Workshop Message #2

First we would like to address the basics in Freight.

Freight is just a description of the cargo on the shipment.
Cargo is a term used to denote goods or produce being transported generally for commercial gain, usually on a ship, plane, train or truck. Items being shipped typically fall into various categories depending on 1) what the item is, 2) how large the shipment is, both in terms of item size and in terms of how many items make up the shipment, and 3) how fast the shipment needs to get to where it is going. Shipments are typically categorized as household goods, express, parcel, and freight shipments.

Workshop Message #4

Less-than-truckload (LTL) freight
The first category of freight shipment is “Less Than Truckload” (LTL), which represents the majority of “freight” shipments and the majority of business-to-business (B2B) shipments. LTL shipments are also often referred to as “motor freight.” LTL shipments range from 100 pounds to about 15,000 pounds, and are always less than 28’ long because LTL carriers’ trailers are typically 28’ long.

Semi trailers are typically between 26 and 53 US feet and thereby require a substantial amount of freight to make such transportation economical. The shipments are usually palletized and packaged for a mixed-freight environment. Unlike express or parcel, LTL shippers must provide their own packaging, as LTL carriers do not provide any packaging supplies or assistance. However, crating or other substantial packaging is required for LTL shipments due to the mixed freight environment.

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How Long Do LTL Shipments Take?
Transit times for LTL freight is much slower than for shipping on a Full Truckload(FTL) and not exactly related to the direct distance from shipper to consingee.

Transit Time Dependancies
1. The makeup of the network of Terminals and Breakbulks that are operated by a carrier.

2. Service level paid for. - Many carriers offer multiple services including standard and guaranteed services for premium services.

3. LTL shipments will move about 500 miles per day.

- For example, if a carrier offers a next day service region shipments ranging from 0 to approximately 500 miles will most likely be delivered at similar times during the next day.

4. Volume of shipment - LTL carriers from time to time rely on rail or air to forward some freight toward its destination in order to ensure delivery of freight within the specified delivery windows. LTL carriers typically send a large volume of freight each day through this method.

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What about air cargo?
“Air cargo” or “air freight” shipments are very similar to LTL shipments in terms of size and packaging requirements. One main difference between air and LTL is price.

However, air freight shipments typically need to move at much faster speeds than 500 miles per day and may need guaranteed services, therfore air may cost more of a premium in comparison to LTL.

Service levels range from Next day, Second Day, Non Guaranteed ground to Guaranteed Services.

These types of shipments are typically arranged through air freight forwarders. Air shipments may be booked directly with the carriers, brokers or online marketplace services.

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Who will move FTL Shipments?
While very large shippers may contract directly with TL carriers like JB Hunt and Schneider, most TL shipments are arranged through freight brokers or online marketplaces.

The Freight Resource Center provides you the ability to arrange these kinds of shipments.

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Additional LTL Surcharges
Besides class, rates, and discounts, an LTL carrier may apply a wide range of surcharges and accessorial charges that will affect the final price of the shipment.

A Most shipments will receive a fuel surcharge, which is always a significant proportion of the overall cost, possibly as much as 30% or more. Some common accessorial charges are:

B Liftgate- this is a service that assists the driver in loading or unloading his truck when a loading dock or forklift is not available.

- The trailer is equipped with a hydraulic ramp that lowers to the ground.
- Liftgate service is almost always billed on residential pickups or deliveries and in commercial pickup and deliveries where loading docks or forklifts are not available.
- Only a small percentage of trucking companies’ trailers are equipped with liftgates, so be sure to notify them of your need for one in advance.

C Residential pickup or delivery- anytime a carrier must pickup or delivers into a residential area an extra fee may be charged
- Most cases local laws restrict the size of delivery trucks, causing the carrier to utilize a smaller truck to service a residential area. These requirements equal less shipments per day picked up and delivered, so these fees are assessed to offset the carrier’s costs.

D Appointments or notification before pickup or delivery
- By default, carriers make pickups and deliveries in order arranged by geographic location (a route). If your shipment requires the carrier to call ahead, or schedule and appointment, the carrier may charge an additional fee for this service.

E Inside pickup or delivery
- Requiring the truck driver to pickup or deliver inside a building takes a driver longer to complete. The carrier may charge an additional fee for this service.
- Drivers are going to only bring the item inside the delivery location. No teardowns or setup will be performed. Nor, will they dispose of packaging.

It is extremely important that the LTL shipper works with the carrier or intermediary to completely understand all of the requirements of their shipment in order for an accurate price to be quoted.

Workshop Message #14

How Full Truckload pricing works
1 Truckload (TL) carriers usually charge a rate per mile.
- The rate varies depending on the distance, origin and destination points, equipment type, and service times required.
2 TL shipments may receive a smaller number of surcharges compared to LTL shipments above. The more common surcharges are for fuel, tarps for flatbeds, and detention fees for loads taking longer than 3 hours to load or unload.