Freight Archives

Logistics Plus Transportation Sourcing Advice in Inbound Logistics

by logisticsplus | Oct 3, 2017 | News

Logistics Plus recently participated in an interview with Inbound Logistics magazine to provide tips on transportation sourcing. The interview was with Jeremy Chaffee who is the director of domestic operations for Logistics Plus. The print version of the magazine article also featured a couple of Logistics Plus photographs. The article was written by Sandra Beckwith and you can read the online version of the article on the Inbound Logistics website using the link below.

10 Tips for Transportation Sourcing

A PDF excerpt of the article can also be downloaded and viewed by clicking the image below.

Contact Logistics Plus if you’d like our help managing transportation sourcing needs.

Important New NMFC Classification Rules Now In Effect

by logisticsplus | Aug 7, 2017 | News

As a reminder, the recently approved National Motor Freight Classification (NMFC) freight classification changes went into effect this weekend (August 5th, 2017). These changes will have far-reaching effects on LTL shipments of certain commodities in the NMFC that are based on density ratings, such as Plastic or Rubber Articles, Expanded, NOI (157320), and others. Previously, most items assigned a class based on density were subject to one of two tables. The so-called 9-tier classification broke down density into 9 sub ratings as follows:

Sub 1	Less than 1	400
Sub 2	1 but less than 2	300
Sub 3	2 but less than 4	250
Sub 4	4 but less than 6	150
Sub 5	6 but less than 8	125
Sub 6	8 but less than 10	100
Sub 7	10 but less than 12	92.5
Sub 8	12 but less than 15	85
Sub 9	15 or greater	70

The 11-tier classification contained 11 density breakdowns:

Sub 1	Less than 1	400
Sub 2	1 but less than 2	300
Sub 3	2 but less than 4	250
Sub 4	4 but less than 6	150
Sub 5	6 but less than 8	125
Sub 6	8 but less than 10	100
Sub 7	10 but less than 12	92.5
Sub 8	12 but less than 15	85
Sub 9	15 but less than 22.5	70
Sub 10	22.5 but less than 30	65
Sub 11	30 or greater	60

Effective August 5th, the 9-tier breakdown will go away and NMFC items subject to it will be replaced by the 11 tier breakdown. This change is actually good news for shippers, as it provides for a lower class for shipments that are very dense, specifically over 22.5 lbs per cubic foot. The other change however is not so favorable. The 11-tier breakdown will change the sub 4 rating for articles that have a density of 4 but less than 6 pounds per cubic foot. Previously this was rated as a class 150, but will now be rated at a class 175:

For shippers whose LTL shipments were previously rated at class 150 based on density and will now be rated at class 175, this represents about a 15% increase in freight rates. For shippers with an FAK rating of 150, this should not change that rating, but items that were previously in the actual class range may now change. For example, if a shipper has a FAK class 100 rating on items with an actual class of 100-150, and they ship Plastic Articles with a density of 4-6 pcf, this shipment will no longer be subject to the FAK class 100 and will instead move at the actual class of 175.

Please contact your Logistics Plus North American Division (NAD) freight representative if you have any questions regarding the new rules.

How to Effectively File a Freight Claim

by Marketing | Jun 27, 2017 | News

Learning how to effectively file a freight claim is important because it will save time and money for your company. A freight claim is a legal demand for the payment of money, stemming from the breach of a contract of carriage. Following specific guidelines and processes is the only way to correctly deal with these claims. There are four essential elements to filing a freight claim:

The shipment must be identified so the carrier can complete an investigation.
The type of loss or damage must be stated.
The amount for the claim must be stated.
A demand for payment by the carrier must be included.

On top of making sure all four elements are included, follow these tips and suggestions to make sure you effectively file your next freight claim:

Take immediate action
- Taking immediate action is a crucial step of effectively filing a freight claim. Freight claims for loss or damage are generally governed by Title 49, CFR. Claimants must file the claim, in writing, within the time limits specified in the bill of lading or contract of carriage. The time period cannot be more than 9 months (49 USC 14706e) from date of delivery or, if never delivered, the expected delivery date. Unless otherwise agreed upon in a contract, a carrier must acknowledge receipt of a claim within 30 days. The carrier must then pay, offer to compromise or disallow the claim within 120 days or provide status reports every 60 days thereafter. If the carrier fails to abide by these periods, it should be notified that it is violating the FMCSA claim regulations. Furthermore, per the National Motor Freight Traffic Association, concealed damage must be reported to the carrier within 5 days. After 5 days, if the carrier has not been alerted of the damage, they retain the right to deny the claim. The customer then becomes responsible for providing proof that the damaged or missing items were the result of poor actions on behalf of the carrier. If the customer is unable to provide such proof, the claim will be considered invalid.

Attempt to mitigate the damages
- A responsibility that all parties of the shipping process share is attempting to mitigate damages. It is your responsibility to give a good faith effort to salvage damaged products unless you consider them to be totally or substantially useless and of no good.

Make supporting documentation available
- Including supporting documentation is necessary for correctly filing a freight claim. If available, you should include the original bill of lading (BOL), the paid freight bill, inspection reports, notification of loss, copies of request for inspection, invoices, waivers, and other appropriate documents such as temperature reports and weight certificates. The more information you have regarding the freight, the more effective your claim will be.

Create a detailed description of the losses or damages
- A detailed description of the loss or damage should be properly displayed. The claimant should include the number of items damaged, the type of damage, the value of each unit, and the net loss which results in the total amount of the claim. For example:
  - 15 boxes of cell phones – (water damaged) @ $500 each: $7,500
  - 5 boxes of cell phone cases – (crushed) @ $100 each: $500
  - Total Damages: $8,000
  - Amount Salvaged: $250
  - Total Claim Amount: $7,750

The role of 3PLs, brokers or intermediaries
- Many shippers use the services of intermediaries such as brokers or 3PLs (like Logistics Plus) to arrange with carriers for the transportation of their goods. Ordinarily a broker or 3PL does not have any liability for loss or damage since it is not a carrier and does have physical possession or control over the shipments. As a value-added service, Logistics Plus will generally offer to handle the filing and/or collection of claims on behalf of our customers. We also make available the various documents shippers need to file claims. This should not be confused with an assumption of liability, however; and claims must still be filed in your name (not that of Logistics Plus).

If you frequently ship LTL freight or truckload shipments, freight losses and damages are almost inevitable at some point during the process. That’s why it’s important to have an experienced and caring freight management partner on your side. When you work with Logistics Plus, we’ll gladly assist you with the filing or processing of your freight claims, and we’ll go to bat for you with the carriers to best represent your interests. Contact us today to learn more.

6 Tips to Save on LTL Shipping

by Marketing | Jun 8, 2017 | News

When you need to save on LTL shipping, it can be difficult for shippers to find the lowest rate that will fit their shipping needs. LTL (less-than-truckload) freight shipments involve small freight deliveries that are too large to be considered parcels, yet too small to fill an entire truckload. LTL freight shipping rates can be very complex and confusing, but third-party logistics (3PL) providers, such as Logistics Plus, can help ensure you are receiving the best possible rate. Make sure you follow these tips to save the next time you have an LTL shipment:

Know exactly what your shipment is
- It is crucial to be exact when weighing and calculating the size of a shipment. Shippers should never use an estimate for the weight or size of their items because if they are wrong, carriers will charge additional fees that will only increase the cost of your shipment. Also, find out the exact and correct NMFC item number and description for your commodity and make sure it is noted on your bill of lading. Some commodities even have freight density exceptions that can also impact your rates. More carriers are enforcing bill of lading accuracy and avoiding these surprise fees is a very important way shippers can keep their total costs to a minimum.

Choose the correct freight class
- Understanding freight classifications is important to saving money on LTL shipments. Freight classifications are based mainly on density, but other factors such as liability and handling are also considered. There is a total of 18 standard classes, and choosing the correct one is crucial to avoiding additional fees and costs. A lot of times, these freight classes are negotiable with carriers making it possible to reduce your shipping costs as much as possible.

Maximize your pallet space
- Most LTL carriers have very specific and often complex cubic capacity rules which can greatly increase the cost of your shipment. Carriers impose minimum cubic capacity rules to effectively counter very light, fluffy shipments that take up more than their fair share of a trailer. In most cases, if a shipment consumes 750 cubic feet of space or more, and the shipment has freight density of less than 6 pounds per cubic foot, it’s not paying its fair share. In these cases, carriers will often default to a higher freight classification with minimum weight and size rules and lower (or no) discounts. To save money on LTL shipping, make sure you fully understand the minimum cubic capacity of the carrier you choose and maximize that space. Maximizing your pallet space and increasing the density of your shipment is a great way to save on LTL shipping.

Consolidate orders
- If it is possible, try to combine small LTL shipments into one larger shipment. A lot of times, multiple small shipments will be going to the same location daily. If these shipments are consolidated into one, rates will decrease and you will save money. It is vital to understand exactly when orders must be delivered because it makes it much easier and cost effective to combine orders that will be headed to the same location. An experienced 3PL partner can help you with a complete LTL freight analysis to determine if you have any consolidation or savings opportunities.

Use proper packaging
- Most carriers have limited liability policies, so it is important to correctly package your shipments to avoid damages. Attaching freight to the pallet by using shrink-wrap or other protective wraps can help you avoid damages to your shipments. Also, be sure to make note of fragile shipments by adding labels or signs that are easily visible on the packaging. The condition of the package upon arrival is important to all customers. If your shipment is extremely valuable, you might also consider purchasing cargo insurance for added protection.

Determine the net cost
- Focusing on the net cost of LTL shipments is the best way to save money on shipping. There are so many factors such as weight, height, distance, delivery time, and accessorial service options that become forgotten when choosing the best rate. Considering all of these costs and combining them into one final price will give a more accurate and precise net cost of your shipment. It is important to not get caught up in just reviewing the freight or discounted rates because a lot of times, there are additional fees and charges that will factor into the final cost.

Here’s the bottom line: If you have LTL shipping needs and want to ensure that you are not overpaying, then contact Logistics Plus today!

Eight Tips to Avoid the Madness of Freight Transportation & Logistics

by logisticsplus | Mar 16, 2017 | News

Logistics can be maddening at times, and the month of March is no exception. However, since March is the official month of madness, we thought we’d provide a few tips for shippers to consider to avoid some of the madness that often comes with freight transportation and logistics.

Packaging your freight properly. Poorly packaged freight increases the risk that your shipments will get damaged; and many carriers are starting to decline damage claims when improper packaging is the culprit. Review your packaging processes – and enlist help if needed – to reduce your risk and avoid these unnecessary time and money costs.
Inaccurately weighing your shipment. Some companies don’t have the proper equipment to accurately weigh shipments which leads to inaccurate weight estimates on your bill of lading (BOL). Most carriers now have certified scales at their terminals, and will re-weigh shipments and add on a fee to your invoice if the original estimate was inaccurate. Re-weighing fees add up quickly, so purchasing a proper, certified scale can save money in the long-run.
Inaccurately classifying your freight. When it comes to LTL freight, shipping at a lower freight class will be less expensive than shipping at a higher freight class. If you don’t know the NMFC item number for your product – and place that item number on your BOL – you run the risk of a carrier re-classifying your shipment and adding on an additional fee. Freight class is an important factor in how LTL carriers determine their freight charges, so they spend a lot of time and effort on analyzing and re-classifying freight. So if you don’t know the proper freight class for your shipment, make sure you ask an expert ahead of time.
Not knowing to whom you’re shipping. Shippers must know the consignee’s capability to receive a freight shipment. For example, if the consignee doesn’t have a receiving dock, then a lift-gate might be required for the carrier to effectively deliver your shipment. If you don’t specify this in advance, you run the risk of redelivery fees if the carrier must make an extra trip to provide the final delivery. The same fees might apply in cases where the consignee has only limited receiving times, in which case an advance appointment might be appropriate. So knowing where your freight is going, and assigning the proper services to your shipment in advance, are important factors in maximizing efficiency.
Relying on a single carrier. Some shippers rely on only one (or a couple) carriers for all of their transportation needs. Relying on one carrier alone to handle all of your shipping can lead to sub-optimization and end up costing you more time and money. Generally speaking, regional carriers are faster and less costly on short-haul moves, while national carriers perform much better at long-haul and coast-to-coast deliveries. Working with multiple carriers – or a 3PL that has multiple carrier contracts – allows you to optimize your deliveries using the right carriers.
Not inspecting freight upon delivery. Consignees should always inspect the freight they receive before they sign a carrier’s delivery receipt. Any damages or abnormalities should be noted on the delivery receipt. If a damage notation is omitted on the delivery receipt, it will be difficult to recover any costs with a damage claim. When in doubt, make a note on the delivery receipt that there are possible damages pending a more thorough inspection.
Using incorrect shipping or receiving addresses. This remains one of the most common shipping mistakes. Inaccurate origin and destination address information can lead to missed pickups and delayed deliveries – often times with additional re-delivery or re-consignment fees. Even one wrong ZIP code can result in a time-consuming effort to track down a shipment. So take time to review your address information when completing a bill of lading – it will save many headaches down the road.
Not using an experienced, reputable 3PL partner. Okay, this tip is admittedly a little self-serving. However, an experienced and reputable 3PL can help with you with many of the items above. They will also have the leverage to go-to-bat for you when things go wrong – and we know at some point, things always do. A good 3PL can alleviate much of the “madness” that goes into logistics. So enjoy the fun “madness” that comes with “March”; and leave the “madness” of logistics to a partner like Logistics Plus.