LTL Freight News

We are roughly 48,000 truck drivers short of filling demand.  can be attributed to numerous factors, One solution to the problem that most anyone can agree upon is the that drivers need to be paid more. Though there are many factors contributing America's truck driver shortage including lifestyle, government regulations, an aging driver pool, among others. The solution to curbing the shortage seems to be multifaceted, and one part of it is most certainly increasing driver pay. We are losing about 95,000 drivers each year to retirement, so we need to attract more young drivers in addition to retaining the ones that are there now. Increasing regulations from the government have pushed some drivers that may not have necessarily been at the age of retirement to go ahead and retire. Another issue at the heart of the driver shortage besides government regulations and driver retirement is a driver’s lifestyle. Being a truck driver is not an easy or glorious job. Rarely do you hear a chi...

A ccording to the American Trucking Association, i n 2014 t rucks moved 9.96 billion tons of freight,  which is equal to 68.8% of all domestic freight, and   trucking employed more than 7 million people. With yearly revenue of $700.4 billion - the first time industry revenue has reached $700 billion - trucking accounted for 80.3% of all freight transportation spending in 2014.  

Logistics and traffic managers can be operationally minded and sometimes are only concerned with rates and not the big picture, which is why it sometimes takes executives to lead the charge of choosing logistics partners and/or freight service providers. The LTL market is vastly different than it was just a few years ago. Even though the roughly 25 LTL carriers who own the vast majority of the market compete for business against each other, they do talk to one another, and going behind carrier’s backs is hurting shippers wwhether they realize it or not. We are in the midst of a carrier’s market, and the carriers overwhelmingly favor working with shippers who are willing to form strategic, long term partnerships with a commitment to carrier collaboration as opposed to shippers who consistently rate shop. In reality, taking the rates of one carrier and presenting them to another thinking you’ll get them to go back and forth lowering their price is a surefire way to get on the bad sid...

When a shipper requests that a carrier pick up a shipment for delivery to their customer the carrier is to make the delivery regardless of the requirements unless the carrier is unable to deliver, usually for reasons or circumstances out of their control. Carriers can and will bill for a lift gate if it’s needed to off load the freight, even if carriers aren't given authorization to do so upfront. Simply requesting or writing that the carrier must call the shipper for approval of any service not requested on the BOL does not protect the shipper from incurring  and  having to pay additional accessorial fees required to deliver a shipment.  It is the carrier’s responsibility to deliver a shipment in good condition, and it’s the shipper’s responsibility to provide accurate information about a shipment to the carrier for delivery. Residential deliveries don’t always require a lift-gate, but probably more than 95% of the time they do. Logic dictates that most residences ...

There are some important changes that have been made in Supplement 1 to NMFC 100-AO regarding guidelines for filing and investigating damage claims. New NMFC guidelines effective April 18 require concealed damages be reported to carriers within 5 days after delivery. Currently concealed damages can be reported up to 15 days after delivery for consideration of a valid claim; however, per NMFC guidelines effective April 18, 2015 the time period for reporting concealed damages is being reduced to 5 days. The closer to the time of delivery that the damage is reported to the carrier the more likely the claimant is to receive some type of settlement offer, but just because the damage is reported in a timely fashion doesn't necessarily mean that the claim will be approved for a settlement. Other changes effective on 4/18/2015 include one day being removed from the time frame allotted for filing suit on a claim. The new time period for filing a suit is two years. Previously, it was two...

Broker model 3PLs buy freight from the carriers and put a markup or margin on it and resell it to the shipper at a higher rate. This is how they make their money, and their margins can be adjusted on virtually every shipment as they fit. With the 3PL broker model shippers are normally unable to go directly to carriers for copies of the actual freight bills, and in some cases they are unable to obtain rates directly from the carriers. Since the 3PL broker is actually the one “buying” the freight from the carrier, they invoice the freight to a shipper on their own freight bill instead of one from the carrier. Otherwise, if shippers had direct access to the carrier freight bills then the shippers would be able to see how much the freight actually cost versus what the 3PL was "re-selling" it for.   As a part of their proposed value to shippers, many broker model 3PLs will tout that they file claims for their customers. They portray filing claims as their willingness to go th...

Concealed damages must be reported to the carrier within 15 days of delivery. Anything reported past the 15 day window will not be considered for a settlement and will be denied for filing too late. A claim for noted/visible damage may be filed for up to 9 months after the delivery date. Any later than that and it will be denied. A concealed damage claim is much harder to prove, since no party other than the consignee was there to bear witness to the discovery of the damage. This leaves reasonable doubt as to who could be responsible. In all cases, report the damage to the carrier immediately after discovering the damages. The sooner it’s reported, the better chance there is of receiving a settlement offer. With concealed damage claims where the carrier accepts liability for the damage, the carrier will typically only pay 1/3 of the amount claimed. They view this as there are 3 parties involved: the shipper, the carrier, and the consignee. The carrier will sometimes accept responsibi...

It is important to keep in mind that each claim is different and involves different circumstances, so not all of the below information will apply for every claim. WHO FILES THE CLAIM? Typically, the payer of the freight bill can only be reimbursed for the freight charges, so they are usually the ones to file a claim. Anyone can file a claim, however, but this is usually the simplest way to do it. HOW LONG DO YOU HAVE TO FILE A CLAIM? The answer to this depends on the type of claim being filed. There are generally two types of damage claims: Noted Damage and Concealed Damage. The difference between the two is that noted/visible damage claims were noted at the time of delivery, usually on the delivery receipt, and concealed damages were not. Concealed damages must be reported to the carrier within 15 days of delivery. Anything reported past the 15 day window will not be considered for a settlement and will be denied for filing too late. A claim for noted/visible damage m...

It is important to keep in mind that each claim is different and involves different circumstances, so not all of the below information will apply for every claim. Typically, the payer of the freight can only be reimbursed for the freight charges, so they are usually the ones to file a claim. Anyone can file a claim, however, but this is usually the simplest way to do it. If the item was noted as damaged and refused, someone will first need to take possession of the freight. The carrier will typically only store the refused items for 15 days at the terminal until they begin to charge storage fees. If warranted, it is typically during this time that the carrier will have an inspection done by an independent third party. This third party, or inspector, will mainly be looking for the extent of the damage, what type of damage, and as to why/how it occurred (i.e. was packaging sufficient). After it is completed, someone qualified to make an assessment will need to do so in order to estim...