The Impact of Natural Disasters on Freight Shipping

October 15, 2018 at 8:40 AMPartnerShip
The Impact of Natural Disasters on Freight Shipping

Our economy relies on the reliable transportation of goods and materials to link suppliers with manufacturers, manufacturers with retailers, and retailers with consumers. When natural disasters happen, they can negatively impact your carriers, your lanes, your supply chain, and your cost of moving freight.

The natural disasters that have the most profound impact on the movement of freight are floods, hurricanes, blizzards, earthquakes, and ice storms. Each of these natural calamities produces dangerous road conditions that make driving hazardous, and in extreme cases, can wash away roads or make them completely impassable.

Here are 6 ways that natural disasters can impact your freight shipping operations.

Rates. Obviously, your freight shipping rates will increase in a natural catastrophe. If roads become impassable, alternate routes will need to be taken, increasing fuel consumption and lengthening driver on-duty time, both of which are costs that will be passed along to you. Your freight rates will also increase due to tighter capacity with demand outstripping equipment or carriers refusing to travel to areas with impending, or predicted, severe weather. If you do find a driver and / or equipment willing to take the risk, you will pay for it.

Capacity. After a natural disaster, there is substantial competition for limited transportation resources and equipment. This limited capacity will naturally push costs up, but even if you can afford it, the capacity might be impossible to find.

Transit time. If your regular Atlanta to New Jersey lane is two days, it may stretch to three, four, five or more if a hurricane is bearing down on the east coast. The driver may need to wait it out inland until roads are passable, until the warehouse or factory is open again for business, or may just be caught in traffic. This will increase your transit time.

Fuel. Diesel prices always rise in the wake of a natural disaster, especially hurricanes, because refineries are frequently located near where hurricanes make landfall. This can close a refinery or damage it, making fuel more expensive. In 2017, Hurricane Harvey shut down about 17% of US oil refining capacity in Corpus Christi, Port Arthur, Lake Charles and Houston, TX. The disruption to oil refining drives up fuel prices and the fuel surcharges carriers charge you for every load.

Refused loads. Many times carriers will refuse to pick up or deliver freight in the event of a natural disaster. If your carriers refuse your loads, your supply chain will suffer. Your plants can go idle, waiting for materials or components; your customers’ plants can go idle, waiting for you; retailers can run out of inventory; all of which result in opportunity and revenue lost.

Inbound delays. Your flight from Dallas to Los Angeles will be delayed if the inbound flight from Chicago is late due to weather. Inbound freight can be impacted in the same way. Even though your area might not be facing weather issues or a natural catastrophe, if your inbound freight is delayed due to facility shutdowns or power outages caused by severe weather, you will be affected.

Here are some suggestions to deal with the effects of natural disasters on your shipping:

  • Two tactics to manage unexpected increases in your freight rates are 1), accrue for contingencies in your annual freight budget and 2), shop around. Working with a broker that has access to thousands of carriers can help you move a load when your regular carriers cannot.
  • To alleviate difficulties due to a lack of capacity, think through different transportation options before disaster strikes, such as lining up backup carriers for different regions of the country or shipping lanes, and working with your existing carriers to map out alternate routes.
  • Build slack into your supply chain. Just-in-time inventory control is easier when you manage the assets moving your freight but is much more difficult to control when you are relying on carriers which can be delayed to natural disasters.
  • Leverage your freight spend. Giving more freight to fewer carriers can help you negotiate lower fuel surcharges.
  • Plan your transportation to optimize transportation modes. For example, it might be less expensive to ship your freight as multiple LTL loads rather than full truckload. Or moving everything in one truck might be the better alternative.  
Working with a freight broker can help you mitigate the service interruptions, capacity issues and increased costs associated with natural disasters and severe weather. Contact PartnerShip at 800-599-2902 or request a quote to see how we can help you ship smarter so you can stay competitive.

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Here is Our September PartnerShip Carrier of the Month!

October 12, 2018 at 7:34 AMPartnerShip
PartnerShip Loves Our Carriers! Here is Our September 2018 Carrier of the Month

The mission of PartnerShip is to help our customers ship smarter and stay competitive. The only way we can do that is to partner with great carriers and we love recognizing our awesome partners!

Our September Carrier of the Month is Fanton Logistics of Garfield Heights, OH. They have been serving customers since 2007 and have a fleet of 23 Volvo power units and 53′ dry vans. Building trust and respect through quality customer service and on-time delivery is their main goal.

The main goal of the PartnerShip Carrier of the Month program is to recognize carriers that do an exceptional job helping customers ship and receive their freight. PartnerShip team members nominate carriers that provide outstanding communication, reliability, and on-time performance.

As our September 2018 Carrier of the Month, Fanton Logistics gets lunch and an official framed certificate to proudly hang on their wall.

Consider becoming a PartnerShip carrier because 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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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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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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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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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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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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PartnerShip Loves Our Carriers! Here is Our May Carrier of the Month

June 15, 2018 at 7:50 AMPartnerShip
PartnerShip Loves Our Carriers! Here is Our May 2018 Carrier of the Month

We love our carriers, because we know that if it weren’t for our top-quality freight carrier partners, our customers couldn’t ship and receive their freight in a timely and cost-effective way. Our carriers help us help our customers ship smarter. 

Our May Carrier of the Month is Stankovic Transport, Inc. of Brunswick, OH! They have been in business since 2009 with more than 50 owned and operated trucks and trailers.

The PartnerShip Carrier of the Month program recognizes carriers that go above and beyond in helping our customers ship and receive their freight. Our truckload team members nominate carriers that provide outstanding service in communication, reliability, and on-time performance.

For being our May 2018 Carrier of the Month, we’re providing Stankovic Transport lunch for the whole office and a 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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Top 10 Trucking Movies of All Time

May 24, 2018 at 10:37 AMPartnerShip

It’s an argument decades old: what is the best trucking movie of all time? When you work in logistics and shipping, it’s an even more passionate argument.

“It’s gotta be Kris Kristofferson and Ali MacGraw in ‘Convoy!’” “Nope, nope, nope! Patrick Swayze in 'Black Dog.' “What about ‘Breaker! Breaker’ with Chuck Norris? That’s as good as it gets.” “Seriously? Burt and Sally in ‘Smokey and the Bandit’ is the best of the best!”

Everybody has their favorite and since we couldn’t definitively settle the argument, the freight and shipping pros at PartnerShip decided to vote on it and create our own list of the best trucking movies in history.

So here it is: Our pedal to the metal, shiny side up, cross-country driving, east bound and down “PartnerShip Top 10 Trucking Movies of All Time” list.

#10 - High-Ballin’ (1978)
Two truck drivers fight off a gang of hitchhikers who have been hired to drive them out of business. There were so many trucking movies in the 1970s that it actually spurred a nickname for the genre: trucksploitation!

High Ballin’ Movie Poster
Starring: Peter Fonda and Jerry Reed

#9 - Duel (1971)
A terrified motorist driving a Plymouth is stalked on remote and lonely California canyon roads by the unseen driver of a 1960 Peterbilt truck. This was the full-length film directing debut of Steven Spielberg.
Duel Movie Poster
Starring: Dennis Weaver, Jacqueline Scott and Eddie Firestone

#8 - Black Dog (1998)
An ex-con tries to start his life over as a truck driver but when his family is taken hostage he is forced to transport a shipment of illegal weapons. Fans of big rigs and big explosions will dig this one.
Black Dog Movie Poster
Starring: Patrick Swayze, Randy Travis and Meat Loaf

#7 - Over the Top (1987)
A struggling trucker who arm wrestles on the side to make extra cash competes in the World Armwrestling Championship to win the grand prize of $100,000 and a brand new truck to start his own trucking company. The music, montages, and hair alone scream 1980s!
Over The Top Movie Poster
Starring: Sylvester Stallone, Robert Loggia and Susan Blakely

#6 - Breaker! Breaker! (1977)
A trucker, who is a martial arts expert, goes looking for his brother after he disappears in the small corrupt town of Texas City, California, which has a nasty reputation for entrapping truckers. If you like movies that feature a guy in bell bottoms side kicking drunken cops in the chest repeatedly, this is the film for you!
Breaker! Breaker! Movie Poster
Starring: Chuck Norris, George Murdock and Terry O’Connor

#5 - Convoy (1978)
Which came first? The song “Convoy” or the movie “Convoy?” This movie is based on the song by C. W. McCall and Chip Davis. So now you know; the song came first. The plot involves a corrupt official, truckers and a convoy. In the late 70s, you couldn’t escape the CB radio craze.
Convoy Movie Poster
Starring: Kris Kristofferson, Ali MacGraw and Ernest Borgnine

#4 - Every Which Way But Loose (1978)
A trucker with a pet orangutan named Clyde gets involved with the law, bikers, and a female thief. Hilarity ensues. Actually, Clyde steals the show in this one.
Every Which Way But Loose Movie Poster
Starring: Clint Eastwood, Geoffrey Lewis and Sondra Locke

#3 - Big Trouble in Little China (1986)
Directed by John Carpenter, so you know it’s weird.  An all-American trucker gets involved in a centuries-old mystical battle in San Francisco.
Big Trouble in Little China Movie Poster
Starring: Kurt Russell, Dennis Dun and Kim Cattrall

#2 - Maximum Overdrive (1986)
A comet causes a radiation storm on Earth, causing machines to come to life and turn against their makers. A group of survivors holed up in a
North Carolina truck stop must fend for themselves against a horde of murderous trucks. That could happen, right?
Maximum Overdrive Movie Poster
Starring: Emilio Estevez, Pat Hingle and Laura Harrington

#1 - Smokey and the Bandit (1977)
It was a neck and neck race with Maximum Overdrive, but Burt and Sally pulled it out at the end to claim the #1 position in the “PartnerShip Top 10 Trucking Movies of All Time” list.

The Bandit makes a bet to transport a load of beer in record time and picks up a hitchhiker along the way. His enemy for 1 hour and 36 minutes is Sheriff Buford T. Justice. In 1977, “Smokey and The Bandit” was the second highest grossing film behind Star Wars! 

Smokey and the Bandit Movie Poster
Starring: Burt Reynolds, Sally Field, Jackie Gleason and Jerry Reed

We hope you enjoyed our light-hearted list of the best trucking movies ever. All of the main characters in these movies had one thing in common: they had a job to do, and so do we, to help you ship smarter and stay competitive. Next time you need to move freight, whether it be local or cross-country, LTL or truckload, or four hundred cases of beer from Texarkana to Atlanta, you can count on the experience of the shipping experts at PartnerShip. We might not be movie stars, but our service is worthy of an Oscar!

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