LTL Freight News

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...

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...

If you've been using the same courier or transportation company for some time, maybe you have grown comfortable with the status quo, and the communication is stagnant. There may be some efficiencies that can be leveraged to help stabilize, and even lower costs for you and your carrier(s). Having your shipping team come in a little earlier or later than normal may allow the carrier to come in for an earlier or later pickup or delivery. This could reduce damages if your freight is now picked up at the end of the day rather than in the morning, or on the flip side it could enable you to receive orders first thing in the morning instead of at the end of the day. Small adjustments to help accommodate the carriers’ needs, like having the shipping team come in an hour or two earlier or later, can create efficiencies that produce immeasurable soft dollar savings for the shipper and the carrier. Savings can take the form of reduced damages and faster turnaround times on new orders. The wi...

The fact that as a nation the United States is facing a big truck driver shortage shouldn’t be a secret unless you've been living elsewhere for some time. Currently there is an estimated shortage of 30,000 drivers, and according to the American Trucking Association the anticipated driver shortage is going to hit 239,000 by the year 2022. But there is another problem coming into play soon that may actually make it worse: electronic log books. It's estimated that 75% of the industry is currently without electronic logging devices. In early 2015 there is a government mandate going into effect that requires commercial vehicles to have an electronic logging device. Once this is in place it will make it harder for drivers to dodge the hours of service rules. The way it stands now, trucks without electronic logging devices have a significantly lower chance of getting caught breaking the hours of service rules, especially if operated by a driver who knowingly wishes to manipulate hi...

When carriers make an attempt to deliver a shipment but are denied or can’t perform the delivery because of no fault of their own (i.e. inaccurate information and / or lack of equipment) they will take it back to the terminal, put it on a different truck or get the correct information, and then attempt delivery of the original shipment. LTL carriers will charge a re-delivery fee for this should something similar occur. The ltl re-delivery charge is a fee that the carriers charge to help them recoup the costs incurred to perform the additional requirements necessary to deliver the shipment. When the recession hit back in ’08-’09, all of the ltl carriers began vying for market share with a rate war of sorts, and they would often overlook or waive this charge in order to win or maintain business. During that time some ltl carriers were even hauling freight that resulted in a net loss just to keep employees and equipment employed. Now they are struggling to keep supply in line with deman...

According to the American Association of Railroads, the intermodal volume increased 5.9% year-to-date for all of North America to 10.3 million trailers and containers through the week of August 9th. T he Georgia Ports Authority reported that the container volume at the Port of Savannah reached a record level in July. "Container trade increased to 293,889 20-foot equivalent units at the port, surpassing the record set in May by almost 3,500 units."  The Georgia Ports Authority stated that this was a 19.2% increase year-over-year.  The GPA Executive Director said in a statement: “Improved confidence among U.S. retailers, newly added port customers and shifting cargo from U.S. West to East Coast are all fueling the growing cargo volumes at Georgia’s deep water ports.” Per the  Intermodal Association of North America in a report last week, the  Southeast came in with a 12.9% growth rate, but with just a little over 200,000 shipments it had the lowest total of overall...

The reasons for the driver shortage can be debated amongst several issues, but the bottom line is that freight companies have been turning down business because they already have enough problems dealing with the business they have. In an economy where supply (capacity) and demand (freight) aren't matching up something has to give. The trucking industry is at full capacity and there is excess demand for trucks and the movement of freight. The trucks are there in many instances, but there is not enough qualified drivers to operate the tractors. "The American Trucking Associations has estimated that there was a shortage of 30,000 qualified drivers earlier this year, a number on track to rise to 200,000 over the next decade. Trucking companies are turning down business for want of workers." This is quoted from an article in the New York Times on August 9th: http://www.nytimes.com/2014/08/10/upshot/the-trucking-industry-needs-more-drivers-it-should-try-paying-more.html Wit...