2018: The Year of the Truck Driver

December 6, 2017 at 1:30 PMJen Deming
Truck Driver

Ringing in the New Year means starting fresh and anticipating big changes for future, and truck drivers may be looking forward to 2018 more than anyone. The ELD mandate, driver shortages, fuel costs, and e-commerce boom are all components that leverage trucking companies' ability to determine cost and coverage.

As we covered in our previous blog post, truckload rates are going up due to a number of different factors. That means that drivers and trucking companies are going to be behind the wheel when it comes to determining how much shipping lanes will be going for. Having this leverage pushes the shipper to the passenger seat, with the potential for less bargaining power and high shipping costs heading into the new year.

A significant factor contributing to the higher truckload rates is due to an overall shortage of willing and capable truck drivers. Trucking analyst John Larkin suggests that the slow but steady economic increase will result in stronger demand with tighter supply. "The primary driver of the supply/demand tightness is the economy-wide shortage of skilled, blue collar labor," he says. "While driver pay scales began to rise in the 2nd half of 2017, the starting point for wages was so low, that it may take multiple wage hikes before we see any alleviation of this chronic challenge." The ELD mandate, which will be fully implemented on Dec 18, 2017, may add increased tension to an already volatile scenario. Many drivers view the mandate as an invasion of privacy, and may push an already limited number of qualified and experienced drivers from the pool of available carriers.

The amount of freight being hauled by trucks is expected to increase more than 3% annually over the next five years, as reported by the American Trucking Association. The industry has already seen a 2.8% increase over the past year, and the ATA estimates it could accelerate as much as 3.4% before slowing down again slightly. A notable increase in shipping economy means that though the available trucker pool has dwindled, those who are qualified are more in demand than ever. In addition, because those drivers may have to travel outside their normal area of operations, they can charge a premium. The ATA also reports that trucking will continue to be the dominant freight mode, and in 2017 "approximately 15.18 billion tons of freight will be moved by all transportation modes." The growing economy will further push demand and stretch the pool of available carriers. The ATA estimates that the current 50,000 driver-deficit could expand to 174,000 by 2026.

With that economic push, and labor shortage, truck drivers will demand higher wages and shippers will have to pay. The third-quarter hurricanes are also said to have played a factor, with drivers understandably asking more for lanes they had run at lower rates previously. Additionally, Florida and Texas, the two states hit the hardest by the storms, are typically some of the most reliable recruiting markets for new drivers. Until the economy recovers in these states, the pool of new drivers will be limited, with many potential recruits choosing the recent wave of construction positions over trucking. A jump in driver pay may keep them interested. According to Bob Costello, the American Trucking Association's economist, observes, "We've already seen fleets raising pay and offering other incentives to attract drivers." The driver pay structure is also evolving. Where once most carriers were being paid by load, many are now moving to an hourly pay model, specifically as the ELD mandate takes effect. Either way, with the anticipated changes for the new year, it's safe to say truck drivers and carriers are going to have a huge influence on shipping rates for the near future.

So, now that truck drivers have extra leverage, what can shippers do to help keep down their shipping costs in 2018? Working with a freight broker like PartnerShip can help add value and flexibility to your current shipping options. We shop rates and put in the legwork for you, negotiating on your behalf with carriers for both your LTL and your Truckload moves. If you have questions on how PartnerShip can help manage your shipping costs, call us at 800-599-2902 or get a free quote today!

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Need It Yesterday? A Guide to Time-Critical Shipping

November 27, 2017 at 9:53 AMJen Deming
Holiday Time Critical Shipping

Holiday fulfillment and expedited freight deadlines are as much a part of the holiday season as cookies, cocoa, and hasty gift wrapping. Shipping managers are very much like the St. Nick of logistics, making sure every order is out—and delivered—on time and accurately to every customer. Between weather delays, unexpected inventory depletion, and rush order fulfillment, planning your winter shipping strategy is a crucial part of your holiday preparation. By being mindful of carrier schedules and deadlines, subsequent holiday surcharges, and familiarizing yourself with time-critical options, you will know which services best fit you and your customers’ needs.

Sometimes, despite how prepared we think we are, a deadline catches up to us and standard shipping services just are not going to cut it. It’s important to understand the differences between shipping services offered, so that you can make informed decisions that meet your needs while not stretching your budget. Let’s take a look at whether your organization may benefit from time-critical shipping services during a heavy shipping season, and which services may make the most sense for your business.

There are certain industries that may require expedited freight services more often, and on a more regular basis, not only during the holiday heavy season. Common industries using expedited services include medical, pharmaceutical, manufacturing, and particularly the automobile industry. It's crucial to understand that during the holiday season, there are going to be additional shippers using both standard and special expedited freight services due to time constraints, further congesting shipping lanes and significantly decreasing carrier capacity.

Most carriers offer tiered services based on window of delivery, transit time, and dedicated truck type. We will look at the 4 most common types of special services for your urgent holiday shipments: guaranteed, accelerated, time-critical (one-day, two-day), and dedicated truckload. Let's use a freight shipment example, a one-pallet 500 lb load moving from popular shipping hub, Chicago, IL (60638) to delivery in San Francisco, CA (94107). For the purpose of this example, we will assume standard 8am-5pm shipping hours, regular, non-oversized shipment dimensions, and non hazardous materials. Typical transit time for this standard LTL service with most carriers is 5 full business days.

Guaranteed Services
Guaranteed LTL shipping services are great for those shippers who may not necessarily need to shave a day or two off of transit time, but definitely need a pre-determined delivery within a certain window during a standard service day. This fee-based service is available on direct-point shipments and can be tailored to either guaranteed morning (before 12pm) or "end of day" (typically 5pm) for delivery. The fee for guaranteed service is minimal and very commonly used, especially during holiday times for retailers

Accelerated Services
Accelerated LTL shipping services are suited for shippers who are looking for a faster standard shipping option. Accelerated shipping options fit between standard and time-critical premium services, typically cutting one or two days off of typical transit. The average price for the faster service is about 15% higher than standard LTL services, but differ based on the distance and type of shipments.   

Time-Critical/Expedited Services
Time-critical and expedited freight options are premium services offered by national carriers, specifically created to meet stringent delivery deadlines as determined by the shipper. An expedited shipment typically travels directly from pick-up to delivery, with no loading or unloading at terminals and often with dedicated equipment. Teams of drivers often haul in shifts in order to decrease transit times. In especially urgent situations, multiple modes of transit may be used, such as a combination of truck and air freight. Common urgent delivery services include same day, next day, and cross-town deliveries and while there is no limit on distance, the more extreme the request, the higher the shipper will pay.

For a clearer picture of delivery timelines through various urgent services, we've created the table below:

 

   Expedited Freight Service

 

    Pick-Up and Delivery Timeline  

 

Guaranteed Services

 

       Pick-up Mon, 12/4 = Delivery Fri, 12/8 by noon

 

Accelerated Services

 

        Pick-up Mon, 12/4 = Delivery Thurs, 12/7

 

Time-Critical/Expedited

 

     Pick-up Mon, 12/4 = Delivery by YOUR specified deadline


Though urgent services are often viewed as "problem-solving" freight solutions in emergency scenarios, more and more shippers are using planned time-critical options as part of their holiday shipping strategy. Just-in-time manufacturers also utilize these services in order to fulfill and meet demand. Though these expedited freight services may come with a higher price tag, oftentimes the cost is offset by reducing inventory costs. An extra benefit to using these services is the added safety and security of the shipment, due to decreased reloading and an escalated level of tracking.

Even despite solid holiday planning and logistic strategies, shippers may encounter scenarios that require guaranteed or urgent shipping services. If you're not sure which time-critical LTL shipping services are right for your shipment, our shipping experts can find solutions that make the most sense for your business and your wallet. Get a free expedited freight quote today!

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Winter Weather Tips for Shipping Managers

November 2, 2017 at 3:45 PMLeah Palnik
winter weather tips for shipping managers

During this time of year, shipping managers need to be on their toes to stay ahead of winter weather delays. If there’s anything we’ve learned in the past several months, it’s that Mother Nature shows no mercy. Hurricanes Maria, Irma, and Harvey hit, and delivery networks suffered. As Ned Stark famously stated, winter is coming. And with it comes all the unrelenting ice and snow that can wreak havoc on your transit times. The more prepared you are when these storms hit, the better, so we’ve put together a few tips:

Build in extra days for time-sensitive shipments. This might seem like a no-brainer, but it can be challenging if you don’t plan ahead for it. Planning is especially important leading up to the winter months and during the holidays, so be kind to yourself and get started now. This will be essential for your supply chain if you’re shipping cross-country or to areas that are prone to winter storms.

Work with a broker to strengthen your carrier network. With winter storms causing service issues for carriers this time of year, you may need to think about expanding your network. Working with a broker is an easy way to gain instant access to additional resources. Brokers typically work with a vast amount of carriers and have the knowledge to match you with services that would be best for your lane and delivery needs.

Be flexible when possible. If you have some wiggle room with pickup and delivery dates, it’ll be easier to work out an economical solution with your carrier when weather delays strike. Also avoid setting up unnecessary appointment times that could restrict the driver. If the window of time is too short and the shipment gets held up due to weather, you could be delayed a whole day rather than a few hours.

Pay attention to service alerts from your carriers. Staying on top of weather issues can be difficult. Luckily many carriers have service alert pages on their websites and some will even send you notifications when they experience weather-related closures or limited operations. Here are a few service alert pages for common carriers: 

Shipping to a tradeshow? Prepare for the worst. If you’re shipping your exhibit materials to a tradeshow, it’s a good idea to have it sent to the advanced warehouse so you don’t have to worry about it delivering on time. Otherwise, you’re shipping direct to the show site which leaves you vulnerable to devastating delays. If you’re not able to ship to the advanced warehouse, have a contingency plan in place so if you’re stuck at the show without your booth it’s not a total loss. Determine ways you could print materials on-demand ahead of time or bring a few merchandise samples with you.

Communicate clearly with customers. During the busiest time of year for retailers, how you deliver on customer expectations can make or break your business. Customers are ordering holiday gifts online and making sure they arrive in time is essential. Add some buffer days to your transit times and make shipping deadlines clear and visible throughout the entire ordering process.

Budget for increased rates. Going into this winter season, truckload capacity is already tight, which has driven rates up. Drivers will also need to comply with the new ELD mandate starting December 18, which puts an additional strain on carriers. Now more than ever, you’ll need to be savvy to navigate the season.

Being proactive is the first step towards smooth shipping in the winter months. Planning for the inevitable bad weather will help you to not miss a beat when you encounter a service disruption. When you work with PartnerShip, our shipping experts can find solutions that are right for you. Get a free analysis today!

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Truckload Rates Are Going Way Up. Are You Ready?

October 31, 2017 at 12:13 PMPartnerShip

Truckload shipping costs have been steadily climbing and are poised to go even higher because a perfect storm of events is pushing truckload rates to record highs: the looming Electronic Logging Device (ELD) mandate; the cleanup and aftermath of Hurricanes Harvey, Irma and Maria; and an already significant driver shortage that has stressed truckload capacity.

Let’s look at these factors one by one.

ELDs
An ELD is electronic hardware that connects to a truck’s engine to automatically log a driver’s hours of service (HOS) and fleets and owner-operators have until December 18th, 2017 to implement them. In a previous blog post on ELDs, we anticipated that ELDs would have an effect on pricing and freight rates caused by decreased productivity and reduced capacity.

  • Decreased productivity. Carriers that have implemented ELDs have reported average productivity decreases of approximately 15%. ELDs track drive-time so drivers can no longer log 400 miles when they actually drove 700.
  • Reduced capacity. Some owner-operators will leave the industry because of their loss of productivity and the associated loss of income, further reducing truckload capacity.

Hurricanes Harvey, Irma and Maria
These three hurricanes hit the US within a four-week span and left massive destruction and flooding behind. These hurricanes have had a significant impact on truckload capacity. Recovery efforts required immediate emergency supplies and aid, which shifted truckload capacity to the affected areas, leaving other parts of the country with much less capacity. As recovery and rebuilding continues, truckload capacity will continue to be reduced.

Existing driver shortage
This issue has been building for years. Drivers are leaving the industry as they retire or move on, and younger people are not entering the industry to replace them. The driver shortage causes truckload capacity to tighten, which pushes rates higher and higher. According to Bob Costello, chief economist for the American Trucking Associations, “We may be seeing the beginnings of a significant tightening of the driver market.” At large truckload fleets, driver turnover in the second quarter of 2017 jumped 16 percentage points to 90%; for small fleets, it was up 19 points to 85%.

This combination of factors has led to the tightest truckload spot market in at least four years and freight brokers are working hard to obtain truckload capacity for shippers, but be prepared, rates are going up with no end in sight.

According to Logistics Management, experts expect the current stressed capacity situation to continue well into 2018 partially because of the productivity loss that is expected from the ELD mandate. If you’re a shipper, you should probably prepare your company management to expect higher transportation costs for the next 12 to 18 months.

During the last week of September, the number of available loads on the truckload freight spot market jumped 5.4%, the number of available trucks dropped 3.2%, and tight capacity sent the load-to-truck ratio into uncharted territory, according to DAT Solutions.

DAT said load-to-truck ratios were higher for all equipment types:

  • Dry van: 7.0 loads per truck, up 10%
  • Flatbed: 50.2 loads per truck, up 16%
  • Refrigerated: 12.4 loads per truck, up 2%

DAT said average truckload spot rates continue to remain at two-year highs and demand for truckload capacity in September was up 15% from August, and up 80% from September 2016.

Here’s the takeaway: you will be paying more for truckload freight and it will be harder to cover your loads.

When rates go up and capacity tightens, shippers tend to look for help and reach out to freight brokers and third-party logistics companies to tap into their network of carriers, and take advantage of their expertise in truckload pricing and rate negotiation. The shipping experts at PartnerShip will work with you to cover your loads and secure the best truckload freight rate possible. We know the lanes, we know the rates and we will help you ship smarter. Contact us today to get a free quote on your next truckload freight shipment!


5 "Scary" Shipping Mistakes Even

October 26, 2017 at 9:25 AMJen Deming
5 Scary Shipping Mistakes

Halloween season is here! As pumpkins are being carved and candy bowls set out, it’s also just the right time to discuss some scary mistakes made by shippers. Let’s take a look at the top 5 errors commonly made in freight shipping, so we can be sure your fall business is full of treats, not tricks!

Mistake #1: Improperly Packaging Your Shipment
The first mistake freight shippers make happens even before a pick-up is scheduled and the load is in transit! Packaging your product critically protects from damages both during the move and unloading at multiple terminals. Whether you are shipping in boxes or on a pallet, it’s important that both are sized just right, and in solid condition. In fact, a box can lose up to 50% of its structural integrity after a single shipment. Too much space can allow your product to shift, which can increase opportunity for damage. Use proper cushioning and foam inserts, as well as exterior wrapping especially if you have multiple pieces. Be smart, try to group multiple units into a single load so they do not get separated during the move.

Mistake #2: Bill of Lading (BOL) Errors
Another scary shipping mistake concerns paperwork errors. These include details such as entered weight, freight class, and shipping addresses provided on the BOL. All three are elements that help determine a freight rate for your shipment. Any errors made on these factors will most likely cause a discrepancy and an increase in rate due to re-weigh fees, adjusted classes, and re-delivery charges if an address is invalid or incorrect. Holding a shipment at a terminal for any length of time while determining the appropriate address can incur holding fees as well. Often, shippers will intentionally use a lower class than what is accurate for their shipment, hoping to slide by inspection. If flagged, the shipment will be billed at the higher actual class, and the shipper will be responsible for the difference. Guessing approximations for weight is risky too, because if the discrepancy is caught, the shipper will pay a re-weigh fee and the difference in weight. Having accurate details on your shipping paperwork is key in avoiding unplanned shipping costs.

Mistake #3: Forgoing Additional Insurance Coverage 
A third scary shipping mistake refers to insurance and liability. This becomes extremely important in the unfortunate case that your shipment should become lost or damaged. Each carrier offers limited liability on freight shipments, with the amount of coverage set at a fixed dollar amount per pound of freight determined by carrier and commodity. It is the responsibility of the shipper to prove that the shipment was in good condition and packaged correctly at pick-up. The carrier will then attempt to prove that it was not negligent or responsible for the damages incurred in transit. The final approval or denial of the claim can take some time, and you cannot always count on getting damages paid out, no matter how thorough you are. Your best line of defense is looking into supplementary insurance. Freight insurance acquired on your own or through your shipping partner provides more protection than relying on the carrier alone. Even if you do win a claim and get paid out by the carrier, liability may be limited, and you may not get the full amount of your claim. Purchasing additional insurance can help, and it’s important to understand your policy before you ship. PartnerShip understands you need peace of mind, and we offer supplementary freight insurance at a minimal additional cost as an option on all freight quotes.

Mistake #4: Choosing the Incorrect Service/Accessorials
Most carriers offer different time-sensitive service levels depending on the urgency of your freight shipment. Expedited, guaranteed, time-critical, and truckload are a few. Guaranteed services help you stick to a delivery schedule with a specified on-time delivery, by either 12 PM or 5 PM. Expedited and Time-Critical services offer faster transit times and a more urgent delivery. All of these services tend to be costly, so it is important to determine what your transit time needs are, well in advance. Delivery schedules can be delayed due to inclement weather, missed pick-ups, and a heavier shipping season. Building extra time into a delivery deadline can help avoid unnecessary expedited costs that add up, especially as we head into the holidays.

Another common error that shippers make is neglecting to add-in the cost of additional services, or accessorials, when they get their freight quotes. Be mindful of what is needed at the shipment's origin or destination. Does the shipper need a lift-gate at pick up? Do they have a dock? Is it being delivered to a residential location, or at a school or construction site? Chances are, there's a fee for that. It's important to learn everything you can about pick-up and delivery services that may be required, and inform your carrier or service provider before you get a rate for your freight.

Mistake #5: Leaving Inbound Shipping to Vendors
A final, costly error that many shippers make is leaving inbound shipping decisions completely up to their vendors. Commonly, businesses may allow the vendor shipping your order to arrange with their own carrier choice, marking the freight charges as "Prepaid," and then including those charges in your invoice. Taking control of your inbound shipping is one of the easiest ways to cut your shipping expenses, and working with a 3PL such as PartnerShip is one way to make sure you are saving on your inbound freight.

At PartnerShip, we can provide an inbound shipping analysis by looking at what you pay and whether we can save money on your shipping costs. Our team can contact your vendors on your behalf, create updated routing requests, and inform them of your specific shipping instructions. We offer consolidated invoicing and audit all of your inbound freight bills for accuracy. Think you might be able to save on your outbound shipment? We've got your back on those, too.

Keeping your shipping costs low and your freight safe may seem intimidating, but it doesn't have to be scary. When you work with PartnerShip, our shipping experts will double check shipment details, compare your pricing, and make sure you are covered from pick-up to delivery. Take your freight shipping from spooky to stress-free and contact us for a free shipping analysis!

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PartnerShip Sends a Big “Thank You” to Truck Drivers

September 8, 2017 at 9:42 AMJen Deming

National Truck Driver Appreciation Week is nearly here and PartnerShip would like to recognize the men and women truck drivers who dedicate themselves to moving our freight where we need it to go. “Our truck drivers work safely and efficiently to deliver America’s goods and deserve this recognition all year round. We set aside this week to pay special tribute to their continued work and excellence for America,” said American Trucking Associations (ATA) COO and Executive Vice President of Industry Affairs Elisabeth Barna.  

September 10-16, 2017 marks a week-long event where the industry recognizes these hard-working and tireless individuals. PartnerShip is saying “thank you” by giving a Dunkin Donuts gift card to truckload drivers who move a load for us during that week. Keep your energy up on those long hauls with a cup of coffee on us, delivered to you via email or text. We appreciate the hard work our carriers put in and we would like to recognize our friends on the road for all they do in helping us ship securely and dependably for our customers.

If you would like to learn more about National Truck Driver Appreciation Week and the American Trucking Associations, visit the ATA website for more information. To become a partner carrier, please check the PartnerShip Load Board and contact one of our Carrier Procurement Representatives for a setup packet at carriers@PartnerShip.com or visit our Becoming a PartnerShip Carrier webpage.

The Aftereffects of Hurricane Harvey on Shipping – What to Expect

September 1, 2017 at 9:39 AMPartnerShip

One of the most devastating storms of the past century, Hurricane Harvey, has left its destructive mark on Houston, Texas, and its impact will create a ripple effect on shipping that will be felt for months, if not years.

The entire PartnerShip team holds everyone impacted by Harvey in our thoughts, and we'd like to thank everyone that has assisted in the relief efforts.

Even if you do not have facilities or do business in Texas, Harvey will affect your business because freight and transportation networks nationwide will need to adjust, and the country’s entire supply chain will need to compensate. Houston is one of the country’s most important and busy freight hubs. It is one of the top inbound and outbound freight hubs and is a main transfer point for freight coming from Mexico and it also is a busy and large sea port.

Because it is such an important part of our transportation system, the damage caused by Harvey will stress already tight trucking capacity, according to supply chain experts at freight loadboard and data firm DAT Solutions. With the additional influx of inbound relief from FEMA and other organizations, additional stress will be put on capacity, which will likely push rates up in the coming weeks and months.

According to DAT, inbound and outbound freight volume for Houston was down 10 - 15%, and its analysts expect that number to hit 75 or 80 as storm clean-up begins.

Logistics research firm FTR predicts similar countrywide supply chain effects and increases in rates. “Look for spot prices to jump over the next several weeks with very strong effects in Texas and the South Central region,” according to FTR economist Noël Perry. FTR noted that rates gained 7 percentage points in the five months after Hurricane Katrina in 2005 and spot market rates jumped 22% in the weeks following massive snowstorms in 2014.

FTR states that the most immediate effect on capacity is caused by trucks waiting for the area to become passable so they can resume operation. Longer-term effects to capacity will include the relief shipments, additional construction supplies as the area rebuilds, reduced productivity due to freight lane shifts and rerouting, and increased congestion at loading docks caused by these supply chain disruptions.

Other considerations for shippers:

  • Harvey has shut show about 20% of US oil refining capacity in Corpus Christi, Port Arthur, Lake Charles and Houston. The disruption will drive up fuel prices and the fuel surcharges carriers charge for every load.
  • As noted, carrier capacity is going to get tighter. FEMA and other agencies are putting pressure on the market to move equipment and supplies to the area. This capacity tightening should first affect flatbeds to move heavy equipment, then reefers to move food, then dry trailers for dry goods and other supplies.
  • It is likely carriers may struggle keeping their commitments to you in the short-term as FEMA and other agencies will pay a premium to move needed equipment and supplies. You may need to shift your carriers around in order to secure the capacity you need.
  • Your transportation costs will increase. Be prepared to pay 5 - 22% more in the short term.
  • Your customer demand will change. Your customers or suppliers may cancel shipments, or add shipments, or reroute shipments. Until operations in the Houston area resume and get back to normal, there will be interruptions in every industry’s supply chain.

Working with a freight broker can help you mitigate the service interruptions, capacity issues and rising costs associated with Hurricane Harvey. 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.

Everything You Need to Know About Freight Claims

August 25, 2017 at 9:27 AMLeah Palnik

filing freight claims for damaged freightDamaged freight is every shipper’s worst nightmare. To make it worse, filing freight claims is a complex and frustrating process. There is a lot you need to know about what to document, what to file, and what the Carmack Amendment covers. Before you find yourself in this mess, it’s best to learn some of the basics.

First, damaged freight isn’t the only type of freight claim you may encounter. You may also experience a shortage or a lost shipment all together. And then there’s the concealed claims – when the cargo damage or shortage is discovered after delivery and reported after the driver leaves. As you can imagine, there can be extra hoops to jump through in these situations.

Before you can understand what to do in the case you need to file a cargo claim, you need to understand the Carmack Amendment. This law addresses the issue of liability between shippers and carriers. Under this law, you have to establish that the goods in question were picked up in good condition, delivered in damaged condition, and resulted in a specific amount of damage.

Once you’re able to prove that these requirements were met, the carrier is held liable unless it proves that it was not negligent and the cause of cargo damage was one of the following: 

  • Act of God 
  • Public enemy
  • Act of default of shipper 
  • Public authority 
  • The inherent vice or nature of the goods

If you have to file a claim, it’s best to do it as soon as possible. You typically will have 9 months from the delivery date, or only 5 days in the case of a concealed claim. You’ll want to have the Proof of Delivery (POD), the original Bill of Lading (BOL), freight bill, merchandise invoice, and replacement invoice or repair bill to support your claim. Taking pictures to include is also very helpful.

Unfortunately there are several issues that could cause your cargo claim to be denied. If you want to secure a fair resolution, make sure your documentation is accurate, your claim includes specific details, and you have proof that you attempted to mitigate the damage.

The subject of freight claims is complicated, but that doesn’t mean you’re out of luck. PartnerShip has developed a helpful white paper that details everything you need to know about filing a freight claim. It also provides you with important information that will teach you how to package your shipments to avoid damaged freight, how to set procedures for accepting freight that protects you in the event you need to file a claim, and how to ensure your claim doesn’t get denied.

Download the free white paper: Everything You Need to Know About Freight Claims!

What You Need to Know About Freight Class Changes

August 10, 2017 at 9:26 AMJen Deming

Weight, density, distance, and freight classification are all important variables that help to determine your LTL freight rate. Periodically,the National Motor Freight Traffic Association (NMFTA) will update and rework these freight classes in order to keep up with industry changes when needed. One such change went into effect on August 5, 2017 and has adjusted the NMFC class breakdowns on several categories of freight shipments. What are these changes and how will they affect you as a shipper?

The most significant change is seen in the categories of LTL freight that are classed according to a shipment's density or pounds per cubic foot.Typically, the lower the density, the higher the shipment will be classed (and the higher your rate will climb). Commodities such as Plastic Articles (15660), Wire Goods (198080) and Clothing (49880) are affected by this freight class update in addition to 138 other density-based freight classes.

The good news for shippers is that the new 11-tier system will provide a lower freight class for LTL shipments that are VERY dense (over 22.5 lbs per cubic foot).  If you are currently shipping loads that fall within this category, the lower freight class will potentially save you money going forward.

The other change affects mid-ranged LTL freight shipments with a class of 4-6 pounds per cubic foot previously set at class 150. With the new 11-tier breakdown, these shipments will be increasing to an updated class 175. Illustrated below, is the adjusted 11-tier classification system that will be replacing the former 9-tier model. Bold-faced density descriptions (subs) are the revised breakdowns.


It's important to mention that shippers with a FAK on certain types of commodities will also be affected. For example, if a shipper has been regularly shipping actual class 150 items at a FAK 100, and the density is 4-6 lbs per cubic foot, the shipment will now move at actual class 175 and the FAK will no longer apply.

What can shippers do to empower themselves and ensure they are doing the most they can to keep their LTL freight shipping costs low? At PartnerShip, you work directly with a dedicated freight specialist who will assist in calculating the accurate density of your shipments, and their proper freight class. Additionally, PartnerShip expertly audits your freight bills and will check for common invoicing errors, such as incorrect discounts and carrier mistakes—which cost your company money and affect your bottom line! If you are unsure on how to proceed with classifying your freight, or have a shipping challenge and don't know where to begin, PartnerShip can help point you in the right direction.

Find your freight class online!

3 Useful Tips to Help Reduce Your Freight Claims

July 28, 2017 at 1:41 PMJen Deming

“Damage” and “Claims” are four letter words in the world of freight shipping, and can be a real headache to logistics managers and coordinators alike. On both the outbound and receiving end, there are several ways you can reduce these risks and help keep freight damage to a minimum.

Packaging
Proper packaging for your freight shipment is key, whether you are shipping boxed items or palletized loads, and one of the most avoidable mistakes contributing to damage claims is insufficient preparation and packaging.  These materials cost typically less than an approximated 10% of overall shipping expenditures, so it doesn’t pay to cut corners in the short run when you are essentially increasing your risk overall. Containers and boxes should be in good, solid condition and sized to allow for just enough room to provide proper cushioning around your product. Use foam sheets, bubble wrapping, and cardboard inserts within the container, and wrap each item separately to maximize security.

To avoid freight damage, palletized shipments need to be secure as well, with items stacked uniformly and evenly distributed. Try to avoid product overhang on the edge of the pallets and anchor stacked boxes or multiple products into place with shrink wrap, plastic banding, or a breakaway adhesive. Being thorough and adhering to these standards can help limit the risk of damage.

Labeling and Paperwork
Precise shipment labeling also helps limit freight claims and losses by listing correct contact details, product descriptions, and ensuring accurate transit and delivery. To be sure that these instructions are clear, remove or completely cover old labels. Place the label on the top of the container or make it clearly visible on the side of each individual pallet, and include the total pallet count. For added safety, place a copy of the address label inside the container should the original be removed during transit.

A properly completed Bill of Lading (BOL) must be included with your shipment and serves three essential functions: a receipt for the goods being shipped, a document of titles, and evidence as the contract between the carrier and the shipper. Be sure to precisely class your shipment, include product description and item count, as well as list your billing party. If the event that you do receive damaged boxes and product, it is important to inspect and note details of the freight damage on the delivery receipt before signing for receipt of your freight. All of these details are essential should your shipment encounter any bumps in the road and you do need to file a freight claim with a carrier.

Choose the Correct Service
Knowing which particular type of freight shipping service best suits your shipment type can also help reduce damage and claims. Keep in mind, that standard Less-Than-Truckload shipments are loaded and unloaded several times at various carrier terminals as they make their way from your origin to its final destination. With each additional stop, your risk for freight damage increases. If the security of your shipment is a special concern, it may be worthwhile to consider moving your larger, multiple pallet loads with a dedicated or partially dedicated truckload service. With no extra stops, your freight does not need to be moved on and off the truck and remains significantly more secure with a quicker transit time, speeding up the delivery of your product.

These suggestions are just a few ways you can be vigilant about protecting your freight shipments against damage and claims. While there’s no sure fire way to avoid these occurrences completely, PartnerShip can help you measure your shipping options and determine the best ways to help protect your freight. Contact us at 800-599-2902 or get a quote now!