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?

1. 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.

2. Build in extra time for everything

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.

3. Review alternative services for applicable shipments

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.

4. Consolidate your shipments

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.

5. Utilize regional carrier options

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.

6. 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.

Final thoughts

Freight capacity is a challenge, and it’s not changing any time soon. The best thing that you can do is create a plan of action that tackles these challenges before you have freight waiting on the dock. Working with a 3PL like PartnerShip can help audit your current shipping procedures and identify areas of improvement that go beyond getting your loads covered. Contact our freight experts to help get your freight where it needs to go.

The manufacturing industry is vital to our economy, but producing components and materials is just the first step in the fulfillment process. Manufacturers have to make sure products are shipped efficiently, arrive on time, and don’t experience damage. In addition to rising costs and other issues we’ve seen across all industries, manufacturers face a unique set of logistics obstacles. You may be shipping large, fragile shipments that are expensive and hard to handle. Services and equipment needs can vary day-to-day, so it’s important to find the right shipping solutions that meet your specific needs. Read on to learn five foolproof ways to take on manufacturing shipping challenges.

1. Prioritize the safety of your loads

   Manufacturers ship a wide variety of commodities, from small parts and components, to fully-assembled heavy machinery. For any-sized load, you need to take the safety and security of your shipments into consideration in order to limit damage and other issues. Start with regularly auditing your parcel and freight carriers to ensure their service levels meet your business expectations. Spec out your shipping safety “need to haves,” such as security during transit, carrier reputation, and damage statistics. Keep track of what’s working, as well as any issues you are experiencing with current carriers. If they aren’t making the cut, do some research. Who do your customers and colleagues prefer working with and why? Try out new carrier options and look into alternate service levels that may better offset your shipping challenges. Most importantly, ensure that your preferred carriers are communicated to your shipping department and warehouse team as well as any outside parties such as suppliers who may be arranging your shipping.

   Because security is of the utmost importance, ensure that your packaging is perfected, whether you are shipping small parts via parcel services or large freight orders. You should use quality materials and keep some basics in mind:

   • Don’t reuse packaging to ensure structural integrity
   • Limit extra space to avoid shifting and breakage during transit
   • Use pallet wrap to keep loose components together
   • When shipping assembled machinery, consider using custom crates rather than pallets

2. Double-down on service options that encourage timely delivery

   Manufacturing any type of product typically involves several different parties who tackle specific steps during fabrication, from start to finished product. If anything goes wrong logistically during that process, it can disrupt the entire supply chain and lead to more shipping challenges. It’s crucial that your business is utilizing shipping providers and services that prioritize timely, expedient delivery. 

   Both FedEx and UPS offer different service levels depending on the urgency of your parcel shipment. If you’re in a crunch, FedEx can help make a speedy delivery with options like FedEx Priority Overnight® or FedEx 2Day A.M®. UPS also offers expedited services, such as UPS Express Critical® and UPS Next Day Air®. 

   If you have a true freight emergency, take a look at estimated transit times between carriers and their services. It’s probably not the time to use low-cost or asset-light carriers, as they typically have longer transit times. Many LTL freight carriers offer time critical, expedited, and guaranteed options. Just-in-time delivery options can also ensure your shipments are delivered as soon as possible. Because these services often use dedicated trucks or air/ground solutions to maximize efficiency, they can be pricey. Be mindful of your budget, and stay on top of any emergencies when you can. If expedited services are necessary, make sure you quote with several carriers and explore all options in order to keep costs low.

3. Confirm your freight class before you ship

   Manufacturing businesses ship diverse products or commodities to any number of delivery locations. Whether your business is in the field of precision medical equipment, mold builders, automotive engineering, or any other specialty field, a major manufacturing shipping challenge is being an expert on your products’ specific freight class and NMFC codes.

   The challenge with not knowing these codes can affect everything from your total freight cost to the result of any claims filed. A common mistake many shippers make is using an outdated or blanket NMFC or class code. For example, the ‘machinery’ group NMFC code is 11400. There are over fifty major categories that specify exactly what type of machinery, and they range anywhere from class 55 to 500. That’s hundreds of dollars difference in a final bill. The class for your specific shipment is determined not only by the product itself, but also density, dimensions and weight, packaging type, whether it’s assembled or in parts, and other factors. On top of that, these designations and codes are updated regularly. If you haven’t shipped this product very recently, you need to check it again, especially if any packaging specs have changed.

   In the event that you enter the incorrect class code on your BOL, your freight will likely be flagged by the carrier. This will lead to an inspection, and some additional fees that are going to both inflate your bill and delay your delivery. Because freight class can be complicated, especially for manufacturers, it’s important to have more than a basic understanding of how LTL freight rates are determined. If you have any trouble finding the most accurate class code for your shipment, and you probably will, don’t hesitate to call the carrier or work with a freight broker who can help you.

4. Make sure the value of your load is covered 

   Damage is a huge concern, especially based on the types of products being shipped. Freight shipping involves tons of handling and frequent stops at terminals. As a result, it’s probably not a matter of if, but when, you’ll get hit with damages. We don’t want to jinx your shipment, but let’s explore the event that your load encounters some damages or loss while on the road. 

   Freight damage is frustrating from the start because it’s expensive, can hold up the fulfillment of an order, and potentially complicate relationships with your customers. Because many manufacturers’ shipments are extra fragile, hard to maneuver, and worth a lot of money, the problem can be compounded. It’s the shipper’s responsibility to prove the carrier is at fault if damage occurs, and frankly, a freight carrier will do everything they can to avoid responsibility. Even if you do win a claim and receive reimbursement, there are limits to carrier liability coverage and payouts. They may not meet the entire value of your load.

   To avoid extra headaches, make sure that you have your own freight insurance that will fully cover the value of your load. It also does not require that you prove the carrier is at fault for damage or loss, just that the damage occurred. While there is an extra charge for the insurance, it’s usually based on the declared value of your freight, and it is extremely worthwhile should damage occur.

5. Use a freight provider that offers custom shipping solutions

   There’s not always enough time in the day or people in your shipping department to stay on top of the many manufacturing shipping challenges. Let’s face it, a one-size-fits-all approach is not going to work for an industry that has to constantly reinvent itself and adapt to consumer needs, tech advancements, and other changes. A third-party freight provider can help identify the unique needs of your business, without cutting any corners. 

   Cutting costs is always at the top of the priorities list, and taking a fresh look at your shipping procedures can be a fruitful place to start. A 3PL can help leverage carrier relationships and buying power to acquire better shipping discounts for your business. PartnerShip is connected to many manufacturing and industrial trade associations, like NTMA and PMPA. As a benefit provider to members, PartnerShip helps manufacturing businesses save on shipping costs with competitive rates with carriers who prioritize safety and better shipment handling. 

   Working with a freight provider can take on several of your shipping challenges at once.

   • Conducting carrier audits for better pricing and service. 
   • Managing claims and acting as your advocate, by touching base with carriers and making sure proper documentation is in order.
   • Determining if and when you may need to use expedited freight services, and helping to quote and schedule your day-to-day shipments.
   • Finding special equipment options that will balance cost and safety if you have an extra special load.

There are a lot of shipping obstacles to keep track of, and they can be a burden to navigate. Depending on your business size, your budget, and the time you have available, it’s not always possible to become an expert on your own. PartnerShip has the experience and proficiency to help take on your greatest shipping challenges, so you can get back to business. Download our all-encompassing guide to freight claims to learn more about how you can effectively resolve a top shipping obstacle for manufacturers.