by logisticsplus | Oct 18, 2016 | News
The leaves are turning, temperatures are dropping, and the peak Fall freight shipping season is here once again. Manufacturers are working to ship year-end orders, distributors are managing inventory and fulfilling shipments, and retailers are stocking shelves for the holidays. No matter where your business lies within the supply chain, finding affordable and reliable freight capacity this time of year is critical. To help get you through the season, here are 8 cost-saving freight shipping tips for you to consider:
- Avoid surprises by knowing as much about your shipment as your carrier does. Carriers use dimensioning machines and forklift scales that measure and weigh every pallet. If your documentation doesn’t match their calculations, you’re charged an administrative fee to make the correction – plus your freight charges may be adjusted higher if it is heavier or takes up more space than expected. So know your proper freight classifications, and be sure to note specific National Motor Freight Classification (NMFC) codes on your bill of lading.
- Focus on the net cost. Discounts can be misleading. When shippers get a big discount from a carrier, they often think it’s a great deal; but there are so many other factors to consider, including the fact that “list price” base rates vary from carrier to carrier and from lane to lane. So an 80% discount off one carrier’s base rates may actually be more expensive than, say, a 75% discount from another base rate schedule. That’s why it is important to focus on only the total net cost, and not the discount (as we do here at Logistics Plus).
- Know when to consolidate. When shipping LTL freight shipments (those weighing between 150 and 10,000 pounds), consider consolidating orders to create a full truckload. LTL rates are usually much higher than truckload rates. Additionally, you should monitor your shipping patterns. If you find you are shipping multiple LTL shipments to the same customer within a close date range, consider consolidating those smaller loads into larger ones to reduce your overall expense.
- Understand the value of your product and carrier liability limits. Every booked freight shipment comes with limited liability coverage. The amount of coverage is determined by the carrier and based upon the commodity type. It covers a certain dollar amount per pound of freight. In some situations, the included liability coverage may be less than the value of the shipped goods. If so, this is where additional freight insurance may be purchased. The extra freight insurance covers the shipped items and the cost of freight shipping. It is redeemable under all types of loss with no proof of fault required. Unlike the limited liability coverage, with added insurance, there are no exclusions for packaging errors or severe weather.
- Be realistic about the service level you need. If your customer expects delivery in three days, you don’t need to overpay to deliver their shipment in one day. Additionally, don’t use a national freight carrier to deliver short-distance shipments, or a regional carrier to deliver coast-to-coast shipments. Regional carriers are much more cost-effective for regional shipments, while national carriers will provide the best “long-haul” service with minimal handling. When you do need expedited freight service, knowing your carriers and options can make a big difference on the final price, i.e., expedited ground shipping is going to cost much less than expedited air.
- Pay attention to your packaging. Shrinkwrap your freight to your pallet to avoid it from sliding or shifting during transit. This will minimize costly damages and delays. Furthermore, don’t use more packaging than is required for your shipment. Over-packaging can create additional weight or “dead air,” both of which will add to your shipping costs.
- Don’t forget about your inbound shipping. Oftentimes companies will ignore cost-saving opportunities with their inbound shipping because their vendors pay for the shipping on these orders. The reality, however, is that nothing ships for free. Many vendors will use a “prepay-and-add” approach to make additional profit on freight shipping. A thorough analysis of your vendor invoices might provide cost-saving opportunities if you bring the inbound shipping and routing under your own control.
- Know how much time you’re spending on freight shipping. A lot of valuable time and resources can go into freight shipping. Finding scarce truck capacity, sourcing the right carriers, negotiating agreements, obtaining multiple carrier quotes, tracking shipments, auditing freight invoices, dealing with claims – these all contribute to your overall logistics expenses. Rather than dedicating internal, fixed resources to such activities, you may consider working with a reputable third-party logistics (3PL) company instead. A good 3P, like Logistics Plus, will be able to leverage all of its business to negotiate better rates with more carriers on your behalf. They will also have a transportation management system (TMS) technology that supports multiple carrier, service, and mode options. They’ll be able to help track shipments, audit freight invoices, and consolidate reporting. Lastly, they can scale their resources to appropriately address the fluctuations in your supply chain.
If you’re ready to take #8 of these freight shipping tips to heart, the freight experts at Logistics Plus stand ready to help. Use any of the buttons below to get started.
by logisticsplus | Oct 11, 2016 | News
Less-than-truckload (LTL) shipping refers to relatively small freight deliveries that are too large to be classified as parcels and too small to fill an entire truck (i.e., full truckload). When obtaining LTL freight quotes for such shipments, carriers generally tend to consider anything between 150 and 5,000 pounds as a typical LTL shipment. Shipments over 5,000 pounds can also move via LTL carriers, but may require a spot or volume quote to obtain the best pricing. Because many LTL shipments move from small- and mid-sized businesses that lack sophisticated logistics or transportation departments and software, shippers are often not aware of how best to save time and money in this aspect of their business.
Logistics Plus recently participated in a good cover-story article titled “18 Sure-Fire ways to Save on LTL” that appeared in the September 2016 issue of Inbound Logistics magazine. Although we won’t list all 18 of those tips, here are a few noteworthy ones:
- Focus on the net cost. Discounts can be misleading. When shippers get a big discount from a carrier, they often think it’s a great deal; but there are so many other factors to consider, including the fact that “list price” base rates vary from carrier to carrier and from lane to lane. So an 80% discount off one carrier’s base rates may actually be more expensive than, say, a 75% discount from another base rate schedule. That’s why it is important to focus on only the total net cost, and not the discount (as we do here at Logistics Plus).
- Factor distance into the decision. Do you need a national or a regional LTL carrier? Some shippers will ship regional shipments with national carriers and, more often than not, pay a premium to do so. Similarly, some regional carriers will provide national service through “interline” partnerships with other carriers. Oftentimes these services will add additional days to the delivery of your shipment, and will require additional handling which increases chances for damages to occur. One of the benefits of working with Logistics Plus is that our eShipPlus transportation management system (TMS) will provide all of the national and regional carrier options best-suited for your shipment in one view.
- Consolidate orders. When Logistics Plus provides a free freight analysis for a client, we occasionally uncover multiple shipments to the same location on the same day. Consolidating these orders into one shipment will be more cost-effective for you, and probably more efficient for your customer to receive as well. Similarly, when companies ship LTL from multiple facilities or locations, there may be an opportunity to centralize the decision-making for that freight spend and leverage it for better freight discounts.
- Work with a 3PL. As noted above, an established and reputable 3PL can help you find the best rate, identify opportunities for more efficient shipping, audit and consolidate freight invoices, track and trace your critical shipments, and provide access to TMS technology.
If you’d like to work with Logistics Plus for any upcoming LTL freight quotes or services needs, simply click the button below to get started. Our 20-year LTL freight experts stand ready to help!
If you’d prefer to shop for your own carriers and rates, we can also provide you with complimentary access to eShipPlus.
by logisticsplus | Sep 27, 2016 | News
U.S.-based less-than-truckload (LTL) carriers continue to announce their annual LTL general rate increases – or GRIs – earlier than in previous years. GRIs, which tend to be in the 4-6% range every year, are intended to offset carriers’ rising costs for new equipment, real estate, technology, and employee wages. Unfortunately, GRIs typically have the greatest impact on small- and medium-sized shippers who are not under contract with the carriers. The majority of LTL freight shipments that move under large-shipper contracts are usually not affected by general rate increases.
So far, here are the LTL carriers that have announced fall rate hikes:
- ABF Freight – 5.2% effective 8/29/16
- YRC Freight – 4.9% effective 9/5/16
- UPS Freight – 4.9% effective 9/19/16
- Old Dominion – 4.9% effective 9/26/16
- Roadrunner – 4.9% effective 9/26/16
- XPO Logistics (Con-way) – 4.9% effective 9/26/16
- Estes Express – 4.9% effective 10/17/16
- FedEx Freight – 4.9% effective 1/2/17
Most of the other LTL carriers implement similar GRIs without publicly announcing them. With the majority of LTL business moving among the top 25 carriers, pricing discipline in the industry remains strong despite sluggishness in the overall economy.
So how can small- and medium-sized shippers insulate themselves from these significant increases?
One sure-fire method is to work with a third-party logistics company that has pre-negotiated contracts with all of the carriers that fall outside the scope of their standard GRIs. At Logistics Plus, we have agreements in place with almost all of the major LTL carriers that operate outside the influence of their standard, annual rate hikes. We do review these contracts periodically and, when warranted, allow our LTL carrier partners to increase rates slightly to offset their increases in costs. However, such increases are almost always well below the GRIs imposed on the broader shipping community.
So if you’re looking to mitigate annual LTL carrier GRIs and create greater pricing predictability for your freight transportation spend, click the button below to get started with Logistics Plus. Let us worry about LTL carrier rates and negotiations so that you can focus on growing your business.
by logisticsplus | Sep 26, 2016 | News
Logistics Plus recently participated in an interview with Inbound Logistics magazine to provide shippers with LTL shipping advice. The article, written by Sandra Beckwith, provides shippers with tips on how best to save on less-than-truckload (LTL) freight shipping. You can read an online version of the article on the Inbound Logistics website using the link below.
18 Sure-Fire Ways to Save on LTL Shipments
A PDF excerpt of the article can also be downloaded and viewed by clicking the image below.
Shippers looking to work with Logistics Plus to save money on LTL shipping by implementing any of these 18 tips can click the button below to get started.
by logisticsplus | Sep 16, 2016 | News
What is volume LTL shipping? In general industry terms, a volume shipment (sometimes referred to as a partial truckload) typically weighs more than 5,000 pounds, is six (6) pallets or more or it takes up 12 to 32 linear feet of trailer space. As with most consumer or business purchases, buying the things you need in larger quantities is a simple way to save money. So, just as you’d expect to get a better deal on that case of bottled water at your local warehouse store, the same is true for freight. Ship a larger shipment and spend less than shipping multiple, smaller shipments. Unlike standard LTL shipments, where the rates and discounts are already pre-established, volume LTL shipments are generally “spot quoted” and can often help a carrier fill density in a “backhaul” lane where they need the additional business. This will generally result in lower freight charges than what might have been otherwise charged using standard LTL rates.
What information will you need to provide to get a volume LTL shipping rate? Like any standard LTL shipment, you’ll need the origin and destination zip codes, total weight, and freight classification (or a detailed description of your commodity). You’ll also need to provide the pallet count, shipment dimensions, and the date you’re planning on shipping. Quick and competitive access to carriers’ volume LTL rates are one of the many reasons to use an experienced freight management company (like Logistics Plus). They can save you money on your volume LTL shipping because they have ready access to many carriers that will provide the best volume rates, and they often know what type of freight carriers are looking to secure. Keep in mind, because volume quotes are spot-quoted, they are not automatic. They can often take an hour or so to obtain, so plan ahead.
Don’t be shy in requesting volume LTL and partial truckload shipments when you have the opportunity – they can help you save on your overall shipping costs! If you’ve got a shipment over 5,000 pounds or more than six pallet positions, click the button below and let the Logistics Plus North American freight experts go to work finding the best rates for you!
