5 Frustrating Reasons Your Freight Claim Was Denied

February 19, 2021 at 4:23 PMJen Deming
5 Frustrating Reasons Your Claim Was Denied

While we’d like to think that freight loss and damage can be avoided, realistically it’s something every shipper will face. That means that at some point you will likely need to file the dreaded freight claim. Unfortunately, when it comes to the final say in payouts, carriers are in the driver’s seat. The good news is, most denied claims or insufficient payouts are caused by five common oversights. If you can avoid these issues, you are more likely to win your claim and recoup your losses.

  1. It falls into one of the exclusions outline by the Carmack Amendment

    The Carmack Amendment was passed in 1935 in order to protect carriers from exclusive responsibility for any damage or loss occurring during transit. It sets up five scenarios that legally exclude the carrier from liability. If damage or loss occurs due to one of these instances, it’s unlikely you’ll be able to collect for the damages.

    Act of God – Unavoidable events such as natural disasters, adverse weather conditions, medical emergencies, etc. that may befall the driver during transit fall into this category. These events have to be determined as unforeseeable and inevitable in order for the carrier to remain free from responsibility.

    Public Enemy – If the damage-causing incident occurred during a defensive call to action by the government or “military force”, the carrier is not responsible for damages. While rare during peacetime, this scenario has also been applied to acts of domestic terrorism, but does not refer to hijackers, cargo theft, etc.

    Default of Shipper – This scenario is the most common exclusion and places full responsibility for damages squarely on the shipper. If damage is caused by negligence of the shipper, due to poor packaging, improper labeling, rough handling during loading, and other factors, the carrier is exempt from liability.

    Public Authority – An incident that results in damage or delay due to government intervention like road closures, quarantines, trade embargoes, etc. are unavoidable and exempt carriers from responsibility.

    Inherent Vice – Some high-risk commodities deteriorate naturally over time, such as live plants, food, medical supplies, etc. As long as that deterioration is not being sped up by the carrier through negligence, they are safe from liability.

  2. You are missing key documentation

    When you are submitting a claim, it is important that you have every piece of paperwork filled out correctly and in proper order for the carrier to review. The more documentation you can provide about specifics relating to your load, the better chance you have at winning a claim. It’s important for you to prove that the shipment was in good condition and securely packaged at the time of pick-up. Taking pictures of the product before, during, and after packaging is completed is a smart move.

    You should also make sure that the bill-of-lading (BOL) is filled out correctly with precise weight measurements, commodity descriptions, classifications, and piece counts. The BOL serves as a legal contract between the carrier and shipper – errors on this document will have far-reaching consequences. If your weight is off or the commodity/classification is incorrect, liability payouts may be less than you expect.

    An invoice determining the actual value of your product is key in determining a payout, as well as packing slips that help back up your piece counts. Other supporting documents like the paid freight bill, inspection reports, weight certificates, replacement and repair invoices, etc., are all great things to keep on hand in the event of a claim.

    In addition to obtaining as many pieces of documentation as possible to support your claim, it’s key to present everything to the carrier in a timely manner. You have up to nine months from the delivery date to submit a damage claim. For lost shipments, you have up to 9 months to file from the date it was estimated to arrive. Concealed damage claims are much more urgent – a claim must be filed within five days. So after receiving your delivery, be sure to unpack your shipments and check for hidden damage as soon as possible.

  3. You didn't attempt to mitigate the damages

    Even if the carrier takes responsibility for the damages caused to your freight, they are going to fight to pay the least amount possible. It is important to show that you have attempted to mitigate and lessen the effect of these damages as much as possible. Carriers are likely to want to know whether you attempted to salvage the shipment. Were you able to have the broken or missing items repaired or sold at a discount, if possible? It’s important that the proper commodity, nature of the damage, replacement costs, and potential loss of business are accurately represented to determine the full extent of loss.

    The carrier has the right to inspect the damaged shipment as part of the freight claims process. So, it is very important not to dispose of damaged freight, unless storing it poses a threat to safety or health, such as with hazardous materials or spoiled food items. If this is the case, the carrier must be notified as soon as possible so they can act on inspecting the freight if need be. Preventing them from the opportunity to do so can result in an immediate denied claim.

  4. You haven't paid your freight bill

    The last thing you might want to do is to pay a carrier for a shipment that they damaged during transit. However, it is important to be current on your invoices if you are submitting a freight claim. If you owe the carrier in freight charges, either for past due invoices or for the damaged load, you’re likely to get denied for a payout. Even if you do get approved, the reimbursement process may be drawn out or even amended to a much lower amount due to the total charges you owe the shipper.

    The most important thing to note is that accidents and damages happen, despite the best of intentions. Paying your freight bill on time, even if a damage claim will be submitted, is a sign of good faith and can help maintain a working business relationship with a carrier who otherwise serves your business well.

  5. You've signed for a clear proof of delivery

    If you take one point away from this list of tips, let this be the one: remember to inspect your shipment before signing the proof of delivery (POD). This document acknowledges the arrival of the load to the point of delivery. By simply signing this document and allowing the driver to continue on his way, you are stating that it has delivered free and clear without any loss or damages.

    Smart shippers note: this is your opportunity to review and inspect your shipments carefully and note any discrepancies on the POD. Open boxes and check for concealed damages or loss. This is especially important if you have multiple pallets, crates, or shrink-wrapped items. Make sure what you have matches the BOL. If your BOL shows two shrink-wrapped pallets of stacked boxes, but the total piece count is off, make sure you note those missing items. Otherwise, a carrier can claim they delivered “two pallets” as stated on the BOL.

    If you are the shipper, make sure your delivery location knows the importance of these procedures. It is on them to take pictures, note discrepancies, and challenge the carrier accordingly at the point of delivery.

    If you’re not prepared, it’s much more likely that your freight claim will get denied. Use the checklist below to make sure you’re in a position to get the payout you deserve.

Claims Checklist

The bottom line

Freight damage is frustrating, time-intensive, and expensive. While it’s reassuring that you can submit a claim with the carrier in order to recoup your losses, it’s important that you are thorough in the information you provide. The more you know about freight claims, the better prepared you are when going to bat against the carriers. Check out our free comprehensive guide to freight claims so you can save yourself some time and spare yourself the headache.

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Why It's Never a Good Idea to Fudge Your Freight Dimensions

January 12, 2021 at 1:40 AMJen Deming
Fudging Freight Dimensions Blog Image

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.

You could be subject to reweigh, reclass, and over-dimensional fees

As outlined specifically in each carrier’s rules tariff, freight rates are determined on a variety of variables. When it comes to weight, cost is often calculated on a per pound basis and a maximum “standard” shipment length. Intentionally underestimating weight and size in order to save money can be tempting. However, if the actual weight and length is determined to be more than stated on the provided BOL, the final cost will be adjusted to reflect that. But, how much can that really be, right? If you’re still thinking about estimating your freight dimensions, think again: fees associated with these inaccuracies can affect your bill twofold. 

Firstly, the audit and subsequent reweigh or measurement will incur an inspection fee. The standard inspection itself can cost anywhere from $20 to $50 for weight changes. According to their rules tariff, UPS Freight charges $25 for a reweigh. As for restricted lengths, the fee can vary greatly by carrier and is often calculated on a cost per foot basis. For example, UPS Freight charges $90 for “extreme length” LTL shipments that fall within 8-12 feet. Larger than that, but under 20 feet can cost you $125. Of course, it increases incrementally from there.

Secondly, changes to your shipment details may affect your freight class, another important component of your freight rate. Some types of products are classed based on density breakdowns; a dimensionally-large but lightweight shipment can be expensive. If your weight is incorrect, your density and class may change significantly, which will affect the overall cost of your shipment. Combined with the initial fee, these two factors can ultimately tack on hundreds of dollars in unexpected fees alone — in fact, they may add up to more than the original cost of your load.

False freight dimensions can lead to disappointing claim payouts

So let’s talk about another worst-case scenario: your freight shipment is damaged or lost while in transit. It’s a daunting prospect, but unfortunately, a pretty common occurrence, especially as more freight enters the network. Most shippers know that in order to recoup losses, you can always file a claim with the carrier. But payouts can be complicated, and what many shippers don’t know is that a final claim payout can be majorly affected if the provided shipment details are inaccurate. 

Most carriers determine claim payouts on a dollar per pound basis, with heavier shipments receiving higher payouts. Even if your dimensional fudging makes it past the carrier unnoticed, a payout based on these inaccurate details may be much less than what you were hoping for. To make things even more complicated, certain classes of products aren’t covered at all. If the carrier does find out you inaccurately disclosed weight, dimensions, or other details, the claim can be completely denied. 

How to ensure you have accurate dimensions for your freight

While it’s clearly not a great idea to guess or fabricate your freight dimensions, mistakes can also be made when you have the best intentions of providing the correct measurements. There are a few tips you should follow to ensure the details of your shipments are as accurate as possible.
 
  • Invest in quality scales and other tools used within warehouses
  • Audit and calibrate your measurement tools regularly
  • If you aren’t able to acquire the proper equipment, use the manufacturer’s specs
  • Don’t forget to add in weight and size measurements from packaging such as pallets, cartons, etc.
  • Always calculate proper freight density 
  • If you are receiving the freight shipment but are responsible for the shipping costs, make sure those details are being calculated accurately

Shippers are always going to be looking for ways to cut transportation expenses in order to improve their bottom line. While shipping costs may be a flexible area for that opportunity, fudging your freight dimensions to get there is both unethical and extremely risky. If you’re stuck on how to save, PartnerShip can help.

Inaccurate freight dimensions is just one of the common slip-ups shippers make that have costly consequences. Check out our free guide on the top 5 most common mistakes to avoid so you can ship smarter. 

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5 Ridiculously Easy Ways to Reduce Your Shipping Costs

December 21, 2020 at 11:23 AMJen Deming
Small Pack Hacks Blog Post

In a time where managing business operating expenses is extra important, one of the first places you should look is reducing shipping costs. But analyzing your small package shipping for areas of improvement can be a time-intensive, detail-oriented process. Not everyone has the time to audit invoices and compare rates. For those who want to get the job done quickly and easily, you’re in luck: there are five quick small pack hacks that smart shippers can easily implement to help reduce costs. 

  1. Obtain discounts with carriers
    Lots of shippers don’t realize that the pricing structure you are currently using with your carrier may be negotiable, and there are different types of discounts that your account may receive. FedEx and UPS often offer discounts for new accounts when created online, but shippers beware: these discounts are usually temporary, and your pricing may fluctuate based on terms and conditions. You may lose the discounts entirely if you aren’t meeting shipping minimums and your pricing is subject to change at any time. 

    The more you ship, the better the discounts you’re likely to receive directly from FedEx or UPS. However, even if you have a lower shipping volume, there are still ways for you to obtain discounts. If your business belongs to a trade association or a local chamber, you may have access to discounted rates through your membership. PartnerShip manages over 130 association shipping programs that offer FedEx discounts. If you’re a member of an industry group, look into your member benefits or reach out to our team to find out if you’re eligible.

  2. Take advantage of free packaging

    The packaging and supplies you need to properly contain your shipments are important, but can be costly. However that doesn’t mean you should skimp on new materials or reuse old packaging – doing so can compromise the integrity of your shipment and increase the risk of damage. The good news is, some carriers offer free shipping supplies to help ensure your package is secure. Both UPS and FedEx offer free packaging supplies for customers that you can order online and have delivered, free of charge. With free envelopes, packing tubes, boxes, and poly bags, you can be sure your small package shipment will travel safely to its final destination, all while creating some space in your shipping budget.

  3. Make the most of Multiweight and Hundredweight options

    From insurance plans to your cable bill, everyone knows you can save money from bundling. That same principal can also apply to your shipping. Both FedEx and UPS offer options for customers who are shipping multiple packages to the same location that can help you save money versus the rates you would pay if they’re considered individual packages. For businesses shipping frequently to the same locations, FedEx multiweight pricing is an efficient and cost-effective service option. UPS has a similar program called UPS Hundredweight

    There is a catch for shippers interested in these options — it isn’t available to just any business. FedEx Multiweight and UPS Hundredweight must be negotiated into your contract, or offered as a part of comprehensive shipping program, like the association programs managed by PartnerShip.

  4. Avoid dimensional weight pricing

    To combat the increase in bulky packages entering their systems, FedEx and UPS have implemented dimensional (DIM) weight pricing. With DIM weight pricing, cost is calculated based on package volume, rather than weight. The higher the volume, the more space it takes up in delivery vehicles, which means there is less room for other packages. If a package isn’t particularly heavy but is taking up a lot of space, that’s costly for the carriers. 

    After calculating your DIM weight, measure the result against your package’s actual weight; the greater of the two will become your billable weight. The best way that you can offset volume-based pricing is to take a hard look at your current packaging procedures. Unused space is a cost-conscious shipper’s worst enemy, so don’t use a package that’s oversized for the product inside and consolidate your orders when possible to ensure you’re not wasting space.

  5. Take control of inbound shipping

    Another way to save on small package shipping is by taking control of your inbound shipping procedures. It’s common practice for many businesses to allow their inbound small package orders to be arranged by the vendor. But often times that leads to higher order costs for you. By instructing your vendor to ship through your account, you can reduce your costs through a few simple steps:

    • Review your vendor invoices to determine whether you have access to better pricing through your FedEx/UPS account vs. your vendor’s account.
    • Create routing instructions that include clear directions on which carrier, account, and service to use for your shipments. 
    • Ensure vendor compliance by providing your routing instructions to your vendors and regularly reviewing your invoices for accurate pricing.

Working with a third-party logistics provider can help make this process even easier. At PartnerShip, we can assist with pricing negotiations, create and send vendor routing instructions, and review billing for vendor compliance.

While taking an in-depth look at how to minimize operating expenses can be time-consuming, these small package hacks give you a few quick ways to ship smarter. For more ways to save, PartnerShip can help.

It’s even more important to cut costs where you can, as FedEx and UPS rates are on the rise. Our free guide will help you easily identify the highest rate increases so you can more easily manage your budget.  


2021 Rate Increase White Paper

Carrier Closures for the 2020 Holiday Season

November 19, 2020 at 3:00 AMJen Deming
2020 Holiday Schedule Blog Post

2020 has been a year unlike any other. With the holiday season upon us, managing your shipment timelines is more important than ever. Most carriers have strict cut-off dates to ensure your holiday cheer is delivered on time, and with COVID-19 stretching available carriers extra thin this year, it’s more important than ever to plan accordingly. Whether you’re shipping small packages to customers, or need to order seasonal supplies for your business, we’ve broken down the most important holiday shipping dates that you need to know.

Freight carrier holiday schedule

Truck in SnowTruck drivers deserve some time off too, and it’s important for shippers to know which dates carriers are closed for business so you can plan your loads. Here are the 2020 holiday season closure dates for some common freight carriers:

  • UPS Freight will be closed November 26-27, December 24-25, and January 1. There will be modified service hours on New Year’s Eve, December 31.
  • YRC Freight will be closed November 26-27, December 23-25, and January 1-2.
  • XPO Logistics will be closed November 26-27, December 24-25, and January 1.
  • Old Dominion will be closed November 26, December 24-25, and January 1. There will be limited service hours on November 27 and December 31.
  • New Penn will be closed November 26-27, December 23-25, December 31, and January 1.
  • Pitt Ohio will be closed November 26-27, December 24-25, and January 1.
  • Reddaway will be closed November 26-27, December 24-25, and January 1. There will be limited service hours on December 23 and December 31.
  • Dayton Freight will be closed November 26-27, December 24-25, and January 1.
  • R&L Carriers will be closed November 26-27, December 24-25, and January 1.
  • Estes will be closed November 26-27, December 24-25, and January 1.
  • Central Transport will be closed November 26 and December 25. There will be limited service hours on November 27 and December 24.
  • Roadrunner will be closed November 26-27, December 24-25, and January 1.
  • FedEx Freight will be closed November 26-28, December 24-25, and January 1. 
  • Holland will be closed November 26-27, December 24-25, and January 1. There will be limited service November 27, December 23, and December 31.
  • AAA Cooper will be closed November 26-27, December 24-25, and January 1.
  • ArcBest will be closed November 26-27, December 24-25, and January 1.
Truck in Snow

Small package carrier closures and deadline dates

With a holiday season projected to be bigger than any other, it’s super important to review holiday carrier schedules and deadlines. For your shipments moving with FedEx, make sure to reference the FedEx holiday schedule so you can plan ahead. If you're using UPS to ship during the season, remember to check the UPS year-end holiday schedule beforehand.

PartnerShip schedule

If the unprecedented volume of holiday shipments has you saying "no, no, no" instead of "ho, ho, ho," the experts at PartnerShip can help. Please keep in mind that our office will be closed on November 26-27, December 25, and January 1. Happy Holidays from PartnerShip, and hang in there -  we're welcoming 2021 with open arms!

Gearing Up for National Truck Driver Appreciation Week 2020

September 1, 2020 at 4:10 PMJen Deming
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Our country has long depended on the tireless efforts of the nation’s truck drivers, and this year, we have even more reason to be grateful. September 13-19 is National Truck Driver Appreciation Week, and here in 2020 it takes on a special significance. Throughout the unprecedented challenges our country has faced during COVID-19, businesses have depended on shipments being delivered that our homes depend on. From medicine to food items for families, medical provisions for essential workers and school supplies for our makeshift at-home classrooms, truckers are on the front lines, at risk, so that we receive the goods we need to keep this country going.

Many national and local businesses and service centers are running promotions and contests for truck drivers during National Truck Driver Appreciation Week in honor of these heroes behind the wheel.

  • PartnerShip - As a special thank you to our very own partner truckers, PartnerShip will randomly select one driver daily moving loads during National Truck driver Appreciation Week to win a Dunkin’ Donuts gift card. 
  • Shell Rotella SuperRigs 2020 – This year, the popular truck “beauty contest” is going virtual and has added a special category for “Most Hardworking Trucker.” Tune in online for winners being selected during National Truck Driver Appreciation Week. Category winners will be featured in a 2020 Shell Rotella SuperRigs, MyMilesMatter Rewards Points, and all kinds of merch like jackets, hats, and other goodies. 
  • Travel Centers of America – Starting Sept. 1, TA will begin a month-long celebration of America’s truck drivers. UltraONE members making a fuel or service purchase will be entered to win the “TA Driver Appreciation sweepstakes”, with prizes like airline tickets, gift cards, an Indian Scout motorcycle, and more. Additionally, the service centers will be offering extra points, discounted services and products, and other promotions through the TruckSmart app.
  • Pilot Co. – Through Sept. 1-30, truckers receive special offers and can to enter-to-win signed merchandise from singer-songwriter Randy Wylie Hubbard, who also helped create a special video honoring America’s professional drivers. Through the month, drivers also receive free drinks and shower services every day all month long, free diagnostic tests on their trucks, and bonus Push4Points.

In addition to these special promotions being run during Truck Driver Appreciation week, many businesses and restaurants have also offered free services and meals throughout the COVID-19 crisis, as a thank you for the extra efforts and added risk these drivers are taking to get consumers the supplies they need.

  • CDL Meals – Drivers can order these healthy meal alternatives on-the-go through the app and receive an extra 25% off using the code “SHOP25”.
  • Denny’s – Participating Denny’s locations have extended the 15% off online orders for truckers. Call individual locations to confirm, and use promo code "Driver15" online.
  • Cracker Barrel – Locations nationwide are offering free coffee and fountain drinks for drivers. Speak to a store associate for details, and find a Cracker Barrel along your route at crackerbarrel.com/locations.
  • Papa John’s – Professional truck drivers receive 25% off regular menu prices until Dec. 31, 2020. Use code "Deliver25" at checkout.
  • Ruby Tuesday – Between noon and 8 p.m.,truck drivers receive 25% off their online order. Drivers should enter "25" when prompted at checkout.
  • Motel 6 – For drivers who need a break from sleeping in their cabs, the hotel chain is offering special discounts for drivers during COVID-19 when booking through the Trucker Path app.

We appreciate all of our drivers – thanks to your hard work and dedication on the front lines, our customers and our nation’s businesses can keep moving through this crisis. 

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4 Major Advantages to Ditching Your Digital Freight Broker

August 24, 2020 at 9:36 AMJen Deming
Digital Freight Broker Blog Post

The convenience and accessibility of managing your day-to-day tasks online is appealing for most people, and shippers are no different. The shift to using digital freight brokers has been a trend for years, with perks like fast quotes and less phone tag. It's important to know, however, that if you're using automated digital freight brokers, you may be compromising on key components that give you a competitive edge. Working with an efficient traditional freight broker takes the best of both worlds, and adds in four key benefits that smart shippers need to succeed.

1. Customizable service options that maximize your budget

Digital freight brokers rely on doing what they do best – pulling shipment data and running a high volume of quotes quickly and efficiently. These fast quotes are nice to review pricing among a variety of carriers, but this is a transactional approach that specifically relies on the shipper to input the correct data. If you’re shipping the same loads consistently, and just want to get your loads rated, picked up, and delivered, this may work for you.

But freight shipping isn’t a one-size-fits-all business. The bulk of most shippers’ loads consist of a standard pallet size and weight, with delivery to repeat customers and businesses. However, what happens when you have a priority load that needs expedited services or ship to a location with limited access? If this is outside your realm of expertise, you may be completely in the dark about which services or carriers are the best options for your freight. Working with a traditional freight broker doesn’t require you to be an expert – they can take on that role for you by identifying key areas you may be overspending and help guide your choices so that you don’t sacrifice service for a lower cost.

2. Familiarity with your business needs for better efficiency

A digital freight broker’s main selling point is efficiency, speed, and convenience. Running quotes online and on demand without consulting a live agent may be an expedient way to get an idea of potential rate costs. But, it’s best to use this as a rough estimate of what you can expect to pay. Freight shipping is full of variables and unexpected costs run rampant with even minor changes to a shipment’s weight, class, dimensions, and services. It takes more than quick quotes to successfully manage your freight shipments.

A quality traditional freight broker will assign someone to manage your account. Over time, your contact will get to know your freight profile, from service preference to budget requirements. A freight expert who is intimately familiar with your business can catch classification errors, give packaging advice, and review invoices to get a better grasp on how to manage your freight spend.

3. Additional freight management services that cut costs

A digital freight broker may offer additional assistance like booking loads or preparing the bill of lading. Once the shipment is booked, however, service pretty much stops there. A pick-up number will be generated, and tracking can be done through the carrier’s website, which is a similar process to one you’d use if you booked with a carrier on your own. If your shipment encounters any challenges en route, however, you’re left to manage the issue on your own.

A traditional freight broker has basically seen it all, and knows how to navigate any obstacles your load experiences in transit. When you don’t have time to spend on the phone to find out why your pallet is being held at a delivery terminal, a traditional freight broker will do it for you. If you receive reclassification, reweighs, or additional accessorials that you did not request on your invoice, a traditional freight broker will lead inquiries into why those changes were made, and start disputes if need be.

In the unfortunate case your shipment is lost or damaged, traditional freight brokerages often have dedicated claims departments with specialists trained to submit a claim on your behalf. Damage claims are tricky, involve strict timelines, and require specific documentation to be submitted successfully to give you the best chance at receiving reimbursement. Working with a full-service broker will help you navigate tricky areas where a digital freight broker may fall short.

4. Pricing flexibility with carriers negotiated on your behalf

Quoting shipments with a digital freight broker may be convenient, but after you input your shipment details and receive rates from carriers, that’s where negotiation stops. You can’t assume that the rate you are getting is entirely correct. While it’s obviously an unwelcome surprise to get a pricey bill that is higher than the quote you received, what happens when your online quote is too high in the first place? Rate quote sticker shock can be frustrating, and if you run a smaller business with zero leverage to negotiate with carriers, it can be tempting to cut costs by using a budget carrier. 

 A reliable freight broker likely has years of experience and strong relationships with reputable carriers. Leveraging these relationships helps the broker by gaining additional business for the trucking company, and assists the customer with an opportunity for price negotiation. This mutually beneficial relationship provides incentive for some additional flexibility when it comes to rate, and in most cases, an agreement can be reached between all parties that ensures quality service and fair pricing. 

The bottom line about digital freight brokers 

While the convenience associated with digital freight brokers is certainly enticing for businesses who are already strapped for time, it’s key for shippers to remember that there’s more to freight shipping than running a quote and pushing it out your dock door. Cutting costs and maintaining a budget are more important than ever, and smart shippers know that working with a full-service traditional broker, like PartnerShip, offers both efficiency and cost-saving solutions for their businesses.

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The Life of Your LTL Shipment

August 13, 2020 at 10:28 AMJen Deming

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.

Life of an LTL shipment infographic

Don't Fall for These Top 5 LTL Shipping Myths

July 29, 2020 at 10:44 AMJen Deming

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.



The Truth About Limited Access Delivery Fees

June 22, 2020 at 9:34 AMJen Deming
Limited Access Blog Post

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.

The bottom line 
Limited access delivery fees are an unwelcome surprise that no one wants to see on their final freight bill. Brushing up on what may trip you up is the first step in knowing how to offset this common accessorial. Building an expert shipping team is your next move. PartnerShip can help you navigate hidden charges and can provide you with options to help you save on limited access delivery fees.
 
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Top 5 Freight Invoice Mistakes That Are Costing You Big

May 12, 2020 at 8:25 AMJen Deming
Freight Invoice Blog Post

After a shipment has been picked up and delivered, you may sigh with relief, happy to know your freight made it safe and sound. However, your shipment’s story isn’t quite over. After receiving a freight invoice, whether it’s coming from a third-party or directly from a carrier, you should review all details and charges for accuracy. Typically, you want the details of your shipment to match up with what was used on the BOL (bill-of-lading),  however there are some scenarios where you will see adjustments and extra charges. Because an estimated 5-6% of all carrier invoices are calculated incorrectly, reviewing your invoice against details provided on the BOL is a good place to identify overcharges. To help you recognize these costly errors, we’ve outlined the five most common freight invoice mistakes to look out for.

  1. Incorrect carrier name and number
    It may seem obvious, but one of the first things a shipper should check for on their invoice is carrier name and number. When freight is tendered to a carrier, it can be easy to pass a shipment onto the wrong truck. This happens much more often than you’d think, especially if the warehouse has a busy dock and the location is receiving multiple trucks moving in and out for pick-ups throughout the day. 

    While an incorrect carrier picking up your shipment might not impede delivery, it may result in being overcharged. If you have pricing arranged with a particular carrier, and it’s not the one who picked up your load, you will likely see a higher bill than you were expecting.

    To offset this risk, the warehouse staging team needs to be diligent about reviewing the BOL, making sure pallet and carton counts are accurate and the correct load is confirmed.  When labeling the outgoing shipment, it’s important the correct BOL is with the right load and that the shipment is labeled properly.

  2. Incorrect contact info

    Another common invoicing mistake is incorrect contact information. This may mean that either the address at pick-up or delivery is listed incorrectly, or the “bill-to” portion of the invoice is inaccurate. 

    Not only will incorrect addresses most likely result in a delay through a missed delivery, but it can also result in various types of extra fees. If your carrier shows up at a delivery location and the shipment is refused due to address inaccuracies, many freight companies will bill you for the mistake. If the actual location requires an appointment for delivery, that’s an additional cost as well. 

    On top of that, if a pick-up or delivery location isn’t classified correctly, you may see a higher freight bill. For example, if the delivery location is assumed to be a commercial location, but later found out to be a residence (for example, a business run from home), the invoice will include fees for residential or even limited access. It’s important to note that not all carriers classify locations the same. What may be considered limited access for one carrier may not be for another.

  3. Incorrect discount rates
    As we mentioned earlier in this post, many shippers have special rates negotiated with either a 3PL or directly with a carrier. This can include a percent discount, lowered or waived accessorial charges, or even FAK agreements that have been arranged. 

    When negotiating discounts with a carrier, it’s important to keep any agreements on file, and to audit invoices to make sure those rates are reflected in the charges. Because the discount may not be on the overall cost, go line by line and check fuel surcharges, mileage, and other factors. 

    When working with a 3PL, it’s important for the billing party (whether that’s the shipper or receiver) to make sure the correct “bill-to” is being used on the BOL. If this goes unnoticed and you are invoiced directly from the carrier without the appropriate discounts listed, it may seem like you’re out of luck. However, your 3PL can help out with a letter of authorization (LOA) submission to the carrier for a re-bill. It’s very important to do this before paying the invoice and as quickly as possible before the bill is past-due.

  4. Wrong calculations of weight, dimensions, pallet count, and NMFC
    Most shippers have dealt with receiving a freight bill riddled with unwarranted charges thanks to inaccurate item details. It’s the most common reason a freight invoice is disputed, and it’s an understatement to say that adjustments made to things like weight, freight class, dimensions, and more can greatly affect a shipment’s final cost. 

    A good place to start when looking at item details on an invoice is to review the product description and its related freight class or NMFC. With thousands of types of products entering the freight system every day, each type of product is assigned a numeric code to help classify and rate your shipment. A general rule is that the more difficult a product is to move, the higher the freight class will be, and more expensive to boot. It is important for shippers to thoroughly research what freight class is most accurate for their shipment before it is picked up, to avoid reclassing on an invoice. Reclassing can result in a higher base charge and also have fees associated with the adjustment itself.

    It’s also important to make sure the specifications and weight of your shipment are correct, because more and more carriers are moving towards dimensional or density-based pricing. If your product takes up space but doesn’t weigh very much, this low-density shipment will likely cost you. Make sure you are calculating density correctly, so that you don’t see surprises or adjustments on your invoice, including reweigh charges.

  5. Accessorial requests and fees
    Accessorial fees are charges for extra services that are requested by the shipper or receiver, but often show up unexpectedly on a freight invoice. They can be planned and requested on the BOL or come up out of need at the time of pick-up or delivery and billed after the fact. They include services such as lift-gate, inside delivery, or driver assist.

    The best way to avoid these types of freight invoice mistakes is to have clear communication between the shipper and receiver. Get information on the type of destination location, whether there is a dock and team available for delivery, and what type of truck will likely be needed to make a delivery. Accessorials are a difficult type of charge to contest, as the carrier holds the cards and will have noted the request for any special services. It’s up to the shipper and receiver to know which services come with a charge, and whether you can avoid needing these special services in the first place.

It’s important to note that mistakes can happen, and as we determined, adjusted invoices are common. If you’ve reviewed the facts, checked your BOL against your invoice and worked through details between the shipper and receiver, but still find inaccuracies, what do you do next? If you believe you’ve been overcharged and have documentation to prove it, you have a case for a claim against a carrier. It may seem like a daunting task, but you’re not alone. Working with the experts at PartnerShip can help offer claims assistance and get you started. Contact us to learn more.


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