LTL 101:Impact of Cubic Capacity

Do you know how Cubic Capacity can affect your shipments?

Almost every carrier we utilize through our LTL platforms has a cubic capacity rule in their rules tariff that may affect any of your shipments. LTL carriers impose minimum cubic capacity rules to effectively counter very light, fluffy shipments that take up more than their fair share of a trailer.  In most cases, LTL carriers state that if a shipment consumes 750 cubic ft. of space or more, AND the shipment has a density of less than 6 pounds per cubic foot (pcf), it’s not paying its fair share.  While the rule varies dramatically amongst carriers, most artificially adjust the weight to a minimum of 6 pcf, AND apply a class of 125 or 150 to the commodities being shipped with their associated tariff rates.  Most carriers use the 750 cubic feet as the threshold, but not all. 

This week we wanted to clarify what to watch for with Cubic Capacity by providing an example from XPO:


XPO is now enforcing their standard cubic capacity rules on all tariffs. What this means is that shipments requiring 350 cubic ft. or more of the trailer with an average density of less than 3 pcf will have the weight calculated differently then what the actual weight is.

Yes that is correct, the actual weight will not matter!

350 cubic ft. of the trailer equates to approximately 5.46 linear ft. of the trailer so you can see that we are severely limited on the amount of skids of LTL we can ship when the density is below 3 pcf.

As an example, for two pallets of LTL, cubic capacity would be calculated as follows.  Please note that the carrier uses the actual height (96”) of the trailer when they look at the cubic capacity of the shipment, not the actual height that the shipment might be:

One skid = (40” x 43” x 96”) / 1726 cubic inches per cubic ft. = 95.67 cubic ft. x two skids = 193.34 cubic ft.

You can see that this falls way under the 350 cubic ft. rule so we are safe to ship this with XPO.

However, if you want to ship 4 skids, the cube of the shipment is now double at 386.68 cubic ft. which is outside of the cubic capacity limit. The only way you could ship this as an LTL shipment is if the density of the shipment was greater than 3 pcf.

Four skids with a total weight of 500 lbs., the density would be the 500 lbs. / 386.68 cubic ft. = 1.3 pcf. 

If we shipped this LTL, we would be hit with the cubic capacity rule and our cost would skyrocket.

Four skids would have to have a total weight of 1161 lbs. or greater for us to be able to ship them as a standard LTL shipment with no problems. 1161 lbs./386.68 = 3.0 pcf.
 
Below is the actual excerpt from the XPO rules tariff:

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Training Tuesday:Tailoring Your Sales Presentation

Be sure to focus your presentation – but only after you spend a considerable amount of time on the fact-finding and consultative selling components of the sales process. Thorough research and questioning should give you an idea of your prospect’s logistic problems and the solutions you can provide. Tailor your presentation to suit each individual company and focus your presentation on the benefits—not features, that you can offer. Before making the presentation ask yourself: what kind of presentation will convince the prospect to buy (analytical? logical? emotional?), then model your presentation to match them.

Know your audience. Take the time to make sure that all the important decision-makers are in attendance. When possible, be sure to include the traffic manager, purchasing manager, maintenance supervisor, VP of sales, and anybody else involved in the final decision. Include the CEO or President of the company whenever possible. Be sure you know their level of expertise about the transportation industry, your company, and their company’s shipping needs. This allows you to use terminology appropriate to the attendees’ knowledge of the transportation industry.

If you’re using printed presentation materials, make sure you have a packet or folder for everyone who will be in attendance. A printed packet can be very helpful as a selling device because it gives some tangible representation of the intangible services you are selling.

Even in your sales presentation you must remember to be a good listener. Being a good listener generates confidence and demonstrates sincerity in your desire to understand the prospect’s needs. During the fact-finding session, let the prospect talk as long as they want. It’s simply a matter of respect for the other person to let him have his say. Unfortunately, too many transportation salespeople forget to extend this basic courtesy during their sales presentation. Listening can’t be emphasized enough.

Most salespeople who are successful in our industry are strong supporters of concept selling. Consequently, each devotes a major portion of their presentation to securing agreement on the need that their particular transportation solution fills before specifically focusing on the nuts and bolts of how they move the prospect’s freight. We sell an intangible service, so we can’t actually give a demonstration (you can’t physically take the prospect along with their shipment on a truck from their dock to the consignees dock – you can only describe what happens). The product we sell is nothing more than a promise – a commitment to the customer to move his or her freight when we said we would, at a reasonable price, with no damage.

Psychologically, the most memorable parts of sales presentations are the beginning and the end, so they deserve special attention. Engage the prospect from the beginning and get to the point quickly with an imaginative opening that showcases the most important benefits of using your services. Use your conclusion to summarize the key points of your presentation. As you plan it, ask yourself what lasting impressions you want to leave your prospect with when you finish.

“It’s not your customer’s job to remember you. It’s your responsibility to make sure they don’t forget you.”

– Patricia Fripp

Practice, practice, practice. Increase your odds of closing more sales by practicing your presentations. After you’ve made sales presentations, they become practice sessions for presentations you’ll give in the future.

Collect the ideas you’d like to suggest or selling points you want to make; then organize them according to your purpose and the needs of your prospect. Give your words greater credibility by backing them up with data or testimonials. Keep your words as simple and direct as possible; use active, not passive language; and vary your tone, volume and pitch to keep the prospect interested. Illustrate your words with examples and interesting stories to add color to your presentation.

Make sure the prospect realizes that you’re an expert. When you demonstrate how much you know about your industry, you’ll gain the respect of your customers and prospects. When people believe they’re dealing with an expert it’s a lot easier to close the sale. Most customers want you to advise them. When they realize that you have a great knowledge of the transportation industry and of available carriers, then they’re happy to let you take control. You become their consultant. It’s when a salesperson doesn’t know as much about the transportation industry as his or her prospect that people resent a strong sales presentation. However, there’s no doubt that traffic and purchasing people are better informed today than they’ve ever been.

The best way to make a compelling sales presentation is by demonstrating that you’re an expert in your business as well as his. When you exemplify excellence in your sales presentation, the customer is eager to find out what you can do to offer solutions to his or her particular transportation problems.

To make the best presentation possible, you must have conviction in the services you’re there to sell. A customer instinctively knows whether you believe in your service. If you do, they in turn will believe in you. Only then can you make a sales presentation that turns into a sale every time.

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SunteckTTS AnnouncesKey Employee Promotions

September 16, 2019 – Jacksonville, Fla. – SunteckTTS, a leading provider of agent‐based, multi‐modal transportation solutions, recently promoted two key employees. Justin Israelite has been promoted to Vice President of Corporate Operations, and Robert Jernigan has been promoted to Vice President of Agent Operations.

“Justin has played a key role in helping drive SunteckTTS’ record growth and position the company as a market leader in servicing large enterprise shippers,” said Dave Dallas, CMO and President of Brokerage at SunteckTTS. “He brings 15 years of leadership skills and transportation knowledge that will help drive company growth in the future.”

Prior to being named VP of Corporate Operations, Israelite started with TTS in March of 2014 as General Manager. Earlier in his career, he held a variety of positions at CH Robinson.

As VP of Corporate Operations, Justin Israelite is responsible for corporate freight operations, as well as future development initiatives. With over 15 years of experience in the industry, and during his years with SunteckTTS, Israelite has already achieved great things and helped to grow the company’s corporate freight operations. The role is based in the SunteckTTS satellite office in Stratham, New Hampshire.

“I am excited to be promoted to VP Corporate Operations ,” said Israelite. “I look forward to building on our current success by providing the best solutions for our customers, building strong carrier partnerships and making SunteckTTS the best place to call home for employees and agents alike.”

Robert Jernigan joined SunteckTTS as Director of Business Development and Agent Operations in May of 2016. As VP of Agent Operations, Jernigan will be responsible for managing all aspects of corporate support of brokerage agent operations and sales, and future brokerage development initiatives. Robert brings over 20 years of transportation industry experience to his new role. The position is based at the SunteckTTS Corporate headquarters in Jacksonville, FL.

“Robert has made strong improvements in processes and execution in our Brokerage division and has been an instrumental member of the team to help grow Brokerage by record numbers,” said Dave Dallas, CMO and President of Brokerage at SunteckTTS. “His work ethic has proven to foster strong freight agent partnerships.”

“I am proud to be a part of one of the most rapidly growing companies in the industry. Our network of agents are the driving force behind that growth,” said Jernigan. “In my newly expanded role, I look forward to supporting and impacting our agent family by driving initiatives and strategies that allow them to be more effective and efficient.   

“Justin and Robert have both been incredible assets to SunteckTTS in their current roles, helping drive record growth, and I know they will continue to make great strides in their new positions,” said Ken Forster, CEO at SunteckTTS.

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LTL 101:Volume vs Standard Loads

We have great rate engines in place to obtain quotes on standard LTL moves, but do you know when not to use a rate engine?  LTL carriers will impose limits within their tariffs (that vary with every carrier) to limit moving shipments that are too large for their network. Some carriers structure their operations to carry volume LTL shipments while others do not. Volume quotes, also known as Spot quotes, should be obtained based on the below in order for you to get the most economical rate.  

Single shipments with standard size pallets (48x40x48) that are stackable:

  • 1 – 8 pallets is best for standard LTL quotes (unless the weight exceeds 8,000 lbs., then pursue a volume LTL quote)
  • 9 – 10 pallets pursue a volume LTL quote or a partial TL quote
  • 11+ pallets pursue a volume LTL, partial TL, or even a TL quote 

LTL carriers will rate any single shipment up to 19,999 lbs. as LTL but it will be costly:

  • 8,000 – 10,000 lbs. shipments could be considered as partial TL’s and quoted accordingly
  • Excess of 10,000 lbs. shipments should always be quoted with volume LTL, partial TL, and TL to obtain the most economical rate

Odd size or non-stackable pallets:

  • 1 – 4 pallets is best for LTL (unless the weight exceeds 8,000 lbs., then pursue a volume LTL quote)
  • 5 – 10 pallets, pursue a volume LTL or a partial TL quote
  • 11+ pallets should always be quoted with volume LTL, partial TL, and TL to obtain the most economical rate
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Training Tuesday:Improving First Impressions

The initial approach to a prospect is the most crucial part of the sales presentation. All the selling skills in the world won’t matter if you don’t get your foot in the door. If you don’t handle the situation correctly, the first impression can be the only impression!

Up front, state your name, the company you represent and the services you’re there to sell. Try not to beat around the bush – make a strong statement like, “I’d like to share an idea with you. I’m in the transportation business. I’m assuming that you’re always looking for ideas that will help your company ship or receive goods in a way that will make your company more efficient, more service driven, and more profitable. I’d like to run some ideas by you.”

This statement is a big attention-getter and opens the door. It creates immediate interest. Of course, you then have to substantiate your statement with an excellent sales presentation.

Early in your initial meeting be sure to mention the names of several of your satisfied customers. This is done to establish credibility. It lets the prospect know that your solutions have benefited leading logistic decision-makers that came to the well-informed decision to trust you and your ideas. Make it a point to discuss other customers in their industry who are working in similar environments. When you speak about familiar customers who have found the solutions to similar shipping problems through your services, you’ll get the prospect’s immediate attention.

If you know beforehand that the prospect knows little about your company and nothing about yourself, it can pay off to send a short bio-sketch and a few magazine and newspaper articles that have featured your company. Providing something tangible to the prospect can add a new dimension to the relationship.

There are too many freight sales reps in the U.S. today to even come up with an accurate number. I think it’s important for your prospect to know about your qualifications. Tell the prospect about yourself. No grandstanding or patting yourself on the back, just an informative look at your career and the customers you’ve helped. It lets the prospect know that he’s dealing with a professional. It tells him that he’s not dealing with the run-of-the-mill freight rep. In the transportation business there are two kinds of sales people: those who add value to the client’s traffic department, and those who seem to mishandle every shipment or transaction their company is involved with (late, damaged, billed incorrectly, etc.). Let the customer know early on that you fall into the first category.

Of course, when the moment of truth arrives, you’ll have to find the best way to make a good first impression. Take into consideration the particular dynamics of your prospect’s age, position, and gender in comparison with your own. Accommodate and welcome the differences.

Every prospect will react differently to what you have to say. Some prospects will give you all the time in the world, while others believe making time for a ten minute meeting threatens a crisis. Some are skeptical, while others are freethinkers who pride themselves on being open to new ideas. The point is you can’t win everyone over with a single script designed to handle the first few minutes.

Usually there is an advantage to begin an exchange by focusing on your own observations and experiences. Doing so takes some of the pressure off of the prospect, who’ll be expecting you to try to “draw him out.”

You can always find something that will serve as a positive conversational starting point that has to do with the way your prospect has chosen to decorate his or her surroundings. It may sound corny, but it’s a fact, people say a lot about themselves in the way they decorate their offices.

First impressions are lasting impressions. By using the advice in this chapter you‘ll put the customer at ease and give them confidence in your ability to handle their demanding logistic needs. In the process, you’ll develop a lot of new customers and lasting friendships.

“The better your relationships the shorter your sales cycle and the more money you will make.”

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