Everybody wants to lower their business operating costs, but nobody wants to spend a lot of time doing it. Decreasing your shipping spend is a good place to start, and there are five painless ways shippers can keep their freight costs low. From auditing your current carriers to tightening up your packaging practices, we break down simple ways to spend less on freight using minimal effort while gaining maximum payoff.

While constancy isn’t something you can always expect in the freight industry, there are a few steady trends we’ve seen in recent years: less truck availability, an oversaturated network, and rate increases. Both sides are using tactics to offset these variables. Carriers increase fees, and in response, shippers explore means to cut costs. A trend we’ve seen among novice and experienced shippers alike is either estimating or downright falsifying the freight dimensions and weight of their LTL shipments. But, we’re here to tell you that going either route is a risky maneuver that can have major fallout.

Incorrect dimensions can delay your shipment

Carriers have an entire arsenal of tools at their disposal that check for discrepancies in weight and freight dimensions. Once LTL shipments are picked up and the BOL (bill-of-lading) is tendered to the carrier, that paperwork serves as a legal document — a contract between the shipper and carrier. Because LTL shipments stop at multiple terminals while in transit, there is plenty of opportunity to get “caught” if your weight or freight dimensions stated on this document are incorrect. If a carrier suspects misrepresentation on a BOL, intentional or not, your shipment will be flagged for an audit and an inspection. This process takes some time and your shipment will be detained. Depending on the volume going through that particular terminal, it’s tough to say how long that could be. Your shipment delivery will likely be delayed or missed, which can be a disaster if it was a time-sensitive shipment or if it holds up other operations for you or your customer. It’s just not a good look.

Are you familiar with the step-by-step process of an LTL freight shipment? There's much more involved than pick up and go. We broke down each checkpoint with important notes to remember, so you can keep tabs on the secret life of your load.

Whether you are an LTL newbie or seasoned pro, there's some common misconceptions about freight shipping that can impact your load, and most importantly, your costs. Don't take for granted that everything you know about LTL shipping is a fact. Learn more about the top five LTL shipping myths so you can ship smarter and dodge costly freight errors.

No one likes an expensive freight bill. With so many types of unexpected costs and hidden fees, shippers frequently end up with an invoice higher than they budgeted for. Limited access delivery fees are one of the most common billing discrepancies surprising both new and veteran shippers alike. So, why do carriers charge this fee and what can you do about it?

What is a limited access fee?

Simply put, a limited access fee is an extra charge passed on by the carrier for any shipment that, due to location, will take extra effort or time to navigate. This includes places that are difficult to get to, congested areas, or destinations that have strict security requirements. Limited access fees can vary by carrier and often show up as a flat rate or a per-hundredweight charge. Minimally, this charge will cost you at least $100 but could cost you upwards of $300.

What factors determine if a location is considered limited access?

One of the most frustrating things about a limited access delivery charge is that not every carrier defines the same locations as limited access. You may hire different carriers for the exact same load to the exact same delivery location and end up with two very different bills. To anticipate whether a location may incur this fee, a good rule of thumb is to always consider the driver's time and effort. If the area is going to delay the carrier or require extra effort, it's safe to say you'll get the charge. So, what variables influence an area's "limited access" status?

Physical Characteristics 

Not every delivery is going to be at a warehouse with an expansive lot and a spacious loading dock. Some locations are especially are especially difficult to access due to their physical layout. Many urban storefront locations, schools, or businesses are only accessible via narrow streets and alleyways, and this makes maneuverability extra difficult. Loading and staging requires space, and without a dock or even a back lot, this can be especially challenging. This extra effort and delay is going to result in a limited access fee.

Navigational difficulties

Some locations are simply a pain for drivers to get to, so they are going to charge you for that hassle. Businesses located in congested areas like downtown in a city, fairs and carnivals, boardwalks and beaches, campsites, island resorts, or worksites like mining quarries and construction zones are going to incur charges. These types of places are challenging to maneuver a large truck through, so the carrier will have to find a specialized vehicle like a pup truck to make it through. In cities where traffic is unpredictable at best, one delivery can take up a large portion of the day. This delays business and prevents carriers from making additional deliveries. This wasted time and extra effort will cost you.

Disruption to business

Another type of limited access charge is one that has challenges related to business hours or the private nature of the location. These places may be easier to get to, but issues arise due to hours of service restrictions and operating staff. Typically, these are businesses that would be disrupted during regular operating hours, such as schools and universities, places of worship such as churches and temples, doctor's offices, assisted-living and retirement facilities, hotels, piers, farms, and ranches. These places must have a loading team ready, and if it's harder for a driver to get the load off of a truck because the staff are busy during regular business hours, you're going to see that extra charge.

Security locations

Some places are a challenge to get to because of the extra effort and security required to make a delivery. Prisons, government facilities, and military bases all have proper procedures and protocols in place for incoming and outgoing deliveries for the sake of safety. This often means inspection check points, proof of identification, appointment for delivery, and more. Going through all of these hurdles is going to delay the driver, potentially holding up other deliveries that are left waiting on the truck. The inefficiency of extra effort and lost time requires carriers to implement limited access fees to recoup the cost of lost productivity.

How to avoid breaking the bank over limited access delivery fees

We've outlined some of the most common types of limited access delivery points, but it's extremely important to understand these aren't the only ones. The best line of defense to combat limited access delivery fees is to do some groundwork and research before shipping to any type of unfamiliar facility. That way, you can better prepare for those charges and build that into your freight quote if need be. To ensure the best possible outcome for your freight invoice:

• Communicate with your consignee (delivery location) in order to learn from their past experiences. Find out whether they have a dock, a team, shipping/receiving hours, and any limited access fees they may have been targeted with in the past.


• Do your own research to validate that information. Google Maps is a useful tool that many freight professionals use to glean information. It can't tell you everything, but it can shed light on general terrain and many of the logistical challenges drivers will be dealing with.


• Gain insight into what the security processes of every delivery location may look like. It's not just military locations or prisons that require identification or load inspections. The more you know on the front-side of a delivery, the less you will be surprised by delays and charges.


• Call the carrier you plan on using and learn from them directly what locations will incur extra charges. National freight carriers like UPS Freight and YRC Freight list their rules tariffs on websites, so be sure to research these for precise calculations of charges and fees.


• When in doubt, work with a knowledgeable freight partner who can answer your questions and do the legwork for you and offset any surprises. A freight broker can help determine alternate carrier options with reliable service and lower limited access fees to better meet your budget.

Every shipper will likely encounter loss or damage and seek reimbursement by filing a claim. In order to navigate this tricky scenario, smart shippers become their own advocates by taking a deep dive into the legal policies that affect shipper's rights and responsibilities. When going against powerhouse national carriers who have every resource in their corner, you can arm yourself with critical information that helps you get the best outcome possible for your business.

The Carmack Amendment Basics

First things first, the term "Carmack Amendment" is frequently thrown around in the industry, but what exactly is it and why should shippers care? Put simply, this law was set in place in 1935 to draw the line between carrier and shipper liability. Prior to that, with the Bill of Lading (BOL) serving as a legal contract of carriage, carriers were almost exclusively held responsible for damage or loss. With the passage of the amendment, it was determined that the carrier should be held responsible unless one of the outline exclusions is met. This change let to a positive impact on the industry, incentivizing both carriers to proactively prevent theft and shippers to more effectively prepare their freight. 

5 Carrier Exclusions to Responsibility

The Carmack Amendment clearly outlines five specific instances in which a carrier is not to be held liable for damage, delay, or loss to freight. These events are intended to protect the carrier from circumstances outside of their control. The five are:

1. Acts of God: A carrier cannot be held liable for instances of natural disasters or other uncontrollable phenomenon such as severe weather, medical emergencies involving a driver, etc. In order to act under this defense, the event must be notably unanticipated and unable to be avoided.


2. Public Enemy: Carriers are exempt from damage liability if the incident was caused during a defensive call to action by the government, or "military force". While there has been relative peacetime on American soil for quite some time, the "public enemy" defense has also applied to acts of domestic terrorism in some recent court cases. It does not include events caused by hijackers, cargo theft, organized crime, or other criminal acts.


3. Default of Shipper: This is the most notable exclusion for shippers to be mindful of and indicates any event that the carrier can prove damage was caused by the shipper. This can include a defense of negligence, poor packaging, improper labeling and other mistakes made during preparation. The majority of carriers will try to prove these circumstances if there is any doubt a shipper could have made a mistake. Shippers must properly offset this risk with secure packaging, correct labeling, and maintaining communication with your customer for delivery.


4. Public Authority: If the government takes action that results in damage or delay, the carrier is not liable. Government policy cannot be controlled, so road closures, trade embargoes, recalls, and quarantines all exempt a carrier.


5. Inherent Vice/Nature of Goods: Some commodities are naturally subject to deterioration over time, and as long as the defect was not caused or sped up by the carrier negligence, they are safe from liability. A common example of high-risk commodities include produce, live plants, and medical supplies. If you are shipping temperature controlled or time sensitive products, be sure that you are taking every precaution to ensure security and viability.

Just as there are five distinct factors that exclude carriers from responsibility, there are three factors the shipper must prove in order to start a damage claim. To begin, it must be demonstrated that the shipment was picked up in "good" condition. This protects the carrier should the shipment have been damaged to begin with. In order to defend yourself, take pictures of your freight before it is picked up proving all is well. Collect invoices, product descriptions, and item counts so that you have a leg to stand on in the case of any loss or shortage. 

Secondly, the shipper must prove that the load was delivered in damaged condition. Complete a thorough inspection before you sign and again, take pictures of everything for proof. Concealed damage, hidden and only discovered after the carrier has left, is a tricky area for claims. Open and dismantle your packaging at delivery to check for issues, and don't feel bad for delaying a driver. If there is any doubt at all, make a note on the delivery receipt. If you are not present for delivery, make sure clear expectations are established with the receiver or customer so that everyone is on the same page.

Lastly, the shipper has to prove that the freight damage resulted in a specific amount of loss. It won't work to throw an arbitrary number in a freight claim, so collect itemized receipts and quotes or bills for replacement or repair costs. Be reasonable and accurate in your request.

Fair Compensation Rights for Shippers

Even if the shipper does everything right, claim payouts are rarely what one would expect. Carriers do everything in their power to minimize financial losses, so they will look at every loophole possible. So how does a carrier determine a claim payout?

The amount is typically determine by a set dollar amount per pound based on the commodity. It's important to review carrier tariffs and agreement limits before you ship your product. Some carriers will pay nothing on a used item, so be sure to review the fine print. It's also critical to have an accurate BOL. If there are incorrect details, you're likely to see that reflected in your payout. It's also important to note that a carrier claims department will examine the damage, and limit a payout if they feel the product can be salvaged or repaired at a lesser amount than what is requested.

Since carrier liability is limited, a smart shipper will obtain supplementary freight insurance. It's a super smart option for anyone shipping fragile goods or a high value commodity. While most carrier liability only pays out a certain dollar amount per pound of freight, freight insurance can be purchased in the value of coverage you need, and you are not required to prove the carrier is at fault.

It's important to note carrier compensation timelines for payouts. A carrier should acknowledge receipt of the claim within 30 days, with a ruling completed within 120 days. In the event of a denied claim ruling, the shipper has a right to file a lawsuit. Most need to be filed within 2 years and one day, but there are exceptions so it's best to work quickly.

Shipper's Requirements for Proper Claim Filing

It's up to the shipper to follow a precise protocol in filing a claim to increase their chances of a suitable resolution. Collecting as much hard evidence as possible will help your case. Seeking written statements by warehouse receivers and testimonies of loading procedures, as well as video evidence can assist your cause. Being thorough is crucial but working quickly is just as important, so be mindful of deadlines. You have nine months from the delivery date to file, but for those concealed damage cases, you have five days—so get on it. 

Documentation you may need to file:

• Proof of delivery
• Original BOL
• Freight bill
• Merchandise invoice
• Replacement invoice or repair bill
• Pictures of damaged freight

Knowing the basics of the Carmack Amendment and how they relate to shipper's rights helps protect your business in the event of damaged or lost freight. the best part is, you don't have to go through the claims process alone. Working with PartnerShip can ensure you have an informed ally looking out for your best interests and your company's bottom line. For a thorough rundown on freight claims, download our free white paper.

When most people think of freight, it’s usually an image of the ubiquitous 40” x 48” wood pallet that comes to mind. But there are many other ways to move freight, including these lesser known, but still important, methods.

Pallets. They are so important to freight shipping that even though we’ve covered pallets in depth before, we can’t not mention them here.

In addition to wood, pallets can be made of plastic or metal. Plastic pallets are popular for export shipments because they don’t have to be heat treated to be used for international shipping, like wood pallets do. Aluminum and stainless steel pallets are strong and lightweight, and since they can be cleaned and sanitized, they can be used in food processing and pharmaceutical plants, where cleanliness is essential.

Gaylords. Named after the company that first introduced them, Gaylords are pallet-sized corrugated boxes used for storage and shipping. Sometimes called pallet boxes, bulk boxes, skid boxes and pallet containers, Gaylords can have between 2 and 5 walls and are meant to be single-use containers. Frequently used as in-store displays as well as shipping containers, Gaylords can be used to ship items as diverse as watermelons, stuffed animals, and pillows. Depending on configuration and how many walls they have, Gaylords can hold from 500 to 5000 pounds each.

Metal bins. Metal bins are typically made of steel and are mainly used in industrial applications where strong-sided containers are required to hold and move heavy and irregularly shaped items, like metal castings and forgings, stampings and scrap metal. Metal bins can be found in many different sizes and are essential in safely shipping heavy and potentially sharp objects.

Wire baskets. Available in solid or collapsible versions, wire baskets are strong and can store and move large and bulky items up to 6000 pounds. Wire baskets are stackable and can be used for shipping nursery stock, landscaping rocks, and other irregularly shaped items.

Stack racks. Featuring a flat, metal base and upright posts at the corners, stack racks are ideal for moving and storing large, bulky items. Stack racks can often be stacked on top of one another and are used for moving awkward items like furniture, carpets and rolls of fabric, tires, and coiled plastic drainage tubing.

Bulk storage bags. Perfect for moving powders, grains and very small items, these durable woven plastic bags have lift straps attached to the top which allow them to be filled, moved and emptied easily. Bulk storage bags are sometimes called big bags, super sacks, or FIBCs (Flexible Intermediate Bulk Containers), and can be lined for food-grade applications like shipping flour and peanuts, industrial products like dry concrete mix, or bulk agricultural freight like catnip.

Wood crates. Shipping crates made of wood are sturdy, strong, and can typically resist the sometimes extreme conditions of freight shipping. Items shipped using wood crates can be as diverse as priceless artwork, sensitive machines like 3D printers, and large and irregularly-shaped plastic injection or blow molds. Other common uses of wood crates are tradeshow exhibit shipments and when moving multiple slabs of natural stone.
 
IBC Totes. Intermediate Bulk Containers, or IBC totes, are perfect for transporting liquids and granular materials, like chemicals, food products and hazardous materials. IBCs can hold up to 550 gallons, with 275 and 300 gallons being the most common sizes. IBCs are stackable and can be used for food grade materials as well as corrosive or flammable industrial liquids and solvents.

Totes. Totes are small plastic containers that are commonly used in manufacturing and food processing facilities, as well as in shipping, storage and fulfillment warehouses. Totes without lids are often used for order picking in warehouses, and are useful because they are durable, nestable and stackable. Totes with lids that close are frequently used in shipping small products from distribution centers to stores, and are included in shrink-wrapped pallets of boxes.

Drums. Storage drums come in three main types: fiber, plastic and metal, and can be used to store and ship liquids and solids. Fiber drums are lightweight and sturdy and can hold food-grade and non food-grade materials such as grains and dry chemicals. Plastic drums can hold liquids or solids and are corrosion resistant, making them ideal containers for transporting industrial chemicals; they can also be food-grade and hold water, pickles or grape juice for winemaking. Metal drums are used for heavier liquids such as oils, greases and lubricants, and extremely hazardous materials, since they are the most durable drums available.

Plastic and metal drums are available in both open-head and closed-head designs. Open-head drums have easily-removable covers and work well for shipping solid items or thicker liquids. Closed-head drums have non-removable covers with openings and are better suited for lower-viscosity liquids.

The most common size of fiber and metal drums is 55 gallons, while plastic drums are available in standard sizes of 15, 30 and 55 gallons.

A-Frames. Shipping granite, quartz and marble requires the use of wood or metal A-frames to hold and stabilize natural stone slabs when they are shipped. A-frames are mostly used on local or short hauls, and can be loaded in dry vans, or more commonly, on flatbeds for transport. There are many factors to consider when shipping stone and working with an expert is certainly recommended.

As you can see, there are many more ways besides boxes and pallets to move your freight, and no matter how your freight is configured, we’re here to help you ship smarter. If you have a shipping challenge and need assistance finding a reliable carrier for your needs, contact PartnerShip or get a free quote!

A rapidly growing need in the warehouse and logistics industry is for on-demand warehouse space. So, what is on-demand warehousing?

The simple answer is on-demand warehousing is a logistics strategy that matches businesses with a need for short-term or temporary warehouse space with warehouses that have excess capacity.

As recently as two years ago, the topic of on-demand warehousing was relatively unknown, but several factors have led to the rapid increase of its awareness and market need. Let’s look at 7 ways your business could benefit from on-demand warehousing.

1. The Amazon Effect. Basically, the “Amazon Effect” has changed consumer expectations and means that anything and everything is available online with one-day or even same-day shipping. The eCommerce giant has created “get it now” expectations, and if your business can’t offer one- or two-day shipping to your customers, you are at a distinct disadvantage. If you are based on the west coast or east coast, you should seriously consider adding additional warehouse storage and order fulfillment in strategic locations to reduce shipping time to your customers.
2. Increasing demands of eCommerce fulfillment. If you are a retailer, you’ve seen the headlines about the decline of brick and mortal retail as more and more B2C and B2B commerce shifts online. If the increased demand for eCommerce has stretched your facilities to their limits, you should consider on-demand warehousing and order fulfillment to take the pressure off of your existing infrastructure and help meet your customers’ higher expectations for short shipping times.
3. It’s less expensive to borrow space than build it. Start-ups and small companies are finding it advantageous to rent warehouse space as they grow rather than build their own distribution centers and warehouses. By utilizing warehouse space on an as-needed basis, your small business can focus on growing sales and market share instead of adding the overhead a dedicated warehouse requires.
4. When peak season is your only season. If your company relies on a single season for the majority of your revenue, it makes more sense to use an on-demand warehouse for your peak season than to pay for year-round warehouse space.
5. When its time to outsource to save resources. When your resources are limited, its best to outsource functions that fall outside of your company’s strengths, and warehousing and logistics is usually one of those functions. By working with an on-demand warehouse that can “store it and ship it,” your company can devote its precious resources to product development, R&D, or marketing; whatever it is that you do best.
6. Inventory overflow. Even if your company has its own distribution network you may find yourself in need of temporary warehouse space. Expansive new product launches, importation of a years’ worth of goods, or stockpiling of raw materials to hedge against increased costs can create the need for extra storage space.
7. “Micro-warehousing.” If your company sells (and needs to store) goods and products near population centers that use them more than other areas, like Ohio State branded products in Ohio, air conditioners in the southeast, or snowblowers in the northeast, then you could benefit from temporary warehouse space outside of your existing distribution network.

PartnerShip is proud to support and celebrate MFG Day 2019!

The first Friday in October, MFG Day was created to show the reality of modern manufacturing and celebrate the large role manufacturing plays in the US economy. Thousands of companies and educational institutions across the country open their doors to students, parents, teachers and community leaders to connect with America’s future creators to create an interest in a career in manufacturing.

PartnerShip is proud to work with many organizations that support and promote manufacturing, such as NTMA, MAPP, PMPA, Manufacturing Works, and many more.

Today’s manufacturing jobs are high-skill and high-tech, but there is still a skilled labor shortage in the manufacturing sector. MFG Day is an opportunity for people, especially students, to learn what modern manufacturing really looks like and to discover that manufacturing offers high-quality and high-paying jobs and career choices. Consider these statistics:

• There are 12.8 million manufacturing workers in the United States. (Source: Bureau of Labor Statistics)
• In 2017, the average manufacturing worker in the United States earned $84,832 annually, including pay and benefits. (Source: Bureau of Labor Statistics)
• 4.6 million manufacturing jobs will be needed over the next decade. (Source: Deloitte and the Manufacturing Institute)
• Manufacturers in the United States perform 64 percent of all private-sector R&D in the nation, driving more innovation than any other sector. (Source: Bureau of Economic Analysis)

Most shippers are familiar with the large network of national freight carriers commonly seen on the road, but regional freight carriers tend to be a little less recognizable. While larger freight carrier organizations have many benefits, including a sizable service area and the resources to have a large pool of available trucks, many shippers are not aware of the lesser-known benefits associated with using smaller local or regional carriers. In order to make smart shipping decisions, it's important for shippers to weigh the advantages of working with different types of carriers. Consider whether they may make sense for you, so that you're getting a service that best accommodates your business. 

When using a regional freight carrier makes sense: if you don't need to ship far to reach your customers

In terms of size, regional freight carriers operate in a smaller, more concentrated geographic territory than national carriers. Typically, the trucks are traveling 500 miles or less, though there are several companies that service larger areas or specific lanes. These carriers territories tend to fall into one of two categories: multi-state lanes or local transportation that operates within a certain city lines or borders. Examples of regional freight carriers include PITT OHIO, Dayton Freight, and AAA Cooper. 

If your business is shipping mostly to local customers that are located within state, or even in the same general geographic area of the U.S. (Southwest, Great Lakes, Northeast, etc.), you may want to consider using a regional carrier. Because these carriers aren't servicing larger cross-country lanes, they tend to have shorter hauls since they are delivering locally. This may limit where you can ship to, but keep in mind that there are still larger, national carriers at your disposal. There are many benefits to shorter hauls, as well. Typically, these hauls do not undergo as much loading and unloading at carrier terminals like longer hauls do. This can mean less damage and more on-time deliveries for your freight, ultimately getting you happy customers and better business. Smaller companies can sometimes spend more time focusing on continuing safety and service training. For example, Dayton Freight, a top regional freight carrier, dedicates time and energy pursuing the continued education of its team. In-house programs like "Dayton Freight Academy" to focus on improving and supplementing the skills of drivers and other employees when it comes to safety, truck maintenance, and freight handling. This intentional focus on service at the employee level helps regional freight carriers like Dayton improve the customer experience. 

Also because regional freight carriers specialize in a smaller geographic area, drivers may have greater familiarity with the region in general. They may be much more knowledgeable about things only locals drivers may know, like which complicated delivery addresses are located where, whether they are likely to be classified as a business or residential location, what time of day traffic is most congested, or other route obstacles to avoid. This can help avoid potential pick up and delivery challenges or other issues that may delay a shipment.

When using a regional freight carrier makes sense: if service level is of utmost importance

There are many service benefits in working with regional freight carriers. Due to their smaller size, they can often offer a more personalized class of service that puts a greater emphasis on the customer experience. Because these carriers are working with a smaller customer pool, they often can offer better flexibility and responsiveness when issues come up with a shipment. Many regional freight carriers have smaller corporate offices in local areas which may mean live, reachable customer service teams versus automated service lines. That way, shippers can have more direct contact with local terminals rather than being given the run around by calling a general customer help line. All in all, this may lead to better management of a shipment from pick up to delivery for some shippers who value a high level of customer service. 

When using a regional freight carrier makes sense: if you need to be particularly mindful of your freight spend

Using a regional freight carrier can lower your freight costs, especially if your business needs specialized services, such as liftgates or other accessorials. It's relatively common that regional carriers do not have to pay delivery area surcharges and have fewer accessorial costs and lower minimums than national freight carriers, which means they can pass on these savings through lower prices to shippers. Another benefit associated with working a smaller service area? Next-day or expedited delivery is more reasonable. For example, PITT OHIO, a regional carrier based in the Midwest, offers some of the most expanded next-day lanes in the nation. A small service area means a shorter haul, quicker transit time, and less work overall for the carrier to hasten delivery. Because of that, these expedited shipping costs can be lower than with national carriers.

Finally, because regional freight carriers are also typically smaller organizations, shippers may have more negotiating power when it comes to discounted rates or lowered accessorial fees. Regional carriers are likely to be more flexible in order to compete with the huge volume of business that national carriers naturally pull from the market. 

For some shippers' needs, bigger isn't always better. There are very specific instances when a business may benefit from utilizing a smaller regional or local carrier network over a national carrier company. The first thing to consider is whether your customer base is located in a targeted geographic area. If you're doing business with local customers, and factors like price, service level, and timeliness are important, a regional freight carrier may streamline your shipping procedures. To learn more about the benefits of using a regional carrier, and whether they are right for you, call 800-599-2902 or get a free quote today.