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.ou 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 learn more about managing your inbound shipments!

Carrier Liability

Every freight shipment is covered by some form of liability coverage, determined by the carrier. The amount of coverage is based on the commodity type or freight class of the goods being shipped and covers up to a certain dollar amount per pound of freight. 

In some cases, the carrier liability coverage may be less than the actual value of the freight. It’s common to see liability restricted to $0.25 per lb. or less for LTL or $100,000 for a full truckload. Also, if your goods are used, the liability value per pound will be significantly less than the liability value per pound of new goods. Liability policies can vary, so it’s very important to know the carrier’s liability for freight loss and how much is covered before you arrange your freight shipment.

Freight damage and loss is a headache. In order to receive compensation, a shipper must file a claim proving the carrier is at fault for the damaged or lost freight. Carrier liability limitations include instances where damage is due to acts of God (weather related causes) or acts of the shipper (the freight was packaged or loaded improperly). In these cases, the carrier is not at fault. Additionally, if damage is not noted on the delivery receipt, carriers will attempt to deny liability. 

If the carrier accepts the claim evidence provided by the shipping customer, then they will pay for the cost of repair (if applicable) or manufacturing cost, not the retail sell price. The carrier may also pay a partial claim with an explanation as to why they are not 100% liable. The carrier will try to decrease their cost for the claim as much as possible.   

Freight Insurance

Freight insurance (sometimes called cargo insurance or goods in transit insurance) does not require you to prove that the carrier was at fault for damage or loss, just that damage or loss occurred. Freight insurance is a good way to protect your customers and your business from loss or damage to your freight while in transit. There is an extra charge of course, and it is typically based on the declared value of the goods being shipped. Most freight insurance plans are provided by third-party insurers.

As mentioned earlier, your freight might have a higher value than what is covered by carrier liability, such as shipping used goods. Another example is very heavy items. Carrier liability may only pay $0.25 per pound for textbooks that have a much higher value. This is a great example of when freight insurance is extremely helpful in the event of damage or loss.

Carrier Liability vs. Freight Insurance in the Claims Process

If your freight is only covered by carrier liability coverage:

·         Your claim must be filed within 9 months of delivery

·         The delivery receipt must include notice of damage

·         Proof of value and proof of loss is required

·         The carrier has 30 days to acknowledge your claim and must respond within 120 days

·         Carrier negligence must be proven

If your shipment is covered by freight insurance:

·         Proof of value and proof of loss is required

·         Claims are typically paid within 30 days

·         You are not required to prove carrier negligence

Deciding which option is best for your shipment

Anything that comes at an added cost needs to be evaluated critically and freight insurance is no different. There are a few things to consider as you weigh the potential cost and risk of damage and loss versus the cost and benefit of insurance. You'll need to think about the commodities you're shipping, how time critical your shipment is, and if you'd be able to weather the financial burden that comes with a denied or delayed claim payout. 

Understanding your carrier's liability coverage and knowing the ins and outs of freight insurance can be tricky. If you have questions like “how much does freight insurance cost?” or “what does freight insurance cover?” the team at PartnerShip can help. 

It is a very common question for shippers: "Should I use a freight broker?" Before we list five important reasons why you should use a freight broker, we answer the question, “What is a freight broker?” A broker arranges freight shipping between a carrier and a shipper. In exchange, the broker receives a small commission for facilitating the transaction. That’s how freight brokers make money.

So, why use a freight broker? Efficiency. A freight broker adds value and flexibility to your supply chain and that becomes your competitive advantage. Focusing all of your energy on what you do best gives you an edge and helps you stay competitive.  Unless what you do best is shipping, you should consider using a freight broker to manage your shipping and logistics functions.

Big companies got big because they focused on what they did best. In fact, 85% of Fortune 500 companies use third-party logistics providers like freight brokers. That’s not a coincidence; it’s a cause-and-effect relationship. Every dollar saved on shipping goes right to the bottom line.

Consider these five important advantages of using a freight broker:

1. Save time, save resources, save money. With a freight broker as a strategic partner, you have the benefit of your own dedicated shipping department without the expense your own dedicated shipping department. You also don’t need to spend time on invoices, audits and training, Using a freight broker lets you focus on your business. 

2. More flexibility, more scalability. A freight broker partner is able to provide you more, or less, capacity as your business goes through its natural cycles. So there’s no need to stress over seasonality, irregular spikes or sudden troughs in your business.

3. Shipping expertise. What freight brokers do best is shipping, and working with one allows you access to their knowledge of best practices and real-world experience. It also allows you to access the latest technology for shipping reporting and visibility into your logistics.

4. It’s not just what you know, it’s who you know. Freight broker partners have expansive carrier networks that provide many advantages over an in-house shipping department. They have buying power and can provide volume discounts, lowering your shipping expenses. They also can provide access to capacity that otherwise would be unavailable, or very costly, to an internal shipping department.

5. It’s a partnership. Your freight broker works for you and will put your interests first, because when you succeed, they succeed and when your business grows, so does theirs. That’s the definition of a partnership: benefits for both parties.

Need more convincing about the benefits of using a freight broker? Call PartnerShip at 800-599-2902 or contact us and see how we can help you ship smarter so you can stay competitive. 

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.

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.

The differences between parcel shipping and less-than-truckload (LTL) freight shipping can be difficult to identify, at least on the surface. If you're not using either service regularly, it can be challenging to know which shipping option you really need. But, there are some definite factors that make a difference to a shipper's experience, like transit times, pricing structure, and security risk. Knowing more about the key differences of parcel vs freight shipping can help determine which makes the most sense for your shipment.

Risk and security

Packaging and handling practices can vary between parcel vs freight shipping, affecting your freight's risk of damage. Typically, parcel shipments are smaller, individually boxed shipments that move separately within the carrier system. Most are under 70 lbs., but they are accepted up to 150 lbs. Freight loads are larger and most often consist of multiple boxes or items collected onto a pallet, or within strapped-together crates, and ship together as a group. Both types of shipments have packaging requirements that include protective material inside the container to help prevent damage. Because freight shipments often use shrink wrap or other binding material to keep boxes together, loss is minimized. 

Because of their smaller size, parcel shipments can be easily handled and are generally auto-sorted through the carrier conveyor system. They are then taken to a regional location and transferred through multiple stops and service terminals until final delivery. Because of all the handling, combined with the smaller size of loose parcels, there is an increased risk for lost or misrouted boxes. Freight shipping also includes loading and transfer at multiple stops, but it's less frequent than parcel services. Fewer stops means less loading, but because the pallets may need to be moved with a forklift, there is a risk of damage associated with handling that shippers must keep in mind.

Driver service level

A key point to keep in mind when considering parcel vs freight shipping is the truck driver's level of involvement when it comes to handling the shipment. Parcel shipments moved by common carriers such as FedEx or UPS are loaded, unloaded, and delivered by hand. A shipper is responsible for proper packaging and labeling, and a receiver must check the shipment carton count and for damages. But generally, a driver will take care of handling, including front door pick-up or inside delivery. 

Freight shipping is an entirely different story. The driver only moves your freight from pick-up to destination; it is up to the shipper and consignee to have a team ready for the loading and unloading of the freight. This means the driver will not assist. Driver assistance can be requested, but because it is considered a special service, expect to pay extra. Additionally, accessorials such as inside delivery or limited access locations may incur other fees on top of regular shipping charges. 

Pricing and cost efficiency

One of the most significant differences in parcel vs freight shipping relates to how pricing is calculated. Freight pricing is determined by several variables, including distance traveled, fuel cost, weight, additional services, and the classification of the shipment. Lane pricing is set by carriers and certain routes across the country can be more competitively priced than others depending on the volume of industry or location type. For example, shipping off-mainland or to a densely congested city's downtown area can be pricey. Depending on your product type, or the density of your shipment, the freight class can either increase or decrease. Lastly, carriers tend to have different levels of liability coverage, depending on freight class, in the event of damage claims on a shipment. Freight class is an extremely important factor for freight shippers as it pertains to cost.

Parcel pricing can also be complicated. The shape, weight, and size of a package all affect the cost, in addition to the type of service requested. Shorter, expedited transit times cost more than standard ground shipping options. Additionally, dimensional (DIM) weight pricing has become popular with common carriers. Dimensional weight bases price on the package volume in relation to its actual weight. The practice was implemented in an effort to minimize awkwardly-sized shipments that waste space in a carrier's truck. It's important to properly calculate your dimensional weight so that you can accurately predict the cost of your shipment.

Knowing the differences of parcel vs freight shipping can help you make the right choice in service and save you in shipping costs. If you're shipping larger, heavier items, or can combine multiple shipments into a single load, using an LTL freight service is right for you. If you're shipping smaller, single boxes and want faster door to door service, parcel shipping is the better option.

Understanding how pricing is calculated for both, and what you can expect your shipment to encounter during transit, will help you ship smarter. If you're still unsure which would make the most sense for your business, call 800-599-2902 or contact us today.

One of the most common questions we get is from customers wondering why the heck their final freight invoice doesn’t match the rate they were originally quoted. It’s a valid concern because once you have that bill, it’s next to impossible to get more money from your customer and you’re going to be eating that cost. Your knee-jerk reaction may be to blame the carrier, but the real reason they are different may sting a bit – it’s usually a shipper error. Before you start pointing fingers, review these common reasons your bill doesn’t match that original quote.

Reason 1: Your product is classed incorrectly 

One of the most common reasons a quote differs from a final bill is because your product is classed incorrectly.  With classification being a huge factor affecting your freight quote, even a small error can impact your price. If you guess or miscalculate, your class may be way off. 

The issue may be that sometimes your product is difficult to fit in a particular NMFC category. Take glass jars for example. This type of product falls under NMFC code 87700. It’s not as simple as that, however. Because glass jars are typically fragile, they are broken down by volume, and depending on that calculation, the class can be anywhere from class 65 to 400. In an average freight shipment, that’s a difference of hundreds of dollars. Make sure you are utilizing ClassIT, and consulting freight experts if you have any questions on class, or how to properly calculate density.

Reason 2: A liftgate service inflated your bill

When checking your freight quote vs. invoice, unexpected extra services are the second most common reason for a mismatch. One example we see time after time is for liftgate service. If you didn’t specify you would need a liftgate when you got your quote, but then your carrier provides the service at pick-up, it will cost you. Additionally, if your customer doesn’t communicate they need one for delivery, that can be added on without your approval or knowledge, surprising you once you get the bill. 

Communication between both parties and ensuring you have the proper equipment can avoid this completely. Make sure you both understand that the added cost of an accessorial may raise your rate, but will help your shipment get where it needs to. Understanding that these types of special trucks equipped with liftgates are not as common, both parties will know they need to be requested on the front-side.

Reason 3: Too much time has passed

First and foremost, it’s important to know that a freight quote is an estimate to begin with.

So many factors can change - for example, fuel costs fluctuate frequently. Additionally, depending on when you are scheduling your shipment, peak periods can cause capacity issues, and this generally results in higher charges.

As a general rule, we like to inform our customers that quotes for standard LTL service are valid for about a week. That window is even tighter when you’re using time-critical services. If you’re wanting an estimate so you know what to bill a customer, build in some room for your final cost, or requote as close to the actual shipment pick-up date as possible.

Reason 4: Your delivery location has changed 

While not quite as common, sometimes a change in delivery address can affect the final cost of your freight. Changes may occur after a load is quoted or may have to be made while the shipment is already in transit. Reasons for this might include a location being closed, or a consignee that isn’t ready to receive the shipment.

LTL freight shipments can be rerouted, but that adjustment will definitely incur costs: distance and fuel will increase if the location is further out. On top of that, special service fees such as a redelivery charge or even location-specific fees like limited access could also be applied. Do your best to requote if any details of your delivery location change. If the change is made at the request of your customer, be sure to communicate that fees will apply. If you want to absorb those charges as a courtesy, be sure to build some room in your customer cost to begin with. Otherwise, make it clear who is responsible for those fees.

Reason 5: The wrong carrier picked up your shipment  

You’d be surprised, but the wrong freight carrier picking up an LTL load happens much more often than you’d think. We’ve seen customers quote a general rate with one carrier and then hand it off to whatever carrier arrives that day just to get it on the road and off the dock.  Your shipping department is likely very busy, but this sort of simple mistake can cost you so much time and money in the long run.

Not every LTL carrier has the same base pricing, and even accessorial costs fluctuate between carriers.

If you quote with one carrier, and hand it off to another, you could be paying much more if that carrier charges more for their services. Even worse, if you have negotiated pricing with one carrier, the incorrect one won’t know to bill using your discounts. Worst case scenario, you may be billed at full-cost. Make sure your warehouse team is aware of what carriers are to move which loads. Creating color coded carrier labels and marking your shipments can help ensure a quick once-over to avoid this drama completely.

Reason 6: You have a paperwork error that affects billing 

When comparing your freight quote to your invoice, also take a look at your paperwork and shipping documents. Billing errors and missing information can create an expensive and exhausting headache.

If you are arranging a shipment, and have special pricing or are using a third-party, make sure an accurate BOL states the correct carrier and “bill-to” party. If you are receiving the load, but responsible for the shipping arrangements, don’t leave it to the shipper to create the BOL. In doing so, you run the risk of an incorrect billing party or other inaccuracies that mean your discounts won’t be applied. Even after the fact, a letter of authorization (LOA) can sometimes fix this by informing a carrier of the correct billing party, but it’s not guaranteed and it definitely delays the process.

Final thoughts 

Don’t freak out if you’re seeing some discrepancies between your freight quote vs. your invoice. While they can be unexpected and troublesome, educating yourself and your customer about what can change your rate can help you make better decisions when planning your LTL load. Strong communication and a plan of action can help mitigate expensive invoice issues. If you have concerns about your freight quote vs. your invoice, PartnerShip can help dodge the guessing, help choose the correct services based on your shipping needs, and side-step costly errors.

It's common in logistics and warehousing to be asked: What is cross-docking? What is transloading? What is the difference between cross-docking and transloading?

Cross-docking is unloading inbound freight from one truck, holding it in a warehouse or terminal for a very short period of time, and loading it onto another truck for outbound shipping.

Let's look at an example of cross-docking: A manufacturer needs to ship 20 pallets of products from the east coast to destinations in Texas, Florida and California. The 20 pallets are first shipped to a third-party warehouse in Cleveland, Ohio. A day later, 5 pallets are sent to Florida, 10 to Texas, and 5 to California on trucks bound for those destinations. Since the pallets were never unpacked and were only in the warehouse long enough to move them from one truck to another truck (and from one dock to another dock), they have been cross-docked. 

Transloading is when inbound freight is unloaded, the pallets are broken down, and their contents sorted and re-palletized for outbound shipping.  

Using the same Cleveland, Ohio third-party warehouse, here is an example of transloading: 5 suppliers of a manufacturer ship a year’s supply of components to the warehouse. The components are stored until they are needed, at which time the warehouse picks them, assembles them into a single shipment, and ships it to the manufacturing facility.

To recap, cross-docking is the movement of an intact pallet (or pallets) from one truck to another, and transloading is the sorting and re-palletizing of items.

Both cross-docking and transloading services are specific logistics activities that can create benefits for businesses; especially ones that utilize a third-party warehouse.

Benefits of cross-docking

• Transportation costs can be reduced by consolidating multiple, smaller LTL shipments into larger, full truckload shipments.
• Inventory management is simplified because cross-docking decreases the need to keep large amounts of goods in stock.
• Damage and theft risks are reduced with lower inventory levels.
• With a decreased need for storage and handling of goods, businesses can focus their resources on what they do best instead of tying them up in building and maintaining a warehouse.

• Businesses can store goods and products near customers or production facilities and have them shipped out with other goods and products, decreasing shipping costs.
• Businesses can ship full truckloads to a third-party warehouse instead of many smaller LTL shipments.
• With storage and logistics managed by others, the need for building and maintaining a warehouse is eliminated.

Is it time for your business to consider a drop trailer and / or drop and hook freight program? 

First, let's answer what is a drop trailer? It is when a carrier brings a tractor to the loading dock and picks up a previously loaded trailer. Drop and hook takes drop trailer shipping one step further. A carrier will arrive with an empty trailer to drop, pick up a loaded trailer, and continue on to the destination.

What is a drop trailer used for? Many shippers consider drop trailer programs because of the hours of service rules issued by the Federal Motor Carrier Safety Administration (FMCSA) which are more strictly monitored by the ELD mandate.

Before the change to the hours of service rules, if a driver waited three or four hours or more while their trailer was loaded, they could make up the time by driving more hours. Now, with an ELD required for every tractor, load time and detention is a significant consideration because it cuts into the 14-hour on-duty shift rule.

To illustrate, if a carrier has to drive an hour to the shipping origin, then wait five hours to get loaded, that means he can only drive for 8 hours after leaving for the destination. If he averages 60 mph, he can travel 480 miles. If the same driver picked up a loaded trailer, he could drive 10 hours before reaching the 11-hour driving limit. If he averages 60 mph, he can travel 600 miles.

What is a drop trailer doing for your supply chain? Drop trailer programs help shippers and carriers plan more effectively for deliveries and outbound shipments so it is important for them to align their schedules. Without drop trailers, a carrier must arrive within a narrow appointment window for employees to load or unload the trailer. Depending on how the appointment fits into their on-duty schedule, and considering traffic conditions, weather, breakdowns and other unexpected events, the driver could be forced to wait for hours, or miss the appointment altogether. In these situations, late delivery fees, detention fees, and a negative vendor scorecard are typically the unpleasant results.

Drop Trailer Benefits for Shippers:

• Smoother supply chain operation. You can load or unload a trailer at your convenience or when staffing levels are adequate; no more paying overtime to load or unload when a truck is early or late.
• Great for time-consuming loads, like floor-loaded freight.
• Less congestion in docks, improving overall safety of operations.
• Avoid costly driver or truck detention accessorial charges.
• Higher on-time delivery percentages. On-time freight departure times substantially increase the odds of an on-time arrival.
• Decrease fines. With strict retail Must Arrive By Date (MABD) requirements becoming more common, drop-trailer shipping can help your carrier arrive on time and minimize the fines associated with missing a delivery window.
• Better retailer relationships. When you fulfill MABD requirements, your vendor scorecard improves and you are seen as a more desirable vendor partner.

• Better planning. You decide when you pick up (and drop off) trailers.
• No more waiting to pick up a load or be live-loaded; spend more time driving to the destination.
• Great for time-consuming loads, like floor-loaded freight.
• Higher on-time delivery percentages.
  

There are a few circumstances of which to be aware when considering a drop trailer program. What is a drop trailer cost? Every trailer that a carrier takes out of over-the-road service is lost revenue, so to recoup it, there will be a cost for a drop trailer, either on the front end or back end (or both). Of course, this cost will pay for itself because there should never be any detention fees.

Drop trailers should not become warehouses; the maximum time a trailer should sit is a week. In most drop trailer programs, trailers turn two or three times a week. Because of this, produce and perishable goods aren't well suited for drop trailers, since keeping the goods fresh is necessary.

Finally, there is a lot of up-front work to implement a drop trailer program. Not all carriers do drop trailers so finding one that does can be time-consuming. Trailers make carriers money so if one of your carriers doesn’t want to drop a trailer, simply look at using a different one.

A drop trailer or drop and hook program is a perfect opportunity to use a freight broker. Working with a broker allows you to tap into their network of carriers and take advantage of their expertise in finding carriers that will drop trailers. The truckload shipping experts at PartnerShip will work with you to find a drop trailer or drop and hook carrier and get you the best freight rates possible. We know the lanes, we know the rates and we will help you ship smarter. Contact us today to learn more about setting up a drop trailer program!

The freight industry can be a confusing place. It's pretty easy to get lost in terminology, and even experienced shippers can find themselves puzzled by basic questions. For example: what's the difference between a freight broker and carrier?

It turns out there are actually three key distinctions between the two parties, and understanding how each factor affects your load is important for smooth shipping.

Key Distinction #1: Responsibility to shipper

When looking at a freight broker and carrier, it's important to understand the primary responsibility of each party in the physical transportation of your freight. 

What is a carrier?

A carrier refers to the company, or operator, that directly handles the transportation of your shipment. Common national carriers include TForce Freight, XPO Logistics, ArcBest, and more. Carriers can specialize in less-than-truckload (LTL), dedicated truckload freight, or even specialized services such as refrigerated or oversized freight equipment.

What is a freight broker?

A freight brokerage is a company that serves as a transportation intermediary rather than directly operating a truck fleet and physically moving your freight. A freight broker's job is to contract available loads with a carrier and find an acceptable rate within a specified time frame according to the shipper. The freight broker cuts down the time and effort it may take for a company to look for its own carriers and may decrease costs by shopping quotes.

Key Distinction #2: Geographical restrictions

Freight carriers and brokerages serve distinct areas in the U.S. and sometimes overseas. Knowing their strongest network locations can guide your business decision.

Where do carriers operate?

Common carriers, like XPO Logistics, primarily move freight loads. They have hubs in high-demand areas offering maximum truck availability and competitive pricing. For regions outside these hubs, they may have limited schedules or collaborate with regional carriers for rural deliveries. These regional carriers are smaller businesses operating within a specific area and have exceptional proficiency within their zone. Essentially, national carriers can deliver anywhere in the U.S., but for remote areas, they might need to involve regional carriers which could result in longer delivery times.

Where do freight brokers operate?

Third-party logistics providers don't need to manage assets or trucks, so they can operate from any location. Many have main offices in popular shipping areas and satellite offices across the country. Some specialize in certain industries, like oversized freight or cross-border shipping. A broker can also focus on building relationships with transportation carriers for increased flexibility and specialized service. 

Key Distinction #3: Liability for claims

In damage claims, carriers are generally legally liable due to the Carmack Amendment, while brokers aren't. However, brokers can and should aid in dispute resolution. With blurred lines between the two parties, it's important to explore them in detail.

What is a carrier's liability?

Per the Carmack Amendment, the carrier owns the items while they are being transported. When the carrier agrees to transport something, a deal is made based on the shipper load and count on the bill of lading (BOL). The shipper signs this document, saying that they packed and counted everything correctly. From the moment the goods are picked up until they are delivered, the carrier is in charge. If anything gets lost or damaged, the carrier has to answer for it. If there's a problem, you make a claim with the carrier, not the broker who set up the transportation.

What is a broker's liability?

From a legal perspective, carriers, not freight brokers, are responsible for any freight damage. However, good freight brokers have claims experts who know about shipper rights, liability limits, and claims filing. While carriers must handle damaged freight, brokers have the ethical duty to guide shippers and assist during complex situations like damage or loss claims.

The advantage of using a freight broker

When you work with a quality freight broker, you gain expertise, increase operational flexibility, and add a cost-saving alternative that you may not have when working directly with a carrier. Working with PartnerShip can ensure you have a team in your corner to help you navigate even the most unique shipping challenges. 

Freight damages and lost shipments are the worst. Submitting a freight claim in order to receive compensation from the carrier can be challenging, and if you don't do it right, you're unlikely to get much of a payout. In fact, certain mistakes that you might be making can pretty much guarantee a denial or low payout - and have the carrier jumping for joy.