The PartnerShip July Carrier of the Month Is… (drum roll please)

August 17, 2018 at 12:30 PMJerry Spelic
PartnerShip Loves Our Carriers! Here is Our July 2018 Carrier of the Month

PartnerShip works with high-quality freight carrier partners to help our customers ship smarter and stay competitive and we love recognizing our awesome carriers for a job well done!

July’s Carrier of the Month is Salem Ridge Contractors LLC of Waterford, Ohio! They specialize in heavy haul and oversize loads.

The PartnerShip Carrier of the Month program was created to recognize carriers that go above and beyond to help our customers ship and receive their freight. PartnerShip team members nominate carriers that provide outstanding communication, reliability, and on-time performance.

For being our July 2018 Carrier of the Month, Salem Ridge Contractors gets lunch and a nifty framed certificate to proudly hang on their wall. Our gestures may be small but our appreciation is huge!

Interested in becoming a PartnerShip carrier? We match our freight carriers’ needs with our available customer loads because we understand that your success depends on your truck being full. If you’re looking for a backhaul load or shipments to fill daily or weekly runs, let us know where your trucks are and we’ll match you with our shippers’ loads. If your wheels aren’t turning, you’re not earning.

Become a PartnerShip Carrier

FedEx and UPS Peak Season Surcharges: The Important Differences

August 9, 2018 at 2:09 PMLeah Palnik
FedEx and UPS Peak Surcharges for the 2018 Holiday Season

FedEx recently announced that for the second year in a row, it won’t be applying a peak season surcharge on residential shipments. This is good news for retailers who expect a significant amount of e-commerce orders over the 2018 holiday season.

UPS, however, will be instituting a surcharge on residential ground shipments from November 18 through December 1 and then again from December 16 through December 22. UPS will be charging $0.28 per package for most residential shipments using ground services. For UPS air services the fees are as high as $0.99 per package.

UPS delivered around 700 million packages during the 2017 holiday season – a huge jump compared to the rest of the year. Ordering online has become so commonplace and easy for shoppers, and the carriers are feeling the effects. The increase in volume over the holidays drove UPS to introduce this new peak surcharge for the first time last year.

Typically UPS and FedEx have comparable rates and surcharges and will mimic each other’s changes, so this is a notable distinction between the two small package giants.

FedEx is sending a clear message to shippers. “FedEx delivers possibilities every day for millions of small- and medium-sized businesses,” said Raj Subramaniam, executive vice president and chief marketing and communications officer at FedEx Corp. “We are demonstrating our support for these loyal customers during this critical timeframe by not adding additional residential peak surcharges, except for situations where the shipments are oversized, unauthorized or necessitate additional handling.”

It’s important to note that both carriers are implementing charges on larger packages. With the rise of e-commerce, people are ordering items online that they would’ve exclusively purchased in-store in the past – including televisions and appliances. FedEx and UPS have made several adjustments to account for these trends, including a pushback on larger packages. Heavy and bulky packages don’t move through their automated systems and require more attention. FedEx and UPS are putting a price tag on that loss in efficiency and shippers need to stay aware.

FedEx will apply peak surcharges for larger packages from November 19 through December 24:

  • $3.20 per package for shipments that necessitate additional handling
  • $27.50 per package for shipments that qualify as oversize
  • $150.00 per package for shipments that qualify as unauthorized

UPS will apply peak surcharges for larger packages from November 18 through December 22:

  • $3.15 per package for shipments that necessitate additional handling
  • $26.20 per package for shipments that qualify as large
  • $165.00 per package for shipments that qualify as over maximum limits

If you’re not careful, the surcharges can add up fast. These peak surcharges are in addition to the already existing surcharges that apply to larger packages, and any others that may apply including delivery area and residential surcharges.

Retailers should take note of these peak season changes to ensure a profitable 2018 holiday season. If you see a significant amount of online orders over the holidays and ship with UPS, you’ll be paying an extra $0.28 per package, which will eat into your bottom line.

To prepare, take a look at what you shipped last year around the holidays and determine a forecast for this season. From there you’ll be able to see how much more you can expect to spend during the designated peak season. You may find that switching from UPS to FedEx for the busiest time of the year will provide you with a decent cost savings. Depending on the billable weight of your shipment and the destination, the base rate could be lower with FedEx – compounding the savings during peak season. It’s worth evaluating the options, when the holiday season can make or break your year.

There are many factors to consider when deciding how to ship your small package shipments. You need an expert on your side. ParterShip manages shipping programs for over 140 associations, providing exclusive discounts on small package shipments to their members. To find out if you qualify or to learn how you can ship smarter, contact us today.

FedEx and UPS rates will be going up after the holiday season! Make sure you know what to expect so you can mitigate the impact to your bottom line. Our free white paper breaks down where you'll find the highest increases and explain some of the complicated changes you need to be aware of.

Contact Us Today!

For Good Measure: How to Avoid Freight Reweighs

July 26, 2018 at 10:08 AMJen Deming
Avoiding Reweigh Fees

LTL shipping requires plenty of diligence and double checking on behalf of the shipper. All may seem in order: you've used proper packaging, paperwork is up to date, shipping addresses reviewed, accessorial requirements checked, and you are confident you are using the proper freight class. Then it happens. Your shipment is delivered safe and sound, but when the invoice arrives, your bill is nearly $100 over what you had anticipated. On further review, you learn you've been hit with a reweigh fee by the carrier. How did this happen?

Freight reweighs are becoming more and more frequent, especially as dimensional and density based pricing becomes more common. It's important to understand what constitutes a reweigh, and what puts your shipment at risk. Many shippers, particularly small businesses, do not have certified scales that are large enough to accurately measure a larger LTL (less-than-truckload) shipment. This means that many of the weights listed on the BOL (Bill of Lading) are approximations, and carriers are pretty vigilant at checking for inaccuracies with their own certified equipment. A freight reweigh occurs when a carrier inspects and weighs the shipment and when the actual weight and the weight listed on the BOL do not match. One of the primary factors used to determine freight cost is weight, and in many cases, affects freight class as well. Often, a carrier will charge not only for the difference in weight, but also a fee for the freight reweigh itself.

To avoid a freight reweigh, it is so important that shippers try to avoid "guessing" their shipment weight. If your business does have a certified commercial scale, you are a step ahead of many other shippers. Be sure to have it calibrated and checked frequently to avoid miscalculations. If you do not have a scale, it is key to obtain accurate measurements and weights for ALL of the materials being shipped. This can be even more challenging if you are shipping an assembled, finished product made up of several separate pieces and different classifications. Add up materials used on product spec sheets, catalogue listings, and product invoices to get as accurate a weight as possible. It can be beneficial to look at any inbound shipping invoices for any pieces of your finished product that were shipped to you as a supply order. In short, don't be tempted to take shortcuts. It pays to take the time to measure individually and make educated and precise estimates.

Another mistake that many shippers make that encourage freight reweighs is neglecting to include packaging/packing materials in their calculation of gross weight. An average 48x40 pallet weighs around 30-40 lbs, and if you are shipping a multi-pallet load, that extra weight adds up fast. While it's always best to avoid guessing your shipment's weight, in the case shippers aren't able to weigh their shipments on a calibrated scale, it is important to factor this figure in the total. Additional materials used to protect your shipment such as molded plastic corner reinforcements, fiberboard, wooden stabilizers, and even foam inserts can increase weight, especially if you have a larger LTL shipment.

It's key to remember that accurate weight is not the only factor that affects your shipment- it helps to determine your freight class, as well. For heavier, denser items that fall into the lower NMFC classifications, total weight of the shipment is used to calculate at price-per-pound. For less dense shipments that take up more volume, your freight class can be higher and your shipping more expensive. If you happen to overestimate the weight of your shipment, and it falls into one of these higher freight classes, you will be charged more at the higher freight class. It is crucial for shippers to know their precise weight, freight class, and your freight density in order to estimate accurate shipping charges.

Even if you feel you've got everything in order, freight shipping can always lead to some surprises. While it's never a good idea to cut corners or knowingly try to mislead a carrier in the hopes of saving a couple bucks, sometimes even thorough shippers can get hit with some unforeseen charges. Don't let freight reweighs be one of them. The freight experts at PartnerShip have your back and can help make sure you are shipping smarter. If you have questions about determining your freight class or how working with a 3PL can help lower your shipping costs, call 800-599-2902 or email sales@PartnerShip.com to learn more.

5 Common Freight Mistakes CTA

And the PartnerShip June Carrier of the Month Is…

July 20, 2018 at 8:15 AMJerry Spelic
PartnerShip Loves Our Carriers! Here is Our June 2018 Carrier of the Month

Without high-quality freight carrier partners, our job would be much harder, and the economy would move much slower. We love recognizing our awesome carriers for a job well done because they help us help our customers ship smarter and stay competitive.

June’s Carrier of the Month is Boyko Trucking LLC of Richfield, Ohio! They have been in business since 2009 and specialize in LTL and full truckload shipping.

The PartnerShip Carrier of the Month program was created to recognize carriers that go above and beyond to help our customers ship and receive their freight. PartnerShip team members nominate carriers that provide outstanding communication, reliability, and on-time performance.

For being our June 2018 Carrier of the Month, Boyko Trucking gets lunch for the whole office and a nifty framed certificate to proudly hang on their wall. The gestures may be small but our appreciation is huge!

Interested in becoming a PartnerShip carrier? We match our freight carriers’ needs with our available customer loads because we understand that your success depends on your truck being full. If you’re looking for a backhaul load or shipments to fill daily or weekly runs, let us know where your trucks are and we’ll match you with our shippers’ loads. If your wheels aren’t turning, you’re not earning.

Become a PartnerShip Carrier

Keys to Success for Vendor Compliance and Inbound Shipping

July 10, 2018 at 1:49 PMLeah Palnik
Keys to Success for Vendor Compliance and Inbound Shipping

For many retailers, obtaining vendor compliance and maintaining smooth inbound shipping operations may seem like a tall order. However, with the right planning and follow through, it is achievable. By following these keys to success, you’ll be on your way to reducing your freight costs, avoiding chargeback issues, and creating efficient operations.

Developing an effective routing guide
The very foundation of achieving vendor compliance is developing an effective routing guide. Routing guides provide shipping instructions to your vendors that help you gain control of your inbound shipments. They often include modes and carriers for specific lanes, as well as rate and service requirements.

In order to create routings that are best for your business, you’ll need to consider several factors. Price, transit time, and reliability are all important when selecting a carrier and determining how to have your product shipped. For different services and weight breaks, you want to designate a carrier that provides you with the best rate and can deliver your product in the time you need.

Conducting an in-depth analysis of your inbound shipments can be time-consuming but necessary when determining your routing instructions. This is where working with the right freight broker can make a huge difference. The broker you work with should provide inbound management services that help determine the routings that will be best for your business and will create the routing guide for you – saving you valuable time.

Maintaining good relationships with your vendors
For smooth inbound shipping, you want to have a good rapport with your vendors. Like any other relationship, communication is key. For example, when you send your routing guide out to your vendors, it’s a good idea to include a request for confirmation. However, you won’t always receive one. If that’s the case, following up and opening the lines of communication will be your best bet to ensure vendor compliance.

If your vendors aren’t using your routing instructions after receiving your routing guide, you’ll need to follow up with a call or email. When you have a good relationship with your vendor, you’ll have the right point-of-contact and will be able to resolve the issue quickly. If not, you could have a harder time achieving vendor compliance.

Maintaining a relationship with your vendors can be difficult and time-consuming. This is another area where working with the right freight broker can make a difference. When selecting a freight broker, ask about experience in your industry. Quality freight brokers familiar with your industry will already have an established relationship with many of your vendors, which will help with compliance efforts.

Perfecting your order forecasting
Managing your inventory can be challenging. But the advantages of forecasting and planning your orders ahead of time are too great to ignore. When you don’t plan ahead and then need your product within a shorter time-frame, you will have to rely on costly expedited services. Spending the time up front to make sure your orders are placed with ample time will be better than spending the extra money in the long-run.

Also, with more lead time, you’ll be in a better position to handle any issues that arise. For example, if your shipment gets lost or damaged in transit and you need your product immediately, you’ll be out of luck. In that event, you’ll need to file a freight claim which doesn’t always guarantee compensation and is often a lengthy process.

If you’re not able to place your orders ahead of time, it’s a good idea to consider freight insurance. Unlike relying on carrier liability coverage, you won’t have to worry about if the carrier is found liable or not and often times you’ll get paid out much faster – making it easier to resume operations as normal.

Conducting regular reviews for improvements
Once you do have a routing guide in place and have vendor compliance, you can’t just set it and forget it. It’s best to review your routing instructions periodically so that you’re always getting the best rates and service possible.

You can choose to set aside a specific time each year to do a review. But if you make any changes throughout the year with your orders or any other factor that affects your shipments, you’ll want to take that time to evaluate and update if necessary.

It’s also important to stay on top of carrier rate increases, accessorial changes, and NMFC updates. These kinds of changes can have a significant effect on your freight costs and you'll want to make sure that you fully understand how these changes will affect your specific shipments. For example, carriers announce general rate increases every year and will present an average increase. If you simply use that average to judge how your costs will be affected, your budget will most likely be off. The increases vary greatly across the board depending on a number of characteristics, so it's important to evaluate them based on your specific shipments. 

Partnering with the right freight broker
The keys to vendor compliance and inbound shipping management are easy to master when you work with the right freight partner. PartnerShip can help conduct a complete inbound shipping analysis, create a routing guide, and send routings on your behalf for vendor compliance. Contact us today to get started, or download our free white paper to learn more about managing your inbound shipments!

Download the free white paper: 4 Steps to Gain Control of Your Inbound Shipping

Pallet Packing Mistakes to Avoid

June 27, 2018 at 10:38 AMLeah Palnik
Pallet Packing: Common Mistakes to Avoid

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!

The Ultimate Guide to Packaging Your Shipments

It All Adds Up: The Operational Costs of Moving Freight

June 22, 2018 at 9:06 AMJerry Spelic
 It All Adds Up The Operational Costs of Moving Freight

Moving freight is getting more difficult, and therefore, more expensive. If you’ve ever had “sticker shock” from a freight quote, you’re not alone. There are a lot of cost factors that go into the price you pay to move freight, so we want to explain them so you can be an informed shipper and ship smarter.

Every LTL or truckload freight shipment has fixed and variable costs that are calculated into the rate you pay to ship your freight. Let’s start by looking at the fixed costs.

Fixed Costs:

  • Truck Payment. Owned or leased, drivers and operators have the expense of their equipment (trucks and trailers) to consider when quoting your freight. New trucks can be leased for $1,600 to $2,500 per month and used trucks can be leased for $800 -- $1,600 per month; a new truck can be purchased for $2,250 a month (purchase price of $125,000 with 5-year financing). On average, truck payments are 16% of the cost of moving freight.
  • Insurance. The FMCSA requires individual owner-operators to carry a minimum of $750,000 to $5 million in liability coverage. On average, liability and damage insurance can cost between $6,000 – $8,000 per year, with newly-granted authorities typically paying between $10,000 and $16,000 their first year. Truck insurance accounts for 5% of the cost of freight shipping.
  • Driver Salary. This is the largest operating cost of moving freight. Commercial truck driver salaries are based on the distance driven, and although drivers spend a lot of time in traffic, at the dock being loaded or unloaded, etc., their operating costs are only derived from miles traveled. With an average salary of $78,200, driver pay and benefits accounts for 43% of operational costs.
  • Office and Overhead. This fixed cost includes a building lease or mortgage, and includes electric, phones, internet, computers, and office support. These costs can vary widely.
  • Permits and Licenses. Permits and license plate costs account for $2,300 annually, or 1% of operational costs.

Variable Costs:

  • Fuel. The second largest operating cost of moving freight is diesel fuel. A commercial truck can easily consume 20,000 gallons ($64,000) of diesel fuel per year, accounting for 21% of operational costs.
  • Tires. Retreaded truck tires are less expensive than new tires and cost on average $250. Annual tire expense accounts for $3,600, which is roughly 2% of operational costs.
  • Maintenance and Repairs. Trucks need constant maintenance and do occasionally break down. Issues with air lines and hoses, alternators, wiring, and brakes are all common in commercial trucks, and can cost $17,500 annually or 10% of operational costs.
  • Meals. The truck isn’t the only part of LTL and truckload freight shipping that needs fuel! 10 meals a week at $12 each equals a meals expense of $6,500 a year.
  • Tolls. With nearly 5,000 miles of toll roads in the US, chances are good that your freight will be traversing at least one of them, and this will be factored in your cost. For example, a load moving from Chicago to Baltimore will encounter toll roads in Illinois, Indiana, Ohio, and Pennsylvania, costing $225.75.  Sometimes a carrier can avoid toll roads, but this will frequently increase the number of miles driven, which also increases your cost. On average, tolls add $2,500 a year, 2% of the total cost of freight shipping.
  • Coffee.  Did you know that truck stops sell more coffee than convenience stores? The average commercial truck driver spends more than $600 a year on coffee. Its effect on cost is negligible but we thought it was interesting!
  • Profit. Remember, freight carriers are in business to make a profit. Owners, operators and drivers are funding their kids’ education or dance lessons, paying their mortgages, and buying food and necessities, so please don’t expect them to move your freight for free.

There are also many miscellaneous items that can factor into overall freight costs:

  • Electronic Logging Devices (ELD), which have decreased driver productivity approximately 15%. When drivers spend less time driving, transit times increase and drivers move fewer loads, which pushes costs up.
  • Telematics services, such as vehicle and trailer GPS tracking.
  • Driver turnover; not just the cost of recruiting and training, but also the opportunity cost of empty trucks not hauling freight because they have no drivers.
  • Finding loads to move can take up a sizable chunk of every day. Every hour spent not driving loaded miles is an hour a driver isn’t making money.

The bottom line is that a lot of factors go into the cost you pay for LTL or truckload freight shipping. The costs listed here are conservative and are probably on the low end, so your costs may be higher.

The struggle is real: moving freight is getting more difficult and more expensive. By shedding light on the costs that go into each and every LTL or truckload freight move, we hope that you’re better informed so you don’t experience “sticker shock” next time you get a freight quote. If you find yourself battling rising freight costs and need some help, contact the freight shipping experts at PartnerShip. We have significant experience in both the LTL and full truckload markets and can help you ship smarter so you can stay competitive.

Get A Free Quote

Factors Contributing to the 2018 LTL Rate Increases

June 19, 2018 at 11:17 AMLeah Palnik
Factors Contributing to the 2018 LTL Rate Increases

LTL freight rate increases are unavoidable. And in this current tight capacity market, it’s no surprise that many carriers have taken their general rate increases (GRIs) earlier than in previous years. Just like in the truckload market, costs are been driven up by the ELD mandate, the driver shortage, and hours of service (HOS) rules. Coupled with the strong U.S. economy, freight demand is surging and straining the market.

Along with the tight capacity market, trends towards shorter supply chains and smaller, lighter loads have led to more demand for LTL services. The rise of ecommerce has played a large role in the increased demand. Products that consumers never would have dreamed of ordering online years ago, like furniture, have now become commonplace for ecommerce. However, these types of shipments are less desirable for carriers. With more deliveries being made to more remote areas without backhaul opportunities, the costs are significantly higher for them.

With the driver shortage, it is easier for carriers to find and recruit LTL drivers, compared to truckload. They are more appealing jobs, with shorter lengths of hauls and less time away from home and families. However, there are fewer LTL carriers entering the market when compared to truckload. The complex networks of terminals that LTL carriers rely on are much more difficult to establish, making it a significant barrier to entry.

With all of those factors to contend with, LTL carriers have been announcing their GRIs throughout the first half of 2018.

Rates aren’t the only thing on the rise. Many carriers are charging more for accessorials like inside delivery or Saturday delivery. Carriers are also implementing tools and technology that help them determine what types of freight are profitable and which ones aren’t – and charging accordingly. Dimensional pricing is one example of this. Many carriers have invested in dimensioning machines, which calculate the amount of space a shipment will need in the truck, leading to less dependency on the National Motor Freight Classification (NMFC) system.

As with any announced rate increases, the important thing to remember is that the averages may not reflect the actual increases you’ll see in your freight bills. Depending on the lane and shipment characteristics like weight or class, the increase could be significantly more.

To determine what you can expect and what you can do to offset the rising costs, start by taking a look at the increases for your typical lanes. That will give you a better idea of what cost increases you can budget for, rather than relying solely on the reported averages. Then determine ways to reduce those costs. Consider working with a freight broker, to benefit from their industry expertise. A quality broker will have the knowledge to help you navigate the market and will be able to find solutions that can help to reduce your costs.

PartnerShip can help you ship smarter. For a competitive rate on your next LTL shipment, get a free quote!

Get a free quote!

PartnerShip Loves Our Carriers! Here is Our May Carrier of the Month

June 15, 2018 at 7:50 AMJerry Spelic
PartnerShip Loves Our Carriers! Here is Our May 2018 Carrier of the Month

We love our carriers, because we know that if it weren’t for our top-quality freight carrier partners, our customers couldn’t ship and receive their freight in a timely and cost-effective way. Our carriers help us help our customers ship smarter. 

Our May Carrier of the Month is Stankovic Transport, Inc. of Brunswick, OH! They have been in business since 2009 with more than 50 owned and operated trucks and trailers.

The PartnerShip Carrier of the Month program recognizes carriers that go above and beyond in helping our customers ship and receive their freight. Our truckload team members nominate carriers that provide outstanding service in communication, reliability, and on-time performance.

For being our May 2018 Carrier of the Month, we’re providing Stankovic Transport lunch for the whole office and a framed certificate to proudly hang on their wall. The gestures may be small but our appreciation is huge!

Interested in becoming a PartnerShip carrier? We match our freight carriers’ needs with our available customer loads because we understand that your success depends on your truck being full. If you’re looking for a backhaul load or shipments to fill daily or weekly runs, let us know where your trucks are and we’ll match you with our shippers’ loads. If your wheels aren’t turning, you’re not earning.

Become a PartnerShip Carrier

Freight Insurance: Is It Right For Your Business?

June 13, 2018 at 11:07 AMJen Deming
Freight Insurance Blog Post

Let's face it: ship happens. Even though many shippers prepare for the worst and do their very best to protect their freight, loss and damage are an unfortunate reality of the business. Freight insurance is a vital tool that business owners can use to offset the costs of freight damage and limited carrier liability. Unfortunately for many shippers, freight insurance coverage can be complicated to understand and is often misunderstood. How do you know if you should be using freight insurance?

First and foremost, it is important to understand the difference between freight insurance and carrier liability. Carrier liability is an industry term used to describe the responsibility of the carrier as it relates to losses, damages, and delivery delays to compensate the shipper. Of course, exceptions are put in place by the carrier, such as whether the damage or loss is a result from the action of a shipper (ex. improper packaging), an act of God, public authority, or due to the inherent nature of the goods.

It is the responsibility of the shipper to prove that the damage or loss of their shipment is a direct result of the carrier's own negligence. To accomplish this, it is important to take pictures of your packaged freight before the pick-up is completed, and inspected thoroughly once it is delivered. Any damage or loss MUST be noted on the delivery receipt. If your shipment does not encounter any issues, it is important to properly follow the claim filing process within 9 months of the delivery date. You have even less time with a concealed claim. At 5 days max, it is extra crucial to get the process moving along promptly.

But here's the thing about carrier liability: even if you can win a claim against the carrier, the payout often doesn't cover the total cost or value of your freight shipment. Every carrier has an established payout amount, usually per pound and depending on the fright class and limit of liability. Additionally, there are many exceptions and limitations as well as restricted types of freight that are compensated for even less, such as some electronics, artwork, and furniture types. The good news? Freight insurance does not require the shipper to prove that the carrier was at fault for the damage or loss, simply that the damage occurred. It's a great way to protect you and your customers and to be sure your shipment can be covered for its full value. Freight insurance is often offered by third-party insurers at a fee on top of your carrier rate for transit. So how do you know if it's worth the extra cost?

Fragile Shipments

If you are shipping products that are fragile and may break easily, it's a good idea to seek out additional freight coverage. Most carriers have their best interest in mind, and only offer limited coverage on these types of shipments, knowing there is a higher potential that they may break in transit. So if there is damage, it's unlikely you will get the full value of what has been lost. Proper packaging can help mitigate the likeliness that damage may occur, but the loading and unloading process doesn't always go as planned. Damage can occur at pick-up and destination delivery, as well as the many times your freight may be loaded at various terminals throughout transit. There are carriers who specialize in the transport of fragile shipments, commonly referred to as white glove service providers, but this alternative can be costly and still may have limited coverage. Freight coverage purchased through an insurance provider is typically based on the declared value of your freight and can help give shippers peace of mind.

High Value Freight

Similar to those who ship fragile products, businesses who are transporting high-value goods need to be mindful of how much coverage they receive through limited carrier liability. Just because your shipment isn't particularly breakable, doesn't mean your freight is protected in the event that it can go missing or may be delayed. While unlikely, it's always a good idea to have a plan that will cover your back, and your bottom line. Carriers typically pay out by the pound. For example, it's not uncommon to see a pay out of $0.25 per lb or even less on restricted items for less-than-truckload, with a max cap of $100,000 per truckload. With many types of freight insurance coverage through different providers, the total value of the shipment is covered, despite whether the carrier accepts responsibility or not. Of course, it's always crucial that shippers are diligent and fully understand the terms of their third-party insurance coverage, no matter which provider they go with.

Inbound Shipments

Another important consideration for businesses concerns their supply order or inbound shipments. Typically, a vendor will determine this portion of the shipping process- choosing carrier, service type, and rate. Taking control of your inbound shipping is crucial, both in reducing costs and selecting the carrier that best suits your needs. But, apart from that, how can you better protect your inbound shipments against damage during transit, especially when as the receiver, you aren't even there to check on proper packaging and material handling? Enrolling in an inbound freight insurance coverage plan can help mitigate the cost of damage and help business owners take back control on their inbound freight.

It's safe to say that if you are shipping high value freight, fragile products, or receive inbound shipments, it is crucial to take a look at supplemental freight insurance options. At PartnerShip, we want to offer better coverage than the typical limited liability offered by the carrier because "one size fits all" just doesn't cut it. The shipping experts at PartnerShip can help you decrease your risk and increase your peace of mind. Contact us at 800-599-2902 or email sales@PartnerShip.com for more information about freight insurance, or get a quote today.

Free Quote