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'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.

Less-than-truckload (LTL) and truckload freight shipping may appear to be similar but they are two very different shipping services. Many shippers exclusively use one or the other, but they can be used together. To help you ship smarter, here are the four main differences between LTL and truckload shipping and rates.

Transit time and handling

LTL: LTL shipping combines shipments from multiple customers so your freight isn’t the only freight on the truck; it shares space (and cost) with other company’s freight and will make multiple stops at terminals between the shipper and consignee. For example, the freight you are shipping from Cleveland to Houston may make stops in Indianapolis, Nashville and Dallas before reaching its final destination. At each stop, your freight is unloaded and reloaded and must wait for the next truck, increasing transit time and handling, and the possibility of damage.

Truckload: When you ship full truckload, your freight is the only thing on the truck. The carrier will make a pickup at the origin and drive straight to the destination. Aside from driver rest breaks, fuel and equipment issues, the truck doesn't stop, resulting in much faster transit times. In addition, your freight never leaves the truck, resulting in much less handling and fewer opportunities to be damaged.

Weight and shipment size

LTL: Less-than-truckload shipments are typically between one and six pallets and weight from 200 to 5,000 pounds. LTL freight usually takes up less then 12 linear feet of the trailer, and since the typical pallet measures 40” x 48”, 6 pallets arranged side-by-side would take up exactly 12’ of linear space on each side of the trailer.

Truckload: A full truckload shipment can range from 24 to 30 pallets and up. With truckload freight, the space your shipment takes up in the trailer has more of an impact than weight, so truckload shipments commonly range from 5,000 pounds to 45,000 pounds and up.

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!

When most people think of freight, it’s usually an image of the ubiquitous 40” x 48” wood pallet that comes to mind. But there are many other ways to move freight, including these lesser known, but still important, methods.

Pallets. They are so important to freight shipping that even though we’ve covered pallets in depth before, we can’t not mention them here.

In addition to wood, pallets can be made of plastic or metal. Plastic pallets are popular for export shipments because they don’t have to be heat treated to be used for international shipping, like wood pallets do. Aluminum and stainless steel pallets are strong and lightweight, and since they can be cleaned and sanitized, they can be used in food processing and pharmaceutical plants, where cleanliness is essential.

Gaylords. Named after the company that first introduced them, Gaylords are pallet-sized corrugated boxes used for storage and shipping. Sometimes called pallet boxes, bulk boxes, skid boxes and pallet containers, Gaylords can have between 2 and 5 walls and are meant to be single-use containers. Frequently used as in-store displays as well as shipping containers, Gaylords can be used to ship items as diverse as watermelons, stuffed animals, and pillows. Depending on configuration and how many walls they have, Gaylords can hold from 500 to 5000 pounds each.

Metal bins. Metal bins are typically made of steel and are mainly used in industrial applications where strong-sided containers are required to hold and move heavy and irregularly shaped items, like metal castings and forgings, stampings and scrap metal. Metal bins can be found in many different sizes and are essential in safely shipping heavy and potentially sharp objects.

Wire baskets. Available in solid or collapsible versions, wire baskets are strong and can store and move large and bulky items up to 6000 pounds. Wire baskets are stackable and can be used for shipping nursery stock, landscaping rocks, and other irregularly shaped items.

Stack racks. Featuring a flat, metal base and upright posts at the corners, stack racks are ideal for moving and storing large, bulky items. Stack racks can often be stacked on top of one another and are used for moving awkward items like furniture, carpets and rolls of fabric, tires, and coiled plastic drainage tubing.

Bulk storage bags. Perfect for moving powders, grains and very small items, these durable woven plastic bags have lift straps attached to the top which allow them to be filled, moved and emptied easily. Bulk storage bags are sometimes called big bags, super sacks, or FIBCs (Flexible Intermediate Bulk Containers), and can be lined for food-grade applications like shipping flour and peanuts, industrial products like dry concrete mix, or bulk agricultural freight like catnip.

Wood crates. Shipping crates made of wood are sturdy, strong, and can typically resist the sometimes extreme conditions of freight shipping. Items shipped using wood crates can be as diverse as priceless artwork, sensitive machines like 3D printers, and large and irregularly-shaped plastic injection or blow molds. Other common uses of wood crates are tradeshow exhibit shipments and when moving multiple slabs of natural stone.
 
IBC Totes. Intermediate Bulk Containers, or IBC totes, are perfect for transporting liquids and granular materials, like chemicals, food products and hazardous materials. IBCs can hold up to 550 gallons, with 275 and 300 gallons being the most common sizes. IBCs are stackable and can be used for food grade materials as well as corrosive or flammable industrial liquids and solvents.

Totes. Totes are small plastic containers that are commonly used in manufacturing and food processing facilities, as well as in shipping, storage and fulfillment warehouses. Totes without lids are often used for order picking in warehouses, and are useful because they are durable, nestable and stackable. Totes with lids that close are frequently used in shipping small products from distribution centers to stores, and are included in shrink-wrapped pallets of boxes.

Drums. Storage drums come in three main types: fiber, plastic and metal, and can be used to store and ship liquids and solids. Fiber drums are lightweight and sturdy and can hold food-grade and non food-grade materials such as grains and dry chemicals. Plastic drums can hold liquids or solids and are corrosion resistant, making them ideal containers for transporting industrial chemicals; they can also be food-grade and hold water, pickles or grape juice for winemaking. Metal drums are used for heavier liquids such as oils, greases and lubricants, and extremely hazardous materials, since they are the most durable drums available.

Plastic and metal drums are available in both open-head and closed-head designs. Open-head drums have easily-removable covers and work well for shipping solid items or thicker liquids. Closed-head drums have non-removable covers with openings and are better suited for lower-viscosity liquids.

The most common size of fiber and metal drums is 55 gallons, while plastic drums are available in standard sizes of 15, 30 and 55 gallons.

A-Frames. Shipping granite, quartz and marble requires the use of wood or metal A-frames to hold and stabilize natural stone slabs when they are shipped. A-frames are mostly used on local or short hauls, and can be loaded in dry vans, or more commonly, on flatbeds for transport. There are many factors to consider when shipping stone and working with an expert is certainly recommended.

As you can see, there are many more ways besides boxes and pallets to move your freight, and no matter how your freight is configured, we’re here to help you ship smarter. If you have a shipping challenge and need assistance finding a reliable carrier for your needs, contact PartnerShip or get a free quote!

A rapidly growing need in the warehouse and logistics industry is for on-demand warehouse space. So, what is on-demand warehousing?

The simple answer is on-demand warehousing is a logistics strategy that matches businesses with a need for short-term or temporary warehouse space with warehouses that have excess capacity.

As recently as two years ago, the topic of on-demand warehousing was relatively unknown, but several factors have led to the rapid increase of its awareness and market need. Let’s look at 7 ways your business could benefit from on-demand warehousing.

1. The Amazon Effect. Basically, the “Amazon Effect” has changed consumer expectations and means that anything and everything is available online with one-day or even same-day shipping. The eCommerce giant has created “get it now” expectations, and if your business can’t offer one- or two-day shipping to your customers, you are at a distinct disadvantage. If you are based on the west coast or east coast, you should seriously consider adding additional warehouse storage and order fulfillment in strategic locations to reduce shipping time to your customers.
2. Increasing demands of eCommerce fulfillment. If you are a retailer, you’ve seen the headlines about the decline of brick and mortal retail as more and more B2C and B2B commerce shifts online. If the increased demand for eCommerce has stretched your facilities to their limits, you should consider on-demand warehousing and order fulfillment to take the pressure off of your existing infrastructure and help meet your customers’ higher expectations for short shipping times.
3. It’s less expensive to borrow space than build it. Start-ups and small companies are finding it advantageous to rent warehouse space as they grow rather than build their own distribution centers and warehouses. By utilizing warehouse space on an as-needed basis, your small business can focus on growing sales and market share instead of adding the overhead a dedicated warehouse requires.
4. When peak season is your only season. If your company relies on a single season for the majority of your revenue, it makes more sense to use an on-demand warehouse for your peak season than to pay for year-round warehouse space.
5. When its time to outsource to save resources. When your resources are limited, its best to outsource functions that fall outside of your company’s strengths, and warehousing and logistics is usually one of those functions. By working with an on-demand warehouse that can “store it and ship it,” your company can devote its precious resources to product development, R&D, or marketing; whatever it is that you do best.
6. Inventory overflow. Even if your company has its own distribution network you may find yourself in need of temporary warehouse space. Expansive new product launches, importation of a years’ worth of goods, or stockpiling of raw materials to hedge against increased costs can create the need for extra storage space.
7. “Micro-warehousing.” If your company sells (and needs to store) goods and products near population centers that use them more than other areas, like Ohio State branded products in Ohio, air conditioners in the southeast, or snowblowers in the northeast, then you could benefit from temporary warehouse space outside of your existing distribution network.

PartnerShip is proud to support and celebrate MFG Day 2019!

The first Friday in October, MFG Day was created to show the reality of modern manufacturing and celebrate the large role manufacturing plays in the US economy. Thousands of companies and educational institutions across the country open their doors to students, parents, teachers and community leaders to connect with America’s future creators to create an interest in a career in manufacturing.

PartnerShip is proud to work with many organizations that support and promote manufacturing, such as NTMA, MAPP, PMPA, Manufacturing Works, and many more.

Today’s manufacturing jobs are high-skill and high-tech, but there is still a skilled labor shortage in the manufacturing sector. MFG Day is an opportunity for people, especially students, to learn what modern manufacturing really looks like and to discover that manufacturing offers high-quality and high-paying jobs and career choices. Consider these statistics:

• There are 12.8 million manufacturing workers in the United States. (Source: Bureau of Labor Statistics)
• In 2017, the average manufacturing worker in the United States earned $84,832 annually, including pay and benefits. (Source: Bureau of Labor Statistics)
• 4.6 million manufacturing jobs will be needed over the next decade. (Source: Deloitte and the Manufacturing Institute)
• Manufacturers in the United States perform 64 percent of all private-sector R&D in the nation, driving more innovation than any other sector. (Source: Bureau of Economic Analysis)

UPS and FedEx have both announced that they will not apply peak season surcharges on residential deliveries this holiday shipping season. However, both companies will continue peak surcharges on large shipments and those requiring additional handling during the holidays.

During the 2018 holiday season, UPS applied a per package residential peak delivery surcharge of $0.28 for ground and $0.99 for air shipments. This year, the company is leveraging its expanded air and ground capacity, and automated sorting hubs and processing facilities, to pass cost savings on to customers in the form of no residential delivery peak surcharge. More than 75% of UPS's small package volume will pass through these automated facilities in peak 2019.

“We delivered a record-setting 2018 peak season in terms of both on-time delivery performance and operations execution,” said David Abney, UPS Chairman and CEO. “We will build on the lessons learned last year and leverage our new efficient air and ground capacity to make the 2019 peak season another success for customers, investors and other stakeholders.”

This is the third holiday season FedEx has not added additional peak surcharges on residential deliveries. With UPS and FedEx both not applying a residential delivery surcharge this year, it is great news for e-commerce retailers and online shoppers. Online sales are expected to grow 14% to 18% this holiday season, and in the past, these residential delivery surcharges were passed along to shoppers in the form of higher shipping costs.

It’s important to remember that both UPS and FedEx are implementing peak surcharges this holiday season on larger packages and those that require additional handling.

UPS peak surcharges will apply to larger packages from October 1 through January 4:

• $31.45 per package for shipments that qualify as large (a 20% increase from 2018)
• $250.00 per package for shipments that qualify as over maximum limits (a 51.5% increase)

FedEx and UPS rates will be going up after the holiday season! Make sure you know what to expect so you can mitigate the impact to your bottom line. Our free white paper breaks down where you'll find the highest increases and explains some of the complicated changes you need to be aware of.

This week has been designated National Truck Driver Appreciation Week and PartnerShip says “thank you” to all of the men and women who keep America moving forward by transporting freight safely, reliably and efficiently. 

“Every September, trucking comes together to recognize what we consider the most important profession in the country: truck drivers.” said American Trucking Associations (ATA) President and CEO Chris Spear. ATA Executive Vice President of Industry Affairs Elisabeth Barna added, “It’s a chance for the industry to work with the general public, policymakers and members of the media to acknowledge truck drivers for their dedication to safety and professionalism.

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 load for us during the week. It’s our small way of thanking drivers that help 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 Becoming a PartnerShip Carrier webpage. Then check the PartnerShip Load Board and get started!

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 October Carrier of the Month is Doug Davidson Trucking LLC of Salem, OH. With 27 years of trucking experience, they specialize in oversize and overweight loads and operates a fleet of 11. They are fully committed to on-time pickup and delivery with safety as their number one goal.

The reason PartnerShip has a 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 October Carrier of the Month, Doug Davidson Trucking gets lunch for their team 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.