Refrigerated truck trailers, commonly called reefers, allow freight to be temperature-controlled from pickup to drop-off. All reefer shipments have one thing in common: the trailer in which the goods are loaded has a built-in refrigeration system to regulate the temperature and keep the freight at its pre-shipment temperature.

In 2015, the Federal Motor Carrier Safety Administration (FMCSA) established standards for Electronic Logging Devices (ELD). An ELD is electronic hardware that connects to a truck’s engine to automatically log hours of service (HOS). Regulating a driver’s hours of service is to prevent accidents caused by driver fatigue. Fleets and owner-operators have until December 18th, 2017 to implement use of ELDs if they have not already done so.

One of the factors surrounding the ELD mandate is its impact on freight costs. In this blog post, we’ll look at some of the factors that will drive freights costs up with use of ELDs. Let’s examine these factors one-by-one.

• Cost of implementing ELD. When electronic logging devices were introduced 20 years ago, a single ELD cost up to $2,500. Today, the FMCSA estimates that the average annual cost of an ELD will be $495 per truck. The cost to implement ELDs will be passed along to shippers but will only marginally drive freight costs up.

•  Decreased productivity. Most carriers that have implemented ELDs have reported productivity decreases of approximately 15% with fewer miles driven per day. ELDs track drive-time to the minute so operating logs can’t be “fudged.”  A driver can no longer report 300 miles driven when they actually drove 600 miles. Some carriers are charging more to make up for this loss in productivity. 81% of large fleets (more than 250 trucks) have achieved full ELD implementation so their rates have “normalized” by now. For smaller carriers, expect nominal price increases of 5-10% for loads that are booked on the spot market.

•  Reduced capacity. Some owner-operators will view the cost to implement ELDs combined with the decrease in productivity as “big brother” meddling in their business and will leave the industry, reducing capacity.

So, what effect will the electronic log mandate have on freight rates? According to transportation economist Noël Perry, truckload rates will increase about 4% this year, with additional capacity pressure caused by the ELD mandate. “The maximum impact will occur in 2018,” says Perry, “and it won’t stop until two to three years afterwards when people finally figure out they have to do it.”

Truckload capacity utilization is expected to remain greater than 100% well into 2017 and Perry puts the chance of a “significant” capacity shortage at 60%, with a 30% chance of a “real whacko” shortage. He also notes that the spot market tends to be much more volatile, with the 4% increase in contract rates translating “easily” to a 15-20% increase in spot pricing.

So, what will electronic logging device regulations mean to shippers?

• As carriers procrastinate to comply with electronic logging device mandate, it will result in fewer available carriers. Consider working with a broker/3PL to offer additional resources to keep your freight moving without any delays.

• Loss of carrier productivity means that shippers will need to better manage their time to ensure on-time delivery. For example, lanes that range from 450-700 miles will be affected as these lanes will turn into two day transit hauls instead of one.

• The truckload capacity crunch could shift some freight that would normally move via truckload to LTL. Working with a broker or 3PL that routinely handles both truckload and LTL will ensure that your business keeps its freight moving!

• Shippers can help drivers become as efficient as possible to decrease time spend on duty, but not driving.  Following these suggestions will increase driver efficiency and create additional capacity to drive down your shipping costs:

o   Have flexible shipping/receiving times

o   Reduce driver wait time

o   Quickly and efficiently load drivers

o   Provide and offer legal parking at pickup and delivery locations

•  Using a broker/3PL will help you fully vet carriers and their ELD compliance.

• Most importantly, as capacity tightens, expect rates to increase. Working with a freight broker or 3PL can help you find the carrier capacity you need and negotiate rates on your behalf.

Working with a freight broker can help you mitigate the costs associated with electronic logging device regulations. Contact PartnerShip at 800-599-2902 or use our contact us form to see how we can help you ship smarter so you can stay competitive.

It is a very common question for shippers: "Should I use a freight broker?" Before we list five important reasons why you should use a freight broker, we answer the question, “What is a freight broker?” A broker arranges freight shipping between a carrier and a shipper. In exchange, the broker receives a small commission for facilitating the transaction. That’s how freight brokers make money.

So, why use a freight broker? Efficiency. A freight broker adds value and flexibility to your supply chain and that becomes your competitive advantage. Focusing all of your energy on what you do best gives you an edge and helps you stay competitive.  Unless what you do best is shipping, you should consider using a freight broker to manage your shipping and logistics functions.

Big companies got big because they focused on what they did best. In fact, 85% of Fortune 500 companies use third-party logistics providers like freight brokers. That’s not a coincidence; it’s a cause-and-effect relationship. Every dollar saved on shipping goes right to the bottom line.

Consider these five important advantages of using a freight broker:

1. Save time, save resources, save money. With a freight broker as a strategic partner, you have the benefit of your own dedicated shipping department without the expense your own dedicated shipping department. You also don’t need to spend time on invoices, audits and training, Using a freight broker lets you focus on your business. 

2. More flexibility, more scalability. A freight broker partner is able to provide you more, or less, capacity as your business goes through its natural cycles. So there’s no need to stress over seasonality, irregular spikes or sudden troughs in your business.

3. Shipping expertise. What freight brokers do best is shipping, and working with one allows you access to their knowledge of best practices and real-world experience. It also allows you to access the latest technology for shipping reporting and visibility into your logistics.

4. It’s not just what you know, it’s who you know. Freight broker partners have expansive carrier networks that provide many advantages over an in-house shipping department. They have buying power and can provide volume discounts, lowering your shipping expenses. They also can provide access to capacity that otherwise would be unavailable, or very costly, to an internal shipping department.

5. It’s a partnership. Your freight broker works for you and will put your interests first, because when you succeed, they succeed and when your business grows, so does theirs. That’s the definition of a partnership: benefits for both parties.

Need more convincing about the benefits of using a freight broker? Call PartnerShip at 800-599-2902 or contact us and see how we can help you ship smarter so you can stay competitive. 

We depend on truckers to keep our freight and economy moving. Over time, they have developed a language all their own. Did you know that many words and phrases you use every day originated as trucker slang? Transportation is so important and vital to the US economy that we thought we’d put together a blog post about trucker slang and lingo.

First, a short history lesson. In 1958, the FCC (Federal Communications Commission) allocated a new block of frequencies for a citizens band (CB) service. During the 1960s, it became popular among small businesses that were frequently on the road, like electricians, plumbers, carpenters and truck drivers. As CB radios became smaller and less expensive, CB radio usage exploded and a CB slang language evolved.

Some common, everyday phrases that started as trucker slang include calling your spouse your “better half.” Or watching the “idiot box.” If you still have a home phone, you probably call it a “landline.” So did truckers, decades ago! Ever meet someone for a “barley pop?” Or shop at “Wally World?” Yes, these slang words for beer and Walmart owe their creation to truckers.

Truckers have also created some great nicknames for American cities. Los Angeles is commonly known as “Shaky Town.” In fact, most city slang names refer to what the city is known for. Like “Beer Town” (Milwaukee), “Guitar” (Nashville), “Derby” (Louisville), and “Gateway” (St. Louis). Others are just fun to say, like “Choo-choo” (Chattanooga), “The Big D” (Dallas) and “The Nickel” (Buffalo).

During the 1970s oil crisis, the U.S. government imposed a 55 mph speed limit, and fuel shortages and rationing were common. CB radios were crucial for truckers to locate service stations with fuel and to warn of speed traps. Truckers paid by the mile were negatively impacted by driving slow so lots of slang was created to alert other truckers of law enforcement. If you’ve seen Smokey and the Bandit, you know an officer of the law is a “bear.” But did you know that a rookie cop is a “baby bear,” a police helicopter is a “bear in the air,” or that a speed trap is known as a “bear trap?” A sheriff is known as a “county mounty” and “city kitties” are the local police.

Finally, you’ve probably used “10-4” to acknowledge that you heard or understood something that someone said. Same with “what’s your 20?” which is short for 10-20, meaning location. These everyday terms originated from CB radio slang.

Next time you have a load you need to keep between the ditches, whether it is "Badger Bound" or headed to "Mile High," contact PartnerShip. You can reach us at 800-599-2902 or get a quote now! Until then, keep the shiny side up and the greasy side down.

Now that the countdown is over and you’ve vacuumed most of the confetti out of your carpet, it’s time to look forward to the rest of the year and make (hopefully not empty) promises to yourself for a better future. Your overall resolution as a business, when it comes to your shipping operation, should be to save money. In order to successfully achieve this resolution over the next year, you’re going to have to make sure key operations and processes are in place and followed. Not to fear, as Your Shipping Connection, we’ve compiled 5 recommended resolutions for your company to make in 2016 to achieve your end goal – saving money!

1. Consolidate - As a general rule, one big order ships for less than three smaller orders. That means businesses should consider consolidating multiple orders into a single large shipment whenever possible, and always try to minimize the number of packages it sends. All too often, shipments are arranged as they come in from sales or order processing. However, a little planning and visibility will go a long way towards saving on shipping costs, supplies, and time.
2. Commit to Saving on Inbound Shipments - Many companies that have outbound freight will more often than not have shipments coming into their facility from vendors and suppliers. These shipments are often billed to the consignee even though the consignee has no control over how the shipment is shipped or handled by the carrier. Even if your company isn’t seeing a direct invoice for these shipments, there’s no such thing as “free shipping” and the charges are probably being hidden elsewhere. In short, staying on top of your inbound shipping cultivates a healthy bottom line.
3. Avoid Reweighs and Reclasses – Making this simple commitment to a more detail-oriented shipping operation will no doubt save you time and money in the long run. Most of avoiding costly reweighs or reclasses comes down to one document – your Bill of Lading (BOL). Make accuracy a priority on your BOL and enjoy a hassle-free shipping operation.
4. Make New Connections – If you’re not yet working with a 3^rd Party Logistics (3PL) partner, you can knock the above resolutions (and many more) out of the park in 2016. There are many benefits to taking on a shipping partner, but, in short, a good 3PL should put a great deal of effort into concentrating on the shipping industry, developing solid relationships with carriers and drivers alike, and leveraging that stability into savings and service for their customers. Thereby taking costly time commitments from your staff and providing savings for your company.
5. Catch-up on Your Reading – Between our blog and our white papers, PartnerShip puts out a great deal of information to keep you informed on happenings in the constantly changing shipping industry and tips on how to save money on any and every shipment.

Interested in making and keeping these resolutions? Consider PartnerShip as your dedicated shipping partner! We have over 25 years of experience managing less-than-truckload (LTL), tradeshow, truckload, and small package shipping operations for thousands of businesses. Every year since 1989 our New Year’s resolution has been to save you money! 

Visit PartnerShip.com/LearnMore for more information.

Why should you care about truck driver availability issues? For one, it directly affects how much you pay to ship your freight. The more truck drivers available to transport loads across American roadways means more competition for your load, more capacity available, and lower prices on freight transportation. It also means that you have less of a headache trying to find someone to take your freight to less desirable locations in the country.

Now that you know why you should care, we’ll take a look at what is causing this issue, what steps are being taken to address this issue, and how you can offset this problem for your company’s shipping operations right now.

What is causing the driver shortage?

• Age – One of the largest factors today is the average age of the existing workforce which is 55 as compared with 42 for all US workers. With an aging demographic of labor, there aren’t enough newer generations looking for jobs in the trucking industry. Coupled with the age gap, the industry has struggled historically to attract enough qualified applicants to drive a truck. Carriers need to be highly selective when hiring drivers because they have made safety and professionalism their main concern.
• Industry Growth – There is more freight on our roadways today than ever and all signs point to that continuing to increase - with overall revenue in the trucking industry expected to rise 66% and tonnage forecasted to increase 22% by 2022. More freight means the need for more drivers.
• Lifestyle – New generations are not exactly flocking to the trucking industry, as the romance of the open road doesn’t seem to be enough to entice drivers to spend significant amounts of time away from their families.
• Gender – The majority of the workforce is predominantly male. Females only comprise of 6% all truck drivers which leads to a very large untapped portion of the population.
• Job Market – With the job market improving over the years there are more job opportunities available for would be potential truck drivers.
• Federal Regulations – While normally in the interest of safety, changes to Hours of Service (HOS) regulations, CSA and Electronic Logging Devices continue to play a large role as they can reduce driver productivity and ultimately earning potential.

How are driver availability issues being addressed?

• Driver Pay – Perhaps the most important attractor to truck driving is that pay is increasing for this profession. The average annual pay is up about 28% since 2000 and that trend shows no signs of changing. In an effort to attract quality candidates, sign-on bonuses are now very common within the industry along with family-friendly work schedules.
• Working Conditions – Technology updates such as a shift to automatic transmissions, new diagnostic tools, and digital communication and tracking are being implemented to attract tech-savvy generations to a traditionally un-technology focused industry. Secondly, long-haul trucks are being made more comfortable with amenities like kitchenettes, pet accommodations, and more comfortable interiors that are taking the edge off of long trips.
• Lowering the Driver Age – The minimum age for interstate driving in the trucking industry is 21. By lowering the age limit to 18, the industry will open up to those 18-20 year olds that may have already found another trade by the time they are 21.
• Increasing the Labor Pool – Initiatives are being created to help foster a positive image of truck driving as a satisfying career. Carriers are also developing programs to help with the training and development of their existing talent.
• Autonomous Trucks – New technologies like driverless trucks might not be on the roads today, but it's a technology that is gaining steam and could be here sooner rather than later. Platoon driving might be the first technology down the pike that, while still requiring equipment operators, provides the opportunity to decrease driver involvement by using a lead truck connected to others. The lead truck would then control the following (linked) vehicles through controlled breaking and acceleration.

How can I offset issues for my shipping operations due to current driver shortages?

The American Trucking Associations (ATA) estimates that the U.S. is short 35,000-40,000 truck drivers and has the potential to go much higher. And, as we mentioned before, less truck drivers means less competition for your freight and, in turn, a higher price to move your shipment. While there are steps being taken to correct 35,000 driver gap, it definitely won’t happen overnight. It’s important to take corrective steps now to realize present and future savings for your company.

The right price for your load is usually out there, you just have to put in the time to find the rate. Working with a 3PL partner, someone completely dedicated to finding you the right rate, is one way many companies are offsetting the current time and price commitment reality in the trucking industry. A good 3PL should put a great deal of effort into concentrating on the market, developing solid relationships with carriers and drivers alike, and leveraging that stability into savings and service for their customers.

Visit PartnerShip.com if you would like to know more about truckload services through PartnerShip, our carrier partners, or to contact us with questions.

We’ve all been there; driving behind a semi that is chugging up a long hill or taking its time on a two lane road. Sometimes, it’s OK, you’re not in a hurry, but other times you’re already late and the truck is making a bad situation worse! The choice you’re left with is safely waiting it out and following the truck to your destination, or weaving in and out of oncoming traffic to find the perfect moment to legally pass the semi-truck. Most of us choose the more dangerous, but quicker, second option.

The good news is that Samsung is actively working on a solution to this very problem. Over the summer, Samsung released video of its Safety Truck in action (below)!

The Safety Truck works by using a safety camera attached to the front of the truck, which is connected to a video wall made of four monitors located on the back of the truck. The monitors provide any driver behind the truck with a full, unobstructed view of the road ahead.

While the technology is currently targeted for use abroad, where there are more serious traffic safety issues, the possibility of seeing this on United States roadways definitely exists. We just hope the technology is in fact used for displaying roads and not for serving for more FanDuel advertisements…

PITT OHIO, one of the PartnerShip carrier alliances, plans to expand service to Kentucky, specifically the Louisville market, starting Monday, August 17^th.

PITT OHIO is headquarted in Pittsburgh, PA and services the mid-Atlantic and Mid-West regions. PITT OHIO has continuously grown over the last 35 years and is expanding into the Louisville market to increase their services and direct coverage area.

"Our focus on providing customer-centric solutions to shippers has lead PITT OHIO to expand our core service area to include the metro Louisville market," said Geoffrey Muessig, Chief Marketing Officer and Executive Vice President. "Customers tell us that we can enhance their supply chains by providing reliable and dependable LTL service between the Mid-Atlantic states and Louisville."

"Current PITT OHIO clients and new customers can anticipate the same level of performance in Louisville expected from PITT OHIO elsewhere," Brad Caven, Vice President of Operations remarked. "Our Cincinnati terminal is well-equipped to exceed expectations to and from these markets in Kentucky."

Standard service times will be 1-2 days in most areas of PITT OHIO’s direct service area. Service to Louisville Kentucky will start Monday, August 17. Customers with freight in PITT OHIO´s current direct coverage area destined for Louisville can begin scheduling pickups on Friday, August 14.

If you are interested in receiving a PITT OHIO rate quote for an upcoming freight shipment, log on to PartnerShip.com, or create a web account if you haven't already done so.