ELD Compliance

Come December 2017, the paper logbooks that truck drivers have been required to use to track their hours of work and rest since the 1930s will be history for interstate trucking operations. The ELD mandate was ranked the number-one issue facing the industry in the American Transportation Research Institute’s Annual Survey for 2016, a jump of five places from 2015.

Essentially, the FMCSA mandate requires electronic logging devices for all trucks model-year 2000 or newer engaged in interstate commerce. Suppliers of ELDs must conform to technical specifications, certify their ELDs, and register them with FMCSA.

However, the most common mistake fleets make when adopting ELDs is trying to do it too quickly, says Tom Bray, senior editor with safety and compliance product/service provider J.J. Keller. “It takes time to select a good system that is a match for your fleet, develop the compliance culture necessary to operate in the electronic logging universe, train everyone in how to use the system, and roll it out in an orderly fashion,” says Bray. The first step fleets need to take to be ready for ELD compliance? “Accept that change is good and that keeping paper logs has become unmanageable, inaccurate and inefficient,” says Tom Kwan, spokesman for ELD provider FleetComplete.

The ELD rule is based on a series of previous rules, each of which were building upon prior regulations. This is one of the key reasons that the products available on the market right now can be confusing to fleets looking to become compliant. Today, many drivers and fleets are using automatic on-board recording devices to reduce paperwork. 

If requested by law enforcement, drivers must also be able to immediately present the required AOBRD display information for the previous seven days, plus the current day. While there are an array of differences among the ELD, AOBRD, and EOBR devices on the market, they do share a few elements in common:

• They all track a driver’s Hours of Service electronically

• They all need to be “integrally synchronized” with a truck’s engine, making sure drive segments are captured

• Most will pass data to a system where a safety or fleet manager can see e-logs in a near real-time basis, allowing everyone to be on the same page

In writing the ELD rule, the FMCSA is aware of the cost burden it could be putting on fleets. While it recognizes there’s a net-benefit from the paperwork savings alone, it doesn’t want to saddle drivers and fleets with trucking technology that isn’t affordable.

To address those ELD cost concerns, the FMCSA has provided that smartphones, tablets, and rugged handhelds can be used as long as the system as a whole meets ELD requirements, including a hardwired connection to the truck’s engine.

Limited Access Deliveries

Most freight today still moves Business to Business, but there is still a good amount of freight that is moved from a commercial location to a residential area or limited access.  This has increased slightly over the last few years as UPS and FedEx parcel implemented restrictions on max dimensions even further. 

So what is the difference between a business delivery and a limited access delivery?

Businesses normally have a dock and can receive during normal business hours. Limited Access deliveries are locations that normally cannot receive during normal business hours or do not have a dock where the carrier can unload. For a limited access delivery, a carrier will usually have to change its route, use special equipment and also call ahead to schedule an appointment.

Note: not all businesses without docks are limited access like a restaurant, for example. They still may require additional services though. Example a pizzeria would be considered a business but likely would need a liftgate to deliver that new commercial stove.

What are some other examples?

The easiest to consider limited access is a residential delivery, even if there is a home based business registered at the address the carrier will define it as a residence based on the building not having a dock to unload. Other common examples that can be considered limited access are Places of Worship, Schools, Construction Sites, Mine Sites, Farms and Rural Locations, Military Bases/Installations, Camps and even Government Buildings.

Why do carriers charge more to deliver to a Farm, Residence, or School (Limited Access)?

The reason why carriers charge more to deliver to these kind of locations is actually quite simple. It cost them more money to deliver to these locations than to a business with a dock. Most of a carriers’ costs come from the first few miles picking up and the last few miles delivering. If a carrier has to deliver to a residence, for example, they have to call ahead and schedule delivery. This delivery time that is scheduled may take him off his/her usual route. The driver will like be driving a smaller trailer or with a liftgate and thus make fewer deliveries that day. Carriers normally have fewer trucks with liftgates.

Commercial Buildings with docks are normally clustered, a carrier can easily make multiple pickups or deliveries in a business park in the same time it may take to make one limited access delivery. They also don’t normally have to schedule an appointment to deliver so they save time and resources.

Disadvantages to a Preferred Routing Guide

Every company is looking to keep their freight costs low and have their shipments arrive without damage and on time. These 3 goals are crucial to keeping any business running smoothly; however, these are the 3 areas that suffer when a company chooses to go with preferred routing guides.

Some businesses with come up with their own routing guides or outsource this function to a 3PL. Many logistics companies charge a consulting fee to construct preferred routing guides for your company under the guise of saving you time and hassle. A routing guide typically sets certain carriers for certain regions. For example, if you are shipping from Pennsylvania, you use carrier X; if you are shipping from Utah, you use carrier Y. This may seem like a good simplification but in reality, you are giving up customizability that could keep your costs low and your transit times efficient.

HIGHER FREIGHT SHIPPING COSTS

The bottom line is that customized routing saves money. Time and again, we have brought customers freight savings by creating unique routes. Certain carriers are able to provide better rates for certain classes of product, or for certain weights. Sometimes there are seasonal factors or capacity issues. We have seen customers who previously followed a preferred routing guide and paid twice as much as they needed to. Blindly sticking to one carrier without exploring cost saving options is always a mistake.

FREIGHT SHIPPING DELAYS

Usually when you go with a preferred routing guide, the vendor will fill out the paperwork by hand, which has more potential for mistakes. A mistake on the Bill of Lading (BOL) could result in misrouted freight, or your customer being wrongly billed for a drop shipment. 

RISK OF DAMAGED FREIGHT

Some carriers are more specialized in certain types of freight than others. If you are not considering the type of commodity being shipped when choosing a carrier, you are opening yourself up to a higher risk of damages. We have worked with customers in a variety of industries and know which carriers offer the best service for your particular product. This knowledge is instrumental in avoiding the cost and inconvenience of damaged freight.

Regulations for Commercial Drivers License Applicants

The trucking industry is the backbone of the United States economy and workforce. There are currently 3.5 million drivers on the road and millions more working in warehouses, terminals, shipping offices and more. In total, it employs one out of every seven Americans and our roads and ports move over 11 trillion dollars of freight annually. However, it is also one of the most dangerous careers in the United States. In 2015, there were a total of 35,092 traffic fatalities in the US. With these staggering figures in mind, it becomes very easy to see why driver safety training is of paramount importance.

In December 2016, the Federal Motor Safety Administration, or FMCSA, accounted a Final Rule which established nationwide training standard for all new truck or bus drivers. These new regulations apply to any professional wishing to seek their Commercial Driver’s License, or CDL. It focuses on new drivers to ensure that we establish a solid, knowledgeable workforce of drivers to ensure that our roads can become safer in the future.

The new rule established baseline minimum qualifications for all new drivers; these new rules and regulations for formed through a consensus decision between 25 stakeholders and representatives from the FMCSA. Per the FMCSA, the new rules were established to help improve road safety for all; additionally, they aim to help improve efficiency overall within the industry in the hope that this will help reduce fuel consumption and performance of all drivers.

These new regulations would require all new CDL applicants to demonstrate proficiency in knowledge of their on-road and off-road training. This proficiency will need to be demonstrate through behind-the-wheel tests on public roads, as well off classroom exams.

Unfortunately, these new regulations do not establish any minimum requirements for hours of behind-the-wheel training. They only require that the driver can demonstrate proficiency, the amount of time this takes is still flexible. However, this leaves more room for interpretation by the trainers. They must give their final seal of approval before the applicants training can be completed and a CDL issued. With that said, a knowledgeable responsible trainer will hopefully lead to more knowledgeable and responsible drivers.

On January 23, 2017 President Donald Trump issued an order to halt all transportation regulatory boards within the government from making new regulations. Per Chief of Staff Reince Priebius, this allows for regulations related to “health, safety, financial or antinational security” to continue and take precedence. It is unclear at this time how the Final Rule and other driver safety regulations will be impacted. For the moment, the future of continued regulations and safety advancements within the trucking industry are unclear.

Establishing a 3PL Partnership

 

Establishing a 3PL Partnership is not just about short-term savings. It is also about long-term and sustainable gains and growth. An international 3PL partnership is not just about the initial bid but the strategic business relationship that can be established. Below are a few key things that will allow for a strong international (or domestic) 3PL partnership:

HONESTY

It is crucial for shippers to be open and honest when starting the process of partnering with a 3PL. Be upfront about your business’ shortcomings and where you have concerns. Otherwise, bids may be inaccurate, and you may have difficulty finding a logistics provider who can truly meet your needs.

COMMUNICATION

Honesty sets the stage for open communication and an environment where ideas can flow freely. 3PLs are looking to provide you with new ideas and logistics solutions based on your business’ needs. 3PLs work to become an extension of your company by striving to understand where you excel and where you can improve. Open communication and honesty allows for this advantage in a 3PL partnership

EXPECTATIONS

Along this similar theme, it is important that you are clear about your expectations and goals. What do you wish to gain from this international 3PL partnership? What are some of the long-term goals of your company and how can this logistics provider help you achieve those goals? How can this 3PL fit into your current logistics process?

The initial bid from a 3PL is an important factor, but… when you ask all of these questions, you are able to look past the initial 3PL bid to a process that could save you a large amount of money through more advanced avenues. And while all of these things are important strategies for a shipper to implement, those shippers should be looking for similar qualities in their 3PL provider – honesty, willingness to communicate, and ability to give you clear and accurate information regarding their capabilities and how those match your expectations. 

Fuel Efficiency

It is not surprising that fuel is a major part of a trucking company’s operating margin. A little over a third of a trucking company’s cost per mile goes directly toward fuel. The trucking companies that are best able to control these costs, along with reliable service, will be best poised as the trucking industry rebounds from the recession.

Below are the main components of a truck’s fuel loss. These apply to trucks traveling on highways rather than local pick-up and delivery drivers that deal with a lot of stop and go traffic.

AERODYNAMICS AND RESISTANCE

Aerodynamics and resistance may account for over 15% of lost fuel savings. Some common ways trucking companies cut this cost are: reducing the space between the trailer and the cab, adding trailer skirting also known as chassis fairings, utilizing wheel covers, and replacing mirrors and cameras with more aerodynamic ones.

IDLING

Around 5% of fuel burned is during idling. It is not possible to eliminate idling altogether, but there are steps and processes companies can take to reduce idling.

DRIVER

About 30% of fuel consumption (whether resulting in savings or loss) results from the drivers themselves. The best drivers maintain steady speeds and low rpm.  The North American Council for Freight Efficiency states, “The difference in fuel economy between the best and worst driver can be up to 25%” Simply put, better drivers mean better fuel economy. The issue trucking companies face is an overall shortage of drivers which in turn means less fuel-efficient drivers.

TIRES AND ROLLING RESISTANCE

Tires and rolling resistance can account for over 12% of energy losses. There is a rise in what are known as super single tires which reduce the weight of the vehicle but also offer better traction in the snow. These tires are also easier to maintain and replace so that you are dealing with fewer tires overall.

Impacts on Freight Transporation

The transportation industry is a dynamic, competitive one and the fate of business owners connected to it is at the mercy of a myriad of external factors. Government influencers, the state of the economy and simply the changing times all contribute to the success of one vast intersecting supply chain that encompasses logistics, freight rail, trucking, air and sea delivery. So how can you prepare for these disrupting factors? Acknowledge them and keep up with new advances by making investments in strategic ways. Here’s five factors that have a big impact on freight transportation today.

1. Economy
   The weight of the United States economy on transportation is a given. Currently, the manufacturing sector appears to be rising out of the dust of 2016’s manufacturing recession. This will result in tighter capacity for the truckload (TL) industry, as capacity is already relatively tight for the less than truckload (LTL) industry.

1. Infrastructure
   In 2015, infrastructure cost the transportation industry $64.4 billion due to traffic congestion. This cost can then be seen for all of us in the industry in the form of higher prices for our products. Infrastructure has been an ongoing issue in America for decades, but there’s never been agreement on a fix. Hopefully the years ahead will see an increase in funding.

1. Regulations
   New transportation and safety regulations continually impact the transportation industry. Electronic logging device (ELD) mandates might carry the greatest impact by the end of 2017. This regulation could affect capacity by as much as 5%, although no funds are budgeted to enforce them and carriers will see an additional 2-year reprieve if they currently use an older ELD that doesn’t meet the new requirements.

1. Technology
   Technology is a constant disruptor in the industry, but right now smart phone applications and transportation management systems (TMS) exist that are helping manufacturers and distributors become more efficient at their jobs. In the near future, tried and tested semi-autonomous vehicles could lead to safer driving and easier training while improving delivery times for new drivers. Of course, fully autonomous vehicles will change the industry entirely.

1. Fuel
   Fuel in America does appear to be under control for now and will most likely continue to stay under control thanks to the balance between the Organization of the Petroleum Exporting Countries (OPEC) and fracking. But this is always a major factor in the success of businesses connected to freight transportation.

Are you prepared for the future of freight? Smart transportation professionals keep these five factors in mind to consider the repercussions on their supply chains.

Is the Truck Capacity Shrinking?

There has been a growing industry wide concern related to upcoming truck capacity and how this will affect shipping as we know it moving forward. There are many factors currently influencing this tightening of capacity, including freight demand hitting peak levels, driver shortage, as well as the recent natural disasters that have affected the flow of transportation. The real question is what does this mean for shippers and the cost of doing business.

Unfortunately, this essentially means that the window is closing on the positive environment for shippers, and rates will reflect this tightening of capacity, as exemplified by the Shippers Condition Index plummeting into negative territory. The SCI, a compilation of factors affecting the shippers transport environment compiled by a transportation forecasting firm, fell to a -3.6 reading in January. Any reading below zero indicates a less-than-ideal environment for shippers.

Why is this happening now, you may ask, as the economy is finally turning in the right direction, and manufacturing rates are increasing and forecasted to continue to do so. As the demand for freight continues to increase, more and more pressure is put on the transportation industry, and in many cases, it’s as simple as there are more loads than available trucks. With increased federal regulations set in place to improve upon safety, such as the new hours of service rules. The fleet costs are rising, and many smaller companies are unable to keep up with the cost of doing business. With them eliminated from the pool, we have less carrier availability and more demand for the ones still in business.

The Driver shortage has been a problem that has been looming for quite some time as well, and with the average age of a commercial truck driver at 48 years old, with 21 percent between 55-65 and fewer than 8% between the ages of 25-29, we don’t have enough drivers to fill the space of those who will soon be lost to retirement. The industry needs to find a way to attract more employees by either improving upon quality of life considerations or compensation or both, all of which ultimately contribute to the cost to the shipper.

National disasters such as the recent hurricanes have also affected capacity, including both loss of equipment as well as increase of need in the affected areas. FEMA and the price of gas are contributing to the skyrocketing of spot rates in these areas, which also trickles down to the rates throughout the rest of the country. With all of these potentially negative effects on the horizon, there is still a lot that can be done by shippers to continue to move their supply chain with as few negative consequences as possible.

Pre-planning FTL shipments can help to ensure your freight will not be delayed by the tightening capacity, and continuing to keep open lines of communication with your logistics providers will further ensure the best service available. It is still yet to be seen what the ultimate outcome of the tightening capacity will be on the industry, but it is always best to be educated and prepared in every situation.

Transit Times

Transit times for LTL shipments can seem confusing at best for many shippers, and often lead to a wide array of frustration and often turn into a source of contention when everything doesn’t go as planned. A delayed shipment can cost customers money, time, and sanity, especially when the items being shipped are time sensitive. You may be asking yourself what this means for you and your freight, and what you can do to get your shipment where it needs to go without encountering a tracking nightmare, and here are some answers to these questions.

Transit times are estimated and not ensured because a variety of factors can come into play that could potentially delay your shipments arrival on its projected delivery date. Some of these factors are as simple as traffic and weather which can cause delays preventing a shipment from reaching the origin terminal as planned. On other occasions lane capacity, mechanical malfunctions, and a wealth of other factors can potentially influence the fate of your freight’s arrival to where it needs to be.

What we first need to decode is essentially what an estimated transit time means. For example, if your shipment has an estimated transit time of three days, this is not assuming it will deliver three days from when it is picked up. The day your shipment is picked up does not count towards the three day time period, and neither do weekends or holidays, so if your pick-up occurs on a Wednesday, and it has a 3 day transit time, it is not projected to deliver until Monday of the following business week. There is also the scenario where not all carriers service certain areas of the country, and a partner carrier will indirectly be servicing a portion of the delivery. In most cases, the estimated delivery timeframe only accounts for the initial leg or the transport until it is delivered to the partner carrier. After that exchange occurs, visibility is reduced, and delivery can be contingent upon even more factors that can delay your freight delivery indefinitely.

But what if you have freight that absolutely MUST get to it’s destination on time, or else the sky will fall and the end times will be upon us? That’s where guaranteeing your shipment comes in. A “guarantee” is an additional service offered by most carriers similar to any other supplemental service such as residential delivery and lift-gate for delivery services. We established earlier that all LTL shipments are established with estimated transit times, but when you select the “guarantee” service it guarantees that your shipment will be delivered on time, or else there will be no charge and the shipment will be free. 

9 Facts About Semi Trucks

We see them on the road every day and work closely with them if you are in the transportation industry, but here are 10 quick facts about semi trucks that you may not have been aware of:

1. One-third of all semi trucks that are operating in the U.S. are registered in California, Florida, and Texas.

2. Semi trucks drive an average of 140 billion miles a year in the U.S.

3. About 70% of all goods in the U.S. are delivered by semi truck.

4. Agricultural and building materials are the two leading goods in regards to weight transported.

5. The terms “semi” and “semi truck” came about because the trailers are called semi-trailers since they have no front wheels and are dependent upon connecting to a truck.

6. Trailers are automatically locked when standing alone. The pressure from the truck’s air pump releases the trailer breaks when it is connected.

7. Since 1997, antilock brakes have been required on semi trucks. This has reduced the number of jackknife crashes significantly. Currently, the most dangerous accidents involving semis are rollovers.

8. Out of all the commercial trucks, semi trucks only make up 15% of them; however, they travel 42% of all miles traveled by commercial trucks.

9. Most diesel engines need to put out 1200 to 2050 lb-ft of torque to keep a fully loaded semi and trailer moving.

4 Steps for Freight Agent Success

Are you serious about becoming a highly successful freight agent?

If so, then you need to be willing to put in the work to set yourself apart from every other freight agent. On top of that you need to have the best tools and data to help your customers get their freight delivered on time, without error and within their budget. If you’re think you’ve got these things covered, but are still struggling to grow your freight business, then you might be missing a couple important steps.

Strategize- Set both short and long term goals. This will help grow and optimize your business. With so many different links along the supply train, a successful freight agent must have the ability to quickly strategize to get the job done.

Organization- Staying organized will keep your information ready to relay back and forth quickly if necessary. Have a plan in place, you are more than likely to meet your goals, always having a plan, a backup plan, and strategies to prevent other problems.

Communicate- Communication between your team is crucial in multiple ways. If there is a busy time of freight going in and out, as well as other customers trying to get in contact, things can get hectic and crazy fast. Constantly be talking between your workers in the office and your drivers to have the best idea of where everything is at, when it needs to be there, and how its getting there.

Network- Always find time to talk to others. Not only does this create optimal moods throughout the workplace, this will also broaden your company to other people. If they remember the face, they will remember the company.

 

The Role of Customer Service

Customers do not like poor service. A bad customer experience can ruin a business’s reputation and drive loyal customers away. It’s important to be aware of how you’re treating clients, handling complaints and establishing lines of communication throughout your customer’s journey.

By 2020, customer experience will bypass product and price as the number one brand differentiator. Consumers not only want more, they expect more from the companies and services they purchase, which means it’s time to look under the hood and evaluate how you are approaching customer service.

In the shipping and logistics industry, transparency and communication are essential to success. Whether you’re a freight agent or carrier, your customers depend on you to get their cargo where it needs to be.

If a retailer is out of snow shovels two days before the biggest snow storm of the season and is relying on your services to get their order from the warehouse to the store in time, it’s a safe bet that they want to know what is happening with the order every step of the way. Smart freight agents leverage logistics technology and freight brokerage platforms that give them the information and real-time updates needed to move and track shipments with confidence and ease. If any problems arise, it is never EVER a good idea to assume that it will not affect the cargo, whether its time or some sort of damage. 

People trust people, not brands, and this should be something you keep in the back of your mind as you establish yourself as a freight agent.

Communication and transparency are key; technology is just there to make it easier for you to achieve those goals. Customers don’t want to spend too much time on the phone trying to deal with an issue, and they certainly don’t want to be consumed dealing with nonsense that make doing business difficult or impossible. As you build your freight agent business, think about how you can weave communication and transparency through every step of the customer journey – from the resources and information located on your website and marketing materials, to how you answer the phone when a client makes an inquiry or complaint. These are all important things to think about.

Customer loyalty can change in the blink of an eye. But with the right technology and communication protocols in place, you can rest easy knowing your clients will continue to depend on you to move their shipments because you’re someone they can trust.

 

The Impact of Dimensional Pricing on LTL Shipments

The LTL industry has been on a path to adopt dimensional, dim-weight, or space-based pricing for some time. As more carriers shift from traditional weight and class-based rates to pricing based on the size of freight and the space it occupies in a truck, shippers will need to adapt their freight operations and budgets. 

Just this month, another notable top 10 carrier joined the club using density-based pricing, when they introduced its newest version via a cubic minimum charge program, which supplements weight-based metrics. This company now uses this price guide in most of its shipments and warehouses.

While FedEx and UPS were early adopters of dimensional pricing, more of the nation’s top LTL carriers have slowly followed suit. That adoption speed, however, has increased steadily this year. With the explosion of e-commerce, many LTL and parcel carriers were losing money on shipments of large, light items. Carriers get paid based on what they can load into a trailer, and consequently, the truck frequently runs out of room to hold the heavier freight.

The density-based pricing model was designed to slow this trend. Now there are approximately 390 density-based classifications that supplement the 18 more weight-based NMFTA (National Motor Freight Traffic Association) classifications. The larger carriers and even some shippers have purchased and installed sophisticated dimensioners, which use lasers to accurately measure the dimensions of pallets, packages, and goods.

Does Dimensional Pricing Increase Shipping Costs?

Because shippers now must pay for space on the truck, not just weight, shipping costs can rise depending on the product, weight, and dimensions of what you are shipping. Increases between 10 to 20 percent have been shown. For instance, companies that ship oddly shaped goods like bicycles, treadmills, and stair steppers can expect higher prices. These type of products take up more space in a trailer than a 2,500-pound low-profile pallet of nuts and bolts but weigh much less.

The Era of Dimensional Pricing is Here

As e-commerce and low-density freight continue to proliferate in the marketplace, carriers will continue to adapt their models to make the most effective use of their trailer space. Dimensional pricing is simply another step in the evolution of the industry, leveling the playing field for all stakeholders.

Practices for LTL Shippers

There are four things that stand out when talking about best practices for LTL freight shipping. These four things may be simplistic, however, they will help you improve business relationships so that they are mutually beneficial and efficient. These practices could help you find lower shipping rates and optimal capacity as rates increase and capacity becomes harder to find.

1. REPORT ACCURATE WEIGHT

Weighing your shipment accurately is critical to improving efficiency and future rates. Carriers have to re-weigh about 80% of shipments today, which leads to higher expenses and reduced efficiency for LTL carriers. Shippers have a responsibility to accurately report the weight of their shipment, and doing this diligently will pay off for the shipper in the long run.

2. SUBMIT AN ACCURATE BILL OF LADING

Carriers do not audit every Bill of Lading that they receive; however, they are increasing the amount that they do audit because it has become such an issue. Every detail needs to be looked over and accurate since those details affect rates, transit times, and a variety of other factors.

3. AVOID ACCESSORIAL CHARGES

LTL carriers have realized that they are behind in the area of accessorial charges. While parcel shipping has about 45 accessorial charges, the LTL industry only has about 15 accessorial charges. These charges could accrue for things such as residential service, liftgates, and appointments. LTL also does not currently have as high of fees for accessorial charges as the parcel shipping industry does so it is more costly for the carriers when you have specific requests. This means that when capacity is tight, carriers are likely to choose to work with shippers with fewer requests so that they can maintain higher margins.

4. PACKAGE FREIGHT PROPERLY

Carriers have an increased expense when they have to take extra steps to handle an improperly packaged shipment. While you will likely receive a penalty for improperly packaged freight, these penalties do not fully compensate the carrier’s additional costs. Improperly packaged freight also increases the risk of the shipment being damaged. Carriers will be much happier to work and negotiate with shippers who practice proper packaging procedures.

Keeping Your Cargo Safe

Knowledgeable truck drivers are the best theft prevention tools available. While there are physical ways to protect a trailer or cargo from getting stolen—such as king pin locks, gland hand locks, and sturdy padlocks—having drivers that understand the mindset of the criminal and avoid putting themselves and their equipment in situations where theft is most likely to occur is the absolute best way to avoid becoming a victim.

Theft prevention means not making the equipment and cargo easy targets. Thieves like to find trailers sitting in unsecured lots. Trailers should stay attached to the tractor, or dropped only in a secure and well-lit yard. Thieves also look for unattended tractor-trailers left idling at truck stops or rest areas. They wait until the truck driver leaves to go inside, then drive off with the entire rig. Some organized crime groups will even go as far as to stake out a distribution center or warehouse, waiting for valuable freight to be loaded onto a truck. They will then follow that truck, sometimes for hundreds of miles, and look for an opportunity to high-jack it.

Cargo theft can occur anywhere and it happens more frequently on weekends, especially long holiday weekends. You don’t have to be a sitting duck, though; there are steps you can take to help ensure you are not a victim of cargo theft. Below, we explain where thieves typically strike and how you can avoid their traps.

When cargo theft happens, it’s usually in one of two ways: the entire trailer and its contents are stolen, or the trailer is broken into and only the contents are taken. In some situations, however, a thief will drive off with both. After hours at carrier terminals and truck stops are the heaviest hit locations. If you plan to park a trailer at your terminal, backing it against a wall is always a good idea. Make sure the area is well-lit, install cameras, fence off this area and make sure it is locked. When parking at a truck stop, you have less control over the security, so park in a well-lit area and back the trailer doors against a wall or something that will prevent the doors from being opened.

Obviously, theft prevention requires more diligence the more valuable the cargo. The most desirable commodities for cargo thieves are items that can be easily sold on the black market. An integral part of the cargo security team, truck drivers should not discuss details of their cargo, their route or destination in truck stops, over the radio, or on popular social media sites. Drivers should also routinely use air cuff locks and check the seals on their trailer doors every time they stop. If truck drivers feel like they are being followed or targeted, they should communicate with the home office or law enforcement immediately, and if necessary, keep moving until they reach a safe, secure, heavily occupied location. Communication is a vital part of theft prevention.

Drivers that pick up high-value and/or targeted freight should be especially watchful and careful during and immediately after loading. Theft rings target shippers with these types of product and have been known to follow trucks after they leave a shipper. As soon as the driver stops to fuel, rest, etc., they are at serious risk of having their load stolen, if cargo thieves have followed them. It is wise to fuel up before picking up your shipment and driving at large amount of miles before stopping. Most thieves will not follow a truck for this distance. This might seem like an inconvenience to the driver, but it’s a simple, proactive step a driver can take to ensure a lot less headache down the road. Theft rings do not necessarily need to follow a truck, either; if they know where a load is going, they can assume the route, and will likely have operations set up at specific truck stops along the way. Always be aware of your surroundings.

Trucking companies have a big role in theft prevention, since they have the ultimate responsibility to the shipper and receiver. Do a thorough background investigation of your drivers. Although not required by law, some carriers also include a criminal background check of all applicants. By now, everyone must have an understanding on how necessary background checks are to a supply-chain security program. The strict scrutiny of potential employees is critical to eliminating losses. The most important thing is the necessity to run a criminal check in every county that a potential applicant has lived. Many times, you will see carriers conduct a criminal check only in the county of current residence. This is done primarily to save money.

Shippers should be careful not to allow excessive transit time on targeted or high-value loads. For example, if a shipping lane is 1,000 miles, that’s a 2-day point on a single driver. If you can avoid it, try not to ship that distance on a Friday for a Monday delivery appointment. It adds an extra day based on transit, and means the load will sit for approximately 24 hours longer than needed. And, in this example, the sitting time would be over a weekend when more thefts occur. Unattended loads are the easiest targets for cargo thieves, especially if they are not in a secured area. When possible, running shipments straight through, and opting for a team when necessary, brings sitting time on a load to the lowest possible level, thereby decreasing opportunities for theft.

Educating employees and having an overall Anti-Theft Strategy that is well documented and well communicated is a great way to start. Truck drivers aren’t the only ones who need to understand the policy. It applies equally to every member of the company team, from office workers to managers to mechanics and drivers. Knowing what measures should be taken to avoid cargo theft, what to do if confronted with a theft situation, the preventive steps to take to avoid it, and the proper procedures for what to do if a theft occurs, are all part of a well-managed plan.

As good as truck drivers and trucking companies get at theft prevention and cargo security on the road, criminals will always find new and inventive ways to circumvent the security processes and get what they want. Drivers need to be diligent always and be suspicious of anything that looks even remotely out of the ordinary. Open communication between drivers, trucking companies, and law enforcement are key to minimizing the likelihood of cargo theft. As representatives of the trucking company, drivers have the right, the authority, and the obligation to keep cargo safe within the confines of the law. Knowing what criminals are looking for and avoiding those behaviors is a huge part of that responsibility.
Moving freight safely and securely is a priority for all truck drivers. 

If you notice suspicious activity, report it to authorities and alert drivers in the area. If you are a victim of cargo theft, report it immediately. Be sure to have an accurate description of your equipment along with up-to-date license plate numbers and VINs which will aid authorities in recovering your equipment, and hopefully the freight as well.

Tax on Freight to Fix The Roads?

There is little dispute that the United States infrastructure is in need of significant repair and upgrading, however the means to fund such projects has been unclear and disputed for years. A fixed amount federal excise tax on gas and diesel fuel has been the primary source of infrastructure funding for a long time, but these taxes have not been raised since 1993 and are no longer sufficient. With vehicles becoming more fuel-efficient and the increased inflation, the revenue generated per highway mile is decreasing, resulting in continued inadequate funding.

According to a study by the American Society of Civil Engineers, the costs of failing to address infrastructure deficiencies are significant. Over 10 years, each household will lose $3,400 each year in disposable income due to infrastructure deficiencies; and if not addressed, the loss will grow to an average of $5,100 annually for another 30 years, resulting in cumulative losses up to almost $34,000 per household. Over time, these impacts will also affect businesses’ ability to provide well-paying jobs, further reducing incomes. If this investment gap is not addressed throughout the nation’s infrastructure sectors by estimated 2025, the economy is expected to lose almost $4 trillion in GDP, resulting in a loss of 2.5 million jobs over that time frame. 

On June 22, 2017, the “National Multimodal and Sustainable Freight Infrastructure Act”, was introduced to solve this possible huge loss. Amongst other provisions, the bill would impose a one percent excise tax on ground transportation of freight, payable by the party paying for the freight transportation. The tax would apply to transportation of property by “freight rail” or “truck trailer and semitrailer chassis and bodies, suitable for use with a trailer or semitrailer which has a gross vehicle weight of 26,000 pounds or more.”

The bill, which includes provisions for a grant program, would deposit all revenue into a freight trust fund, and a lock-box feature would ensure the money is used only for designated purposes for freight moving by truck and rail. Cargo interests have long petitioned Congress for a dedicated source of revenue to upgrade highways, bridges, rail and intermodal connectors that carry heavy concentrations of commercial traffic on key routes considered regional and national economic pipelines.

Is Packaging an Investment, or a Cost?

When loading a pallet there are a few key strategies to follow:

• Pallets should be used for heavy and/or bulky items

• Do not have any overhang because overhanging freight is not supported during freight transportation

• Cartons should be placed on the pallet vertically to maximize the strength of the cartons

• Breakaway adhesive, shrink-wrap, stretch-wrap, or banding are recommended when securing cartons to the pallet

• Stack cartons squarely on the pallet

• Create a flat surface on top by positioning box flaps and corrugations face up

• Be cautious with containers of various sizes because the unit strength may be compromised

• Stacking strength is lost due to misalignment or an interlocking stacking pattern

When shipping LTL one of the most important factors is to consider is how the product is packaged. When products are packaged properly the chances of damage are greatly reduced. Please keep in mind when you are shipping LTL your shipment will be transloaded from several terminals and switch trucks a few times before it reaches its final destination. The extra 5 dollars it may costs for strapping, or additional packaging will always pay off in the long run.

A common practice when shipping LTL is to only use cardboard packaging, even though it is not the most ideal. Most shipments are secure within corrugated cardboard that is sturdy; however, wood crating gives far better protection for items that are heavy and dense or items that are fragile. 

It is essential that you match the outer packaging to the size of your shipment. If the outer packaging is too small, your products will not have enough protection. If your packaging is too large, your products may shift or move around too much and break. Sealing the outer packaging is also crucial. We recommend that you use reinforced tape to ensure that your shipments are securely sealed.

Upon delivery it is also important to let your consignee know that all packaging is how it should be. If a shipment is delivered damaged, even if it is notated as such on the delivery receipt, this does not guarantee the claim will fall in the shippers favor. This especially holds true if you are shipping a high value item.

When shipping product that is sent via full truckload an investment in packaging is worth the cost also. Even though the shipment may not be transloaded it is important to consider this will be riding several hundred if not thousand miles on the road. The same rules securing all moving parts will apply. So if you are shipping a piece of equipment on a flatbed make sure all moving pieces, like doors, hinges etc. are latched and secured down to prevent damage.

When consulting new shippers many are shocked at how little extra packaging costs as compared to their total product costs. Moral of the story don’t skimp on packaging, make compromises elsewhere and you won’t regret it.

Is The U.S. Infrastructure Failing?

The logistics industry in the United States relies on an intricate system of roads, rails, bridges and airports in order to move goods throughout our large nation. This expansive web our transportation infrastructure requires constant upkeep and maintenance to keep it function in a safe and effective manner. However, through policies and allocation of funds to other sectors, our infrastructure has come in to a state of disrepair.

According to Transportation for America, the average age of a U.S. bridge is 42 years. A bridge has lifespan of only 50 years; it is easy to see how we are reaching a tipping point. In only eight years, the average age of our bridges will exceed that of their safe operating age and many have not been maintained well throughout their life. Currently, 11 percent of bridges are considered “structurally deficient”, meaning they could potentially pose a threat to public safety due to their compromised structure. These bridges will ultimately need to be repaired or replaced. In 2009, it was estimated that it would cost approximately 71 billion dollars to return these bridges to a fully operation and safe state. This figure how been growing steadily year-by-year as our bridges continue to age

One major reason for our continued crumbling infrastructure comes down to clashing philosophies. There is a schism between agencies that favor building new versus fixing the aging. In 2008, the state governments spent 18 billion dollars, or 30 percent, of their federal highway funding on building new or expanding current highway. Only 8.1 billion, or 13 percent was on repairing existing roads and bridges. With figures like these, it becomes clear how something as important as roads and bridges can quickly become obsolete and potentially unsafe.

Funding is the key to combat this ever-growing crisis. For example, from 2006 to 2009, the allocation of highway funding increased by $650 million annually while the amount needed to repair structurally deficit bridges increased by $22.8 billion. It is clear that the funding is not keeping pace with the expenses. By 2030, the number of bridges over 50 years old are expected to double totaling 400 thousand of our nation’s 600 thousand bridges, the majority of which are on highly traveled interstates. As a nation, we are approaching a boiling point. Soon, the majority of bridges an American will travel on on a daily basis will be structurally unsound.

The logistics industry depends on these highways and bridges to operate. There are current 15.5 million trucks on the road today, of which 2 million are tractor trailers. The U.S. economy would halt to a standstill if these trucks were unable to operate. Annually, freight carriers transport 70 percent of all manufactured goods in the US; this figure exceeds one trillion dollars.

Freight Broker Bond

 

Freight Broker Bond requirements were put in place in the 1930’s by the Federal Motor Carrier Safety Administration (FMCSA) to act as insurance for the carrier payment in the event that they are not paid by the freight broker. In the 1970s the bond requirement amount was set to $10,000. This wasn’t changed until June 29, 2012 when Congress Passed the Moving Ahead for Progress in the 21st Century Act (MAP-21). There were two main changes that came from this act:
1. The freight broker bond requirement amount increased from $10,000 to $75,000
2. Freight forwarders were also required to meet the $75,000 bond
The reason for the increase, according to the FMCSA, was that there had been too many cases in which shippers and carriers had been delayed (or entirely denied) payment so the bond increase was necessary in order to ensure payment of services rendered.
This increase led to a large public outcry. Small to mid-sized freight brokers were afraid they would lose their business or be forced to join a larger operation and filed complaints and even lawsuits. However, that did not lead to a reduction in the price of the bond but companies were offered a grace period of two months to acquire the bond. The law went into effect October 1, 2012, freight brokers and forwarders had until December 1, 2012 to decide whether they wanted to renew their license and come up with the additional money. Brokers who failed to come up with the bond requirement would be forced to cease all operations.
Close to 40% of all freight brokers were forced to close leaving shippers scrambling to find reliable vendors. 

Safety and Health Concerns for Truck Drivers

Long-haul trucking is both one of the most crucial jobs and, unfortunately, one of its most risky.

Long-haul truck drivers are essential to the transportation of goods in the United States, but the demands of their job may contribute to a greater chance for health problems. Irregular schedules, long hours, little physical activity, limited access to healthy foods on the road, and stress makes healthy living a challenge for these drivers.

Truck drivers have a greater chance for many chronic diseases and health conditions such as heart disease, diabetes, hypertension, and obesity compared to U.S adult workers. In 2012, the rate for nonfatal injuries in heavy and tractor-trailer truck drivers was three times greater than the rate for U.S. adult workers.

Workers in the trucking industry experienced the most fatalities of all occupations, accounting for 12% of all worker deaths. About two-thirds of fatally injured truckers were involved in highway crashes. Truck drivers also had more nonfatal injuries than workers in any other occupation. Half of the nonfatal injuries were serious sprains and strains; this may be attributed to the fact that many drivers must unload the goods they transport.

Here are some tips to remind your drivers-

1. Watch your blind spots
Other motorists may not be aware of a truck’s “no zones’ — those where crashes are most likely to occur. These zones include:
• Off to the side, just in front of the cab
• Just behind the side mirrors
• Directly behind the truck
If others aren’t aware of these trouble spots, they may drive dangerously close. As frustrating as this can be, it’s up to the truck driver to exercise caution before turning or changing lanes and to maintain a safe distance.

2. Maintain your truck
Give your vehicle a thorough check each morning (fluid levels, horn, mirrors, etc.). The brakes are particularly vital, given how much weight is riding on them. If you spot anything unusual, report it to dispatch before attempting to drive.

3. Load cargo wisely
The higher you stack cargo, the more drag on the truck. By stacking lower and spreading cargo through the full space of the truck, you can stay more nimble and improve your fuel economy.

4. Reduce speed
Particularly on exit/entrance ramps, the speed limits are meant more for cars; trucks have a tendency to tip over if they take the curves too fast. When going through any curve, it’s best to set your speed far lower than the posted limit to make up for your rig’s unique dimensions.

5. Adjust for bad weather
Inclement weather causes roughly 25% of all speeding-related truck driving accidents. Cut speed down on wet roads, and on snow covered or icy roads.

6. Take care of yourself
A big part of truck driver safety has less to do with your vehicle, and more to do with you. Getting enough sleep, eating right, exercising, and taking quality home time will all help making the truck driver more content and refreshed behind the wheel — 2 qualities prized in any driver.