How Freight Pricing Varies By Transportation Mode

How Freight Pricing Varies By Transportation Mode

freight pricingUnderstanding how freight pricing varies by transportation mode can help determine the most cost-effective solution for your business. By learning the ins and outs of pricing variables, you can find ways to cut costs, increase efficiency, and avoid overpaying for services you don’t need. Quite frankly, determining the mode of transport is one of the most critical business decisions you can make.

Less-than-truckload (LTL)
LTL shipping refers to freight deliveries that are too large to ship via parcel but too small to fill an entire truck. LTL carriers sell multiple shippers space on the same truck and LTL shipments are often more complex to price than other modes of transportation. Pricing is calculated using several factors, including total weight, density, freight classification, distance, and accessorials.

Full Truckload (FTL)
Full truckload is used when a single shipper has enough freight to fill up an entire truck. Truckload rates tend to be the most simple to determine since they are based on a per-mile or flat door-to-door rate. Not surprisingly, capacity also has a major impact on full truckload prices.

Parcel
Standard parcel shipping has become one of the highest-profile sectors within the shipping industry due to the rise of e-commerce. Parcel is similar to LTL freight pricing. Cargo is priced by the pound, dimensions, and transit times. There are additional charges for packages that fall outside of certain dimensions or weight thresholds. Standard, first-class, and overnight options are usually offered for parcels which play a part in determining the price.

Airfreight
Airfreight is an often-used mode of transportation for time-critical shipments. Air carriers will charge by either volumetric weight (also known as dimensional weight) or actual weight, depending on which is more expensive. If the volumetric weight exceeds the actual weight of the product, the volumetric weight becomes the chargeable weight.

Ocean Freight
In comparison to air freight, ocean freight tends to be less expensive. Charges are based on the nature of goods being transported, the weight or volume, distance to the destination port, and the rates set by the shipping carrier. Ocean freight prices also depend on the shipper’s decision to go with an FCL or LCL shipment. Full Container Loads (FCL) are best suited for large shipments, while Less than Container Loads (LCL) are more suitable for smaller shipments.

Rail/Intermodal
Rail and intermodal options tend to be the most cost-effective way to transport cargo. Rail containers are booked on a per-mile basis, similar to truckload shipping. Intermodal providers have agreements in place with railroads to transport cargo across the various rail networks.

Contact us to get started if you’d like to request a free quote on your next ground, air, ocean, or rail shipment. With over 25 years of experience, our team of experts is ready to assist you with your transportation needs.

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Today is the third annual National Logistics Day!

Today is the third annual National Logistics Day!

FOR IMMEDIATE RELEASE

Today is the third annual National Logistics Day!

June 28 is the day to recognize and appreciate the importance of the Logistics Industry.

National Logistics Day TIA LogoERIE, PA (June 28, 2021) – Logistics Plus Inc. (LP), a leading worldwide provider of transportation, logistics, and supply chain solutions, invites you to join the entire logistics industry in celebrating the third annual National Logistics Day to recognize and appreciate the importance that logistics plays in our national and global economies.

It is estimated that the transportation and warehousing segment in the U.S. alone accounts for over 5.5 million jobs and that all logistics activities account for nearly 8% of everything we make and sell. The third-party logistics segment alone represents a $200 billion industry and employs more than 126,000 men and women with a payroll exceeding $7.5 billion annually.

The first National Logistics Day was established on June 28, 2019, by Logistics Plus and registered with the National Day Calendar. Numerous city, county, and state institutions have officially endorsed it, and the U.S. House of Representatives issued a formal Congressional Record honoring June 28 as a National Logistics Day. Since last year, the Transportation Intermediaries Association (TIA) – the definitive voice for the logistics industry – has been actively advancing National Logistics Day throughout the industry.

“We are extremely proud of our 25-year history in this industry and our TIA membership this past decade,” said Scott Frederick, Vice President, Marketing & LTL Carrier Relations for Logistics Plus. “Along with our 3PL industry peers, it’s rewarding to see the many awesome jobs we create for our employees and the interesting supply chain challenges we solve for our customers. Logistics is important and deserving of its own day of celebration.”

“The COVID-19 pandemic put our industry and our members in the spotlight,” said Anne Reinke, TIA President & CEO. “TIA Members have worked tirelessly juggling and addressing the huge demand on household goods and filling gaps in both shipper and carrier capacity wherever they could. Now that the logistics industry is better known, it is incumbent upon all of us, but most especially TIA, to make it better understood by raising our members’ profiles, herald their great works, and educate the public about all that the logistics industry does – and National Logistics Day is the perfect forum to do so.”

HOW TO OBSERVE NATIONAL LOGISTICS DAY

Visit www.tianet.org/national-logistics-day to learn more about National Logistics Day and to read more interesting facts about the logistics industry. Visit NationalLogisticsDay.com to learn more about the holiday’s origins. You can follow @NatLogisticsDay on Twitter and use the #NationalLogisticsDay hashtag to give social media shout-outs to friends, family, or colleagues that work in the logistics and supply chain fields.

About the Transportation Intermediaries Association

The Transportation Intermediaries Association (TIA) is the professional organization of the $214 billion third-party logistics industry. TIA is the only organization exclusively representing transportation intermediaries of all disciplines doing business in domestic and international commerce. TIA is the voice of transportation intermediaries to shippers, carriers, government officials, and international organizations. For more information visit www.tianet.org.

About Logistics Plus Inc.

A 21st Century Logistics CompanyLogistics Plus Inc. is a 21st-century logistics company that provides freight transportation, Warehousing, fulfillment, global logistics, business intelligence, and supply chain management solutions through a worldwide network of talented and caring professionals. The company was founded 25 years ago in Erie, PA, by local entrepreneur Jim Berlin. Today, Logistics Plus is a highly regarded, fast-growing, and award-winning transportation and logistics company. With a Passion For Excellence™, its employees put the “plus” in logistics by doing the big things properly, plus the countless little things, that together ensure complete customer satisfaction and success.

The Logistics Plus® network includes offices, warehouses, and agents located in Erie, PA; Akron, OH; Buffalo, NY; Chicago, IL; Chino, CA; Cleveland, OH; Dallas, TX; Des Moines, IA; Detroit, MI; Fort Worth, TX; Haslet TX; Houston, TX; Laredo, TX; Lexington, NC; Los Angeles, CA; Melbourne, FL; Nashville, TN; New York, NY; Olean, NY; San Francisco, CA; Australia; Bahrain; Belgium; Canada; China; Colombia; Czech Republic; Egypt; France; Germany; India; Indonesia; Japan; Kazakhstan; Kenya; Libya; Mexico; Netherlands; Poland; Saudi Arabia; Taiwan; Turkey; UAE; Ukraine; Uganda; and United Kingdom; with additional agents around the world For more information, visit www.logisticsplus.com or follow @LogisticsPlus on Twitter.

Media Contact:
Scott G. Frederick
Vice President, Marketing
Logistics Plus Inc.
(814) 240-6881
scott.frederick@logisticsplus.com

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Jim Berlin Discusses National Logistics Day And More On Inbound Logistics Podcast

Jim Berlin Discusses National Logistics Day And More On Inbound Logistics Podcast

National Logistics Day: Has the Logistics Industry Earned Its Spotlight? Guest: Jim Berlin, Founder & CEO, Logistics Plus Inc.

Listen to the June 19, 201 Inbound Logistics Podcast at
http://inboundlogisticspodcast.inbound-logistics.libsynpro.com/national-logistics-day-has-the-logistics-industry-earned-its-spotlight-guest-jim-berlin-founder-ceo-logistics-plus-inc or by clicking the play button below.

IL Podcast Jim Berlin 6-19-21

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The supply chain industry took center stage during the pandemic as the entire world had to adapt to a new way to work and live. Thanks in large part to the essential services of logistics professionals, life is finding its way to a new normal. It’s only fitting to celebrate the industry on National Logistics Day, established June 28th, 2019, by Logistics Plus. Jim Berlin, CEO of Logistics Plus, joins the show to talk about the importance of National Logistics Day and show how a company like Logistics Plus can dream big and work to do great things for the industry.

FOR MORE INFORMATION:

www.logisticsplus.com

www.nationallogisticsday.com

DOWNLOAD THE NEW INBOUND LOGISTICS APP featuring the updated and expanded Logistics Planner!

Available on iTunes and the Google Play Store:

bit.ly/ILMagApp

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What is FF&E and OS&E?

What is FF&E and OS&E?

FF&E and OS&EMost people show up to an office, restaurant, resort, hospital, retail store, hotel, or even a casino with little understanding of how the space was planned, organized, and created.  The reality is that many hours went into the design, procurement, purchasing, transportation, storage, and installation of all the products and items contained in each of these spaces.  For those responsible for outfitting these spaces, the tasks involved can be overwhelming and expensive if they aren’t handled correctly. That’s where an experienced FF&E logistics and supply chain partner can help.

FF&E stands for Furniture, Fixtures, and Equipment, and it comprises everything that is not connected structurally to a building. FF&E refers to items such as chairs, tables, desks, cabinets, beds, decorative lighting, artwork, shelving, technology equipment, data servers, and more that designers choose to place throughout a building to achieve various purposes such as design or functionality.

The Difference Between FF&E and OS&E

FF&E logistics flyer

(Download our FF&E Flyer)

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Another phrase synonymously used when discussing FF&E logistics is OS&E. Operating Supplies and Equipment is primarily used within the hospitality industry. FF&E usually refers to items that must be unpacked, assembled, and placed, such as technology or lab equipment, stools, couches, conference tables, beds, dressers, and lamps. In contrast, OS&E are those items that are essential to make the space functional such as towels, glassware, linens, trash bins and liners, coffee makers, and pillows.

There’s a common vision that’s often used to describe FF&E and OS&E.  Imagine that you were able to pick a building up, flip it upside down, and shake it.  Everything falling out would be identified as FF&E or OS&E.

Why Choose Logistics Plus for FF&E Logistics?

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The Logistics Plus FF&E and Project Installations teams have years of experience minimizing customer complexities and creating successful projects. Logistics Plus not only understands FF&E and OS&E, but we have also perfected the process. From purchase order (PO) to install, we do it all!  Our teams listen, then design customizable and comprehensive supply chain solutions for our clients.  With over 25 years of growth and experience, we have proven that we are dedicated to our customers and know how to get things done right.  We have processed, transported, stored, and installed millions of pieces of furniture, fixtures, technology equipment, accessories, and operating supplies globally. Additionally, our FF&Eplus™ management system makes it easy for logistics and supply chain managers to gain control over their projects.

The entire process of managing FF&E projects can be a daunting task, but that is where the Logistics Plus FF&E experts shine.  Regardless of what stage our clients are in with their projects, we have fine-tuned the how, when, what, and where to accomplish every step necessary to deliver results.

If you are curious about FF&E and OS&E or would like to learn more about how we can help with a current or upcoming project, click the button below. We have key services to help every business streamline and scale in nearly every country around the world.

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Thoughts on What Makes a Good Logistics Provider

Thoughts on What Makes a Good Logistics Provider

Thoughts on What Makes a Good Logistics ProviderThere’s an article we saw posted last week on the Global Trade magazine website entitled “What Makes a Good Logistics Provider?” written by Chris Hale, the Founder & CEO of Kountable, Inc. Mr. Hale’s company operates a platform that vets trade service providers, constructs deals and manages trade execution for a large volume of trades into challenging markets. As result, his firm has learned by necessity to identify the hallmarks of high-quality logistics providers and to note the red flags that signal ineffective ones. These are the qualities they look for in logistics partners they recommend to their clients, along with some comments about how Logistics Plus is an example of a logistics partner who has those same traits.

Experienced – A wave of brand-new companies have sprung up looking to fill the demand created by the COVID-19 pandemic. Always work with logistics companies that have been in operation for a number of years. Not only does this show that the company has a history of success, but experienced logistics providers will have a better understanding of local regulations and possible sticking points.

Logistics Plus will be celebrating its 25th anniversary this year. We were “born from the ribs” of GE Transportation as a lead logistics company. We have enjoyed growth every year, and today we have over 500 employees and over $300 million in global sales.

Good Customer Service Team – A professional, knowledgeable and robust customer service team will not only facilitate clear communication but is a sign of a quality company. Clear and effective communication from logistics providers also saves traders time and energy building and executing trades.

Logistics Plus humbly prides itself on providing award-winning customer service. In recent years, our services have been recognized as best-in-class by distinguished industry resources, such as Global Trade, SupplyChainBrain, Multichannel Merchant, Transport Topics, and others. Although we have transformed into a technology company as much as we are a logistics provider, it is still the quality of our people and the support they provide that sets us apart. 

Responsive – It is important that logistics providers respond to messages quickly and are proactive in providing updates. When goods arrive at the right place on time, this should be communicated quickly. When communication is slow and sporadic, it is often the case that the company is unorganized, or goods are not where they are supposed to be.

Logistics Plus maintains a very flat, nimble, and responsive organizational structure. This allows us to be very responsive to our customers’ needs. Every employee is provided a company-issued mobile phone and we make it known that our customers expect 24/7/365 service to ensure their goods are delivered on-time. Our technology supports responsive communications by providing proactive tracking reports, weather impact dashboards, and other business intelligence that allow our employees and customers to more effectively manage their supply chains. 

Diligent – The logistics of international trade are complicated. Attention to detail is necessary as goods change hands and pass-through ports. A diligent company will have the correct documentation for the goods and communicate effectively with the necessary parties, avoiding tax penalties, delays, and confusion that cut into revenue.

Logistics Plus is a global company with employees and offices in over 30 countries around the world. As a prominent international freight forwarder, we manage hundreds of thousands of import and export shipments around the world. We know diligence is important, which is why we also have a full-service customs brokerage and global trade compliance team to help keep us and our customers on pace with the changing rules of global trade. 

Registered with Appropriate Government Agencies – Logistics providers must be registered with the necessary agencies to do business in the jurisdictions in which they operate, such as the local revenue authorities. It is important to confirm that the company is registered to conduct business in the countries where the goods are to be picked up and delivered, and anywhere they may land in between.

Logistics Plus maintains transparent certifications and compliance with all domestic and international agencies. Additionally, we are participating in many governmental programs focused on security and sustainability, such as CTPAT and SmartWay. 

Global Presence – A global presence is both useful and a sign of a reputable logistics provider. However, many logistics providers do not operate globally. Minimally, the company you choose should operate in the countries relevant to the transaction. Established companies with a large presence are often more experienced, and may be able to offer additional services, or deal with complications more quickly and easily than smaller operations.

Logistics Plus has a network of people and resources that touch over 30 countries worldwide, and we have additional contacts and connections in many other countries. Whether it is standard freight forwarding cargo or big heavy-lift project cargo, we have engineers and logicians around the world making it happen.  

LP iPad iPhone -medresIn addition to the comments noted above, check out the “What it means to be A 21st Century Logistics Company” article we posted last week which includes additional traits shippers should expect from contemporary logistics providers.

Check out the Global Trade magazine website at www.globaltrademag.com for other good articles on global trade and logistics. Global Trade has named Logistics Plus a Top 50 3PL the past two years and there is an active Logistics Plus Profile in the Global Trade “Find a Partner” online directory.

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