Efficiently managing your freight costs is key to keeping your bottom line in tip-top shape. One of the more common ways your freight costs increase is by the reweighing or reclassification of your freight. Carriers have the right to inspect your shipment if they deem necessary and these incidents can trip up even the most experienced shippers.

When it comes to avoiding reweighs and reclassifications, the best defense is a good offense. Doing your homework on best practices for shipping your freight and closely following these practices will give your freight the best chance of getting to it’s destination without being hit with unexpected charges.

Below we have some points of emphasis to remember before shipping your freight:

Know your freight classes: Less-than-truckload Freight Class refers to the National Motor Freight Classification (NMFC) and it is the category of your LTL freight as defined by the National Motor Freight Traffic Association (NMFTA). Your shipment's LTL freight class determines the carrier's shipping charges. It identifies the size, value and difficulty of transporting your LTL freight.

We know determining your freight class is one of the more cumbersome aspects of freight shipping, and that's why we've developed an entire ePaper on the subject, and a helpful Find Your Freight Class' tool for our customers. We ask a few simple questions about your commodity and point you in the right direction.

Stay up-to-date on industry changes: Like any industry, the freight industry is constantly changing and adapting. For example, NMFC changes evolve to accurately reflect a commodity's “transportability.” The NMFTA will post any changes on their website - regularly reviewing these types of resources will keep you in the know on the important changes that affect your freight.

Pay close attention to your shipment’s weight: Obviously very important to not being hit with a reweigh is getting it right the first time.

• All weights on the BOL should be exact weights, not approximations!
• Remember to include the weight of the pallet and other packaging in the final total weight
• Have your scales tested and calibrated often – we would recommend annually, but there’s no harm in more frequent fine tuning.

Work with an experienced partner you can trust: Even after doing your homework and following guidelines, the freight industry can be a complicated world to navigate. Working with a 3PL partner like PartnerShip allows you focus on your company and us to focus on the freight. We have a team of dedicated freight specialists that can guide you to provide accurate shipment information that will avoid reweighs and reclassifications. As a free service, we even audit your freight bills for errors or unnecessary charges that sometimes arise, and we have the industry knowledge to fight to correct any discrepancies.

Keeping the above tips and advice in mind when shipping your freight will help you stay ahead of the curve and eliminate any unwanted billing surprises. If you have additional questions about reweighs or reclassifications, or would like to learn more about PartnerShip, contact us today at 800-599-2902 or email sales@PartnerShip.com.

FedEx recently announced that dimensional weight pricing will apply to all FedEx Ground shipments, effective January 1, 2015. This is a significant change from the rating structure in place today. Currently only FedEx Ground packages measuring at least three cubic feet (5184 cubic inches) are subject to dimensional weight pricing. 

UPS is likely to make the same changes, as FedEx and UPS have a history of matching one another's pricing strategies. Both of their general rate increases (GRI) have matched over the years, including similar accessorial fees and special handling charges.

Even though this change is still several months away, it's important to determine what this will mean for you and your business for future planning. So what can you do?

Educate yourself
Dimensional weight pricing is a common industry practice that sets the transportation price based on package volume, in relation to its actual weight. Carriers use dimensional weight in order to account for the space packages take up on their trucks and planes. This allows for a more precise way to charge for their services.

According to the 2014 FedEx Service Guide, FedEx Express calculates dimensional weight for shipments within the U.S. by multiplying the package length by width by height (in inches) and dividing the total by a DIM Factor of 166 (the DIM Factor represents the volume of a package allowed per unit of weight). Dimensions that measure one-half inch or greater are rounded up to the next whole number, dimensions less than one-half inch are rounded down, and the final number is rounded up to the next whole pound. If the dimensional weight exceeds the actual weight, the former becomes the billable weight. It is likely that the new FedEx Ground dimensional weight pricing will follow the same guidelines.

Determine the impact
Start by looking at the FedEx Ground packages you typically ship and their box sizes. For example, if you tend to ship 24x12x12 boxes, the dimensional weight is 21 lbs. Here is how that is calculated:

length x width x height = volume
24 in x 12 in x 12 in = 3,456 cubic inches

volume/dimensional divider = dimensional weight
3,456/166 = 21 lbs.

You then compare the dimensional weight to the actual weight, and the higher of the two becomes the billable weight. In this example, if your actual package weight is 15 lbs., you will instead be billed at the dimensional weight (21 lbs.).

The change in dimensional weight pricing for small package ground shipments is only part of the impact you'll see on your budget for 2015, but it will be an important one. Keep an eye out around the New Year for the PartnerShip Small Package Rate Increase white paper that will come out after all of the general rate increases are announced by the carriers.

Find ways to offset the rate increase
Be mindful when you select the packaging for your small package ground shipments. Make sure you're not using unnecessarily large boxes for lighter shipments.  If you don't currently have one, investing in a scale can be helpful when determining how to ship out your small packages and selecting box size, so you know exactly what you're working with and how much you can expect to pay.   

Securing discounts for your small package shipments is one of the best ways to offset this rate increase. PartnerShip offers association members discounts on select FedEx services. If you're not sure if you qualify for one of our small package shipping programs Contact Us and we'll find the solution that's right for you. Also, if you click the button below, we can provide you with a free, no-obligation shipping analysis to determine how much we can help you save on your small package shipping.

It's that time of year again. Freight carriers have been announcing their general rate increases (GRIs) this spring. As we did last year, PartnerShip has compiled some details for your benefit so you can make well-informed, money and time saving decisions about the best way to handle your freight shipping.

If you're a seasoned freight shipper, you probably know all too well the ins and outs of the GRIs. However for our more novice shippers, the GRIs are just what they sound like — increases in freight rates. There are many reasons why these increases are necessary, but the main reason is a sharp increase in costs that carriers face every year due to things like rising fuel, maintenance, insurance, and labor costs.

As straight forward as the reasoning for the increases sound, there are also some less obvious nuances to the GRIs that, as your shipping connection, we can help to clear up. One of the more important things to remember is that these rate increases are only averages across all origin and destination ZIP code combinations served by each individual carrier. The effect of the rate increase will vary for individual customers and shipments based on geography, product classification, lane, weight, and dimensions. Using geography as an example, if there's an "average" GRI of 6%; some areas may see a 3% increase and some may see a 9% increase in freight charges. The customer in the area with a 9% increase will obviously see a larger bump in cost, especially if distribution is regional.  

Listed to the right, we've compiled GRI for the five largest national LTL freight carriers, the percentage at which their rates will be increasing, and the dates these increases will go into effect.

Remember, PartnerShip is here to help you offset these increases. We've negotiated with carriers on your behalf to bring you the best rates in the industry with the most reliable national and regional carriers. In addition to great rates, PartnerShip brings a dedicated freight team, free money-saving services like invoice auditing and inbound management, and easy-to-use online freight tools ... all designed to save your company time and take the guesswork out of freight shipping (click here to create a PartnerShip.com account if you haven't already).

If you would like more information on this year's GRIs, please contact PartnerShip at 800-599-2902 or email select@PartnerShip.com. Click the button below and we'll be happy to provide you with a free, no-obligation shipping analysis to help you determine which carriers and which lanes will save you the most money on your freight shipping.

PartnerShip employees recently lended a hand to Soles4Souls to help provide shoes to Boston's less privileged. Now, PartnerShip and Soles4Souls have entered into a new type of alliance - PartnerShip will be the endorsed Soles4Souls shipping provider and will coordinate the shipping from the donor drives to the nearest warehouse location. PartnerShip will also help Soles4Souls manage their transportation between warehouse facilities and shipments to shoe distributions in the U.S. 

Soles4Souls, Inc. is a nonprofit social enterprise that advances the fight against global poverty by monetizing used shoes and clothing to create sustainable jobs and fund direct relief efforts around the world. The organization collects new and used shoes and clothes from individuals, schools, faith based institutions, civic organizations and corporate partners, then distributes shoes and clothes both via direct donations to people in need and through qualified micro-enterprise programs designed to create jobs in poor and disadvantaged communities.

Soles4Souls collects approximately 2,000,000 shoes each year through 5,000 to 7,000 donor drives taking place in any given year. A single donation drive may generate fifty pairs of shoes to three thousand pairs or more. The donors that sponsor the shoe drives are then responsible for paying freight cost to ship the shoes to the nearest of approximately 17 warehouse/distribution points around the country. Once the shoes reach one of the warehouse locations, the shoes are graded into A, B and C grades. They are then inventoried and eventually shipped to their micro-enterprise providers who pay for the freight (typically 53' containers).

PartnerShip is excited and honored to be a small part in such a worthy cause and look forward to providing shipping solutions for Soles4Souls donors — the lifeblood of this important organization.

If you would like more information or would like to donate today, visit Soles4Souls.org. You can also visit the official Soles4Souls shipping page to set up a donation shipment at PartnerShip.com/Soles4Souls.

FedEx recently announced a general rate increases (GRI) of 3.9%, on average, for domestic and international FedEx Express services. These new rates will take effect January 6, 2014 along with the FedEx Ground and FedEx Home Delivery general rate increases that will be announced later this year (historically, FedEx will match Ground increases set by UPS). In previous years, FedEx has had higher rate increases but offset them with a fuel surcharge reduction. This year they have not announced plans to modify the fuel surcharge indexes and instead have lowered the rate increase compared to previous years (3.9% vs. 5.9% in 2013).

List Rates
For a full listing of the 2014 FedEx Express rates, click here. Below is a snapshot of average rate increases for commonly used FedEx Express services.

Source: http://www.parcelindustry.com/Media/PublicationsArticle/fedex1.pdf 

Surcharges
2014 will also see changes to surcharges and fees for FedEx Express services, with a 7.6% average increase.

• Declared Value. Declared value charges for FedEx Express services will increase from $0.85 to $0.90 per $100 of value. For U.S. package services, the charges apply to shipments valued in excess of $100, and the minimum charge will increase from $2.55 to $2.70. For international services, the charge applies to the value in excess of $100 or $9.07 per lb., whichever is greater.

• Delivery Area Surcharge. For applicable FedEx Express U.S. package services, a delivery area surcharge applies to shipments destined to select ZIP codes.

• Collect on Delivery (C.O.D.). For applicable FedEx Express U.S. package services, the charge for FedEx C.O.D. will increase from $11 per package to $12 per package. The cap for FedEx Express Multiweight shipments will increase from $77 per shipment to $84 per shipment.

• Residential Delivery Charge. For FedEx Express U.S. and international package services, a residential delivery charge applies to shipments to a home or private residence.

• Saturday Delivery. For applicable FedEx Express U.S. package services, the charge for Saturday delivery will increase from $15 per package to $16 per package. For applicable FedEx Express international package services, the charge for Saturday delivery will increase from $15 per shipment to $16 per shipment.

• Saturday Pickup. For applicable FedEx Express U.S. package services, the charge for Saturday pickup will increase from $15 per package to $16 per package and the maximum charge will increase from $105 per shipment to $112 per shipment. For applicable FedEx Express international package services, the charge for Saturday pickup will increase from $15 per shipment to $16 per shipment.

Over the past year, we've written and shared a number of articles that contain tips and suggestions for those of you that are new to shipping. Since many of our current and future customers are owners or managers for small businesses, we know that shipping is just one of many responsibilities that you juggle each and every day. If you're new to PartnerShip, here is a "baker's dozen" collection of articles that may help you get started:

• Small Businesses Cope with Rising Shipping Costs
• New to LTL Shipping?
• Small Package versus LTL Freight
• 4 Ideas to Reduce Shipping Costs
• Consolidate Orders to Save on Shipping
• 3 Steps to Take Control of Your Inbound Shipping
• Vendor Prepaid versus Inbound Collect Shipping
• How to Calculate Freight Density
• What You Need to Know About Shipping Internationally
• 8 Excuses for Not Working with a 3PL Provider
• New to Trade Shows and Exhibit Transportation?
• Everything You Need to Know About an Exhibit Transportation Provider
• A Free Freight Analysis

Going global with your business is a great opportunity for growth. Whether you've already taken your business overseas or have just started to dip your toes in the international waters, simplifying your shipping is essential for keeping your business afloat. Here's what you need to know about shipping internationally:

Find your markets
When you're selecting your international markets, there are several factors to consider. You may start off by selecting markets where you have local distribution connections or markets that have signed free trade agreements with the U.S. You may also think about staying within markets with a common language to avoid any cultural or language barrier issues.

As you continue to expand it's also important to be aware of the requirements and restrictions you will encounter. Each country has different restrictions or prohibitions that affect what commodities are allowed to be important and exported.

Some countries also have standards you must adhere to. For example, China uses the China Compulsory Certification Mark (CCC), whereas European countries conform to the Conformite Europeenne (CE). Products not meeting the particular standards in these markets may be held up by customs and will be subject to other penalties. Make sure you are aware of these restrictions and standards to avoid any unwanted hassles down the road.

As a helpful tool for researching your markets, FedEx provides Country Profiles that can give you detailed information on import and export restrictions, trade group information, prohibitions, standards, and more.

Prepare your documents
There is a great deal of documentation involved with shipping and selling a product internationally. The U.S. government requires export documentation and each importing country will have different requirements for import documentation.

What documentation you have to submit with your shipment depends mostly on where you are shipping to and what you are shipping. The primary shipping document for most international shipments is the International Air Waybill (IAWB). Other documents you may need will vary. Some other common documents include the Commercial Invoice, Certificate of Origin, and Electronic Export Information (EEI).

To help you determine what international documents you will need to complete, check out the FedEx International Document Assistance page.

Ship your products
When you have selected your markets, completed the necessary paperwork, and are finally ready to ship, it's important to select the right service at a low cost. It's also important to remember that things like duties, taxes, port handling fees and other customs charges will affect your cost. Saving money on your international shipments with a reliable carrier can make a world of difference. 

FedEx offers a number of services to fit all of your international shipping needs. Through an association shipping program, managed by PartnerShip, you can receive discounts on your international shipments with select FedEx services. PartnerShip works with over a hundred major trade associations, across many industries to provide their members with the money-saving tools to help them be successful. If you belong to an association we work with, take advantage of our free shipping benefits today - and save on your international shipping. If you're not sure if you qualify for one of our shipping programs contact us and we'll find the solution that's right for you.

Near the beginning of every New Year, the shipping experts at PartnerShip dig into the small package carriers' annual rate increase announcements. We like to read between the lines for our customers, digest the tables and charts, see what information is out there that FedEx and UPS didn't say, or maybe just hinted at. As always, how much more expensive your particular small package shipments will be in the New Year largely depends on many factors, including shipment volumes, sizes, weights, and modes.

Here are some quick facts regarding this year's small package rate increases:

• UPS rate increases in effect December 31, 2012
  
  » 4.9% average rate increase for UPS Ground (5.9% average increase -1% reduction in the fuel surcharge)
  » 4.5% average rate increase for UPS Air (6.5% average increase -2% reduction in the fuel surcharge)
• FedEx rate increases in effect January 7, 2013
  
  » 4.9% average rate increase for FedEx Ground and FedEx Home Delivery services (5.9% rate increase -1% reduction in the fuel surcharge)
  » 3.9% average rate increase for FedEx Express services (5.9% average increase -2% reduction in the fuel surcharge)
• UPS will enjoy an extra week of the rate increases by beginning 12/31/12 to FedEx's 1/7/13

Interested in learning more? Our exlcusive report includes detailed tables and insights. Click the button below to read on ...

When a member of the PartnerShip sales team talks with a prospective customer for the first time, they occasionally are met with some resistance to the idea of working with a 3PL provider. For small and medium businesses, working with a 3PL can seem like a daunting notion. Here are some common "excuses" cited as reasons for not working with a 3PL partner:

1. "I can't afford to switch carriers." In some instances this may be a good reason to stay the course if you are getting really good pricing that can't be matched by the 3PL. However, in most cases a 3PL can use its buying clout to negotiate better rates on your behalf. A 3PL can also audit and consolidate freight bills, and provide claims filing assistance, saving additional time that the small businesses can use to focus on more critical tasks. Additionally, some 3PLs offer additional liability protection on your shipments that you may not be receiving today (for instance, PartnerShip provides $25/pound liability coverage, whereas many carriers offer only $10/pound).
2. "Freight costs are not a big deal because my customer pays for the freight." Unless you're product is totally indispensible, this is extremely short-sighted thinking. The total landed price if a product always influences the final sale price. Your customer may not care now, but if they find a cheaper alternative - one that can possible be sourced from a local vendor instead of you - their business will be at risk.
3. "I buy all of my inbound materials vendor prepaid." If you are the customer, then you are probably overpaying for your inbound goods if you trust that your vendor is always giving you the lowest freight price. Wouldn't it at least make sense to explore both "inbound prepaid" and "inbound collect" options to see which yields the lower overall cost of goods? The reality is that there's no such thing as "free shipping," so don't be fooled into thinking those costs aren't hidden somewhere.
4. "Freight costs are not of a concern since my profit margins are good." Sure, margins may be good today, but they won't be good tomorrow if your customer finds a lower-priced alternative. Even if they don't find a lower-priced alternative, what's wrong with the idea of improving upon your already good margins? You never know when those additional profits may be needed down the road.
5. "I pay my staff good salaries, so I shouldn't need a 3PL to do their jobs for them." If you are a small or medium business, then in all likelihood transportation decisions are only a small portion of your employees' overall responsibilities. When you work with a quality 3PL, you aren't duplicating their work - you're giving them the tools and support to do their jobs more effectively. A 3PL partner will allow you and your people to focus on your core competencies which are probably marketing, merchandising, and selling your products.  
6. "I already have great pricing with my current carrier." If your only evidence of this statement comes from your current carrier, they may be guilty of a conflict of interest. Would they really admit it if you had bad pricing? Definitely not. Additionally, some carriers can be price-competitive in some lanes, but not competitive in other lanes. When you work with a quality 3PL partner, you generally get a few options for each of your shipping lanes ensuring you enjoy the lowest possible cost on every shipment, every time.
7. "My business is down and so I'm not shipping as much." If your business is down like so many others in today's economy, your "buying power" is probably down as well. This makes it all the more imperative that you leverage the buying clout of a 3PL. They can ensure, no matter if your business is up or down, you maintain low-priced freight rates that are consistent with the most competitive, prevailing shipping rates in the market.
8. "My business is up and I simply don't have time to deal with a 3PL." No one can deny that entering into a new partnership with a 3PL - or any other supplier - takes a certain amount of time. However, if you do the real math, quite often the nominal time investment it will take to bring a quality 3PL on board will more than pay for it in future freight and time savings. Additionally, having this foundation in place will allow you to continue to maximize your business growth going forward, without having to get bogged down with the nitty-gritty details around shipping and carrier relations. 

The advantages of using a 3PL freight partner are clear, and it is important to choose the right one. As a dependable and reputable 3PL freight partner, PartnerShip is your shipping connection to substantial discounts and customized solutions for your business.  For more information contact us at 800-599-2902 or email select@PartnerShip.com. You can also download our short, electronic white paper below on "The Advantages of Using a 3PL Freight Partner" by clicking the button below.

A common dilemma for businesses is deciding the appropriate shipping mode to use for their important shipments. Shipping mode choices include LTL freight, small package, ground, air, ocean, rail, intermodal, and others. When deciding whether to use a small package or LTL freight carrier, for example, shippers must take into consideration the weight and characteristics of the shipment, including delivery urgency. The old —150-pound' rule is not an absolute guideline anymore, but obviously the weight of the shipment must be a major consideration in choosing a shipping mode.

Shipment Characteristics

The size, weight, and shape of the materials you are shipping can also impact your decision making. Are your boxes big and bulky, small and compact, unitized or loose? LTL often is a preferable choice when the shipment's boxes are oddly shaped, as in furniture. LTL is also the way to go when your shipment is palletized, as small package carriers only handle individual boxes. Being less automated than the small package shippers, the LTL carrier will often use forklifts instead of conveyor belts. Strange as it may seem, moving odd-shaped boxes and pallets with a forklift produces fewer damages than moving them on a conveyor belt with thousands of other packages. The shape of the carton may cause it to fall off the belt or at least be tumbled around a good deal. Also, when you ship multiple loose boxes, the chances of losing one or two them are greater than had you shipped them together on a pallet.

Shipment Destination

Another area to consider is the receiving facilities for the shipment. Is there a dock? Does the shipment need to be delivered to the tenth floor of a building with no freight elevator? Is inside delivery even necessary? LTL freight carriers will generally be better delivering dock-to-dock and business-to-business, while small package carriers are better able to handle inside and residential deliveries.  

Service Needs

Service must also be taken into account. If your shipment must travel 2,000 miles and be delivered the next-day, you're going to have to consider an air express service (unless it's Friday, in which case some ground carriers can use the weekend to get your shipment across the country). Generally, if you don't need your shipment delivered within one or two days, LTL freight is going to be less expensive than small package carriers who have more urgent delivery capabilities built into their systems — particularly as your shipment weight increases. LTL freight may also be a good option for shipments moving less than 500 miles, because you can often get next-day delivery on those distances.  

Pricing and Fees

Of course, the primary consideration is quite often price. Most of you are painfully aware of the charges small package carriers assess for services such as rural delivery, address correction and Saturday delivery. LTL carriers have similar charges as well, especially for inside delivery or delivery to a recipient who has no loading dock. Carriers in both industries continue to charge fuel surcharges, which also have a material effect on your shipping price. On a percentage basis, LTL carriers generally charge higher fuel surcharges (about double that of small package carriers) but, in the end, it's the total price you need to look at, since LTL is often less expense on the —line haul' portion of the invoice.

Loss and Damage Concerns

The risk of loss or damage to your precious shipment is always a concern, regardless of what type of carrier you use.  Small package carriers have a higher loss and damage ratio than LTL carriers, but neither is altogether immune to the issue.  LTL carriers provide the advantage of providing significantly more liability coverage than small package carriers (which are often capped at $100 per package). So a small package carrier will have only $300 worth of liability on that 3 package, 300 pound shipment; whereas, an LTL carrier would provide liability coverage of $750. That's more than double the protection of the small package carrier.

Making the Decision

Sometimes the best course of action is to seek help from transportation professionals (like those at PartnerShip) to help you make the right decision. There is no set formula for the best service-price ratio, but as a general rule of thumb, shipments over 200 pounds that don't require urgent delivery are best handled by LTL carriers. Shipments less than 200 pounds, those that can't be placed on a pallet, or those that require urgent delivery over longer distances, are often best handled by small package carriers.

Interested in learning more?                                             

Let PartnerShip help you to determine when and where you should be using small package and LTL freight carriers. Contact us today.

No matter the package size or shipment mode, it's important to be using the proper techniques for your packaging. Learn how to prevent costly and time-consuming mistakes by downloading our ultimate guide to proper packaging.