by logisticsplus | Jul 25, 2017 | News
Thank you to the folks at Customer Strategist journal for including Logistics Plus in their “Flat Can Be Good for Business” case study article by Cara Rosner in their latest issue. The full article can be viewed online, and the excerpt that includes comments from Jim Berlin, founder and CEO of Logistics Plus, can be viewed below.
Customer Strategist aims to provide executives with insight they can use to build more profitable customer relationships. The journal facilitates learning and action by presenting progressive thought leadership, consulting methodologies, and in-depth research on customer issues. Readers can harness the information to create a long-term, competitive advantage. Visit them online at www.customerstrategistjournal.com.
by logisticsplus | Jul 20, 2017 | News
Carrier liability and cargo insurance (also known as shippers’ interest) are often thought to be the same thing. Although they both involve certain coverage of freight, they have some key differences that are important to understand. Damaged and lost items are unfortunately a common problem when shipping freight. Because of this, it is crucial to know how to get the best coverage on all of your shipments. Here are some of the key differences between carrier liability and cargo insurance:
Carrier Liability
All freight shipments come with some sort of “limited liability coverage.” This coverage is determined by the carrier and varies depending on the commodity type or freight class of the goods being shipped. For the most part, carrier liability covers up to a certain dollar amount per pound of freight. It is not uncommon to find that the included liability coverage is less than the actual value of the goods being shipped. Also, if the freight is used and not directly from the manufacturer, the liability coverage will be significantly less than it would be for new goods. Furthermore, carrier liability has limitations in certain instances when the damage is due to an act of God (weather-related), or act of the shipper (improper packaging or loading). In these two cases, the carrier cannot be at fault.
Cargo Insurance
Shippers’ interest cargo insurance, also sometimes referred to as freight insurance or goods-in-transit insurance, is a great way to protect customers from lost or damaged freight while it is being transported. This insurance is an additional charge that is typically based on the value of the goods being shipped. As previously mentioned, carrier liability may only cover a certain dollar amount per pound of freight. When your freight has a higher value than what is covered by liability, cargo insurance may be very beneficial to you in order to better protect yourself from lost or damaged cargo. Another benefit of purchasing cargo insurance is that you do not need to prove the carrier was at fault for the lost or damaged items, only that the damage or loss actually occurred.
Differences in the Claims Process
If the shipment is only covered by carrier liability:
- The freight claim must be filed within 9 months of delivery
- If the delivery receipt isn’t noted as damaged some carriers require immediate notification
- Proof of value and proof of loss must be provided
- The carrier has 30 days to acknowledge the claim and must respond within 120 days
- You must prove carrier negligence (the freight was picked up in good order and packaged properly, but was delivered in a damaged condition)
If the shipment is covered by shippers’ interest cargo insurance:
- You must provide proof of value and proof of loss
- Claims are usually paid within 30 days
- You aren’t required to prove carrier negligence
Logistics Plus can help assist you in determining a carrier’s limited liability amount and deciding what coverage is best for your freight shipments. We also provide very affordable and comprehensive cargo insurance to shippers who need the added protection. Contact us today to learn more!
by Marketing | Jul 19, 2017 | News
Shipping freight may seem like a very complex process due to the number of options available. It’s important to understand the differences between Full Truckload (FTL) shipping and Less Than Truckload (LTL) shipping because they are two of the most commonly used transportation options within North America. Shippers must consider size, speed, and price when deciding between a FTL versus LTL. Here are the main differences between FTL and LTL shipments to help you decide which shipping method works best for you.
The main differences between FTL and LTL shipments can be broken down into four categories:
Size
The first thing you must take into consideration when shipping freight is the size. The names Full Truckload and Less Than Truckload are self-explanatory and mean exactly what they say. LTL shipments are smaller shipments typically ranging from 100 to 5,000 pounds. These smaller shipments will not fill an entire truck, leaving space for other small shipments. On the other hand, FTL shipments fill most to all of an entire truck and tend to be much larger, often weighing 20,000 pounds or more. Shipments that weigh between approximately 5,000 and 10,000 pounds can sometimes move either LTL or FTL. When such shipments move LTL, they are often referred to as “volume LTL” shipments; and when they move FTL, they are often referred as “partial TL” shipments (read more about Volume LTL and Partial TL here).
Price
Since LTL shipments are smaller and leave room for other shipments, they are cheaper because you will only pay for the space that you use. FTL shipments use most of the entire truck and cost more because you are paying for more space in the truck. The decision between choosing a FTL or LTL is crucial because if you choose the wrong option, you may end up paying for space that you aren’t even using.
Time
If you are pressed on time and need to have something shipped quickly, FTL may be the way to go. Since LTL shipments involve more than just your shipment, they often require multiple stops and transfers before they reach the final destination. Typically, FTL shipments pick up and deliver on the same truck leading to a quicker delivery time.
Handling
Along with how quickly you need a shipment to go out, you must also consider how delicate or high-risk the shipment is. With FTL shipping, your shipment will stay on the same truck and will not be transferred anywhere else. This creates less risk of damaged or missing items when shipping FTL. On the other hand, LTL shipments may switch trucks or be transferred multiple times before delivery, increasing the risk of damaged or missing items.
Choosing the correct shipping method is crucial for saving time and money for your company. If you have LTL or FTL shipping needs, then look no further than Logistics Plus! Contact us today.
by logisticsplus | Jul 14, 2017 | News
This is a nice television segment from Erie News Now last night regarding our recent expansion announcement. Click the image below to watch a video replay of the news segment.
Additional news coverage by Erie Times-News can be viewed here:
http://www.goerie.com/news/20170714/logistics-plus-to-expand-erie-headquarters
Additional news coverage by YourErie.com can be viewed here:
http://www.yourerie.com/news/local-news/wolf-announces-logistics-plus-expansionjob-increase/764829480
Additional news coverage by Transport Topics magazine can be viewed here:
http://www.ttnews.com/articles/logistics-plus-expand-pennsylvania-headquarters
Additional news coverage by WPSE Radio can be heard here: Clip 1 and Clip 2
by logisticsplus | Jul 13, 2017 | News
FROM PENNSYLVANIA GOVERNOR TOM WOLF NEWSROOM
(see actual news release)
Governor Wolf Announces Logistics Plus, Inc. to Expand and Create 44 New Jobs in the City of Erie
HARRISBURG, Pa. (July 15, 2017) – Today, Governor Tom Wolf announced that Logistics Plus, Inc., a worldwide supply chain management company, will expand its headquarters in the City of Erie, and will create 44 new jobs.
“This expansion in the heart of the City of Erie will bring 44 family-sustaining jobs to a location in the center of the city’s downtown,” said Governor Wolf. “My administration has worked closely with Erie to support its growing business climate and this expansion project is another great investment for the region.”
The expanded facility will allow for the handling of all logistics for clients, from order intake to shipping and installation. Logistics Plus has committed to investing at least $1.2 million into the project, which will create 44 new, full-time jobs and retain 123 more positions statewide.
“It’s very gratifying to be able to create good-paying, fun and interesting jobs with a growing, cutting-edge global company right here in Erie, Pennsylvania,” said Jim Berlin, founder and CEO of Logistics Plus. “Keeping talented people in the Erie area is good for the community and for the local economy.”
Logistics Plus, Inc. received a funding proposal from the Department of Community and Economic Development for $88,000 in Job Creation Tax Credits to be issued after the new jobs are created. The company has also been encouraged to apply for a $2 million low-interest loan from the Pennsylvania Industrial Development Authority.
The project was coordinated by the Governor’s Action Team, an experienced group of economic development professionals who report directly to the governor and work with businesses that are considering locating or expanding in Pennsylvania, with the assistance of the City of Erie’s Department of Economic and Community Development.
Logistics Plus Inc. is a worldwide provider of transportation, warehousing, global logistics, and supply chain solutions. Founded in Erie by local entrepreneur Jim Berlin 20 years ago, Logistics Plus employs over 400 people and has been repeatedly recognized as one of the fastest-growing transportation and logistics companies in the country.
For more information about the Governor’s Action Team or DCED, visit dced.pa.gov.
by Marketing | Jul 11, 2017 | News
Incoterms® is an abbreviation for “International Commercial Terms.” This term represents a very useful way of communication and it’s actually aimed at reducing confusion between buyers and sellers.
So what is an incoterm? An incoterm represents a universal term that defines a transaction between importer and exporter so that both parties understand the tasks, costs, risks, and responsibilities, as well as the logistics and transportation management from the exit of the product to the reception by the importing country. Incoterms are all the possible ways of distributing responsibilities and obligations between two parties. It is important for the buyer and seller to pre-define the responsibilities and obligations for the transport of the goods.
Here are the main responsibilities and obligations:
- Point of delivery: here, the incoterms defines the point of change of hands from seller to buyer.
- Transportation costs: here, the incoterms define who pays for whichever transportation is required.
- Export and import formalities: here, incoterms define which party arranges for import and export formalities.
- Insurance cost: here, incoterms define who takes charge of the insurance cost.
Advantages of using incoterms:
- As they stand today, there are 11 main terms and a number of secondary terms that help buyers and sellers communicate the provisions of a contract in a clearer way; therefore, reducing the risk of misinterpretation by one of the parties.
- Incoterms govern everything from transportation costs, insurance to liabilities. They contribute to answering questions such as “When will the delivery be completed?” “What are the modalities and conditions for transportation?” and “How do you ensure one party that the other has met the established standards? Having said that, it is important to remember that there are also limits to Incoterms. For example, they do not apply to contractual rights and obligations that do not have to do with deliveries. Neither do they define solutions for breach of contract.
Here’s what you should know about incoterms:
- Ex Works (EXW) – The seller makes the goods available at its location, so the buyer can take over all the transportation costs and also bears the risks of bringing the goods to their final destination.
- Free Carrier (FCA) – The seller hands over the goods into the disposal of the first carrier. After the buyer takes over all the costs, the risk passes when the goods are handed over to the first carrier.
- Free Alongside Ship (FAS) – The seller must place the goods alongside the ship at the named port, the risk of loss or damage to the goods passes when the goods are alongside the ship, and the buyer bears all the costs from that moment on.
- Free on Board (FOB) –The seller must load the goods on board of the ship, nominated by the buyer. Cost and risk are divided when the goods are actually on board.
- Cost and Freight (CFR) –Seller must pay the costs and freight to bring the goods to the port of destination. Although the risk is transferred to the buyer when the goods are loaded on the ship.
- Cost, Insurance and Freight (CIF) –It’s exactly like CFR except that the seller must in addition procure and pay for the insurance.
- Carrier and Insurance Paid to (CIP) –The seller pays for the carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.
- Delivered Duty Paid (DDP) –The seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination.
You will find a handy Incoterms 2010 Quick Reference Guide on the Logistics Plus website. Additionally, you can check out our short Introduction to Incoterms 2010 Webinar online.
