6 Considerations for Choosing an LTL Freight Carrier

March 13, 2019 at 8:32 AMLeah Palnik
6 Considerations for Choosing an LTL Carrier

The 25 largest U.S. less-than-truckload (LTL) carriers collectively brought in $34 billion in revenue in 2017. That is a staggering number and a 7.8% increase over the previous year. When the numbers are in for 2018, don’t be surprised to see another healthy rise. As the largest LTL carriers continue to command more of the overall marketplace, shippers must be resourceful when looking to source LTL freight services so as to not get squeezed on price due to the number of market players. Shippers should take the following six factors into consideration when finding the most efficient LTL freight services.

  1. Transit Times - How fast do you need to get your shipment to your customer, or to receive your shipment from your vendor? Long-haul carriers tend to have slower transit times in regional lanes, while regional and multi-regional carriers are much faster in these lanes, but may not provide service in longer haul lanes.
  2. Geographic Coverage - Once you get beyond the top 10 LTL carriers, most of the remaining players provide only regionalized direct pickup and delivery services. Understanding carrier coverage areas helps you optimize which carriers are best suited for the service.
  3. Service Performance - On time pickup and delivery performance is not always the same. Often this depends on where your business is located relative to the nearest freight terminals. Long-haul carriers traditionally have been known to provide lower delivery reliability, while regional carriers tend to provide reliability in a higher range. Almost all of the LTL carriers will guarantee delivery or provide deliveries that are "faster than standard" for additional fees.
  4. Liability Coverage - The amount of liability coverage you receive can vary and is set by the carrier. It’s not uncommon to see liability restricted to $0.25 per lb. or less, which means shippers need to be diligent about understanding their options. Especially if the liability coverage doesn’t meet the actual value of the freight.  
  5. Financial Stability - Most of the remaining LTL carriers in the industry are pretty stable from a financial standpoint. However, there are a few carriers that continue to struggle with profitability and debt issues. Anyone who may recall when industry behemoth Consolidated Freightways closed its doors in 2002 will understand the importance of not having your freight in the hands of a financially unstable carrier. 
  6. Pricing Factors - Lastly, and perhaps most importantly for many small business, is price. When working with an LTL freight carrier, there are many factors that will determine your true cost of transportation. These include:
    • Discounts, base rates, and net price 
      Most LTL carriers provide pricing in the form of discounts off of base rates, which will vary by carrier. So, a 68% discount from one carrier might actually be less expensive than a 70% discount from another. The main point to consider when comparing LTL carriers is not what the discount or the base rates are, but rather what is the final net price to you.

    • Minimum charge  
      Generally a flat fee under which the carrier will not discount its price. Some carriers offer big discounts, but set the minimum charge high which may result in less of a discount on smaller weighted shipments than you anticipated.

    • Freight classification 
      There are 18 different freight classes ranging from 50 to 500. These classes are based on the density of your product and will definitely impact your overall price.

    • FAK provisions 
      If negotiated, "freight-all-kinds" provisions may allow you to ship products with different classes under a single class from a pricing standpoint. 

    • Weight 
      How much your shipment weighs will play a significant role in how your rate is calculated. Keep in mind that carriers will use hundredweight pricing, which means that the more your shipment weighs, the less you'll pay per hundred pounds.

    • Accessorial fees 
      Extra services performed by the carrier generally add additional fees to your overall freight bill. The fees that carriers charge for these services can often be radically different so it's important to educate yourself. 

There are other factors not mentioned above that need to be considered when choosing an LTL freight carrier as well, such as equipment specifications (e.g., liftgate, trailer size, etc.), scheduling flexibility, and tracking capabilities, to name a few. It's easy to see why, what may seem like a simple service of picking up a shipment and delivering it, is often more complex than meets the eye.

Generally speaking, there is almost never just one LTL freight carrier that fits every need you may have. Unless you have spare time on your hands, your best bet is to work with an established freight broker like PartnerShip that can do the heavy lifting for you so that you can stay focused on running your business.

Need some help evaluating your freight shipping? Need help finding the right LTL freight carriers? Let PartnerShip provide you with a free, no-obligation quote to get you started.

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Truck Driving Trailblazers: Women in Shipping

March 8, 2019 at 7:30 PMJen Deming
Women In TruckingMany of us are familiar with the impact truck shipping has on our day-to-day lives, but few of us are familiar with the women truck drivers who contribute so significantly to the transportation industry. March is Women's History Month and PartnerShip would like to take the opportunity to look at how women have played a part in trucking's past and are currently shaping the future. From the first women who sat behind the wheel, to the movers and shakers changing the shipping industry today, we take a look at the women who help get our stuff where it needs to go.

Riding West with Annie Neal

Stagecoach and horse-drawn freight wagons, often hauling bullion and other high-value supplies heading west from the east, were a very early predecessor to the modern trucking industry. A notable husband-wife team, Annie Neal and her husband William often ran routes together, taking turns driving the teams of horses or acting as load security. Annie is often credited with being one of the earliest female "freight haulers" and helped pave the way for women drivers of the future.

A Shift in Responsibility

Horse-drawn modes of transportation were being retired through the beginning of the 20th century, and engine-powered trucks evolved as a reliable, efficient mode preferred by most freight carriers. As World War I broke, the first utility trucks were being used to haul medical equipment as well as injured soldiers to and from the battlefront, oftentimes being driven and loaded by women medical attendants and nurses. The onset of the first World War set the tone for a female-dominated industry while men were otherwise occupied and away fighting.

Luella Bates - Mechanic, Operator, Spokesperson

The early 1900's also saw the need for women to fill long-haul freight positions left by men who reported for duty. Luella Bates was one of about 150 women hired as test drivers for new truck prototypes by Four Wheel Drive Auto Company. These women tested safety, security, and overall mechanical soundness of these vehicles, logging many hours under various weather conditions and road types. When the men returned, Luella stayed on, acting as a demonstrator, mechanic, and driver, often touring across the United States for truck model launches and safety demos. She was often used in advertisements and as a consultant for dealerships throughout the remainder of her career, and used her public platform to generate excitement and interest among fellow female truck drivers.

Lillie Drennan - the First Licensed Truck Driver

Lillie Elizabeth McGee Drennan was another huge force in the history of women truck drivers. After starting a trucking company with her husband William Drennan in 1917, Lillie played a huge part in the training and recruiting of additional drivers. After divorcing in 1929, Lillie took control as sole owner of the trucking company, and also began driving trucks in order to expand and grow the business herself. After an initial denial to receive her own commercial driver's license (CDL), presumably due to a hearing impairment she'd had since she was a child, she successfully won a lawsuit and received the license in 1929. Following that, she continued expanding her successful truck business as a well-known regional owner-operator in East Texas. Lillie became a strong advocate for women's rights and a hero to those living with disabilities. She continued to push for equal opportunities for women in the workplace and helped successfully recruit female drivers during World War II.

Driving the War Effort

During World War II, Rusty Dow was a truck driver for the U.S. Army Engineers/Alaska Defense Command. In 1944, she became the first woman to drive a fully loaded truck the entire length of the Alaska Highway, completing the 1,560-mile trip in 11 days. During the same period, Mazie Lanham became the first woman driver for UPS in 1943 due to a workforce shortage during the war. Many other women came to follow in her footsteps, earning the nickname "Brown Betties."

Starting a Revolution

In the 1970's, Adriesue "Bitzy" Gomez was a truck driver and a champion of women in the trucking industry. During this formative period in the Women's Movement, she founded the Coalition of Women Truckers, an organization that worked to level the playing field in such a male-dominated industry. Through her efforts, and those of the other 150 members she recruited, Bitzy pushed forward a campaign to hire more female drivers and machinists, fighting for equal opportunity and safety from harassment within the workplace. 

Where are we now?

The truck shipping industry has changed a lot over time, and women are entering the field of transportation more readily than before. But, there's still a lot of catch up to do to even out female representation within this male-dominated industry. The Women in Trucking Association is an organization created with the intention to increase the number of women working in trucking transportation. The WIT has partnered with the National Transportation Institute in order to accurately report the number of women in trucking. While women represent the minority group within the industry, and women only comprise 7% of the available pool of drivers, women are working in over 24% of the management and training roles. 

Where are we headed?

Women drivers are more in demand than ever, especially with the ongoing driver shortage that continues to affect the available pool of carriers. To recruit and entice qualified truckers, male or female, carriers are optimizing current work conditions by upgrading tech, creating new dedicated rest areas, updating equipment to include more comfortable living accommodations for long hauls, and an increase in base pay. Drivers earn pay based on experience and miles, offering a more level compensation playing field than in many other industries and available career opportunities. While women continue to encounter many of the challenges presented since first breaking into the trucking industry, carriers are making it clear that they're wanted - and needed, not only as drivers, but as trainers, recruiters, brand advocates, mechanics, and business owners.

Women have been involved in the transportation industry since wheels first hit the road. As time has passed, the role of these women has evolved, and that role continues to change as needs of the industry adjust to meet the needs of consumers. Throughout the transformation, one thing is for certain - women in trucking continue to play an indispensable and revolutionary part in the future of transportation. If you're a driver, we want you to play that part with us - join our network of partner carriers!


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Freight Class Explained: FAK FAQs

February 27, 2019 at 12:00 PMJen Deming
Freight Class 3 Image

There seems to be an endless number of factors that can affect freight class, and in our last two blog posts, we covered the most significant, including product category, materials, packaging, and density. When we talk freight class with our customers, many shippers ask about a potential or existing FAK (Freight All Kinds) rating, and whether it's getting them the best pricing possible. yes, we're throwing another shipping acronym in the mix. We'll take a look at what it is, which shippers quality, and whether or not it really is right for your business. 

What is an FAK?

An FAK is a class agreement that is established between a carrier and a shipper, allowing the shipper to move multiple products of different classes at one standardized freight class. Essentially, an average class of all the commodities being shipped is determined, and the shipment gets rated at the same class regardless of the product type, making the price fair for both the carrier and the shipper.

How does this differ from a class exception?

A class exception agreement utilizes an umbrella system that may rate a range of actual class items at a lower class. For example,  a business that may ship items classed at 70-200 may be rated at a class 150. Anything above class 200 would ship actual class. A true FAK is extremely rare for a shipper to negotiate with a carrier, as it requires extremely high volume for carriers to determine it worth their while.

How does a carrier determine whether an FAK is possible?

As mentioned above, freight carriers really have a lot of the control and are calling the shots in many parts of the freight industry. A shipper must really be moving a high volume of loads in relatively even amounts in order for lower-classed items to offset higher-classed items, making the compromise worthwhile to the carrier. Originally, when FAK classification agreements were first implemented, they were beneficial to both parties. However, many shippers learned how to manipulate the agreement, shipping risky freight loads at a lower cost, and putting carriers in the hot seat. To combat the misuse of the system, carriers have held back in entering these agreements more now than they used to. 

If you are a rockstar at optimizing the packaging and maneuverability of your high-class freight, taking into consideration density, fragility, and stowability, you have a better shot at obtaining an FAK. Basically, if you can get your freight to operate like a lower class, you may be rewarded with a lower class.

What's the catch?

If anything proves true in freight shipping, it's that nothing is as simple as it seems. An FAK can seem like an awesome idea with a few drawbacks, but even if a shipper does manage to acquire an FAK with a carrier, it doesn't mean it's exclusively beneficial. Keep in mind that carriers are in charge and the parameters in place are pretty much at their discretion. If you are not shipping lots of mixed pallet freight, it just doesn't make sense. Small to medium-sized businesses that have one or two major commodity types won't see the same benefits of an FAK as facilities that are mass producing many types of products would.

If you are typically shipping lower-classed items, keep in mind that your "average" class could potentially be higher than your actual class, because you are essentially increasing your minimum charge. It may save you on the one-off shipment, but it's hurting you in the long run. The same goes for a class exception strategy. Carriers are not likely to be open to lumping any of your shipments of a higher class into this tier, no matter how infrequent they are. Because of this, your tired structure will likely reflect a higher average class, which is essentially over-classing your shipments. 

Another notable consequence of FAK implementation is that carriers will often limit liability on these shipments. In many carrier tariffs, verbiage is in place that the carrier is responsible for the price per pound on the freight class being paid. This is very different from actual class. If you are shipping a high value load at a very low class, even if the damage claim is won, the payout would be minimal compared to the value of the shipment. 

What's my class?

Now that we've gone over how an FAK can affect freight class, let's take a look at an example shipment that would create a difference for shippers with and without an FAK. We can use a hypothetical where we are a shipper with an FAK agreement in place. If the actual freight class of our shipment falls within 70-200, we are rated at 150.

In this example we will be looking at a pallet of popped popcorn, in boxes, measuring 40 x 48 x 52 and weighing 315 lbs. This is a common shipment that would typically be rated as density-based, and would have a high class due to the fact its density is low. We will use ClassIT in order to determine the actual class and compare it versus the FAK. 

With the search tool, we use the keyword "popped popcorn." It's important to note the distinction between popped popcorn and popcorn kernels because popped popcorn is much less dense, and a higher-classed shipment than raw kernels. Our shipment best falls into the Foodstuffs Group, which is a general group of foods, beverages, and other types of non-perishable items that are broken down into many articles usually determined by density:

Popcorn Blog Image 1

In this case, we will use the Snack Foods group, which is broken down into many different subgroups:

Popcorn Blog Image 2

Once more, we have to figure out density. In this example, our shipment density is 5.75 lbs. per cubic foot. It fits under Sub 4, or class 175. This is a pretty high shipment class, and would result in a high freight rate. In our hypothetical example, our FAK would get this actual class 175 shipment rated at a class 150. Dropping to 150 isn't a huge difference for a final freight rate, but should anything happen to the shipment in transit, it could potentially pay out much less than what the actual class would.

FAK is just another added layer to the very complicated topic of freight classes. While they may sound like a great alternative to paying actual class, it's pretty clear that with the current state of the freight shipping industry, carriers are dictating the terms for shippers. FAK agreements are rare, and it's likely they aren't the best option available to lower freight cost anyway. The most important thing for shippers to consider isn't an FAK or even a discount percentage - it's what you are paying for your freight. A qualified freight broker can help alleviate the stress of shopping rates, and make sure you are paying for freight at the class that's right for you.

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Freight Class Explained: Demystifying Density

February 20, 2019 at 8:41 AMJen Deming
Freight Class Density Blog Image So, you've been brushing up on freight class and you're starting to get a hang of how it's determined. In the first part of our freight class series, we learned that packaging, commodity type, and dimensional features all influence the final code that ultimately affects your shipping price. Just when you thought you had a handle on the basics, we're going to throw you a little curveball. Some commodities have an added layer of mystery (and math) when it comes to their class: the density of the overall shipment. Let's sharpen some pencils and get down with density-based freight classifications.

What is density?
First thing's first, density is a method of measurement that relates the weight of your shipment to its dimensions, or pound per cubic foot. Typically, the higher the density, the lower the classification and vice versa. A good example of a high density shipment would be a pallet of bricks. Lower density shipments, or those that take up lots of space but are lightweight, are items such as ping-pong balls. 

Why are some shipments density-based and what are they?
Commodities that are solid, heavy, and take up minimal space are very desirable to pretty much any freight carrier. Using density as a factor in determining freight class and pricing is becoming the new standard, especially as freight demand increases and capacity decreases. Thanks to variables such as a shortage of drivers and strict trucking legislation, carriers are trying to weed out difficult or unprofitable shipments in order to make space for more standardized loads. Time and effort are money in this industry, and carriers are taking control of who they want to ship for

How do you calculate the density of a shipment?
Density is calculated by measuring the height, width, and the depth of the shipment, including skids and packaging. This is multiplied to determine cubic inches. If you have multiple pieces, multiply for each piece and add them together. Then, divide the total cubic inches by 1,728, or the total cubic inches in a foot. The result is the total cubic feet of the shipment's pieces. Divide the weight (in lbs.) of the shipment by the total cubic feet. The result is pounds per cubic foot, or density. 

What is my freight class?
To help you better understand density-based shipments, we will look at a shipment of steel machinery parts, in a crate measuring 42 x 46 x 42 inches and weighing 500 lbs. By using the search function in ClassIT for "machinery parts", we can see a broad grouping for 114000, or the Machinery Group: 

machinery ClassIT Example 1

Through this group, we are directed through sub-articles, where we can find the 133300 group "Machinery or Machines, NOI, or Machinery or Machine Parts, NOI". From there, we can view associated subgroups that refer to density and packaging:

Machinery ClassIT 2 
You may also notice the "NOI" designation for this particular breakdown. "NOI" refers to "not otherwise indicated" and was implemented by the NMFTA for commodities that do not easily fit into existing classifications. Using NOI can be risky, since most products do have a specific freight class. Since "NOI" designations tend to draw attention from carrier inspection teams, it's critical that they are used properly, and that means density must be calculated to determine the subgroup.

In this example, and using the formula listed above, we can determine density using its dimensions and weight.

  1. Multiply the length, width, and height (42 x 46 x42) to get the total cubic inches (81,444).
  2. Divide the total cubic inches by 1,728 to get the total cubic feet (47).
  3. Divide the weight of the shipment (500 lbs.) by the total cubic feet (47). This will give you a density of 10.65.

Looking at the chart, we see that because of our crated packaging type, the top 4 subgroups are applicable. 10.65 falls under the subgroup 3, or class 92.5. In this class example, it is important that dimensions and weight are accurately measured in order to calculate the true density (and appropriate class) for the shipment. It's also crucial to note once more that packaging makes a huge impact. See how high the classes jump if the product is palletized or in packages other than secure crates or boxes.

LTL services are in higher demand than ever before. National freight carriers are in the driver's seat, and doing what they can to limit troublesome shipments - including those with a low density and high freight class. Once you've optimized your shipments for carriers, many shippers wonder about whether a Freight All Kinds (FAK) agreement may be a worthwhile perk. Next, we'll take a look at what goes into that FAK and if it's right for your business.  The freight specialists at PartnerShip can guide the way so you aren't stuck staring at your calculator, and a high freight bill. Call 800-599-2902 to speak with a representative, or get a quote today.

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Freight Class Explained: Bring on the Basics

February 13, 2019 at 8:27 AMJen Deming
Freight Class Blog Image 1

Freight class is a critical component of shipping your LTL loads. But it's confusing and making a guesstimate is risky business. Your shipment's freight class plays a huge part in from everything from your initial freight rate estimate to your payout for any potential damage claims. How can a little number mean so much?

What is a freight class?

Prior to understanding class number, shippers need to grasp the importance of the NMFC, or National Motor Freight Classification. Every type of product or commodity has a numeric code assigned to identify it within a categorical system, similar to a UPC used within a grocery store. The code also breaks down these products into over-arching groups, which then tell you how to class your product. There are 18 freight classes that range from 50 to 500. Your freight class helps the carrier determine how much to charge for your shipment, along with other factors such as weight and distance traveled, as well as any additional requested services. Typically, the higher the class, the more expensive the subsequent freight rate.  

What factors determine a freight class?

There are four factors that influence the classification of different commodities; each affects the difficulty in transporting the freight and increases the freight class. 

  • Density - The space an item takes up as it relates to weight. The higher the density, the lower the classification. Low density shipments take up a lot of space but weigh less, making the shipment unprofitable to carriers. More classifications are becoming density-based as capacity becomes crunched and larger, less standard types of freight are entering the network to be shipped.
  • Storage/Stowability - This refers to how easily freight can be stored and stacked on the truck, and how much space it takes up. Similar to density, if a shipment is large, oddly-shaped, or difficult to fit in the truck, the load becomes undesirable. .A higher freight class is assigned in order to reflect the added work to fit in the load.
  • Handling - Similar to storage and stowability, the more difficult it is to load and unload a shipment affects freight class. A shipment that requires more creativity and flexibility to load and unload will increase the class.
  • Liability - Carriers assign higher freight classes to "high risk" shipments in order to limit their accountability for those shipments that are more likely to be damaged in transit or have an increased risk for freight theft. If you have high value or fragile products, it will be reflected in a higher freight class to offset that risk.
What is my freight class?

To better understand the differences in freight classes, and how they are determined, looking at a few types of our most commonly shipped commodities can be insightful. As an example, we'll take a look at stone materials. While many shipments of stone are transported via truckload carrier, and don't need a classification listed on the shipping paperwork, there are still many instances where quarries, fabricators, and other stone suppliers need to move smaller loads for shorter distances. 

ClassIT Slate Image 1
In order to help shippers determine freight class, the National Motor Freight Traffic Association has created an online reference tool, ClassIT. The resource is available to shippers with a membership, and it's the primary tool used by PartnerShip shipping specialists. The index can be searched by using a brief description of the commodity. Being too specific, or too vague, can create issues in your search results. Note you can search by including "any word" or "every word" to adjust your results.

Let's say we have a shipment of slate blocks which are in 3 creates that are 4 ft. by 4 ft. and 515 lbs. each. We see two groupings that actually fall into the same Item or NMFC number, which is 90280. This is considered the "Gravel or Stone Group; consisting of gravel, sand, slag, slate, or stone, as described in items subject to this grouping." If we select "Slate Blocks, Pieces or Slabs, NOI" we are brought to the following breakdown of articles. You can see how specific it gets regarding packaging, usage, and dimensions. 

By looking at our shipment of crated slate blocks, we can see that our sample shipment falls under the 90280 Slate Blocks Pieces or Slabs group:

ClassIT Slate Image 2

It goes even further than that, breaking down into subgroups which determine freight class depending on packaging and size. This is why it is imperative to know the precise weight and dimensions of your shipment. In our example, our slate blocks are in crates 48 in. long, which falls under the subgroup 4 - class 65. Compare that to crated slate blocks longer than 96 in., which would be class 85. This is an increase, but shouldn't affect pricing drastically. When packaging type is adjusted, however, the class is increased significantly. By palletizing the slate blocks (subgroup 1), freight class jumps to 250. At this weight, the final freight rate can be raised by hundreds of dollars.

In the Slate Blocks, Pieces or Slabs group, you can also reference three separate notes that are relevant to the details of the shipment:

ClassIT Slate Image 3

These details are notable, because it gives further direction on how best to package your freight for both safety and security. In 90282, the note states that "pieces or slabs 2 in. or less in thickness" must be boxed or crated and marked "fragile." We see more packaging direction in 90283 regarding exposed surfaces and edges and requirement for wrapping and other protection. This is to hopefully limit damage, but shippers must also be mindful that if freight falls within this category, and it is not packaged as directed, a damage claim will likely be denied by the carrier. 

Freight class, in addition to weight and distance traveled, is critical in determining a shipment rate. Specific details relating to product and packaging can greatly affect the NMFC code and final freight class. A shipment of slate blocks may sound simple enough, but things can get a bit more complicated once you start looking at different commodities. Density-based shipments can further befuddle shippers, and understanding these types of classifications is the next type of class breakdown we will tackle. The experts at PartnerShip can lend expertise so you can stop scratching your head. Call 800-599-2902 to speak with a representative, or find your freight class online.

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The Best Ways to Become a Shipper of Choice and Why it Matters

February 6, 2019 at 9:20 AMLeah Palnik
The best ways to become a shipper of choice and why it matters

Carriers have more power than ever, which means it’s increasingly important that shippers find ways to make their load more appealing than the next guy’s. Becoming a “shipper of choice” is a great way to get a leg up and ultimately get better access to capacity and reasonable freight rates.

How did we get here? The tight capacity freight market
It's basic economics – the demand for freight services is higher than the current supply of tractor-trailers and drivers. This has been the trend over the past several years, due to a number of factors. For starters, there is a driver shortage. According to ATA’s 2017 Truck Driver Shortage Analysis, the trucking industry was short roughly 36,500 drivers in 2016. The appeal of the open road isn’t what it once was, and not enough qualified drivers are entering the workforce to make up for those who have left or retired.

On top of that, there has been an increase in regulations that have put some constraints on carriers. Hours of services (HOS) rules dictate that truckers can’t drive more than 11 hours a day in a 14 hour period, and thanks to the electronic logging device (ELD) mandate, enforcement of that rule is harder to get around. As a result there are less trucks available to move your freight. Carriers hold the cards and can be picky about the loads they want and what shippers they’ll work with.

What is a shipper of choice?
Becoming a shipper of choice means that your load, your location, and your business practices are in line with what carriers consider desirable. They want to make sure that they’re protecting their bottom line and not losing precious time. This is a status that is achieved by showing carriers respect and committing to a long term strategy that enables best practices.

Why you should care about becoming a shipper of choice
Being a shipper of choice will help you secure a truck at a competitive rate when you need it most. It used to be true that having a large volume of freight is what makes a shipper desirable to carriers. While that often doesn’t hurt, it’s not enough anymore. If you have a great deal of freight but constantly create headaches for your drivers, they will likely turn elsewhere for business or charge you more.

Carriers are becoming savvier when evaluating whether they should work with a shipper or not. Think about how you use apps like Yelp. It’s now incredibly easy to see if a restaurant has bad service or isn’t worth the cost. Truckers have apps like Dock411 that help them easily communicate and access information about load/unload time, parking, security, dock conditions, and more.

How to become a shipper of choice
Reaching shipper of choice status is not something that you can do overnight. You need to commit to making long term changes that are advantageous to both you and your carriers. Here are a few ways you can achieve this:

  1. Avoid detention time at all costs.
    The last thing you want is to get a reputation for holding up drivers. To them, time is money and it’s important to show that you respect that. HOS rules and the way drivers’ time is strictly tracked through ELDs means that every minute they’re waiting at your dock is taking away from the time they could be earning on the road.

    According to a survey conducted by DAT, most carriers consider detention a serious problem and the majority of them rank it in the top five challenges facing their business. Making sure you’re able to load or unload within the 2 hour window is a good way to keep your driver happy and be a shipper of choice.

  2. Be flexible with pick-ups and deliveries.
    When you require a strict appointment time, truckers can’t maximize their time on the road. Also, limiting your hours to weekdays forces drivers to travel during the most heavily trafficked times. By opening up options for your carrier, you increase the chances of your load being covered. And when you make this the rule, rather than the exception, you’re more likely to become a shipper of choice.

    In lieu of strict appointments times, you could request pick-up or delivery by a particular day and allow for early arrival. If that doesn’t work for you, you might consider moving from appointment times to a window of time. Being open on off-peak hours and during the weekend also will open up your access to capacity.

  3. Provide parking options.
    Thanks to the HOS rules and ELD mandate, drivers have to be efficient at managing their time. However, as you know, there are a number of factors that can cause them to be tied up including traffic, roadside inspections, and maintenance. If they hit their hours while at your dock, it can be a major risk for them to drive to the next available rest stop.

    Allowing drivers to park at your location or having an option nearby can be a major plus. It also shows that you care about the challenges they’re up against. While this may fall more in the “nice to have” category, having parking available could make the difference when carriers evaluate if they want to cover your load over another shipper’s load.

  4. Make sure your location is safe and easy to access.
    One major component that carriers take into account is ease of access. There’s nothing worse than arriving at a location that doesn’t have sufficient space for a truck to maneuver easily or has hazards that make it difficult to navigate.

    You might not be able to change where you’re located, but shippers of choice will make it a point to eliminate any potential obstacles they can. It’s also important that you provide clear signage that can help direct the driver appropriately when he/she arrives.

  5. Treat your drivers the way you would want to be treated.
    Truck drivers don’t have an easy job, and they spend a tiring amount of time on the road. If you deny them basic amenities like access to a bathroom and a place to stretch their legs while they wait, that is not something they’re likely to forget.

    Showing respect and being kind goes a long way. Greet your drivers and provide an area where they can relax and refresh while being loaded or unloaded. Some shippers are even providing full lounges designed to make drivers as comfortable as possible, with wifi, refreshments, and showers. You can’t be a shipper of choice if you aren’t willing to show a little bit of empathy for your drivers.

Next steps
Now that you know what it means to be a shipper of choice, why it matters, and how you can achieve it, the next step is create a plan. Carrier relationships are incredibly important in today’s freight market, and when you make them a priority, you’ll benefit your business in the long run.

PartnerShip maintains strong alliances with the best carriers in the industry. Our shipping experts can help you find ways to become a shipper of choice, gain access to capacity, and save on your freight rates. Contact us today to find out how you can ship smarter.

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ArcBest: Delivering New Shipping Solutions to PartnerShip

January 23, 2019 at 11:12 AMJen Deming
ArcBest Solutions Blog

PartnerShip® is always working to expand our available carrier network in order to meet every customer's shipping needs, every time. For those customers who value premium service and an unmatched experience, we are pleased to announce the addition of the ArcBest® network to our comprehensive group of partner carriers. With an extensive transportation solution network, ArcBest offers superior less-than-truckload (LTL) service through ABF Freight® as well as specialized time-sensitive alternatives through Panther Premium Logistics®. These additions help elevate available logistics options for PartnerShip customers. 

ArcBest offers a variety of stand-out services that benefit customers with specialized or unique needs. In addition to a full-service network of transportation options such as intermodal, supply chain services, international shipping, warehousing, and distribution services, ArcBest also provides premium time-critical and event shipping solutions. In addition to these options, the ArcBest company umbrella of carriers brings even more unique benefits for shippers.

Shorter, Pup-trailer Options

A standard 53-foot enclosed trailer, or dry van, is the most common truck type used to move freight. The height of the trailer is 8.5 to 9.5 feet. There isn't much differentiation between trucks aside from the door type, which can either swing open or roll up. This is a sizable truck, and not every pick-up or delivery location is equipped for proper vehicle maneuverability. This presents challenges for loading and unloading. ABF Freight, a premier ArcBest freight carrier, commonly utilizes shorter pup-trailers, not 53' vans. A pup-trailer measures between 26 and 29 feet in length. Due to this smaller size, congested access points such as a busy side street or challenging dock configuration, like a school, can be more easily navigated.

Unique Freight Capabilities 

Most common carriers are very specific about what they will move for shippers, and what they will refuse. Odd, over-sized items and easily-breakable commodities are determined risky for freight carriers, and shippers are usually refused pick-up, often at the discretion of the local terminal. Carrier Rules Tariffs are frequently being updated as capacity continues to crunch, allowing common carriers to become more selective about what types of products they choose to move. Items such as flag poles, furniture, and other challenging density-based commodities are accepted by ArcBest carriers, making them an excellent option for shippers who may have a challenging freight move.

Terminal Direct Scheduling and Contact Info

Another special service that ArcBest offers for shippers is terminal-direct scheduling and available contact information. If you've ever had to schedule your own pick-up, or tried to contact specific terminals to check on freight, you know that carrier websites are almost never transparent. Most often, you will need to go through an automated number and exhausting phone tree in order to access a service representative. Some carriers don't allow shippers to connect to specific terminals at all. This can be frustrating when time is compromised and your shipment is being delayed. Speaking to a particular terminal allows for better tracking, accountability, and clarification for customers. ArcBest, in particular ABF Freight, makes this a critical option for shippers.

Expediting in Transit

The added ability to expedite ground LTL shipments while already in transit is a service now available to PartnerShip customers through Panther Premium Logistics. Panther, an expedited carrier option under the ArcBest umbrella, is a convenient choice for customer's time-critical shipments. With a variety of truck equipment options, from sprinter vans to flatbeds, Panther offers premium logistics solutions for those who may have unique shipping requirements. If the deadline for your shipment delivery is sooner than you anticipated, Panther has the ability to bump up your service from standard ground LTL to expedited delivery while in transit.

Added Benefits

In addition to these distinct solutions offered by the ArcBest umbrella of carriers, there are a few other notable benefits suited for shippers who value quality and exceptional experience: 

  • The carrier network extends nationwide, providing reliable transportation that fit both regional and long-haul markets.
  • In line with providing premium shipping and handling services, ABF Freight also boasts one of the lowest LTL claims rates in the industry.
  • ABF Freight prioritizes meeting customer pick-ups, making sure your shipment gets moving when it needs to so you meet your deadlines.

We know that every shipper has individual needs for their business and their shipping. By adding another carrier we are able to extend available service options for customers - helping to broaden our network and meet those needs. If you'd like to learn more about ArcBest shipping options, contact us and we'll help determine which solutions are right for you.

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How to Calculate Freight Density for Shipping

January 11, 2019 at 8:39 AMLeah Palnik
How to calculate freight density

Density is a major factor in determining your freight class and your total shipment cost. In fact, many LTL carriers are relying more and more on freight density over actual weight to determine your rate. That's why it's important that you understand what freight density is and how to calculate it.

Freight density defined
Freight density measures how heavy a shipment is relative to the size of the shipment. The higher the density, the lower the classification and vice versa. A shipment with a high freight density weighs a lot relative to its size, such as densely packed books. A package with a low freight density weighs little relative to its size, such as a box filled with Styrofoam.

How to calculate freight density
Step 1. Measure the height, width, and depth of the shipment in inches. Measure to the farthest points, including skids or other packaging. On shipments with multiple pieces, repeat Step 1 for each piece.

Step 2. Multiply the three measurements (height x width x depth). The result is the total cubic inches of the shipment. If you have multiple pieces, multiply the height x width x depth for each piece. Take the results for each piece and add them together to get the total cubic inches

Step 3. Divide the total cubic inches by 1,728 (the number of cubic inches in a cubic foot). The result is the cubic feet of the shipment.

Step 4. Divide the weight (in pounds) of the shipment by the total cubic feet. The result is the pounds per cubic foot, i.e., density.

  • For multiple pieces, add the weight of each piece together before dividing by the total cubic feet of the shipment.
  • Round fractions to the nearest full cubic foot number.

Calculating freight density will also provide you with a recommended class for your shipment. The freight class chart below is an abbreviated scale you can use to help estimate the freight classification for your shipments.

Freight Density Chart

Helpful tools
There are many factors that determine your freight class, aside from density, so these are estimates only. If you're looking for help to find your freight class, our team is standing by. For a quick and easy way to figure out your shipment density, check out our freight density calculator.

Your Guide to the 2019 FedEx and UPS Rate Increases

December 17, 2018 at 3:46 PMLeah Palnik
your guide to the 2019 FedEx and UPS rate increases

FedEx and UPS rates will be going up in 2019, and it’s more important than ever that shippers know how to mitigate the impact to their business. In November, FedEx announced that its small package rates will increase an average of 4.9% as of January 7, 2019. In December, only a few weeks before the change is set to take place on the 26th, UPS announced the same average increase.

If you’re thinking that means you can budget your costs to go up by 4.9%, you are sorely mistaken. There is a lot to unpack with these rate increases. For starters, some services are increasing at a higher rate than others – meaning that depending on the services you commonly use, your costs could go up significantly more than the announced average.

Other factors determine how much more you will pay for your FedEx and UPS shipments in 2019. You will need to look at the new rates based on your package characteristics, as well as how far your shipments are being sent. Here are the released rates for 2019:

FedEx and UPS surcharges
The announced average increase only covers the base rates. You’ll also need to consider what fees and surcharges apply to your shipments. Many of these surcharges are increasing quite a bit. Here are the announced changes:

One surcharge to take note of is the Third-Party Billing fee. A couple years ago, UPS introduced this in response to the growing popularity of drop shipping. Right now if you use third-party billing, you will incur a charge of 2.5% of total cost. Beginning December 26, UPS will be increasing that charge to 4.5%. FedEx is leaving its Third-Party Billing charge unchanged at 2.5% for 2019. This is just one example of why it’s important to evaluate the changes that come out each year from UPS and FedEx. One small difference can have a huge impact on your costs.

The most costly surcharges continue to be those that apply to shipments that qualify as “Unauthorized” or “Over Maximum Limits.” If you send a package with UPS that weighs more than 150 lbs., exceeds 108 inches in length, or exceeds a total of 165 inches in length and girth combined, you’ll be looking at a $850 charge on top of your base rate. That same package will incur a $675 charge if you ship it with FedEx. Either way, you’ll be paying a huge premium to ship larger, bulkier packages.

Peak season strategies
It’s also important to note that ahead of the 2019 general rate increase (GRI), FedEx and UPS both announced peak season surcharges. For those larger packages, the carriers applied additional surcharges during the busiest time of year. A huge difference between the two, however, was an additional charge on residential shipments. UPS applied a $0.28 peak surcharge on residential ground shipments, while FedEx decided that for the second year in a row, it wouldn’t follow suit. If you’re a retailer that delivers a large amount of customer orders over the holidays, that charge can add up fast.

Trends in the small package industry
If you zoom out on all of these changes from FedEx and UPS, there are a few insights to glean.

  1. FedEx and UPS tend to institute similar pricing strategies. The carriers have a habit of matching each other when announcing average increases, and when one introduces a new charge or a different way to account for something, the other tends to do the same down the road. That doesn’t mean that it doesn’t matter which carrier you use. Instead, it’s important to stay on top of the changes and evaluate your options on a regular basis so you’re always using the service that works best for your budget.
  2. Many of the changes over the years have been put in place as a result of the ecommerce boom. With more shipments coming from online orders, comes more trends that strain the carriers’ networks. For example, ecommerce has led to more residential deliveries and more deliveries of oversized packages. That’s why you’ll see the carriers making changes that help them to recoup some of the costs associated with these trends.
  3. Both carriers have been making changes throughout the year, instead of just during the GRI. For example, FedEx and UPS both increased their Additional Handling surcharges ahead of the new year – in September and July respectively. When UPS first introduced peak surcharges for residential ground shipments, that was also done outside of the annual announcement. This just highlights how important it is for shippers to stay aware throughout the year.

We know you don’t want to comb through every tedious page of the 2019 FedEx and UPS service guides and compare them to your current rates. That’s why we did the leg work for you. In our free white paper, we break down where you’ll find the highest increases and explain some of the complicated changes you need to be aware of. If you’re looking for ways to offset the rate increases, we can also help with that. If you’re a member of one of the many associations we work with, you can get access to exclusive discounts. Contact us and we’ll find a way to help you save.

Your Guide to the 2019 FedEx and UPS Rate Increases

It's a Throwback PartnerShip Holiday!

December 17, 2018 at 2:25 PMJen Deming

It's the time of year for good cheer, gift giving, and family get-togethers. One of the best parts about bringing everyone together for the holidays is flipping through old albums and boxes of family photos to relive memories from holidays gone by. We wanted to share some of our team's favorite throwback holiday photos with you, and wish everyone the happiest of holidays from our family to yours!

Barbara with guitar
Barbara Teleha, Graphic Designer
Before flexing her creative muscle as the PartnerShip resident designer, Barbara was striking chords in checkered onesies and turtlenecks

Jennifer Hammersmith
Jennifer Hammersmith, Customer Service Manager
'Tis the season to be "married" and bright for Jennifer and her husband, Dave!

Jerry Spelic
Jerry Spelic, Marketing Director
Jerry celebrates with a themed tree every year: Meet Spencer Tree-cy

Christine Manda
Christine Manda, Freight Brokerage Sales Manager
Christine and sister get festive while rocking around the Christmas Tree

Holiday Hardmans
Brian Hardman, Senior Account Representative and Nicole Hardman, Senior Carrier Procurement Representative
The Hardman husband/wife team toast their first Christmas together

Leah Palnik
Leah Palnik, Marketing Manager
Leah celebrates the holidays with her childhood furry friend, Figgie

Shaunta Dennis
Shaunta Dennis, Customer Service Representative
Shaunta patiently awaits the arrival of her gifts - as an adult she makes sure PartnerShip customers get their packages on time

Keith Korhely
Keith Korhely, Senior Program Manager
Keith's buddy Gigi thinks she's all the gift that anyone needs

Jimmy Josh
Josh Arnold, Programmer Analyst
Josh offers an interesting take on Santa Claus at a past PartnerShip Christmas party

Bill
Bill Parhamovich, Account Representative
Bill recites his Christmas list to Santa, it may or may not include a Red Ryder BB Gun

Jen Deming
Jen Deming, Marketing Associate
Jen and brother Matt decide all they want for Christmas is EVERYTHING

Making merry memories is one of our favorite parts of the holiday season, and we look forward to what this year will bring! Happy Holidays from our family to yours!