Changes in Freight in 2011

As logistics services professionals, we noticed some trends in the world of freight in 2011. These trends will definitely be continuing into 2012 and most of them will probably continue to grow. The carriers have had a lot of control of the freight in 2011 due to an increase in freight volume and shortage of drivers. Also, everyone is looking to save money, which means stricter policies.

 

Class and Weight Inspections

Carriers are inspecting and reweighing almost every single piece of freight that they handle. They are scrutinizing the class on a very large percentage of shipments. And many carriers have even added personnel to only handle inspections and verifications of the class and weight of shipments. During this difficult economic time, it makes sense for the carriers to be taking these extra precautions in order to recoup revenue.

 

We have said it before, and we will continue to stress the importance of classifying your shipments correctly and specifying their correct weight. This is a great way to gain an accurate rate quote and ensure a smooth transit and efficient delivery. It is always helpful to talk to a logistics services professional about any shipment that you are not 100% sure about.

 

Packaging Standards

Many carriers are also increasing their standards for packaging. We have seen many shipments that are required to now be crated even though they had not been in the past. Carriers are doing this as a way to reduce risk of damages and the hassle and expense of the resulting claims.

 

This is not necessarily a bad thing. It may slightly increase your cost up front (due to the additional packaging standards); however, your risk is also reduced. You are more likely to have your freight arrive safely, securely, and on time when these packaging standards are higher.

 

Higher Costs

There have been price increases across the board in regards to freight in 2011. This is partially due to increased fuel prices and also due to the shortage of drivers and freight volume increases. Since there is more freight that needs moved than drivers who can move it, carriers have the luxury of being picky about the type of freight that they move. They are able to increase costs and add stipulations for difficult freight (such as oversized or unstackable freight).

 

The good news is that the economy in the realm of logistics services is improving. Hopefully, the number of drivers will catch up to the demand in the shipping industry. In the mean time, give us a call at (877) 764-9441 to discuss options for keeping your costs low.

 

 

Have a safe and enjoyable New Year’s Weekend!

 

 

Have international shipments? We can help with those as well!

Head to PNG Worldwide for more information.

 

Are Top Companies Outsourcing Logistics?

Many companies are struggling right now. It is no secret. It’s plastered all over the news. So when your company is facing difficult times, you look to cut costs wherever you can. Does this mean that you should not outsource logistics? It actually means the opposite. Outsourcing logistics services to a Logistics Services Provider can save you a significant amount of money and allow you to focus your energy elsewhere (like bringing in more profits). Many top companies are outsourcing logistics, and you can be sure that they would not be doing so if it was not saving them time and money.

The Aberdeen Group recently conducted a survey of over a hundred supply chain professionals, and it turns out that about 90% of respondents are using Logistics Services Providers. Best-in-class companies are realizing that they can utilize the specialties of their own employees while outsourcing logistics to transportation professionals. These respondents reported benefits such as reduced freight costs, decreased warehousing costs, efficient deliveries, and ability to extend their reach globally.

Working with Logistics Services Providers does not limit your control and constrain your cash flow. In reality, outsourcing logistics can result in a highly personalized and visible process, especially when using our TMS that is available to you 24/7.

If you call us at (877) 764-9441, we can speak with you about your various options. We will be sure to maintain an ongoing relationship with you so that we can better understand your shipping needs and make arrangements for on time and secure deliveries. We also have relationships with carriers that allow us to bring volume discounts to you.

You need to do what makes sense for your company so make sure that you evaluate all of your options.

Have international shipments? We can help with those as well!

Head to PNG Worldwide for more information.