PartnerShip Celebrates Manufacturing Day, Friday, October 5th!

October 2, 2018 at 7:29 AMPartnerShip
Manufacturing Day logo

PartnerShip is proud to help celebrate Manufacturing Day 2018.

MFG Day was started in 2012 to acknowledge the large role manufacturing plays in the US economy and to help inspire the next generation of engineers and manufacturers. Its main purpose is to educate and inform students, teachers, and community leaders about how important manufacturing is to their local community and their local economy. PartnerShip is proud to partner with many organizations that support and promote manufacturing, such as NTMA, MAPP, PMPA, Manufacturing Works, and many others!

There is an increasing skilled labor shortage in the manufacturing sector, and MFG Day gives manufacturers an opportunity to open their doors and correct the misperception that manufacturing involves repetitive, unskilled tasks that happen in dark, dirty factories; it’s an opportunity to show people what modern manufacturing really looks like. Manufacturing offers high-quality jobs and career choices. Consider these statistics:

  • US manufacturing is the 9th largest economy in the world. (Source: Bureau of Economic Analysis)
  • Manufacturing supports 18.5 million jobs in the United States. (Source: Bureau of Labor Statistics)
  • Manufacturing comprises nearly 12% of the GDP of the US. (Source: Bureau of Economic Analysis)
  • In 2017, the average manufacturing worker in the United States earned $84,832 annually, including pay and benefits. (Source: Bureau of Labor Statistics)
  • Over the next decade, nearly 3½ million manufacturing jobs will likely be needed. (Source: Deloitte and the Manufacturing Institute
Last year, 600,000 people attended MFG Day events, including 267,000 students.

PartnerShip works with hundreds of manufacturers and we’re proud to spread the word about the importance of manufacturing. If you’re a manufacturer that wants to work with a shipping partner that understands your business, contact PartnerShip for a quote on your next shipment!

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New Excessive Length Restrictions You Can't Afford to Ignore

September 18, 2018 at 10:16 AMJen Deming
New Excessive Length Restrictions You Can't Afford to Ignore

It's a tough time for shippers and carriers alike. It's no secret that the current capacity crunch is affecting freight rates and transit times, but now shippers are facing new excessive length restrictions as well. As the number of available freight shipments continues to increase at a record-setting rate, carriers simply cannot keep up. In an effort to free up for space for available loads, XPO will be implementing new restrictions on certain types of shipments. What are the changes being made, and what else can shippers expect from freight carriers as capacity continues to tighten?

XPO will be making a few specific changes that will affect the excessive length policies currently in place. The primary change that will affect customers is the following:

  • As of 9/24, XPO will no longer pick up shipments of pipes or bars that are not crated, regardless of length. Leading up to the 24th, all items should continue to move without problem unless over 20ft or more, which would be determined at the service center level

To summarize, if you are shipping pipes or bars of any length, they must be crated - simply palletizing your load will earn you a missed pick-up. Some shippers like to save time by combining multiple commodity types of different classes onto one pallet and one bill of lading. If you are used to combining your multi-class shipments into one load, and it includes bars or pipes, crate them separately from the rest of your freight and create an individual BOL. XPO has created a packaging guide with notable rules of thumb to help properly package your shipments and gives further insight into excessive length articles.

The active phasing out of excessive length shipments by XPO is anticipated to have a favorable impact on current available carrier capacity. It's a safe assumption that other carriers may follow suit. Many common carriers do not have the specific equipment needed to properly move long freight safely and efficiently. Historically, excessive length freight contributes to more damage claim submissions and creates much more wasted space than a standard dimensional shipment. This means less freight can be loaded into a truck at a time, and this can lead to an increase in missed pick-ups and longer transit times for other shippers.

Some carriers have already adopted special charges for small package ground shipments that are considered oversized. FedEx and UPS both charge higher surcharges on these types of shipments in order to discourage shippers from moving them. These fees range anywhere from $80 up to $500 on top of regular service cost, depending on the carrier and package size. Right now, many freight carriers already have excessive length fees in place, and it's entirely possible that carriers that do continue to move oversized freight loads may implement increases or initiate the same sort of surcharge system in the near future.

For customers who are shipping commodities that are consistently rated excessive length, it may be time to consider looking into truckload service options. Moving full truckload is a great alternative for businesses shipping many pallets of product at a time, but it's also a secure and efficient option for those who have fragile, large, or high-value freight. With this option, you pay for the cost of the space you take on a full 53' truck. Freight class doesn't affect your rate, and you may have more flexibility with packaging. Added security and quicker transit times typically are additional benefits. Depending on the length of your haul, a dedicated truck may be costly, but a freight broker can help look into partial truckload options that may better fit your budget. Whatever freight shipping option works best for you, it's a good idea to look into all available choices as the transportation industry continues to evolve.

The capacity crunch is an ongoing challenge, and carriers are responding by changing the industry as we know it. Pricing for both freight and small package services is rising, and policies are being adjusted to make room for an increase in demand. Working with a quality freight broker can help steer you in the right direction and make sure you are shipping smarter. Contact PartnerShip at 800-599-2902 or email sales@PartnerShip.com today.


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The August PartnerShip Carrier of the Month

September 14, 2018 at 12:51 PMPartnerShip
PartnerShip Loves Our Carriers! Here is Our August 2018 Carrier of the Month

PartnerShip is proud to partner with many high-quality freight carriers to help our customers ship smarter and stay competitive. We love shining the spotlight on carriers that go above and beyond and provide stellar customer service.

Our August Carrier of the Month is A&M Group Enterprises, Inc. of Berlin, CT. They have been in business for more than 15 years and have a fleet of 30 power units and 35 trailers and strive to make deliveries as smooth and hassle-free as possible. At the same time we recognize A&M Group Enterprises, we'd again like to express our thanks to all drivers that keep our economy moving during National Truck Driver Appreciation Week.

The PartnerShip Carrier of the Month program was created because we want to recognize carriers that do an exceptional job helping customers ship and receive freight. PartnerShip team members nominate carriers that provide outstanding communication, reliability, and on-time performance.

For being our August 2018 Carrier of the Month, A&M Group Enterprises gets lunch and a nifty framed certificate to proudly hang on their wall. The “thank you’s” may be small but our appreciation is huge!

Interested in becoming a PartnerShip carrier? We try very hard to match our freight carriers’ needs with our available customer loads because we understand that your success depends on your truck being full. If you’re looking for a backhaul load or shipments to fill daily or weekly runs, let us know where your trucks are and we’ll match you with our shippers’ loads. If your wheels aren’t turning, you’re not earning.

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5 Key Things to Know About Shipping Stone

September 12, 2018 at 8:06 AMJen Deming
5 Key Things To Know About Shipping Stone

One of the most common, and most difficult, commodities being moved either LTL or full truckload is natural stone materials. These are used mostly for construction projects, both residential and commercial. The stone can be cut, crushed, blocked, or moved upright in slabs, and each come with different requirements for packaging and handling. As dense and heavy as stone is, it can be very fragile, brittle, and difficult (not to mention dangerous) to transport. Whether you are going either LTL or full truckload for your stone shipping, there's a slew of potential complications you need to be aware of in order to ship safely and securely.

1. Packing and Packaging

First and foremost, proper packing and packaging materials are very important for stone shipping. In the most ideal of scenarios, smaller freight shipments can be packed in custom crates, with built-in foam material for cushioning. The crate shouldn't be too large, and should contain minimal extra space to limit movement of the product inside. Stone material can be separated in bags within the crate for easier removal and distribution upon delivery. Customized crates can be a little pricey, but it's well worth the extra cost in security. This is especially true if you are moving through an LTL carrier. In that case, your stone will likely be loaded and unloaded several times throughout the process, both initially and through terminals during transit.

Palletizing your stone shipments is another recommended option for larger freight loads, and are often stacked with wrapping materials in between to prevent scraping. Ideally, a specialized piece of equipment should be used to transport stone shipments cut into slabs, called an A-frame. Typically, these are made of both wood and steel and include a base with A-shaped bars angling upward acting as a sturdy support for heavy slabs. They can be used for both storage and transport, and many have wheels that can be locked into place or removed. These frames can be loaded onto the truck by either forklift or crane.

2. Trailer Types

There are many truck types that are able to transport stone, and the equipment required depends on how the stone is packaged.a 53' dry van (enclosed trailer) with swing or roll-up doors will work well for most smaller shipments going LTL. Shipments are loaded at the rear, using a loading dock and forklift. If a loading dock is not available, some trailers have lift-gates, but this additional service does come with a fee and makes it more difficult to find available trucks. It's important to note that palletized shipments of stone are generally not recommended to go LTL, unless plenty of corner guards, foam or other packing materials are being wrapped with the product.

There are a few additional trailer-type options for truckload stone shipping. A flatbed is an extremely popular trailer type that is widely used for its versatility. There are no sides so the deck is open, and freight is typically loaded over the sides and the rear. A step-deck or drop-deck is a variation of a flatbed that consists of both a top and bottom deck. The lower part is designed to haul freight that may be too tall to be hauled with a standard flatbed. Additional open deck options include RGN (Removable Gooseneck Trailers), stretch RGN, or low-boys. All of these options are designed to be used for exceptionally tall or long freight loads. These open types of trailers will most likely require straps, chains, or tarps to help protect the freight from wind or weather damage and will need to be requested by the shipper so that the carrier is prepared. A conestoga is a trailer that comes with a roll-up tarp system that creates sides and a top to offer protection of the freight, which is an added benefit to fragile stone shipping. Keep in mind, due to the specialized nature of these pieces of equipment, they may be more expensive and more difficult to find.

3. Over Dimensional Concerns

It's very common for large stone orders or building materials to be over dimensional when going full truckload. Knowing what to expect when it comes to legal requirements and how your shipment may be affected are very important in planning the haul. Every state has different legal requirements for obtaining a permit in order to transport over-sized freight. There are not only restrictions on hours of operation varying by state, but also restrictions on drivers for hours of service - meaning there is less time your shipment can be on the road. As the shipper, it's crucial to plan as much as possible beforehand and to give accurate estimates for transit time. It may be smart to plan an extra day or two when communicating with your customer. Since the load will more than likely go through checkpoints in each state it travels, each stop stop can potentially hold up your load. Make sure your drivers are prepared with the necessary permits, paperwork, and commodity information (likely including product spec sheets and packing slips).

4. Insurance Coverage

Due to the fragility and potential hazards and risk for damage in shipping stone, making sure you have proper insurance coverage is crucial. Carrier liability is typically limited, especially for LTL common carriers. So, if your shipment and damaged in transit, the probability that you will receive full compensation for the value of your product is very unlikely. Usually, in LTL shipments, the payout depends on a dollar per pound amount based on the class and commodity. In order to get this payout, you will need to go through all of the necessary steps to file a claim and prove the carrier is at fault for damaging your shipment. It can be a tedious process with a very limited return. Many shippers find it much more beneficial to obtain additional freight insurance to have more complete coverage of their freight.

Truckload carriers are required by the FMCSA to meet specific primary insurance minimums. Cargo liability is the type of insurance that covers your freight while it is in transit. Typically, up to $100,000 in cargo liability is covered, but it's important to note not all types of commodities are covered. Restrictions can vary depending on insurance company, so it's always a good idea to look into purchasing additional cargo insurance to be sure your freight is covered.

5. Accessibility of Site/ Unloading Teams

Another huge challenge for shippers moving stone materials is accessibility of the pick up and delivery locations. Oftentimes, these loads are being picked up directly at the quarry, and it can be difficult for the driver of a 53' dry van or a flat bed to maneuver in these locations. Delivery can be at construction sites, or even residential lots, which poses even more difficulty for drivers. It's important to know that the driver of your delivery truck typically will not assist in the loading or unloading of your freight. And with thousands of pounds of hard-to-move, bulky product, you need to be prepared and have a well-trained and reliable team ready at your disposal - possibly even after hours. Most truckload carriers charge detention after 2 hours for loading/unloading, which means extra money in fees off your bottom line. The time can go quickly, so have any equipment and areas cleared that are needed for loading and unloading. Being better prepared on the front side can save you lots of money and time wasted later on.

Stone shipping is one of the most challenging and problematic types of freight shipping out there. It's also very common. As both commercial and residential builders are more frequently using natural stone in their designs, the demand for transporting these materials is increasing exponentially. Stone shippers have to equip themselves with as much knowledge as possible about the many issues that may arise both during and before and after transit. Being well-informed is the best way to ship as smart and as  securely as possible while minimizing the potential for costly damage. Working with a freight broker can lend you some expertise from finding reliable and vetted carriers, to knowing just what type of equipment you need to get your freight to its destination safely. Contact PartnerShip for your next stone shipment!

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PartnerShip Salutes America’s Truck Drivers!

September 10, 2018 at 7:32 AMPartnerShip
PartnerShip Celebrates Truck Driver Appreciation Week 2018

This is National Truck Driver Appreciation Week and PartnerShip would like to recognize the men and women who keep our economy strong by moving freight safely, reliably and efficiently.

"From the food and medicine in our cabinets, the furniture and electronics in our living rooms, and even the cars or bikes in our driveways – none of those items would be available to us without truck drivers," said American Trucking Associations (ATA) COO and Executive Vice President of Industry Affairs, Elisabeth Barna.

National Truck Driver Appreciation Week happens September 9 - 15 to honor all 3.5 million professional truck drivers for their hard work and commitment. PartnerShip is saying “thank you” with a Dunkin' Donuts gift card for drivers that move a full truckload for us during the week. It’s our small way of thanking drivers for helping our customers ship smarter.

To learn more about National Truck Driver Appreciation Week and the American Trucking Associations, visit the ATA website. To become a partner carrier, contact one of our Carrier Procurement Representatives for a setup packet at carriers@PartnerShip.com or visit our Become a PartnerShip Carrier webpage. Then check the PartnerShip Load Board and get started!

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What to Expect With Over Dimensional Freight

August 24, 2018 at 11:58 AMLeah Palnik
Over dimensional freight: what to expect

When you’re preparing an over dimensional freight shipment, the number of restrictions and factors to account for can be overwhelming. One mistake can have costly consequences to your bottom line and transit times. However, knowing what to expect when you’re getting your shipment ready will help ensure everything goes smoothly.

One of the reasons it can be challenging to set up an over dimensional shipment is that each state has different legal requirements you have to adhere to. However, there are some common categories that many states have restrictions around:

  • Travel time. Many states will restrict the hours that your carrier can be on the road when transporting an over dimensional shipment. Generally, travel is restricted to daylight hours (one hour before sunrise until one hour after sunset), which reduces your available time on the road, especially in the winter months when the days are shorter. Some states may also restrict transport during rush hour for major cities, depending on the size of your shipment. You will also need to factor in if you will be shipping close to a major holiday when travel can be restricted both the day of and the day before.
  • Escort vehicles. Depending on the states your cargo is traveling through, your carrier may be required to use escort vehicles, also known as pilot vehicles. These vehicles serve a couple different purposes. They help to warn other vehicles on the road and they can check for low hanging wires, bridges, or any other road hazard the truck may encounter. How many escort vehicles you need in the front and/or back will be determined by your shipment characteristics and the states it’s traveling through.
  • Route surveys. Safety is a major concern when shipping over dimensional freight. Route surveys are required by some states for certain oversized shipments to help ensure the safety of the load, to prevent public property damage, and protect motorists. During route surveys, a pilot vehicle will go through the exact shipment route proposed to document any potential obstructions or hazards like tight turns or low bridges.
  • Safety equipment. Depending on your shipment dimensions, flags and lights may be required on the tractor, trailer, and/or the escort vehicles. This helps with visibility for other motorists on the road. You will typically see red or orange flags and amber lights used.

When shipping over dimensional freight you not only have to follow the state restrictions, but it’s also a requirement to obtain permits from each state your freight passes through. The permits will include information like your shipment dimensions, what you’re shipping, and the origin and destination. It will also spell out the conditions that need to be met as far as safety equipment, escort vehicles, and restricted times. It’s important to note that there are fees for the permits which vary depending on the state.

While there is a lot that goes into planning for an over dimensional load, much of the responsibility falls on the carrier. The carrier creates the suggested route and submits it to the states to obtain the needed permits. The carrier also makes the arrangements for escort vehicles and other safety equipment.

As the shipper, your main concern should be providing the most detailed information possible so everything with the planning process goes smoothly. When requesting a quote, first and foremost, you will need to have your dimensions. The length, width, height, and weight will all determine what kind of state requirements you will need to follow. You will also want to provide information about your commodity including the model number, the serial number, value, and description. On top of that, it’s a good idea to include information about how it will be loaded and unloaded.

Due to the nature of over dimensional freight, you will need to get a quote at least two weeks prior to when you need the load moved. All of the pieces that contribute to moving an over dimensional load take time to secure. These restrictions also affect your transits times. You can estimate 50 miles per hour to travel, but add a cushion to account for route changes or other unforeseen issues.

You can also expect to pay more than what you would with a typical load, with line items for permits, escorts, and an over dimensional surcharge. All of these extra steps take time and cost money, so your quote will be calculated accordingly.

Working with a freight broker is the best way to ensure you’re receiving a competitive price for your shipment. A quality broker will know what questions to ask so that everything is done efficiently and every factor that could affect your shipment is accounted for ahead of time. Contact PartnerShip for your next over dimensional load!

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The PartnerShip July Carrier of the Month Is… (drum roll please)

August 17, 2018 at 12:30 PMPartnerShip
PartnerShip Loves Our Carriers! Here is Our July 2018 Carrier of the Month

PartnerShip works with high-quality freight carrier partners to help our customers ship smarter and stay competitive and we love recognizing our awesome carriers for a job well done!

July’s Carrier of the Month is Salem Ridge Contractors LLC of Waterford, Ohio! They specialize in heavy haul and oversize loads.

The PartnerShip Carrier of the Month program was created to recognize carriers that go above and beyond to help our customers ship and receive their freight. PartnerShip team members nominate carriers that provide outstanding communication, reliability, and on-time performance.

For being our July 2018 Carrier of the Month, Salem Ridge Contractors gets lunch and a nifty framed certificate to proudly hang on their wall. Our gestures may be small but our appreciation is huge!

Interested in becoming a PartnerShip carrier? We match our freight carriers’ needs with our available customer loads because we understand that your success depends on your truck being full. If you’re looking for a backhaul load or shipments to fill daily or weekly runs, let us know where your trucks are and we’ll match you with our shippers’ loads. If your wheels aren’t turning, you’re not earning.

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And the PartnerShip June Carrier of the Month Is…

July 20, 2018 at 8:15 AMPartnerShip
PartnerShip Loves Our Carriers! Here is Our June 2018 Carrier of the Month

Without high-quality freight carrier partners, our job would be much harder, and the economy would move much slower. We love recognizing our awesome carriers for a job well done because they help us help our customers ship smarter and stay competitive.

June’s Carrier of the Month is Boyko Trucking LLC of Richfield, Ohio! They have been in business since 2009 and specialize in LTL and full truckload shipping.

The PartnerShip Carrier of the Month program was created to recognize carriers that go above and beyond to help our customers ship and receive their freight. PartnerShip team members nominate carriers that provide outstanding communication, reliability, and on-time performance.

For being our June 2018 Carrier of the Month, Boyko Trucking gets lunch for the whole office and a nifty framed certificate to proudly hang on their wall. The gestures may be small but our appreciation is huge!

Interested in becoming a PartnerShip carrier? We match our freight carriers’ needs with our available customer loads because we understand that your success depends on your truck being full. If you’re looking for a backhaul load or shipments to fill daily or weekly runs, let us know where your trucks are and we’ll match you with our shippers’ loads. If your wheels aren’t turning, you’re not earning.

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Keys to Success for Vendor Compliance and Inbound Shipping

July 10, 2018 at 1:49 PMLeah Palnik
Keys to Success for Vendor Compliance and Inbound Shipping

For many retailers, obtaining vendor compliance and maintaining smooth inbound shipping operations may seem like a tall order. However, with the right planning and follow through, it is achievable. By following these keys to success, you’ll be on your way to reducing your freight costs, avoiding chargeback issues, and creating efficient operations.

Developing an effective routing guide
The very foundation of achieving vendor compliance is developing an effective routing guide. Routing guides provide shipping instructions to your vendors that help you gain control of your inbound shipments. They often include modes and carriers for specific lanes, as well as rate and service requirements.

In order to create routings that are best for your business, you’ll need to consider several factors. Price, transit time, and reliability are all important when selecting a carrier and determining how to have your product shipped. For different services and weight breaks, you want to designate a carrier that provides you with the best rate and can deliver your product in the time you need.

Conducting an in-depth analysis of your inbound shipments can be time-consuming but necessary when determining your routing instructions. This is where working with the right freight broker can make a huge difference. The broker you work with should provide inbound management services that help determine the routings that will be best for your business and will create the routing guide for you – saving you valuable time.

Maintaining good relationships with your vendors
For smooth inbound shipping, you want to have a good rapport with your vendors. Like any other relationship, communication is key. For example, when you send your routing guide out to your vendors, it’s a good idea to include a request for confirmation. However, you won’t always receive one. If that’s the case, following up and opening the lines of communication will be your best bet to ensure vendor compliance.

If your vendors aren’t using your routing instructions after receiving your routing guide, you’ll need to follow up with a call or email. When you have a good relationship with your vendor, you’ll have the right point-of-contact and will be able to resolve the issue quickly. If not, you could have a harder time achieving vendor compliance.

Maintaining a relationship with your vendors can be difficult and time-consuming. This is another area where working with the right freight broker can make a difference. When selecting a freight broker, ask about experience in your industry. Quality freight brokers familiar with your industry will already have an established relationship with many of your vendors, which will help with compliance efforts.

Perfecting your order forecasting
Managing your inventory can be challenging. But the advantages of forecasting and planning your orders ahead of time are too great to ignore. When you don’t plan ahead and then need your product within a shorter time-frame, you will have to rely on costly expedited services. Spending the time up front to make sure your orders are placed with ample time will be better than spending the extra money in the long-run.

Also, with more lead time, you’ll be in a better position to handle any issues that arise. For example, if your shipment gets lost or damaged in transit and you need your product immediately, you’ll be out of luck. In that event, you’ll need to file a freight claim which doesn’t always guarantee compensation and is often a lengthy process.

If you’re not able to place your orders ahead of time, it’s a good idea to consider freight insurance. Unlike relying on carrier liability coverage, you won’t have to worry about if the carrier is found liable or not and often times you’ll get paid out much faster – making it easier to resume operations as normal.

Conducting regular reviews for improvements
Once you do have a routing guide in place and have vendor compliance, you can’t just set it and forget it. It’s best to review your routing instructions periodically so that you’re always getting the best rates and service possible.

You can choose to set aside a specific time each year to do a review. But if you make any changes throughout the year with your orders or any other factor that affects your shipments, you’ll want to take that time to evaluate and update if necessary.

It’s also important to stay on top of carrier rate increases, accessorial changes, and NMFC updates. These kinds of changes can have a significant effect on your freight costs and you'll want to make sure that you fully understand how these changes will affect your specific shipments. For example, carriers announce general rate increases every year and will present an average increase. If you simply use that average to judge how your costs will be affected, your budget will most likely be off. The increases vary greatly across the board depending on a number of characteristics, so it's important to evaluate them based on your specific shipments. 

Partnering with the right freight broker
The keys to vendor compliance and inbound shipping management are easy to master when you work with the right freight partner. PartnerShip can help conduct a complete inbound shipping analysis, create a routing guide, and send routings on your behalf for vendor compliance. Contact us today to get started, or download our free white paper to learn more about managing your inbound shipments!

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It All Adds Up: The Operational Costs of Moving Freight

June 22, 2018 at 9:06 AMPartnerShip
 It All Adds Up The Operational Costs of Moving Freight

Moving freight is getting more difficult, and therefore, more expensive. If you’ve ever had “sticker shock” from a freight quote, you’re not alone. There are a lot of cost factors that go into the price you pay to move freight, so we want to explain them so you can be an informed shipper and ship smarter.

Every LTL or truckload freight shipment has fixed and variable costs that are calculated into the rate you pay to ship your freight. Let’s start by looking at the fixed costs.

Fixed Costs:

  • Truck Payment. Owned or leased, drivers and operators have the expense of their equipment (trucks and trailers) to consider when quoting your freight. New trucks can be leased for $1,600 to $2,500 per month and used trucks can be leased for $800 -- $1,600 per month; a new truck can be purchased for $2,250 a month (purchase price of $125,000 with 5-year financing). On average, truck payments are 16% of the cost of moving freight.
  • Insurance. The FMCSA requires individual owner-operators to carry a minimum of $750,000 to $5 million in liability coverage. On average, liability and damage insurance can cost between $6,000 – $8,000 per year, with newly-granted authorities typically paying between $10,000 and $16,000 their first year. Truck insurance accounts for 5% of the cost of freight shipping.
  • Driver Salary. This is the largest operating cost of moving freight. Commercial truck driver salaries are based on the distance driven, and although drivers spend a lot of time in traffic, at the dock being loaded or unloaded, etc., their operating costs are only derived from miles traveled. With an average salary of $78,200, driver pay and benefits accounts for 43% of operational costs.
  • Office and Overhead. This fixed cost includes a building lease or mortgage, and includes electric, phones, internet, computers, and office support. These costs can vary widely.
  • Permits and Licenses. Permits and license plate costs account for $2,300 annually, or 1% of operational costs.

Variable Costs:

  • Fuel. The second largest operating cost of moving freight is diesel fuel. A commercial truck can easily consume 20,000 gallons ($64,000) of diesel fuel per year, accounting for 21% of operational costs.
  • Tires. Retreaded truck tires are less expensive than new tires and cost on average $250. Annual tire expense accounts for $3,600, which is roughly 2% of operational costs.
  • Maintenance and Repairs. Trucks need constant maintenance and do occasionally break down. Issues with air lines and hoses, alternators, wiring, and brakes are all common in commercial trucks, and can cost $17,500 annually or 10% of operational costs.
  • Meals. The truck isn’t the only part of LTL and truckload freight shipping that needs fuel! 10 meals a week at $12 each equals a meals expense of $6,500 a year.
  • Tolls. With nearly 5,000 miles of toll roads in the US, chances are good that your freight will be traversing at least one of them, and this will be factored in your cost. For example, a load moving from Chicago to Baltimore will encounter toll roads in Illinois, Indiana, Ohio, and Pennsylvania, costing $225.75.  Sometimes a carrier can avoid toll roads, but this will frequently increase the number of miles driven, which also increases your cost. On average, tolls add $2,500 a year, 2% of the total cost of freight shipping.
  • Coffee.  Did you know that truck stops sell more coffee than convenience stores? The average commercial truck driver spends more than $600 a year on coffee. Its effect on cost is negligible but we thought it was interesting!
  • Profit. Remember, freight carriers are in business to make a profit. Owners, operators and drivers are funding their kids’ education or dance lessons, paying their mortgages, and buying food and necessities, so please don’t expect them to move your freight for free.

There are also many miscellaneous items that can factor into overall freight costs:

  • Electronic Logging Devices (ELD), which have decreased driver productivity approximately 15%. When drivers spend less time driving, transit times increase and drivers move fewer loads, which pushes costs up.
  • Telematics services, such as vehicle and trailer GPS tracking.
  • Driver turnover; not just the cost of recruiting and training, but also the opportunity cost of empty trucks not hauling freight because they have no drivers.
  • Finding loads to move can take up a sizable chunk of every day. Every hour spent not driving loaded miles is an hour a driver isn’t making money.

The bottom line is that a lot of factors go into the cost you pay for LTL or truckload freight shipping. The costs listed here are conservative and are probably on the low end, so your costs may be higher.

The struggle is real: moving freight is getting more difficult and more expensive. By shedding light on the costs that go into each and every LTL or truckload freight move, we hope that you’re better informed so you don’t experience “sticker shock” next time you get a freight quote. If you find yourself battling rising freight costs and need some help, contact the freight shipping experts at PartnerShip. We have significant experience in both the LTL and full truckload markets and can help you ship smarter so you can stay competitive.

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