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. 

If you're new to freight shipping, there are a few documents you will come across frequently that you may be wondering what they are, why they are used, and what the differences of each are. For instance, what's the difference between a freight bill and a bill of lading; what do BOL and POD stand for; and what is a weighing-and-inspection report? Knowing these documents and their purpose can help avoid misunderstandings that might undermine an otherwise mutually beneficial business relationship between you and your third party logistics provider, carriers, suppliers, or even customers.

What is a Bill of Lading?

The bill of lading, or BOL as it is often called, is a required document to move a freight shipment. The BOL works as a receipt of freight services, a contract between a freight carrier and shipper, and a document of title. The bill of lading is a legally binding document providing the driver and the carrier all the details needed to process the freight shipment and invoice it correctly. The BOL also serves as a receipt for the goods shipped. Without a copy signed by the carrier, the shipper would have little or no proof of carrier liability in the event the shipment was lost or destroyed.

When you schedule a shipment through PartnerShip, the BOL is automatically generated based on the shipment details entered during the quoting and shipment creations process. You are welcome to use our BOL or you can use your own if your order system already generates one. Either way, the BOL should be provided to the carrier on pickup and will be delivered to the consignee on delivery.

When composing a BOL, it is important to provide weight, value, and description of every item to be shipped. The BOL spells out where the freight will be collected, where it will be transported, and any special instructions on when and how the freight should arrive. Traditionally, the BOL also serves as title to the goods thus described; in other words, it can serve as an official description of loan collateral.

What is a Freight Bill?                                        

Freight bills, or freight invoices, are different from bills of lading in that they do not serve as a key piece of evidence in any dispute. The freight bill is the invoice for all freight charges associated with a shipment. While freight bills should match up closely to their BOL counterparts, they can also include additional charges (such as accessorials), information, or stipulations that serve to clarify the information on the BOL. When you are looking for an invoice to examine as part of a shipping analysis, you will generally use the freight bill rather than the original BOL since it will have the freight cost information on it.

In effect, freight bills are similar to other invoices for professional services your business might collect. Although they may seem less important during the freight shipping process, they should be retained long term and audited to catch any errors. PartnerShip customers can easily access copies of their freight invoices online at PartnerShip.com.

What is a Proof-of-Delivery?

A proof of delivery, or POD, is a document that is used when a shipment is delivered. The consignee signs this document to confirm delivery. Some carriers will have the consignee sign the BOL as confirmation of delivery. In other cases, carriers will use their own delivery receipt (DR), or even a copy of the freight bill. The consignee, when accepting delivery of the goods, should note any visible loss or damage on the delivery receipt (or whatever is used as the POD). It is your right as the freight shipper to request a copy of the POD at any time.  

What is a Weighing and Inspection Report?

A weighing and inspection report, or W&I report, is a document you may encounter less frequently. The W&I report comes into play as part of a carrier's process to inspect the freight characteristics of a shipment to determine that it accurately matches the description that is on the BOL. If the actual shipment weight is different than the weight that is shown on the BOL, then a W&I report is completed noting the change.

When a customer receives a freight bill with charges greater than what was originally quoted, often times this is due to this sort of weight discrepancy. The customer has the right to request a copy of the W&I report from the carrier if needed to confirm the reweigh was performed and is valid. 

What is a Cargo Claims Form?

A cargo claims form, or simply claims form, is a document that carriers will require a customer to complete if there is any sort of shortage, loss, or damage "claim" with a shipment. A claim is a demand in writing for a specific amount of money that contains sufficient information to identify the shipment received by the originating carrier, delivering carrier, or carrier in which the alleged loss, damage, or delay occurred within the time limits specified in the BOL.

Claims should be filed promptly once loss or damage is discovered. Time limit for filing a claim is 9 months from date of delivery, or in the event of non-delivery, 9 months after a reasonable time for delivery has elapsed. If a claim is not received by the carrier within this time, payment is barred by law. A claim may be filed by the shipper, consignee, or the owner of the goods. Be certain to clearly show the name and complete address of the claimant. If you need help filing a claim with a carrier, feel free to contact PartnerShip and we'll help you through the process to ensure your best interests are protected. 

PartnerShip is here to help

As always, your friends at PartnerShip stand ready to help our customers every step of the way through the shipping process. We know you have a business to run – that's why you can count on PartnerShip to help you get the best shipping rates, the best carriers, and the best service for your LTL freight and truckload shipping needs. Contact us today to learn how we can help you ship smarter.

With the holiday season just around the corner, shippers need to be extra mindful of their LTL schedules. In addition to the usual cyclical increase in freight loads, the industry has also had a volatile year, with carrier closures and limited capacity causing more hiccups. As a result, transit times are a bit uncertain.

We want to make sure that your shipments reach their destinations on time and without any drama along the way. When planning, be sure to check which days carriers will be closed in our helpful guide below:

Freight carrier closures

• Saia LTL Freight – will be closed November 23 – 24, December 25 – 26, and January 1.
• XPO Logistics – will be closed November 23 – 24, December 22 – 25, and January 1.
• ArcBest – will be closed November 23 – 24, December 25, and January 1.
• R+L Carriers – will be closed November 23 – 24, December 25, and January 1.
• Estes – will be closed November 23 – 24, December 25 – 26, and January 1.
• Dayton Freight – will be closed November 23 – 24, December 25 – 26, and January 1.
• Pitt Ohio – will be closed November 23 – 24, December 25 – 26, and January 1.
• AAA Cooper – will be closed November 23 – 24, December 25 – 26, and January 1.
• Midwest Motor Express – will be closed November 23 – 24, December 25 – 26, and January 1.
• Dohrn Transfer Company – will be closed November 23 – 24, December 25 – 26, and January 1.
• TForce Freight – will be closed November 23 – 24, December 25 – 26, and January 1.

In the complex world of logistics, the carrier network you utilize can either optimize your shipping operations or bring them to a grinding halt. One strategy that is often overlooked is partnering with regional less-than-truckload (LTL) freight carriers. Regional LTL carriers play a crucial role in the supply chain ecosystem by offering a focused and localized approach to freight transportation. Unlike their national counterparts, regional carriers operate within specific geographic areas, so they've got the inside scoop on what makes your local logistics tick. It's like having a shipping partner who knows the shortcuts, secret spots, and best routes – because they're in your backyard.

In this article, we'll delve into the top 5 advantages of leveraging regional LTL carriers for your shipping needs and explore how they can transform your supply chain efficiency.

1. Lower Damage and Loss Claims. Minimizing freight damage and loss is a top priority for any shipper. Consider regional LTL carriers as your secret weapon in the battle against damage. They excel in this aspect by offering better handling and protection of shipments. With a smaller service area, these carriers can ensure more direct routes and fewer touchpoints, reducing the likelihood of damage during transit. This commitment to careful handling translates into fewer claims and greater peace of mind for shippers.
2. Lower Minimum Charges. There’s no way around it - minimum charges are a buzzkill. National carriers typically have higher minimum charges due to their extensive network coverage. Regional LTL carriers, on the other hand, offer a more favorable structure for small to medium-sized businesses. By catering to a smaller service area, these carriers can maintain cost-effective minimum charges, making them an attractive choice for shippers looking for a cost advantage.
3. Shorter Transit Times through a Smaller Carrier Footprint. Efficient supply chains rely heavily on fast transit times. Regional carriers shine in this aspect as their smaller service footprint translates to quicker deliveries. With less ground to cover, shipments can move swiftly through streamlined routes, reducing overall transit times. Real-world examples have shown that regional LTL carriers consistently outperform national carriers when it comes to delivering on time.
4. Top Notch Customer Service and Communication. Who doesn't love getting the VIP treatment? Customer service plays a pivotal role in freight shipping, where timely updates and proactive support are crucial. Regional LTL carriers excel in this domain by providing a more personalized and responsive customer experience. You can establish direct lines of communication with local carrier representatives who possess an in-depth understanding of the regional landscape, ensuring effective troubleshooting and issue resolution.
5. Cost-Effective Shipping Solutions. For businesses that frequently ship within a specific geographic area, regional LTL carriers offer budget-friendly solutions. The proximity of the carrier's service area to the shipper's location means reduced transportation costs and potentially fewer accessorial charges. Say goodbye to excessive charges, and hello to optimizing your freight spend.

The Regional LTL Carrier Advantage is Clear
It’s clear - using regional LTL carriers puts you on track to shipping smarter. From minimizing damage to providing faster transit times and superior customer service, these carriers are tailor-made for businesses seeking localized, cost-effective, and efficient freight transportation. As you evaluate your shipping options, consider the strategic benefits that regional LTL carriers bring to the table. By making the right carrier selection, you can optimize your supply chain and elevate your shipping strategy. PartnerShip has a vast network of reputable carriers, including regional LTL freight carriers that service your area. 

Contact our team today to uncover how you can benefit from utilizing regional carriers.

When it comes to shipping goods via less-than-truckload (LTL), understanding freight class is essential. Freight class is a numeric code that categorizes different types of products or commodities for shipping purposes. It plays a crucial role in determining the cost of your shipment and other factors such as weight, distance, and additional services. In this comprehensive list of resources, we will delve into the intricacies of freight class, covering everything from the very basics to tools that can help you determine class.

Resources that will help you understand everything you need to know about freight class:

• Understanding the basics of a freight class. 
  Freight classification is a crucial component of LTL shipping, but the system can be complicated. Factors such as density, storage/stowability, and liability all impact class, and the higher the number usually means the higher the rate. This article will help you understand the basics of freight class, and includes information about a valuable tool, ClassIT, that can help shippers accurately determine their product classification.


• Grasp the impact of density in freight shipping.
  Packaging, commodity type, and specs all impact the cost of your freight, but some products have an added layer of mystery (and math) when it comes to class - density. Density is calculated by measuring the height, width, and depth of the shipment, including skids and packaging. Learn more from our insights about why carriers are putting such an emphasis on shipment density and how it affects your freight costs.


• Decipher the complicated nature of an FAK.
  An FAK is a class agreement between a carrier and a shipper, allowing the shipper to move multiple products of different classes at one standardized freight class. Sounds simple, right? The catch is that carriers have held back in entering these agreements more now than they used to. This article takes a closer look at what defines an FAK, what shippers are likely to qualify, and if it’s something that makes sense for your business.


• Master the factors that affect your freight class.
  Freight classification is an essential process in LTL shipping that involves categorizing products based on specific criteria like density, stowability, liability, and handling. Understanding these variables is crucial for calculating the class and cost of shipping. This infographic can help you more easily understand the factors that determine class and how to get it right.

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.

Less-than-truckload (LTL) and truckload freight shipping may appear to be similar but they are two very different shipping services. Many shippers exclusively use one or the other, but they can be used together. To help you ship smarter, here are the four main differences between LTL and truckload shipping and rates.

Transit time and handling

LTL: LTL shipping combines shipments from multiple customers so your freight isn’t the only freight on the truck; it shares space (and cost) with other company’s freight and will make multiple stops at terminals between the shipper and consignee. For example, the freight you are shipping from Cleveland to Houston may make stops in Indianapolis, Nashville and Dallas before reaching its final destination. At each stop, your freight is unloaded and reloaded and must wait for the next truck, increasing transit time and handling, and the possibility of damage.

Truckload: When you ship full truckload, your freight is the only thing on the truck. The carrier will make a pickup at the origin and drive straight to the destination. Aside from driver rest breaks, fuel and equipment issues, the truck doesn't stop, resulting in much faster transit times. In addition, your freight never leaves the truck, resulting in much less handling and fewer opportunities to be damaged.

Weight and shipment size

LTL: Less-than-truckload shipments are typically between one and six pallets and weight from 200 to 5,000 pounds. LTL freight usually takes up less then 12 linear feet of the trailer, and since the typical pallet measures 40” x 48”, 6 pallets arranged side-by-side would take up exactly 12’ of linear space on each side of the trailer.

Truckload: A full truckload shipment can range from 24 to 30 pallets and up. With truckload freight, the space your shipment takes up in the trailer has more of an impact than weight, so truckload shipments commonly range from 5,000 pounds to 45,000 pounds and up.

No one likes surprise fees. Unfortunately, there are quite a few extra costs that are likely to pop up with LTL freight. Known as accessorial fees, these charges cover a wide variety of extra services and can add up fast. In this post, we'll answer the question, "what are accessorial charges?" and provide a list of common LTL accessorial fees to help you better understand and manage your freight costs.

What are accessorial charges?
Accessorial charges are fees for services performed by the carrier that are considered to be beyond the standard pickup and delivery. These fees make up just one part of your freight rate, but can be challenging to manage. Understanding which accessorial charges you can plan for and which ones you can avoid is necessary if you want to keep your freight costs in check.

What are some common LTL accessorial charges?
You might be wondering what is considered an extra service, and you’re not alone. We’ve compiled some common LTL accessorial fees so you know what to look out for.

• Lift Gate Service
  When the shipping or receiving address does not have a loading dock, manual loading or unloading is necessary. A lift gate is a platform at the back of certain trucks that can raise and lower a shipment from the ground to the truck. Having this feature on trucks requires additional investment by an LTL carrier, hence the additional fee.


• Residential Service
  Carriers define a business zone as a location that opens and closes to the public at set times every day. If you are a business located in a residential zone (among personal homes or dwellings), or are shipping to or from a residence, the carrier may charge an additional residential fee due to complexity in navigating these non-business areas.


• Collect On Delivery (COD)
  A shipment for which the transportation provider is responsible for collecting the sale price of the goods shipped before delivery. The additional administration required for this type of shipment necessitates an additional fee to cover the carrier's cost.
  


• Oversized Freight
  Shipments containing articles greater than or equal to twelve feet in length. Since these shipments take up more floor space on the trailer, additional fees often apply.
  


• Fuel Surcharge
  An extra charge imposed by the carriers due to the excessive costs for diesel gas. The charge is a percentage that is normally based upon the Diesel Fuel Index by the U.S. Energy Information Administration.


• Inside Pick Up/Inside Delivery
  If the driver is required to go inside (beyond the front door or loading dock) to pick up or deliver your shipment, instead of remaining at the dock or truck, additional fees will be charged because of the additional driver time needed for this service.


• Advance Notification
  This fee is charged when the carrier is required to notify the consignee before making a delivery.


• Limited Access Pickup or Delivery
  This fee covers the additional costs required to make pickups or deliveries at locations with limited access such as schools, military bases, prisons, or government buildings.


• Reweigh and Reclassification
  Since weight and freight class determine shipment base rates, carriers want to make sure the information on the BOL is accurate. If the carrier inspects a shipment and it does not match what was listed, they will charge this fee along with the difference.

Navigating the many nuances of LTL freight accessorial fees to determine which services you need and which you can avoid will help ensure the most cost effective price. Carriers generally publish a document called the "Rules Tariff 100" which provides a list of current accessorial services and fees. The shipping experts at PartnerShip are well versed in these documents and are happy to help with any questions you may have. 

Want a more in-depth look into freight accessorial fees and how to avoid or offset the added costs? Check out our free white paper! 

LTL freight quotes can be tricky and are often full of surprises - which isn't exactly fun when invoices are involved. Even experienced freight shippers may encounter some stumbling blocks, so it's essential to stay on top of the factors that impact your quote. From lead times to accessorial fees, we are breaking down five brutal realities about freight quotes that you must know to ship successfully.

Right now, the manufacturing industry is tough. Our economy is unpredictable, and both labor and raw materials expenses are high. When looking for cost-saving opportunities, it’s critical that manufacturers assess areas of the business where you may have the greatest degree of control, such as shipping. With a little bit of planning, your team can tackle one cost-saving strategy a day to ensure lower freight charges within a work week.

Day 1 - Audit your top freight classes

Freight classification is an important part of LTL shipping, and it’s important to make sure the ones you are using are accurate. If they are incorrect, your freight may be reclassified and you will pay a fee, which is both expensive and disruptive.

Make sure your team is reviewing your most commonly used freight classes and checking them against current NMFTA codes. Manufacturers have an extra challenge due to the sheer volume of materials being shipped, often within one load. Product classes for items like parts, tools, or built-machinery can vary wildly, especially if they fall within a density-based category. Codes are updated regularly, so you can’t just look it up once and think you’re good to go on every shipment you move. Even small changes in weight, dimensions, or packaging type can affect your class and freight charges.

You should regularly audit your freight invoices for discrepancies between what class you’ve used to quote and what shows up on your final bill. If you see any class codes that are regularly corrected, make sure you’re adjusting that for the future. For new products, always review resources like ClassIT or speak with an experienced freight professional who can help you decode your freight class.

Day 2 - Optimize your packing strategies

The way you approach packing procedures for your freight shipments can greatly affect your shipping costs. Palletizing your loads keeps your products together and improves the structural integrity of your shipment as it travels through the LTL network. Being intentional in your packing choices keeps freight charges under control by managing density and protecting against damages.

Take a look at your current pallet-stacking strategies to see where you can make positive changes. You may be able to improve density by adjusting which products you are grouping together on a pallet. Small, dense shipments typically have a lower freight class, so don’t overstack pallets with large, lightweight materials. Your team should also review how often you are losing money due to loss or damaged shipments. 

Manufacturers have options to better protect freight with a few specific tweaks, like using custom crates for extra fragile loads or using recycled-plastic pallets instead of wood. Recycled-plastics pallets are sturdier and more durable than wood, and are also less likely to break over repeated trips. For any pallet type, you can also add shrink wrap or corner protection for additional security. Prevention is the best strategy when it comes to lowering damage costs.

Day 3 - Look for ways to consolidate

When it comes to spending less on freight, consolidating shipments is an area many manufacturers may overlook. By finding opportunities to ship more efficiently, you can greatly lower costs. One way to do this is to make the most out of every load by eliminating the extra ones. 

Review your inbound order cycles for items like parts or tools that you need to regularly replace or service. Plan these orders ahead of time so they can be shipped at the same time to save money. Discuss any opportunities to combine orders with your customers who ship most frequently. For example, if you’re shipping product components monthly, review if the order amount can be adjusted and sent quarterly. Strategies like this may lower costs for you and improve efficiency for both parties in the long run.

Day 4 -  Evaluate opportunities to limit accessorials

Freight charges can quickly add up when you overspend on extra services. Accessorial fees like liftgates or driver assist can be avoided if your team has the proper loading equipment. The real struggle starts when you’re hit with fees at your customers’ locations that you didn’t budget for. Make sure that your customer knows any extra help with loading or specialized equipment costs extra. Requests like these need to be made early on so that you can accurately build freight charges into your customer orders.

Manufacturers shipping to rural areas have a higher risk than other shippers of incurring less common accessorial fees. Put simply, limited access is applied whenever a location is tough to get to or has unusual business hours. Manufacturers within the agriculture industry who are shipping equipment to rural dealer locations or farms experience this charge most often. Do your homework and make sure you’re familiar with your customers' needs. 

Day 5 - Get a freight shipping audit from a quality broker

Freight charges can be complicated and time consuming to manage, making it hard to become an expert in LTL when tackling other areas of business. Fortunately, freight brokers can help look for cost savings and inefficiencies by reviewing current freight invoices. At PartnerShip, we understand the difficulty manufacturers face when trying to save on freight, and our experts can help you look for opportunities that can save time and money.