Carrier Liability

Every freight shipment is covered by some form of liability coverage, determined by the carrier. The amount of coverage is based on the commodity type or freight class of the goods being shipped and covers up to a certain dollar amount per pound of freight. 

In some cases, the carrier liability coverage may be less than the actual value of the freight. It’s common to see liability restricted to $0.25 per lb. or less for LTL or $100,000 for a full truckload. Also, if your goods are used, the liability value per pound will be significantly less than the liability value per pound of new goods. Liability policies can vary, so it’s very important to know the carrier’s liability for freight loss and how much is covered before you arrange your freight shipment.

Freight damage and loss is a headache. In order to receive compensation, a shipper must file a claim proving the carrier is at fault for the damaged or lost freight. Carrier liability limitations include instances where damage is due to acts of God (weather related causes) or acts of the shipper (the freight was packaged or loaded improperly). In these cases, the carrier is not at fault. Additionally, if damage is not noted on the delivery receipt, carriers will attempt to deny liability. 

If the carrier accepts the claim evidence provided by the shipping customer, then they will pay for the cost of repair (if applicable) or manufacturing cost, not the retail sell price. The carrier may also pay a partial claim with an explanation as to why they are not 100% liable. The carrier will try to decrease their cost for the claim as much as possible.   

Freight Insurance

Freight insurance (sometimes called cargo insurance or goods in transit insurance) does not require you to prove that the carrier was at fault for damage or loss, just that damage or loss occurred. Freight insurance is a good way to protect your customers and your business from loss or damage to your freight while in transit. There is an extra charge of course, and it is typically based on the declared value of the goods being shipped. Most freight insurance plans are provided by third-party insurers.

As mentioned earlier, your freight might have a higher value than what is covered by carrier liability, such as shipping used goods. Another example is very heavy items. Carrier liability may only pay $0.25 per pound for textbooks that have a much higher value. This is a great example of when freight insurance is extremely helpful in the event of damage or loss.

Carrier Liability vs. Freight Insurance in the Claims Process

If your freight is only covered by carrier liability coverage:

·         Your claim must be filed within 9 months of delivery

·         The delivery receipt must include notice of damage

·         Proof of value and proof of loss is required

·         The carrier has 30 days to acknowledge your claim and must respond within 120 days

·         Carrier negligence must be proven

If your shipment is covered by freight insurance:

·         Proof of value and proof of loss is required

·         Claims are typically paid within 30 days

·         You are not required to prove carrier negligence

Deciding which option is best for your shipment

Anything that comes at an added cost needs to be evaluated critically and freight insurance is no different. There are a few things to consider as you weigh the potential cost and risk of damage and loss versus the cost and benefit of insurance. You'll need to think about the commodities you're shipping, how time critical your shipment is, and if you'd be able to weather the financial burden that comes with a denied or delayed claim payout. 

Understanding your carrier's liability coverage and knowing the ins and outs of freight insurance can be tricky. If you have questions like “how much does freight insurance cost?” or “what does freight insurance cover?” the team at PartnerShip can help. 

It's common in logistics and warehousing to be asked: What is cross-docking? What is transloading? What is the difference between cross-docking and transloading?

Cross-docking is unloading inbound freight from one truck, holding it in a warehouse or terminal for a very short period of time, and loading it onto another truck for outbound shipping.

Let's look at an example of cross-docking: A manufacturer needs to ship 20 pallets of products from the east coast to destinations in Texas, Florida and California. The 20 pallets are first shipped to a third-party warehouse in Cleveland, Ohio. A day later, 5 pallets are sent to Florida, 10 to Texas, and 5 to California on trucks bound for those destinations. Since the pallets were never unpacked and were only in the warehouse long enough to move them from one truck to another truck (and from one dock to another dock), they have been cross-docked. 

Transloading is when inbound freight is unloaded, the pallets are broken down, and their contents sorted and re-palletized for outbound shipping.  

Using the same Cleveland, Ohio third-party warehouse, here is an example of transloading: 5 suppliers of a manufacturer ship a year’s supply of components to the warehouse. The components are stored until they are needed, at which time the warehouse picks them, assembles them into a single shipment, and ships it to the manufacturing facility.

To recap, cross-docking is the movement of an intact pallet (or pallets) from one truck to another, and transloading is the sorting and re-palletizing of items.

Both cross-docking and transloading services are specific logistics activities that can create benefits for businesses; especially ones that utilize a third-party warehouse.

Benefits of cross-docking

• Transportation costs can be reduced by consolidating multiple, smaller LTL shipments into larger, full truckload shipments.
• Inventory management is simplified because cross-docking decreases the need to keep large amounts of goods in stock.
• Damage and theft risks are reduced with lower inventory levels.
• With a decreased need for storage and handling of goods, businesses can focus their resources on what they do best instead of tying them up in building and maintaining a warehouse.

• Businesses can store goods and products near customers or production facilities and have them shipped out with other goods and products, decreasing shipping costs.
• Businesses can ship full truckloads to a third-party warehouse instead of many smaller LTL shipments.
• With storage and logistics managed by others, the need for building and maintaining a warehouse is eliminated.

Is it time for your business to consider a drop trailer and / or drop and hook freight program? 

First, let's answer what is a drop trailer? It is when a carrier brings a tractor to the loading dock and picks up a previously loaded trailer. Drop and hook takes drop trailer shipping one step further. A carrier will arrive with an empty trailer to drop, pick up a loaded trailer, and continue on to the destination.

What is a drop trailer used for? Many shippers consider drop trailer programs because of the hours of service rules issued by the Federal Motor Carrier Safety Administration (FMCSA) which are more strictly monitored by the ELD mandate.

Before the change to the hours of service rules, if a driver waited three or four hours or more while their trailer was loaded, they could make up the time by driving more hours. Now, with an ELD required for every tractor, load time and detention is a significant consideration because it cuts into the 14-hour on-duty shift rule.

To illustrate, if a carrier has to drive an hour to the shipping origin, then wait five hours to get loaded, that means he can only drive for 8 hours after leaving for the destination. If he averages 60 mph, he can travel 480 miles. If the same driver picked up a loaded trailer, he could drive 10 hours before reaching the 11-hour driving limit. If he averages 60 mph, he can travel 600 miles.

What is a drop trailer doing for your supply chain? Drop trailer programs help shippers and carriers plan more effectively for deliveries and outbound shipments so it is important for them to align their schedules. Without drop trailers, a carrier must arrive within a narrow appointment window for employees to load or unload the trailer. Depending on how the appointment fits into their on-duty schedule, and considering traffic conditions, weather, breakdowns and other unexpected events, the driver could be forced to wait for hours, or miss the appointment altogether. In these situations, late delivery fees, detention fees, and a negative vendor scorecard are typically the unpleasant results.

Drop Trailer Benefits for Shippers:

• Smoother supply chain operation. You can load or unload a trailer at your convenience or when staffing levels are adequate; no more paying overtime to load or unload when a truck is early or late.
• Great for time-consuming loads, like floor-loaded freight.
• Less congestion in docks, improving overall safety of operations.
• Avoid costly driver or truck detention accessorial charges.
• Higher on-time delivery percentages. On-time freight departure times substantially increase the odds of an on-time arrival.
• Decrease fines. With strict retail Must Arrive By Date (MABD) requirements becoming more common, drop-trailer shipping can help your carrier arrive on time and minimize the fines associated with missing a delivery window.
• Better retailer relationships. When you fulfill MABD requirements, your vendor scorecard improves and you are seen as a more desirable vendor partner.

• Better planning. You decide when you pick up (and drop off) trailers.
• No more waiting to pick up a load or be live-loaded; spend more time driving to the destination.
• Great for time-consuming loads, like floor-loaded freight.
• Higher on-time delivery percentages.
  

There are a few circumstances of which to be aware when considering a drop trailer program. What is a drop trailer cost? Every trailer that a carrier takes out of over-the-road service is lost revenue, so to recoup it, there will be a cost for a drop trailer, either on the front end or back end (or both). Of course, this cost will pay for itself because there should never be any detention fees.

Drop trailers should not become warehouses; the maximum time a trailer should sit is a week. In most drop trailer programs, trailers turn two or three times a week. Because of this, produce and perishable goods aren't well suited for drop trailers, since keeping the goods fresh is necessary.

Finally, there is a lot of up-front work to implement a drop trailer program. Not all carriers do drop trailers so finding one that does can be time-consuming. Trailers make carriers money so if one of your carriers doesn’t want to drop a trailer, simply look at using a different one.

A drop trailer or drop and hook program is a perfect opportunity to use a freight broker. Working with a broker allows you to tap into their network of carriers and take advantage of their expertise in finding carriers that will drop trailers. The truckload shipping experts at PartnerShip will work with you to find a drop trailer or drop and hook carrier and get you the best freight rates possible. We know the lanes, we know the rates and we will help you ship smarter. Contact us today to learn more about setting up a drop trailer program!

The freight industry can be a confusing place. It's pretty easy to get lost in terminology, and even experienced shippers can find themselves puzzled by basic questions. For example: what's the difference between a freight broker and carrier?

It turns out there are actually three key distinctions between the two parties, and understanding how each factor affects your load is important for smooth shipping.

Key Distinction #1: Responsibility to shipper

When looking at a freight broker and carrier, it's important to understand the primary responsibility of each party in the physical transportation of your freight. 

What is a carrier?

A carrier refers to the company, or operator, that directly handles the transportation of your shipment. Common national carriers include TForce Freight, YRC Freight, ArcBest, and more. Carriers can specialize in less-than-truckload (LTL), dedicated truckload freight, or even specialized services such as refrigerated or oversized freight equipment.

What is a freight broker?

A freight brokerage is a company that serves as a transportation intermediary rather than directly operating a truck fleet and physically moving your freight. A freight broker's job is to contract available loads with a carrier and find an acceptable rate within a specified time frame according to the shipper. The freight broker cuts down the time and effort it may take for a company to look for its own carriers and may decrease costs by shopping quotes.

Key Distinction #2: Geographical restrictions

Freight carriers and brokerages serve distinct areas in the U.S. and sometimes overseas. Knowing their strongest network locations can guide your business decision.

Where do carriers operate?

Common carriers, like XPO Logistics, primarily move freight loads. They have hubs in high-demand areas offering maximum truck availability and competitive pricing. For regions outside these hubs, they may have limited schedules or collaborate with regional carriers for rural deliveries. These regional carriers are smaller businesses operating within a specific area and have exceptional proficiency within their zone. Essentially, national carriers can deliver anywhere in the U.S., but for remote areas, they might need to involve regional carriers which could result in longer delivery times.

Where do freight brokers operate?

Third-party logistics providers don't need to manage assets or trucks, so they can operate from any location. Many have main offices in popular shipping areas and satellite offices across the country. Some specialize in certain industries, like oversized freight or cross-border shipping. A broker can also focus on building relationships with transportation carriers for increased flexibility and specialized service. 

Key Distinction #3: Liability for claims

In damage claims, carriers are generally legally liable due to the Carmack Amendment, while brokers aren't. However, brokers can and should aid in dispute resolution. With blurred lines between the two parties, it's important to explore them in detail.

What is a carrier's liability?

Per the Carmack Amendment, the carrier owns the items while they are being transported. When the carrier agrees to transport something, a deal is made based on the shipper load and count on the bill of lading (BOL). The shipper signs this document, saying that they packed and counted everything correctly. From the moment the goods are picked up until they are delivered, the carrier is in charge. If anything gets lost or damaged, the carrier has to answer for it. If there's a problem, you make a claim with the carrier, not the broker who set up the transportation.

What is a broker's liability?

From a legal perspective, carriers, not freight brokers, are responsible for any freight damage. However, good freight brokers have claims experts who know about shipper rights, liability limits, and claims filing. While carriers must handle damaged freight, brokers have the ethical duty to guide shippers and assist during complex situations like damage or loss claims.

The advantage of using a freight broker

When you work with a quality freight broker, you gain expertise, increase operational flexibility, and add a cost-saving alternative that you may not have when working directly with a carrier. Working with PartnerShip can ensure you have a team in your corner to help you navigate even the most unique shipping challenges. 

Freight damages and lost shipments are the worst. Submitting a freight claim in order to receive compensation from the carrier can be challenging, and if you don't do it right, you're unlikely to get much of a payout. In fact, certain mistakes that you might be making can pretty much guarantee a denial or low payout - and have the carrier jumping for joy.

As we near the end of 2022, it’s crucial to plan ahead for shipping through the holiday season.  Freight demand is starting to show signs of decreasing but continues to strain available carrier capacity. As a result, transit times are still a bit unpredictable. 

Planning your shipping schedule during the final months of the year will be extra important. To avoid extra stress, take note of when your carriers will be closed during the holidays. 

Freight carrier closures

• Saia LTL Freight – will be closed November 24 - 25, December 23 - 26, and January 2.
• YRC Freight – will be closed November 24 – 25, December 24 – 26, 31, and January 2.
• XPO Logistics – will be closed November 24 – 25, December 23 – 26, and January 2.
• ArcBest – will be closed November 24 – 25, December 24 – 25.
• R+L Carriers – will be closed November 24 - 25, December 24 - 26, and January 2
• Estes – will be closed November 24 – 25, December 23 – 26, and January 2.
• Dayton Freight – will be closed November 24 – 25, December 23 – 26, and January 2.
• Pitt Ohio – will be closed November 24 – 25, December 23 – 26, and January 2.
• AAA Cooper – will be closed November 24 – 25, December 23 – 26, and January 2.
• TForce Freight – will be closed November 24 – 25, December 23 – 26, and January 2.

Avoid being left out in the cold this holiday season

Freight shipping during peak shipping months can be extra-challenging, but you’re not alone. With over 30 years of holiday seasons under our belt, the freight experts at PartnerShip can help you ship smarter. 

Please note that our office will be closed November 25-26, December 26, and January 2 so that we can celebrate with our families. Happy Holidays!

Manufacturers are kind of a big deal. Take a look around, and you’ll notice that the products, supplies, equipment, and tools they produce are everywhere. Lately, conversations about manufacturing are shifting, as the industry itself is evolving to meet new expectations and demands. In order to gain some insider perspective, we reached out to our industry contacts and association partners. Holly at Jatco Machine &Tool Company, Inc., NTMA member and PartnerShip customer, was generous enough to provide some expert insight.

• What specific shipping challenges do manufacturers face? What do they do to combat those issues?
  Holly: Some specific shipping challenges would be the balance between cost and delivery times, items arriving on time and undamaged, difficulty of creating/placing shipment. Some things we do to combat those issues are utilizing PartnerShip and packaging our items up ridiculously well. Partnership offers us savings by combining shipments, and they make it so easy to create a shipment. They literally do it all for you!

• What is the most important factor related to shipping for manufacturers and why?
  Holly: It’s hard to choose one. Obviously, safety goes without saying and should just be a standard for everyone. Other than that, it would be delivery times. Sending an item to a subcontractor can become a process. Two days to ship freight, maybe two or three days for them to do the work, and then another two days back is a full 7 days eating into our deadline. We’d like to get freight to a subcontractor overnight and vice versa. And honestly, two days is not terrible!

• How can PartnerShip make life easier for manufacturing businesses? 
  Holly: I think that they really do all that they can to be efficient and easy to work with. I enjoy calling and having someone fill everything out correctly, search for rates, and give me the best options.

• What do we, and others in the industry, need to know about manufacturers and how to best address their shipping needs?
  Holly: We have one-two shipments with Partnership per month. I’m sure others have more or varying amounts. It’s nice to know that we can receive great rates based on merely being a partner verses number of times we ship. We are a small business doing big things all over the country. Shipping will always be a part of that. Partnership makes that aspect as easy as possible.

• Key Considerations for Shipping High-Value, High-Risk Freight
• 5 Foolproof Ways to Take on Manufacturing Shipping Challenges
• Types of LTL Carriers and When You Need Them
• 4 Ways Consolidating Your Freight Will Make Your Life Easier
• 5 Freight Broker Benefits You Can’t Afford to Pass Up

LTL freight shipments come in many forms, but one of the most confusing types you may have heard of is blind freight shipping. In blind freight shipping, the identity of the shipper, receiver, or both parties is hidden. It’s most commonly used when a business is shipping orders directly from the manufacturer to the customer.

If you think that sounds complicated, that’s because it is, but there are distinct advantages to taking this route when arranging a freight shipment. The most common reason a business would choose to do this is to keep other parties within your supply chain confidential from your customers, such as manufacturers or distributors. The idea is that they would then be deterred from going directly to those sources for a product instead of your business. Sounds good, right? Well, the challenge is that managing blind freight shipments can get pretty dicey, and most missteps fall within three major areas.

1. Blind Freight Paperwork Mistakes

   Properly preparing and distributing freight shipping paperwork is a stumbling block for many shippers, on even the most standard loads. In blind shipping, up to three separate BOLs must be prepared, depending on which parties aren’t being disclosed. In double-blind shipping, you will have one for the shipper, one for the receiver, and a conventional BOL for the carrier’s use. All three of the BOLs should include accurate shipment details, including weight, dimensions, and product description. 

   They should also include accurate freight classes so that the load is billed properly. Each of them will, however, have slight but crucial differences to ensure your blind freight stays “blind”. A shipper’s BOL will have all of the usual info, but also include PO# or other identifying information. The receiver may be omitted in order to keep the customer anonymous. Likewise, on the receiver/customer’s BOL, the supplier’s identifying info and address will be concealed. The carrier BOL must contain all relevant information that is typically used on the BOL, including both shipping parties full information.

   Failing to prepare BOLs properly, or handing them off to the incorrect party, can result in major headaches. A shipment can be misrouted or lost, billed incorrectly, or the blind freight’s purpose may even be defeated by accidentally disclosing parties to one another. The best thing you can do when managing a blind freight shipment is confirm that the carrier has all of the accurate details when setting up the shipment, including the true addresses of both shipping parties.

2. Not Accounting for the Additional Costs Associated With Blind Freight 

   It’s always smart to assume that if a shipment has any extra services or needs “special” attention, a carrier is going to add some extra fees for their trouble. Due to blind freight shipping complexity, there are extra costs associated with this service. Every carrier charges different amounts, and we’ve seen them anywhere from $50-$150. Check your carrier’s website to determine costs. As seen here with YRC, cost is stated clearly, as well as instructions to prepare a blind freight shipment per their standards. Research these fees and make sure you’re building them into your budget to avoid surprises.

   On top of regular fees for the service, you have to remember that any errors you make when arranging a blind freight load can end up costing you even more. For example, if you handed off the wrong BOL, and the address is incorrect, rerouting and redelivery fees may apply. This can really inflate your final bill, as well as create on-time delivery complications and stress with your customer. 

3. Not Being Aware of Blind Freight Restrictions

   Just as we see with blind freight costs, requirements and restrictions on these types of shipments can vary with each carrier. Some carriers have a pretty relaxed approach, while many need additional paperwork or approval beforehand. It’s always important to notify your carrier that a shipment is blind at the start of the process so that you can iron out details. 

   Many carriers, such as YRC, require a form or document to be prepared online before pick-up, so that an “official” notice is on file for the request. Carriers may also require paperwork to protect their interests in the case of blind shipping. There may also be a waiver to sign, notifying you that while they will do everything in their power to honor the request, if something goes wrong, it’s not on them. Some may even include stipulations, such as a note that re-delivery will not be attempted due to issues associated with paperwork errors. It really just depends on the shipper, so be sure to visit carrier websites and search for policies on blind freight shipping. If there isn't information made front and center, always download the latest rules tariff and read the fine print. It's not fun, but it may help you avoid mistakes.

While blind freight shipping can sound totally overwhelming, the opportunity to use this type of freight service should be considered for anyone working as a “middleman” between customers and suppliers. A great freight broker can help manage all of the details, including paperwork and communication between all parties to ensure accuracy. With the right assistance, you can be sure that your blind freight shipment will go smoothly. If you think your business might benefit from blind freight shipping, get in contact with a PartnerShip freight expert to learn more.

Combining multiple, smaller palletized loads into one larger freight shipment can really pay off in the long run. From saving on costs to increasing fulfillment efficiency, both your business and your customer relationships will benefit from well-planned freight consolidation.  

Your LTL freight shipments have an arduous journey and can encounter any number of obstacles while traveling the long, winding road to their destination. Certain seasons of the year can lead to increased risk, and shipping in the summer is no exception. In addition to temperature sensitivity, there’s a variety of other factors that can make summer shipping extra prone to issues. We’ve boiled down the major summer freight shipping mistakes that you should avoid, to keep your costs and blood pressure low in the summer heat.

Mistake 1: Neglecting the boom in summer shipping volume 

Summer is a busy time for many industries, from retailers who are busy boosting inventory to farms and growers sending produce loads to grocery distributors. We see a huge increase of freight shipments hitting the road in the summer months. This can affect carrier capacity and make it even more difficult to find available trucks. Time-sensitive loads will be more difficult to cover, too, since last-minute truck booking will be harder to accomplish. It’s nearly impossible to understate how much this boost in volume affects the market.

Solution: Make your loads desirable to the carrier

To claim first dibs on your favorite carriers, you need to make sure that your loads are as appealing as possible. Stay in good standing with the driver – have a clear loading dock, organized loading process, and make sure your packaging is ideal and easy to transport. The main goal for a driver during these busy seasons is to get in, get out, and get on the road. The more time wasted on navigating your parking lot, loading your shipment, or collecting paperwork is going to set them back for the day. Making life easy for your carriers might be the boost you need to get your loads covered quickly in the summer.

Mistake 2: Assuming rates will be the same year-round

Freight rates are directly related to capacity, and in seasons when it’s extra crunched, you’ll see them go up. Other variables like fuel costs can fluctuate unexpectedly as well, so keep these factors in mind when you are building shipping costs into your customer orders. Always keep in mind that a freight quote you received months ago in preparation for a load will no longer be accurate. And if the freight rate is more costly in the present, you can’t exactly go back and ask for more money to cover the difference. 

Solution: Check spot rates regularly and build in extra cost

Your best tactic for getting an accurate estimate on freight costs is to run sample quotes periodically, through every season. Gather several from a variety of carriers, being mindful of accessorial costs and other extras. Take an average and use this rate to build in the cost of shipping in your customer orders. It’s always a great idea to cut costs as much as possible in less busy months, as well, to offset the increase during the summer. Creating a nice buffer for your budget can go a long way.

Mistake 3: Taking risks with temperature sensitive loads

It goes without saying that summer’s soaring temperatures can cause extra risk to your loads. Creating a protective environment for your product is key to limiting damages during transit. Frozen goods and fresh produce are commonly known risky loads, but items like pharmaceuticals, electronics, chemical agents, and more all need some extra love during the summer. Now is not the time to risk an “economy” or budget carrier for the sake of saving a few bucks.

Solution: Research and use quality specialty carriers 

Just as in any industry, freight carriers can leverage expertise and specialize, as needed. Make sure you are looking at carrier companies that are experts in temperature-controlled services and employ refrigerated vans. Understand that these types of specialized equipment are in high demand, and will be more expensive and harder to find. When reviewing reefer carrier options, ask questions on how the equipment is maintained, how loads are stored and separated, and what they do to address potential delays while in transit. Even if you have a product that may walk the line between needing a reefer or regular dry van, taking the chance during extreme heat isn’t going to work in your favor.

If you haven’t figured it out already, shipping freight in the summertime can create a two-fold risk for your shipment. Warmer weather can cause product to deteriorate quickly, and capacity issues may lead to more delays than during slower times of the year. Combined with extreme weather, you have a recipe for disaster, namely damaged freight. Also, keep in mind that while many areas of the U.S. will welcome temperate weather in the summer months, other areas can experience heavy rains, impact from hurricanes and tornados, and severe drought or wildfires – all events that affect transit times.

Solution: Be extra mindful when scheduling long-haul shipments 

Planning and being proactive about any potential delays is your best bet for success. Try to avoid shipping over weekends and holidays – most carriers will stay off the road and your freight will be left waiting. By avoiding those blackout dates, you can help protect your freight and also keep your costs low – rates skyrocket for carriers willing to move loads. If your load is liable to deteriorate due to temperature or transit-time related risk, you should always opt for services that can offset those factors. 

Keep your cool this summer

Shipping freight in the summer doesn’t need to cause extra headaches and stress – it just requires better planning and a thorough knowledge of your product needs. By selecting the right carrier and equipment, planning for efficiency, and being proactive about truck capacity, you can minimize risk and ensure you’re shipping safely. The freight experts and PartnerShip can help answer any questions about your temperature-controlled loads and help navigate your summer freight successfully.