The Types of Transportation Used by Delivery Companies

Jul 14 2020 Published by under Uncategorized

The idea of a freight exchange is for users to register an interest in the transportation of different types of cargo – from the perspective of requiring delivery of such as well as carrying out that delivery. Some may seek the assistance of drivers specialising in the movement of livestock, while others might have a need for the delivery of warehouse goods. The workers who use these online networks may use many types of transportation to ensure the job is complete.

Vehicles

Freight exchange users generally travel by road when making essential deliveries. Some of them drive vans, while others make journeys in large articulated lorries. The major delivery companies often use these types of vehicles. They invest in sizeable fleets and send skilled drivers on a wide variety of assignments. Some of these businesses specialise in delivering furniture and household items to domestic customers; others offer the transportation of industrial items to warehouses and manufacturing plants.

Ships

Large seafaring vessels are used in the conveyance of some particularly heavy goods abroad. The major motor manufacturers use the ships to carry their vehicles to different countries. In the loading and unloading, workers use cranes and pallets to lift and move heavy cargo, however it has become more common to employ the method of containerisation, primarily because of the time savings.

Aircraft

International companies began using aircraft to transport mail in 1911. They soon realised this was one of the quickest means of delivery. Specialist aeroplanes such as the Ju290 and Type158 York were constructed in subsequent years specifically for the transportation of goods. There are currently a great number of multinational companies that use aircraft to transport their goods, however most jobs advertised on an online freight exchange will be for a localised area, meaning most are undertaken by an independent delivery companies or owner drivers.

Trains

Throughout history, logisticians have specialised in the rail conveyance of new vehicles, coal, steel and wood. However, it is worth pointing out that use of this method of transport has decreased since the motor manufacturers developed heavyweight lorries and functional vans.

Alternative Transport

The majority of workers who use freight exchange networks do, in fact, rely upon use of the UK’s busy roads. However, there are some who enjoy alternate lifestyles and transport items via the network of canals. Unfortunately this mode of transport has the drawback of being particularly slow.

As technology increases, there are more and more alternatives to cycling or using motorbikes for smaller deliveries. It’s possible logistics companies will use drones to deliver small items to their customers in the future. Some of the leading digital companies have already started using these sophisticated robots. Unfortunately, the droid developers may have some difficulty convincing the regulators in the UK and America.

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Transportation and Logistics – Accessorial Fees Can Sink a Business

Jul 14 2020 Published by under Uncategorized

If you are a new shipper in the LTL (Less-than-truckload) world, it may seem like big maize at times, without a starting or ending point. There may seem like an overwhelming amount of information that a shipper needs to know, ranging from learning the NMFC classes, to the specifics, like who is the best carrier to haul your freight, and what price will they charge. This is just a glimpse of the Freight World. Seasoned shippers, who have been in the business for 20 plus years, often find themselves being introduced to things that they didn’t know, or thought they knew, and were totally wrong. The Freight World is a dynamic, fast moving industry that warrants attention to details by Logistic Departments. With this being said, one of the trickiest topics to grasp, especially when a company first starts shipping freight, is Accessorial Charges.

Many shippers don’t really think about the consequences of not doing their due-diligence to research what type of equipment is needed for their shipments. They often think that these charges are “small things” when you look at the big picture. The typical thought process from the shipper is, “I’m not worried about it, because the carrier will take care of it.” This mind-set can be dangerous, because if these charges aren’t calculated at the onset of pricing out a shipment, there is a good chance that the cost of the accessorial might cause the shipper to lose profits. Too many of these can cause a negative effect to the bottom line for a company. Carriers use what’s called a Supplemental Bill. The name speaks for itself, as the shipper or bill to party, will get an additional bill after the shipment with the new accessorial charges, if it’s not included on the original bill. Lesson here, is that they will always bill you these charges. This becomes a cash cow for carriers, and allows them to boost their profit margins significantly. The following are a few of the “small things” that a shipper might run into and if not taken care of correctly can add up into “big costs.” Each of these accessorials, at a minimum depending on which carrier is chosen, starts at $25/$50.00 and goes up.

Appointment Notification Prior to Pick Up or Delivery

Inside Delivery

Residential Pickup/Delivery

Hazardous Materials Fee

Sort and Segregation by Driver

Convention or Trade Show Deliveries

Non Commercial & Job Site Deliveries

Border Crossing Fees

Re-Weigh and Re-Classification

Billing Change (especially when proper BOL not used)

Inside Pick Up or Delivery

Church Delivery

School Delivery

Construction Site

In conclusion, the shipper needs to do their JOB on the front end to ensure that unforeseen charges aren’t a surprise to either party. Also, it is highly recommended that before the shipment leaves the warehouse that it is determined who will be responsible for paying these charges.

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Transportation & Logistics – Top 7 Reasons to Use a Freight Forwarder

Jul 14 2020 Published by under Uncategorized

The other day I met a business owner and we begin to discuss the differences in LTL Carriers, 3PL’s and Freight Forwarders. I had asked him who he had better experiences with, and without hesitation he responded, “Freight Forwarders have been much easier for me to work with, although I use all three at my company.” He listed 7 reasons as to why Freight Forwarders have been better of a fit in his supply chain:

Flexibility- Freight Forwarder’s provide a service typically using an Agent network. Many cringe when the word “agent” is thrown around in terms of Logistics, because of the bad reputation that they have received throughout the years. Many customers think that if you are using an Agent network it increases the chances of product being loss, damaged, or stolen- not true. What many don’t understand is that the Agent concept has been around for quite awhile. All carriers have some type of relationship with agents, even the larger carriers such as UPS and Fedex have an agent network in place in some parts of the country. What truly separates companies are their bonds and communication with their agent alliance. When you examine the “good” forwarders they have sound, strong bonds with their agents, and ironically sometimes even better than if they were dealing internally within their own company. To understand this fully you have to realize that these agents survive by looking to provide exceptional service to their carrier partners. The better job they do the more business they will receive. So they want to impress, they want to be accurate in their pickup and deliveries, but it’s the carrier’s job to make sure their(agents) are kept on their toes in terms of performance, accountability, and reliability.

Manageability- Typically when working with a LTL carrier or a 3PL their sometimes tends to be a “loss” of control for customers. If a shipment happens to go astray it often times takes an act of congress to recover and redeliver it to the proper address. A good Forwarder has the ability to use their network to retrieve, recon sign and redeliver to the correct address often times without missing a beat. Many clients strictly use F.F. simply because of this added benefit. The ability to “Quarterback” your shipments the whole way through lies with a Freight Forwarder. LTL companies have too many hubs and processes to deal with which doesn’t allow the flexibility and manageability that a Forwarder can demonstrate on a single shipment, and often times customers find this out the hard way.

Versatility- Options! Options! Options! During today’s economic times customers are finding that having a company that can provide them with viable options allows them the ability to maintain control, reduce costs, and increase efficiencies in their supply chain. When you are looking for your Forwarder examine the services that they can offer and relate them to your business needs. A good forwarder can take the primary shipping role or be used as a supplemental asset when the need arises. Allowing your business to adapt quicker and be more responsive to customer needs as they develop.

Versatility- Often times many companies will state that they are in fact a One Stop Shop, but if you ask enough questions you can determine if this in fact is true. Do they have the real time tracking and tracing capabilities? International? Warehousing and Distribution capabilities? Reporting capabilities? As your business grows these could be things that could help make the difference in your business progress. These help add to being able to allow a customer to grow their business with the least amount of financial output.

Vested Interest in Your Business- When a carrier can become an extension of your business, when they think about ways that you can improve your supply chain more than you do, that’s what a great carrier is made of. So often in business companies spend 90% of their time looking for the company with the cheapest cost whether then the company that can add immediate and consistent value to their supply chain.

All carriers strive for this, but not all reach this point. Reason being is that it takes the WILL to want to be the best carrier, and to want to help your customer beyond single shipments given to you on an Ad Hoc basis, a good freight forwarder weeds through the “stuff that doesn’t matter” to get to the core of the clients goals. How can they make your business run smoother is their main concern. And please understand that this doesn’t always mean being the CHEAPEST carrier in the door, but what it often refers to is being able to look at a company’s Logistic setup and determining can they add efficiency, and reduce cost as a whole.

Cost Savings- As I mentioned in the previous paragraph a good freight forwarder will make it one of it’ main goals to save their customer money, but interestingly enough many times the savings doesn’t come from just giving the customer dirt cheap rates. As a matter of fact if you speak to a top forwarder they will often times tell you that their pricing is fair to moderate? Reason being is that many times being able to provide a solution to an issue might take employing more resources and increasing cost on the front end to achieve for example expedited transit, better customer satisfaction and more efficiency. For example a company shipping from California, who is trying to beat their competition to the punch on the east coast might need to implore the use of a warehouse and distribution facility let’s say in Chicago. Adding this resource will give more control, shorter transit, and a more competitive drive for the Cali Company, and of course as I mentioned earlier increasing customer loyalty.

Quick Thinking- One freight forwarder I spoke with presented an example of how he added value to a new customer by just being inquisitive. The customer had been using UPS ground shipping out product weighing somewhere in the area of 50 lbs. for 10 boxes going to one location, cumulative weight of 500 lbs. Many companies who might have run across something like this would have run away because of the name recognition and reputation of the boys in brown. But not this owner, he realized that he would be able to put together a very strong program for the client based on the cumulative rate of 500 lbs. versus UPS rating the shipment on a per box basis. The bottom line was that he was able to save the customer 30% on his shipments with a much faster transit time.

I always preach that in this day and age the most important thing for a business to understand is their own “business needs…” If they understand the time sensitivity of their product, marketplace, and the needs of their industry they will be able to pick the right company for their logistical needs.

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