, as well as advice on other strategies you can use to ensure a full payout.
Strategy 6 - Consider freight insurance options
One of the most important concealed damage claim tips you can follow is to seriously consider outside freight insurance options. Carrier liability is limited, and they will do everything within their power to pay the least amount possible for damaged shipments. Payouts are usually determined by product type and class number, which means even if you follow filing procedures to the letter, you may still receive reimbursement that is nowhere near the complete value of your freight.
By using third-party freight insurance, you are covered for the full value of your load, regardless of the commodity or class. You may have more flexibility on filing times and do not have to prove that the damage was caused by the carrier. If your shipment experiences concealed damages, third-party insurance can help alleviate the escalated stress associated with filing for damages found after delivery.
You should remember...
Concealed damage claims are extra tricky, and most carriers count on you making mistakes during inspections and filing so they can avoid pricey payouts. But, you can win concealed damage claims if you follow some key steps that are extra important in the case of hidden damages. PartnerShip experts have had success winning concealed damage claim payouts, and can help guide your filing process from start-to-finish, better ensuring you are compensated for your damaged freight.
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Carrier Liability vs. Freight Insurance. What’s the Difference?
07/15/2021 — PartnerShipFreight damage and loss is a reality of shipping. It’s not a matter of if it will happen to you; it’s a matter of when. When damage or loss occurs, your first thought is often, “how will I be compensated?” To answer the question, you need to understand the difference between carrier liability and freight insurance.
Every freight shipment is covered by some form of liability coverage, determined by the carrier. The amount of coverage is based on the commodity type or freight class of the goods being shipped and covers up to a certain dollar amount per pound of freight.
In some cases, the carrier liability coverage may be less than the actual value of the freight. It’s common to see liability restricted to $0.25 per lb. or less for LTL or $100,000 for a full truckload. Also, if your goods are used, the liability value per pound will be significantly less than the liability value per pound of new goods. Liability policies can vary, so it’s very important to know the carrier’s liability for freight loss and how much is covered before you arrange your freight shipment.
Freight damage and loss is a headache. In order to receive compensation, a shipper must file a claim proving the carrier is at fault for the damaged or lost freight. Carrier liability limitations include instances where damage is due to acts of God (weather related causes) or acts of the shipper (the freight was packaged or loaded improperly). In these cases, the carrier is not at fault. Additionally, if damage is not noted on the delivery receipt, carriers will attempt to deny liability.
If the carrier accepts the claim evidence provided by the shipping customer, then they will pay for the cost of repair (if applicable) or manufacturing cost, not the retail sell price. The carrier may also pay a partial claim with an explanation as to why they are not 100% liable. The carrier will try to decrease their cost for the claim as much as possible.
Freight insurance (sometimes called cargo insurance or goods in transit insurance) does not require you to prove that the carrier was at fault for damage or loss, just that damage or loss occurred. Freight insurance is a good way to protect your customers and your business from loss or damage to your freight while in transit. There is an extra charge of course, and it is typically based on the declared value of the goods being shipped. Most freight insurance plans are provided by third-party insurers.
As mentioned earlier, your freight might have a higher value than what is covered by carrier liability, such as shipping used goods. Another example is very heavy items. Carrier liability may only pay $0.25 per pound for textbooks that have a much higher value. This is a great example of when freight insurance is extremely helpful in the event of damage or loss.
Carrier Liability vs. Freight Insurance in the Claims Process
If your freight is only covered by carrier liability coverage:
· Your claim must be filed within 9 months of delivery
· The delivery receipt must include notice of damage
· Proof of value and proof of loss is required
· The carrier has 30 days to acknowledge your claim and must respond within 120 days
· Carrier negligence must be proven
If your shipment is covered by freight insurance:
· Proof of value and proof of loss is required
· Claims are typically paid within 30 days
· You are not required to prove carrier negligence
Deciding which option is best for your shipment
Anything that comes at an added cost needs to be evaluated critically and freight insurance is no different. There are a few things to consider as you weigh the potential cost and risk of damage and loss versus the cost and benefit of insurance. You'll need to think about the commodities you're shipping, how time critical your shipment is, and if you'd be able to weather the financial burden that comes with a denied or delayed claim payout.
Understanding your carrier's liability coverage and knowing the ins and outs of freight insurance can be tricky. If you have questions like “how much does freight insurance cost?” or “what does freight insurance cover?” the team at PartnerShip can help.
If you want to learn more about the freight claims process, check out our comprehensive guide.
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5 Times The Lowest Freight Quote Won't Work For You
07/08/2021 — Jen DemingIf you're keeping LTL costs low by shopping for great freight rates, you're doing a pretty good job of shipping smarter. But here's a curveball: there's a few specific scenarios where the lowest quote might do more harm than good for your load. Our newest video covers five key instances where you may want to rethink that cheap quote and pay just a bit more for better service.
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The Top 4 Reasons Your Freight Is Late
06/22/2021 — Jen Deming
Despite the very best of intentions, sometimes your freight delivery may be running a little behind. Though not every contributing factor is within your control, there are some tips you can take to lessen the impact of delay in these common scenarios.
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Pallet Packing Mistakes to Avoid
06/10/2021 — 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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How a 3PL Can Help You Dodge Food Distribution Challenges
05/26/2021 — Jen Deming
Every industry has its own unique shipping challenges, and these issues aren’t always avoidable. We work with many food and beverage manufacturers and retailers, and constantly see a pattern of reoccurring obstacles within the industry. Working with food distribution centers can help gain brand exposure and increase reach of your product, but there are very specific transportation issues associated with these locations. Familiarizing yourself with what you can expect of distribution centers and how a 3PL like PartnerShip can help ease the process can help to lessen headaches and ensure your transportation goes smoothly.
If you’ve been in business for a while, names like UNFI, KEHE, Sysco, are probably all familiar to you as common food commodity distributors. Working with big name companies like these can help manage your supply chain efficiently, fulfill customer orders, and expand your product to a multitude of retail locations quickly. No matter the type of distribution center, all run a very tight ship that doesn’t allow much room for error. What you need to know is that while these places are convenient for exposure and expansion, they pose serious operational complications if you aren’t aware of challenges beforehand. Let’s take a look at how a 3PL can help with the major challenges in working with food distribution centers.
3PLs help navigate restricted hours of delivery and pick-up
Because food distribution centers are working with an innumerable amount of deliveries from various businesses, managing incoming shipments from manufacturers is very complex and requires a lot of communication. Most food distributors require a very small window for deliveries, including early morning or late evening receiving hours. This helps to manage congestion and traffic at receiving docks and expedites the process so trucks can unload and be on their way. If you’ve ever shipped to a tradeshow and experienced strict timelines for arrival, it works much in the same way with distribution centers. If your truck arrives at a distribution center outside the window of delivery, it is likely to be refused and will acquire detention or redelivery/late fees.
Because there is so much involved in communicating with the distribution center, knowing appropriate delivery hours, and tracking your shipment, working with a 3PL can help alleviate some of that responsibility. Freight experts at a quality 3PL know what to look out for, and can help verify hours and help coordinate with your carrier.A 3PL can help sort out carrier preferencesShipping food and beverage commodities is innately more challenging than other products because regulations, certifications, and other considerations are major factors influencing the process. Food-grade carriers undergo a rigorous vetting process with the FDA, and need to meet certain safety and security requirements in order to ship their product. Because of this, some food distribution centers require or prefer specific carriers for inbound and outbound shipments that they know meet these standards.Because these carrier preferences can change within a distributor’s network, and aren’t always disclosed prior to arranging a shipment, doing research beforehand is of utmost importance. Making sure the distribution center you are shipping to has a preferred carrier whose services align with your business needs is an important part of the supply chain relationship. Keeping track of this can be challenging, and working with a 3PL who is both familiar with the unique needs of your business and requirements of top distribution centers can help ease the process.3PLs will set up any appointment requirementsAnother major caveat to watch out for in working with big-name food distributors and warehouses is appointment requirements for delivery or pick-up. In addition to restricted operating hours, these locations will often require an appointment to be scheduled for the arrival of the freight carrier. This needs to be arranged prior to scheduling the pick-up from your shipper location, and the responsibility falls on the carrier or vendor.Often, these locations manage appointment scheduling via online portals, and require important information like a PO number, delivery location address, carrier name and number, and shipment descriptions like weight, size, and commodity. Having all of this information and documentation on-hand can help make the process much easier. If you’re managing several shipments at once, it can get complicated, and working with a 3PL can help make sure you have all the information you need, and ensure it’s accurate. Working with a final delivery location or customer is important as well, and communicating with all parties during the shipment process is crucial to avoid hang-ups, delays, or other issues. Juggling all these variables can be overwhelming, especially when managing other parts of your business. Collaborating with freight experts is a smart way to delegate some of that responsibility.Quality 3PLs will keep an eye out for sort and seg feesIn addition to the aforementioned challenges that come with shipping to and from a food distribution center, there’s an important accessorial fee associated with these locations. Sort and segregation fees are charges applied when the consignee, the food distributor, needs the driver to break down the pallets and divide up the product. The shipment is often separated based on SKU, commodity, weight break, delivery destination, or a variety of other factors. Because standard freight services do not include driver assist with loading or unloading deliveries, this extra step will result in higher charges on your invoice because it is labor-intensive and may result in delays for the driver.Consulting with a 3PL on shipments going to and from food distribution centers and warehouses is the best way to gather information on delivery requirements before you ship. Because these fees can accumulate rapidly and end up costly, working with brokers who have strong relationships with their freight carriers may help in reducing costs through discounted accessorials and special freight rates. Knowing if the distribution center has these requirements can help you prepare for higher fees and you can work that into your budget before you get hit with a bill that’s higher than you expected.PartnerShip can helpShipping to a food distribution center can result in many obstacles an everyday freight shipper has never seen before. Working with a quality 3PL, like PartnerShip, you gain an entire fleet of experts that know what issues to look out for before they become problems for your food and beverage shipments.
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Do I Need a Liftgate for My Freight?
05/13/2021 — Jen Deming
Liftgate services are a leading request made by freight shippers. Depending on your shipping location and the loading equipment you have, a liftgate can literally make or break your freight loads. But, it's important to know that this top accessorial comes at a cost. Learning what this common service is and when it's going to be used can help you plan for additional costs and keep your budget in line.
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10 Essential Freight FAQs for Smart Shipping
04/07/2021 — Jen Deming
No matter what you're moving, there are a few freight shipping fundamentals that you need to know in order to transport your load successfully. While the process seems straightforward, there are some challenges that can be anticipated by answering a few basic questions beforehand. We've compiled the essential questions that you need to be able to answer before you start shipping freight successfully.
What is the difference between freight and small package shipping?
While freight and small package shipping have some similarities, there are some major distinctions to keep in mind. Shipment size is the first recognizable difference between the two, with small package shipments being smaller, typically less than 150 lbs. Freight shipments consist of larger loads, often palletized, that range from one or two pieces to a dedicated truck. Differences in transit time, pricing structure, and driver service level are other major variables between the two transportation options. Knowing the details and requirements of your load can help determine which service makes the most sense for you.
What kind of packaging is best for my freight shipments?
Proper packaging is key in protecting the security of your shipments. Using the correct materials for the commodity you are moving can help deter damages and loss. When packing items into multiple boxes, avoid any excess space to limit shifting. Packaging materials like bubble wrap, foam cushioning, and packing peanuts can all help cushion your commodities. Freight shipments do best when boxes are palletized or packed securely into customized wooden crates. If you are shipping multiple items on a pallet, it’s important to shrink wrap them together in a uniform, structured stack to avoid damage or separation of items. Clear and correct labeling is important to get your shipments where they need to go accurately and in an efficient time frame.
When does it make sense to use LTL vs truckload?
Choosing to use either an LTL (less-than-truckload) freight or truckload service is often situational and can depend on the specific requirements of a shipment. LTL shipments are moved by carriers who group your loads together with other customers for delivery. Your shipment will be sharing space with other freight and will be handled at multiple terminals. Truckload shipments typically use a dedicated truck for your move, so you are paying for the entire space for the full length of the transit. LTL freight is a more cost-efficient option, and great for regular freight loads of a few pallets or more, with no hard deadlines. Truckload shipping gives you greater security and a faster transit, making it more ideal for large, high-value or fragile loads.
Do I need a guaranteed delivery date?
Getting your freight load delivery date guaranteed can be a tough endeavor, so arrival dates given at the time of booking your load are always estimated. Factors like weather, warehouse delays, traffic, and other variables make it difficult for a carrier to promise delivery on a certain date with standard freight services. Time-critical or expedited services are a viable option for shipments that must arrive quickly by a certain time of day, day of the week, or other specific delivery window. It’s important to note, however, that even when electing to use these premium services, situations may arise that can cause a delay where a carrier will not be liable.
What is an accessorial fee?
Freight carriers use additional charges to compensate for any extra time and effort it takes to move a shipment, called accessorial fees. Any challenges with loading and moving your freight such as an oversized shipment, limited access at the point of delivery, or specialized equipment needs can drive up your freight bill. It’s important to note that every carrier charges different amounts for these fees, so knowing what services your shipment requires before pickup will help avoid any surprises.
What do I do if my freight is damaged?
As frustrating as the experience can be, freight damage or loss is almost inevitable if you ship regularly. The cost of repairs and replacements can be compensated by the carrier in these circumstances, but there are very specific steps smart shippers must take to ensure approval and payouts. Damage prevention is always the smartest tactic, so proper packaging is a great place to start. Making sure your paperwork is in order, checking for hidden damages, and filing your claim in a timely manner are all important steps to ensure your claim is resolved in your favor.
What is a freight class?
Many factors go into determining a rate for a freight shipment, and freight class is one of the most important. Every type of commodity that moves through the freight network is assigned a universal classification code by the NMFTA. These numbers are determined by four main factors: density, stowability, handling, and liability. Generally, the more difficult or challenging a commodity is to move, the higher the freight class. These qualities, combined with the length of haul, fuel costs, and extra services, determine your final freight rate. Classification can be confusing to get right, but freight experts can help decide which works is most accurate for your load.
What is density-based freight?
As more freight enters the network, and capacity continues to be limited, carriers struggle to keep up with available loads. Ideal freight shipments are solid, heavy, and take up minimal space within the truck, allowing more room for additional loads. Lightweight, awkwardly-shaped loads that don’t allow for an efficient use of space are subject to density-based rates. The shipment density, combined with freight class, will give you your total freight rate, which tends to be higher than low-density, easy-to-move shipments.How can I lower my shipping costs?A smart start for lowering operating costs is by taking a good look at your shipping practices. While there are some uncontrollable variables that factor into shipping costs, there are a few places you can better optimize your strategy for more savings. Improving your packaging, cultivating a strong relationship with your carriers, and maintaining reliable communication with your customers create great opportunities to lower your costs. Working with a quality 3PL can also help identify key areas where you may be able to save money with less effort on your end.How can a 3PL help my shipping operations?Working with a 3PL is a great way to gain resources and improve efficiency. Working with freight experts who are also familiar with the unique needs of your business can decrease the amount of time you spend on finding ways to cut costs. A 3PL like PartnerShip can also expand your network of carriers, ensuring your freight moves are covered quickly with reliable carriers, often with competitive rates that aren’t available to most businesses on their own.While these are some of the most common questions we receive at PartnerShip, they aren’t the only ones we hear from our customers. If you have a freight dilemma that you’re not sure how to resolve, contact the experts at PartnerShip and we will find the best answers for your business.
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5 Painless Ways to Save on Freight
03/12/2021 — Jen Deming
Everybody wants to lower their business operating costs, but nobody wants to spend a lot of time doing it. Decreasing your shipping spend is a good place to start, and there are five painless ways shippers can keep their freight costs low. From auditing your current carriers to tightening up your packaging practices, we break down simple ways to spend less on freight using minimal effort while gaining maximum payoff.
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Why It's Never a Good Idea to Fudge Your Freight Dimensions
01/12/2021 — Jen Deming
While constancy isn’t something you can always expect in the freight industry, there are a few steady trends we’ve seen in recent years: less truck availability, an oversaturated network, and rate increases. Both sides are using tactics to offset these variables. Carriers increase fees, and in response, shippers explore means to cut costs. A trend we’ve seen among novice and experienced shippers alike is either estimating or downright falsifying the freight dimensions and weight of their LTL shipments. But, we’re here to tell you that going either route is a risky maneuver that can have major fallout.
Incorrect dimensions can delay your shipment
Carriers have an entire arsenal of tools at their disposal that check for discrepancies in weight and freight dimensions. Once LTL shipments are picked up and the BOL (bill-of-lading) is tendered to the carrier, that paperwork serves as a legal document — a contract between the shipper and carrier. Because LTL shipments stop at multiple terminals while in transit, there is plenty of opportunity to get “caught” if your weight or freight dimensions stated on this document are incorrect. If a carrier suspects misrepresentation on a BOL, intentional or not, your shipment will be flagged for an audit and an inspection. This process takes some time and your shipment will be detained. Depending on the volume going through that particular terminal, it’s tough to say how long that could be. Your shipment delivery will likely be delayed or missed, which can be a disaster if it was a time-sensitive shipment or if it holds up other operations for you or your customer. It’s just not a good look.You could be subject to reweigh, reclass, and over-dimensional feesAs outlined specifically in each carrier’s rules tariff, freight rates are determined on a variety of variables. When it comes to weight, cost is often calculated on a per pound basis and a maximum “standard” shipment length. Intentionally underestimating weight and size in order to save money can be tempting. However, if the actual weight and length is determined to be more than stated on the provided BOL, the final cost will be adjusted to reflect that. But, how much can that really be, right? If you’re still thinking about estimating your freight dimensions, think again: fees associated with these inaccuracies can affect your bill twofold.Firstly, the audit and subsequent reweigh or measurement will incur an inspection fee. The standard inspection itself can cost anywhere from $20 to $50 for weight changes. According to their rules tariff, UPS Freight charges $25 for a reweigh. As for restricted lengths, the fee can vary greatly by carrier and is often calculated on a cost per foot basis. For example, UPS Freight charges $90 for “extreme length” LTL shipments that fall within 8-12 feet. Larger than that, but under 20 feet can cost you $125. Of course, it increases incrementally from there.Secondly, changes to your shipment details may affect your freight class, another important component of your freight rate. Some types of products are classed based on density breakdowns; a dimensionally-large but lightweight shipment can be expensive. If your weight is incorrect, your density and class may change significantly, which will affect the overall cost of your shipment. Combined with the initial fee, these two factors can ultimately tack on hundreds of dollars in unexpected fees alone — in fact, they may add up to more than the original cost of your load.False freight dimensions can lead to disappointing claim payoutsSo let’s talk about another worst-case scenario: your freight shipment is damaged or lost while in transit. It’s a daunting prospect, but unfortunately, a pretty common occurrence, especially as more freight enters the network. Most shippers know that in order to recoup losses, you can always file a claim with the carrier. But payouts can be complicated, and what many shippers don’t know is that a final claim payout can be majorly affected if the provided shipment details are inaccurate.Most carriers determine claim payouts on a dollar per pound basis, with heavier shipments receiving higher payouts. Even if your dimensional fudging makes it past the carrier unnoticed, a payout based on these inaccurate details may be much less than what you were hoping for. To make things even more complicated, certain classes of products aren’t covered at all. If the carrier does find out you inaccurately disclosed weight, dimensions, or other details, the claim can be completely denied.How to ensure you have accurate dimensions for your freightWhile it’s clearly not a great idea to guess or fabricate your freight dimensions, mistakes can also be made when you have the best intentions of providing the correct measurements. There are a few tips you should follow to ensure the details of your shipments are as accurate as possible.
Shippers are always going to be looking for ways to cut transportation expenses in order to improve their bottom line. While shipping costs may be a flexible area for that opportunity, fudging your freight dimensions to get there is both unethical and extremely risky. If you’re stuck on how to save, PartnerShip can help.Inaccurate freight dimensions is just one of the common slip-ups shippers make that have costly consequences. Check out our free guide on the top 5 most common mistakes to avoid so you can ship smarter.
- Invest in quality scales and other tools used within warehouses
- Audit and calibrate your measurement tools regularly
- If you aren’t able to acquire the proper equipment, use the manufacturer’s specs
- Don’t forget to add in weight and size measurements from packaging such as pallets, cartons, etc.
- Always calculate proper freight density
- If you are receiving the freight shipment but are responsible for the shipping costs, make sure those details are being calculated accurately
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The Life of Your LTL Shipment
08/13/2020 — Jen Deming
Are you familiar with the step-by-step process of an LTL freight shipment? There's much more involved than pick up and go. We broke down each checkpoint with important notes to remember, so you can keep tabs on the secret life of your load.
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Don't Fall for These Top 5 LTL Shipping Myths
07/29/2020 — Jen Deming
Whether you are an LTL newbie or seasoned pro, there's some common misconceptions about freight shipping that can impact your load, and most importantly, your costs. Don't take for granted that everything you know about LTL shipping is a fact. Learn more about the top five LTL shipping myths so you can ship smarter and dodge costly freight errors.
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The Truth About Limited Access Delivery Fees
06/22/2020 — Jen Deming
No one likes an expensive freight bill. With so many types of unexpected costs and hidden fees, shippers frequently end up with an invoice higher than they budgeted for. Limited access delivery fees are one of the most common billing discrepancies surprising both new and veteran shippers alike. So, why do carriers charge this fee and what can you do about it?
What is a limited access fee?
Simply put, a limited access fee is an extra charge passed on by the carrier for any shipment that, due to location, will take extra effort or time to navigate. This includes places that are difficult to get to, congested areas, or destinations that have strict security requirements. Limited access fees can vary by carrier and often show up as a flat rate or a per-hundredweight charge. Minimally, this charge will cost you at least $100 but could cost you upwards of $300.
What factors determine if a location is considered limited access?
One of the most frustrating things about a limited access delivery charge is that not every carrier defines the same locations as limited access. You may hire different carriers for the exact same load to the exact same delivery location and end up with two very different bills. To anticipate whether a location may incur this fee, a good rule of thumb is to always consider the driver's time and effort. If the area is going to delay the carrier or require extra effort, it's safe to say you'll get the charge. So, what variables influence an area's "limited access" status?
Not every delivery is going to be at a warehouse with an expansive lot and a spacious loading dock. Some locations are especially are especially difficult to access due to their physical layout. Many urban storefront locations, schools, or businesses are only accessible via narrow streets and alleyways, and this makes maneuverability extra difficult. Loading and staging requires space, and without a dock or even a back lot, this can be especially challenging. This extra effort and delay is going to result in a limited access fee.
Some locations are simply a pain for drivers to get to, so they are going to charge you for that hassle. Businesses located in congested areas like downtown in a city, fairs and carnivals, boardwalks and beaches, campsites, island resorts, or worksites like mining quarries and construction zones are going to incur charges. These types of places are challenging to maneuver a large truck through, so the carrier will have to find a specialized vehicle like a pup truck to make it through. In cities where traffic is unpredictable at best, one delivery can take up a large portion of the day. This delays business and prevents carriers from making additional deliveries. This wasted time and extra effort will cost you.
Disruption to business
Another type of limited access charge is one that has challenges related to business hours or the private nature of the location. These places may be easier to get to, but issues arise due to hours of service restrictions and operating staff. Typically, these are businesses that would be disrupted during regular operating hours, such as schools and universities, places of worship such as churches and temples, doctor's offices, assisted-living and retirement facilities, hotels, piers, farms, and ranches. These places must have a loading team ready, and if it's harder for a driver to get the load off of a truck because the staff are busy during regular business hours, you're going to see that extra charge.
Some places are a challenge to get to because of the extra effort and security required to make a delivery. Prisons, government facilities, and military bases all have proper procedures and protocols in place for incoming and outgoing deliveries for the sake of safety. This often means inspection check points, proof of identification, appointment for delivery, and more. Going through all of these hurdles is going to delay the driver, potentially holding up other deliveries that are left waiting on the truck. The inefficiency of extra effort and lost time requires carriers to implement limited access fees to recoup the cost of lost productivity.
How to avoid breaking the bank over limited access delivery fees
We've outlined some of the most common types of limited access delivery points, but it's extremely important to understand these aren't the only ones. The best line of defense to combat limited access delivery fees is to do some groundwork and research before shipping to any type of unfamiliar facility. That way, you can better prepare for those charges and build that into your freight quote if need be. To ensure the best possible outcome for your freight invoice:
Limited access delivery fees are an unwelcome surprise that no one wants to see on their final freight bill. Brushing up on what may trip you up is the first step in knowing how to offset this common accessorial. Building an expert shipping team is your next move. PartnerShip can help you navigate hidden charges and can provide you with options to help you save on limited access delivery fees.
- Communicate with your consignee (delivery location) in order to learn from their past experiences. Find out whether they have a dock, a team, shipping/receiving hours, and any limited access fees they may have been targeted with in the past.
- Do your own research to validate that information. Google Maps is a useful tool that many freight professionals use to glean information. It can't tell you everything, but it can shed light on general terrain and many of the logistical challenges drivers will be dealing with.
- Gain insight into what the security processes of every delivery location may look like. It's not just military locations or prisons that require identification or load inspections. The more you know on the front-side of a delivery, the less you will be surprised by delays and charges.
- Call the carrier you plan on using and learn from them directly what locations will incur extra charges. National freight carriers like UPS Freight and YRC Freight list their rules tariffs on websites, so be sure to research these for precise calculations of charges and fees.
- When in doubt, work with a knowledgeable freight partner who can answer your questions and do the legwork for you and offset any surprises. A freight broker can help determine alternate carrier options with reliable service and lower limited access fees to better meet your budget.
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Logistics and Legal Rights: Where Do Shippers Stand?
01/23/2020 — Jen Deming
Every shipper will likely encounter loss or damage and seek reimbursement by filing a claim. In order to navigate this tricky scenario, smart shippers become their own advocates by taking a deep dive into the legal policies that affect shipper's rights and responsibilities. When going against powerhouse national carriers who have every resource in their corner, you can arm yourself with critical information that helps you get the best outcome possible for your business.
The Carmack Amendment Basics
First things first, the term "Carmack Amendment" is frequently thrown around in the industry, but what exactly is it and why should shippers care? Put simply, this law was set in place in 1935 to draw the line between carrier and shipper liability. Prior to that, with the Bill of Lading (BOL) serving as a legal contract of carriage, carriers were almost exclusively held responsible for damage or loss. With the passage of the amendment, it was determined that the carrier should be held responsible unless one of the outline exclusions is met. This change let to a positive impact on the industry, incentivizing both carriers to proactively prevent theft and shippers to more effectively prepare their freight.
5 Carrier Exclusions to Responsibility
The Carmack Amendment clearly outlines five specific instances in which a carrier is not to be held liable for damage, delay, or loss to freight. These events are intended to protect the carrier from circumstances outside of their control. The five are:
- Acts of God: A carrier cannot be held liable for instances of natural disasters or other uncontrollable phenomenon such as severe weather, medical emergencies involving a driver, etc. In order to act under this defense, the event must be notably unanticipated and unable to be avoided.
- Public Enemy: Carriers are exempt from damage liability if the incident was caused during a defensive call to action by the government, or "military force". While there has been relative peacetime on American soil for quite some time, the "public enemy" defense has also applied to acts of domestic terrorism in some recent court cases. It does not include events caused by hijackers, cargo theft, organized crime, or other criminal acts.
- Default of Shipper: This is the most notable exclusion for shippers to be mindful of and indicates any event that the carrier can prove damage was caused by the shipper. This can include a defense of negligence, poor packaging, improper labeling and other mistakes made during preparation. The majority of carriers will try to prove these circumstances if there is any doubt a shipper could have made a mistake. Shippers must properly offset this risk with secure packaging, correct labeling, and maintaining communication with your customer for delivery.
- Public Authority: If the government takes action that results in damage or delay, the carrier is not liable. Government policy cannot be controlled, so road closures, trade embargoes, recalls, and quarantines all exempt a carrier.
- Inherent Vice/Nature of Goods: Some commodities are naturally subject to deterioration over time, and as long as the defect was not caused or sped up by the carrier negligence, they are safe from liability. A common example of high-risk commodities include produce, live plants, and medical supplies. If you are shipping temperature controlled or time sensitive products, be sure that you are taking every precaution to ensure security and viability.
Just as there are five distinct factors that exclude carriers from responsibility, there are three factors the shipper must prove in order to start a damage claim. To begin, it must be demonstrated that the shipment was picked up in "good" condition. This protects the carrier should the shipment have been damaged to begin with. In order to defend yourself, take pictures of your freight before it is picked up proving all is well. Collect invoices, product descriptions, and item counts so that you have a leg to stand on in the case of any loss or shortage.
Secondly, the shipper must prove that the load was delivered in damaged condition. Complete a thorough inspection before you sign and again, take pictures of everything for proof. Concealed damage, hidden and only discovered after the carrier has left, is a tricky area for claims. Open and dismantle your packaging at delivery to check for issues, and don't feel bad for delaying a driver. If there is any doubt at all, make a note on the delivery receipt. If you are not present for delivery, make sure clear expectations are established with the receiver or customer so that everyone is on the same page.
Lastly, the shipper has to prove that the freight damage resulted in a specific amount of loss. It won't work to throw an arbitrary number in a freight claim, so collect itemized receipts and quotes or bills for replacement or repair costs. Be reasonable and accurate in your request.
Fair Compensation Rights for Shippers
Even if the shipper does everything right, claim payouts are rarely what one would expect. Carriers do everything in their power to minimize financial losses, so they will look at every loophole possible. So how does a carrier determine a claim payout?
The amount is typically determine by a set dollar amount per pound based on the commodity. It's important to review carrier tariffs and agreement limits before you ship your product. Some carriers will pay nothing on a used item, so be sure to review the fine print. It's also critical to have an accurate BOL. If there are incorrect details, you're likely to see that reflected in your payout. It's also important to note that a carrier claims department will examine the damage, and limit a payout if they feel the product can be salvaged or repaired at a lesser amount than what is requested.
Since carrier liability is limited, a smart shipper will obtain supplementary freight insurance. It's a super smart option for anyone shipping fragile goods or a high value commodity. While most carrier liability only pays out a certain dollar amount per pound of freight, freight insurance can be purchased in the value of coverage you need, and you are not required to prove the carrier is at fault.
It's important to note carrier compensation timelines for payouts. A carrier should acknowledge receipt of the claim within 30 days, with a ruling completed within 120 days. In the event of a denied claim ruling, the shipper has a right to file a lawsuit. Most need to be filed within 2 years and one day, but there are exceptions so it's best to work quickly.
Shipper's Requirements for Proper Claim Filing
It's up to the shipper to follow a precise protocol in filing a claim to increase their chances of a suitable resolution. Collecting as much hard evidence as possible will help your case. Seeking written statements by warehouse receivers and testimonies of loading procedures, as well as video evidence can assist your cause. Being thorough is crucial but working quickly is just as important, so be mindful of deadlines. You have nine months from the delivery date to file, but for those concealed damage cases, you have five days—so get on it.
Documentation you may need to file:
- Proof of delivery
- Original BOL
- Freight bill
- Merchandise invoice
- Replacement invoice or repair bill
- Pictures of damaged freight
Knowing the basics of the Carmack Amendment and how they relate to shipper's rights helps protect your business in the event of damaged or lost freight. the best part is, you don't have to go through the claims process alone. Working with PartnerShip can ensure you have an informed ally looking out for your best interests and your company's bottom line. For a thorough rundown on freight claims, download our free white paper.
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What is the Difference Between Cross-Docking and Transloading?
01/14/2020 — PartnerShip
They are common questions in logistics and warehousing: What is cross-docking? What is transloading? What is the difference between cross-docking and transloading?
First, a definition of each of these freight services.
Cross-docking is unloading inbound freight from one truck, holding it in a warehouse or terminal for a very short period of time, and loading it onto another truck for outbound shipping.
Transloading is when inbound freight is unloaded, the pallets are broken down, and their contents sorted and re-palletized for outbound shipping.
Here is an example of cross-docking: A manufacturer needs to ship 20 pallets of products from the east coast to destinations in Texas, Florida and California. The 20 pallets are first shipped to a third-party warehouse in Cleveland, Ohio. A day later, 5 pallets are sent to Florida, 10 to Texas, and 5 to California on trucks bound for those destinations. Since the pallets were never unpacked and were only in the warehouse long enough to move them from one truck to another truck (and from one dock to another dock), they have been cross-docked.
Using the same Cleveland, Ohio third-party warehouse, here is an example of transloading: 5 suppliers of a manufacturer ship a year’s supply of components to the warehouse. The components are stored until they are needed, at which time the warehouse picks them, assembles them into a single shipment, and ships it to the manufacturing facility.
To recap, cross-docking is the movement of an intact pallet (or pallets) from one truck to another, and transloading is the sorting and re-palletizing of items.
Both cross-docking and transloading services are specific logistics activities that can create benefits for businesses; especially ones that utilize a third-party warehouse.
Benefits of cross-docking
- Transportation costs can be reduced by consolidating multiple, smaller LTL shipments into larger, full truckload shipments.
- Inventory management is simplified because cross-docking decreases the need to keep large amounts of goods in stock.
- Damage and theft risks are reduced with lower inventory levels.
- With a decreased need for storage and handling of goods, businesses can focus their resources on what they do best instead of tying them up in building and maintaining a warehouse.
- Businesses can store goods and products near customers or production facilities and have them shipped out with other goods and products, decreasing shipping costs.
- Businesses can ship full truckloads to a third-party warehouse instead of many smaller LTL shipments.
- With storage and logistics managed by others, the need for building and maintaining a warehouse is eliminated.
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Beyond Boxes and Pallets: 10 Other Ways to Move Freight
01/03/2020 — PartnerShip
When most people think of freight, it’s usually an image of the ubiquitous 40” x 48” wood pallet that comes to mind. But there are many other ways to move freight, including these lesser known, but still important, methods.
Pallets. They are so important to freight shipping that even though we’ve covered pallets in depth before, we can’t not mention them here.
In addition to wood, pallets can be made of plastic or metal. Plastic pallets are popular for export shipments because they don’t have to be heat treated to be used for international shipping, like wood pallets do. Aluminum and stainless steel pallets are strong and lightweight, and since they can be cleaned and sanitized, they can be used in food processing and pharmaceutical plants, where cleanliness is essential.
Gaylords. Named after the company that first introduced them, Gaylords are pallet-sized corrugated boxes used for storage and shipping. Sometimes called pallet boxes, bulk boxes, skid boxes and pallet containers, Gaylords can have between 2 and 5 walls and are meant to be single-use containers. Frequently used as in-store displays as well as shipping containers, Gaylords can be used to ship items as diverse as watermelons, stuffed animals, and pillows. Depending on configuration and how many walls they have, Gaylords can hold from 500 to 5000 pounds each.