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LTL 101:Reconsignment

Posted 6 years ago

Reconsignment – Here’s a shipping term that you might be familiar with if you’ve ever had a change of plans with your freight. A reconsignment happens when freight that is already in transit is re-directed from one delivery location to another. The charges associated with this can vary based on how far apart the delivery locations are. For instance, if the new location is just down the street, the charge will probably be minimal. However, if freight was heading to California and is being reconsigned to Florida, you will be in for a hefty reconsignment fee.

We get a lot of groans when we have to quote people for the cost of a reconsignment so we wanted to highlight the process so you can educate your customers as well:

1.We have to send written authorization to make the change to the carrier. A Bill of Lading is a legal contract, so any changes made must be in writing. Authorization must always be made by the shipper or paying party.

2.The carrier will enter the information into their online system and image your authorization.

3.A rating analyst reviews the request, verifies that we have authorization to make the change, and completes the request.

4. Notification is sent to the terminal who currently has, or if it is in transit, will have the freight.

5.New labels have to be generated and put on the freight.

Typically, your charges end up being broken down into the cost from origin to reconsignment point, and reconsignment point to new destination, and fees for marking and tagging of the freight. If your freight has to backtrack, you will pay for every mile it has traveled.

GREAT EXAMPLE: If it was originally to go from NY to CA, but then once it reached Chicago you turned it back around to PA, you are paying NY to Chicago and Chicago to PA, not just NY to PA.

Important points to note as well:

  • If you are not the shipper or paying party, you cannot use your authorization to make changes to the BOL.
  • If your name doesn’t appear anywhere on the BOL, see #1 above.
  • If the driver arrives and you say that it needs to go to a different address across town, this constitutes both reconsignment AND redelivery. And it can’t be done without authorization, as above.

This process actually represents a significant amount of labor time and fuel. Even a local reconsignment (change in address within a local terminal service area) requires these steps.

All carriers want to make money on this deal. Nothing is done at cost. But time is money, and the cheapest option is to always do it right the first time.

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LTL 101:Shipping Hazardous Materials

Posted 6 years ago

The U. S. Department of Transportation (DOT) has specific rules for shipping hazardous materials. SunteckTTS can help you determine the DOT hazardous class for your shipment and find contract freight carriers that meet DOT safety and transportation requirements.

Hazardous materials are defined by the U. S. Department of Transportation in accordance with the Federal Hazardous Material Law regulations. A DOT hazardous material classification is applied if a material, in a particular amount and form, poses an unreasonable risk to health, safety or property.

Below is the list of DOT hazard classes:

DOT Hazard Class 1: Explosives.

Division 1.1: Explosives with a mass explosion hazard
Division 1.2: Explosives with a projection hazard
Division 1.3: Explosives with predominantly a fire hazard
Division 1.4: Explosives with no significant blast hazard
Division 1.5: Very insensitive explosives
Division 1.6: Extremely insensitive explosive articles

DOT Hazard Class 2: Gases.

Division 2.1: Flammable gases
Division 2.2: Non-flammable gases
Division 2.3: Poison gases
Division 2.4: Corrosive gases

DOT Hazard Class 3: Flammable liquids.

Division 3.1: Flashpoint below -18°C(0°F)
Division 3.2: Flashpoint below -18°C and above, but less than 23°C(73°F)
Division 3.3: Flashpoint 23°C and up to 61°C(141°F)

DOT Hazard Class 4: Flammable solids, spontaneously combustible materials, and materials that are dangerous when wet.

Division 4.1: Flammable solids
Division 4.2: Spontaneously combustible materials
Division 4.3: Materials that are dangerous when wet

DOT Hazard Class 5: Oxidizers and organic peroxides.

Division 5.1: Oxidizers
Division 5.2: Organic peroxides

DOT Hazard Class 6: Poisons and etiologic materials.

Division 6.1: Poisonous materials
Division 6.2: Etiologic (infectious) materials

DOT Hazard Class 7: Radioactive material.

Any material, or combination of materials, that spontaneously gives off ionizing radiation. It has a specific activity greater than 0.002 microcopies per gram.

DOT Hazard Class 8: Corrosives.

A material, liquid or solid, that causes visible destruction or irreversible alteration to human skin or a liquid that has a severe corrosion rate on steel or aluminum.

DOT Hazard Class 9: Miscellaneous dangerous substances and articles.

A material that presents a hazard during transport, but which is not included in another hazardous freight classification.

ORM-D: Other regulated material.

A material that, although otherwise subjected to regulations, presents a limited hazard during transportation due to its form, quantity and packaging.

 

In order to avoid any issues while booking HAZMAT loads please contact your local SunteckTTS agent so that they can insure your BOL is set up correctly and you have classified your hazardous materials properly with the correct UN Number, Shipping Name, Description, Group, Class and Placard Type.

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Training Tuesday– Tips for Phone Calls & Voicemail

Posted 6 years ago

You can use the same tools when leaving a message as you do when speaking with a live gatekeeper: be aggressive, assume control, sound important, and be confident.

Here are some tips that will help you be an effective communicator on the phone or through voicemail:

  • Be clear and clever. Make sure you sound enthusiastic and authoritative on your business and theirs.
  • Being an effective communicator on the phone or in a voicemail is a skill that takes practice. Be sure to speak slowly and distinctly enough to be clearly understood.
  • Make your message short. Time is valuable. Give the prospect the headlines instead of the entire story, until you’ve grabbed their attention.
  • Smile with your voice. A friendly voice will hold your prospect’s interest. Prospects like to buy from people they’re comfortable with so be sure to project your friendliness over the phone.
  • Be an energetic speaker. This expresses your enthusiasm for your job and your product.
  • Make it clear that you’re not calling to make an immediate sale, rather to make a scheduled time for the call because you understand that their time is valuable. This also implies that you are busy helping other clients, which in turn translates to a perception that you’re successful.
  • Listen attentively. No one appreciates being interrupted. Sometimes the prospect will give you useful information that you can use during a face-to-face appointment, or a follow up phone call. Be sure to take notes.

Connecting with a prospect over the phone or through their voicemail can be frustrating, but it is also a very effective way to start the sales process. With the tips above, you’ll be on your way to being a better phone communicator.

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Training Tuesday:Closing Techniques – Part 2

Posted 6 years ago

Last week we mentioned 5 of our top 9 closing techniques you should try on your next sales calls. This week we’re addressing 4 more methods for confirming sales.

6.The “Testimonial” Close

To build credibility and reassure the prospect that they’re making a wise decision, tell them about success others have had in working with you.

7.The “All That” Close

To use the “all that” close, simply reiterate the client’s needs and wants, and how your service satisfies them: “From what you’ve told me, you want this and you need this, we can do all that.”

8.The “Ben Franklin” Close

Since we can’t offer perfect service all the time, it’s often difficult to overcome every one of the buyer’s objections. When an unanswered objection stands between you and a sale, make a list of benefits versus objections (just be sure that the benefits far outweigh the objections), and present them to your buyer and say, “As you can see, the reasons for buying far outnumber the reasons against.”

9.The “Reverse” Close

The reverse close turns the prospects’ reasons why they shouldn’t buy into reasons why they should buy. When your prospect voices an objection, think of a benefit to that objection: “that’s the reason why you should use us.”

 

The more closes you know, the better prepared you’ll be to face that moment of truth at the end of your presentation. With so many effective ways to confirm a sale, odds are, you’ll be able to confirm a sell on your very next call.

It’s no secret why you’re making the call in the first place. And it’s no secret why your prospect is listening.  They know you’re there for the purpose of selling them your services.

Be a closer (or confirmer). Your main objective is to get new business. At the end of the presentation, a real sales professional will confirm with their prospect that they’ve done a good job, and that confirmation will come in the form of a sale.

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LTL 101:Cubic Capacity

Posted 6 years ago

Do you know how cubic capacity can affect your shipments?

Almost every LTL carrier 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:10 Tips for Helping Dissatisfied Customers

Posted 6 years ago

Even the best company, with the best service, will occasionally make mistakes. What matters most is how you handle the situation when issues arise. We’ve included our top 10 tips to best help a dissatisfied customer.

1.Inform the customer as soon as you can – they’re going to find out one way or another – and no news travels as swiftly as bad news. Contacting them first allows you the opportunity to set the tone and break the bad news in the most productive way possible.

2.Get to the point quickly. Don’t draw out the inevitable.

3.If your customer approaches you with a complaint, don’t interrupt. Don’t become defensive or make judgement until you’ve heard all the facts as the customer sees them.

4.Take complaints seriously, even if they seem trivial to you. Remember that problems exist when a customer perceives they exist.

5.Apologize sincerely.

6.Avoid playing the “blame game,” instead focus on fixing the problem. The customer has already decided to blame you and your company, so take responsibility for the problem and solve it.

7.Let your customer suggest solutions or alternatives. Find out their expectations for a solution and follow that if it is reasonable.

8.Do something extra. Recognize the inconvenience caused by the problem and acknowledge that.

9.Listen to your customer, trust their sincerity, and empathize with them.

10.Follow up. After you’ve done everything you can to remedy the situation, follow up with the customer and make sure they are truly satisfied.

 

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LTL 101:Volume Rates

Posted 6 years ago

Last Blog highlighted some Pick-Up and Delivery Tips. This week discusses the difference between Volume and Standard LTL moves.

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: pursue a 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 Truckload (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: pursue a standard LTL quote (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: always pursue volume LTL, partial TL, and TL quotes to obtain the most economical rate
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Training Tuesday:Countering Objections

Posted 6 years ago

If it weren’t for objections, everyone would be in sales. While none of us like objections, we must accept them as part of the business and learn how to overcome them.

Your main goal when faced with an objection is to turn the objection around into a reason to purchase our service. If a prospect raises the ever-popular “the price is too high” objection, counter it by saying “Our prices accurately reflect the value of our services. And good value is important to you, isn’t it?”

Occasionally you’ll run into a prospect in the traffic or purchasing department who is sure they’ve seen everything there is to see. Generally, all this person really wants is attention, and to show you how much they know about your industry. Recognize their expertise and give them all the attention they crave. This is always a better way to handle a tough customer than putting them down.

When possible, let prospects answer their own objections. Sometimes you can stop an objection in its tracks by asking, “Could you tell me why you feel that way?” If the prospect can’t answer, then you and the prospect know the objection has little or no validity. If your prospect does not answer with a more specific objection, you have a chance to eliminate it and move one step closer to the close.

When faced with an objection, first restate the question or statement…

Give the prospect the opportunity to confirm your understanding of the objection, and hopefully they’ll give additional details.

Then, clarify the objection…

Remember this is a conversation between two people, not a contest.

After you’ve restated and clarified the objection, answer it. Answer the objection head on, honestly, simply, succinctly. A direct approach to handling objections guarantees greater sales results.

Buying decisions are risky for your prospects, and objections are the only way they have to help make sure that risk will pay off for them. If you can eliminate their objections, you’ll help provide the reassurance they need to say yes.

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Training Tuesday:Increasing Sales Achievements

Posted 6 years ago

High achievers embrace new experiences more eagerly than average achievers, they leave their comfort zones more willingly, and as a result, become more familiar with the process of growing than others do. They also view the anxiety or pain involved in new challenges as a small price to pay compared to the new levels of success they enjoy in return. High achiever thinking can be learned; however, the process takes time, patience, skillful mentoring, and persistence. Below are some of our suggestions for becoming a “high achiever” in sales.

1.Find role models or mentors to help you grow. There are many more people in high places willing to give advice than there are people actively seeking advice from them. You can find a role model n those you already know or use it as an opportunity to expand your network.

2.Don’t “should” yourself. To practice a new way of thinking, begin by practicing a new way of talking to yourself that puts your thoughts in a psychologically helpful perspective. Don’t personalize or internalize a negative situation by saying that you “should” be doing better, focus instead on what you “could” be doing.

3.Increase your mental “navigation” skills. Begin imagining new possibilities, new ways of acting, new ways of overcoming obstacles or roadblocks. It is important to use imagination constructively so it will enhance your ability to deal with situations.

4.Test the reality of your thinking. Work to put things in perspective and keep unrealistic or overprotective thoughts from getting in the way of your success.

5.Face difficulties and enjoy growth. Accept the fact that in order to grow, we must face difficult experiences. High achievers accept the challenges of growing as necessary and they learn to seek out experiences that enhance their growth.

 

Implement some of these techniques, and you will find yourself growing and achieving more towards your sales goals.

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LTL 101:Pick-Ups and Deliveries

Posted 6 years ago

Last week covered limited access charges and how they can affect your price. This week highlights some Pick-Up and Delivery Tips.

Pick-Ups:

  • Any pick-up (P/U) entered after 2:30 PM local time should be called into the carrier to insure availability, otherwise the request will roll over to the next day
  • Lift Gate P/Us must be called into the carriers because Lift Gates are not readily available at every terminal
  • All Container Freight Stations and Airline P/Us require Delivery Order and Entry paperwork (3416 document), these need to be sent 24 hours in advance because drivers will need these documents in hand prior to P/U
  • P/Us are not Guaranteed
  • All carriers require a 2 hour window for P/Us
  • P/Us are done in the afternoon because drivers have to deliver freight before they can start pickups
    • If your shipper needs an AM P/U it is best practice to call the carrier to set something up which will most likely incur additional charges
  • The shipper must have our system generated BOL to provide to the driver at the time of P/U or our rates will not apply
    • This is not something the carrier will have via our P/U requests in BTMS
  • If a LTL driver needs to reference a P/U number, it is best practice to put that number on the first line of the shipper name. Please see the example below:

ABC Distribution Co > Ref # 123456

4567 Main Street

Anywhere, NY 10014

 

Deliveries: 

  • Transit times and delivery dates are estimations and can be delayed for many reasons
    • Add an additional day if a shipment is interlined
    • Add 2-3 days if a shipment is traveling by rail
  • Stress to your customers, if the shipment must be delivered by a certain date and time, spend the extra money and have a the shipment guaranteed
    • If “Guaranteed” is not on the BOL at time of P/U no adjustments can be made to the invoice
  • Volume Shipments cannot be Expedited or Guaranteed
  •  Re-delivery Rates are based on weight and can get very pricey

 

It is imperative to make sure the consignee is ready to accept the freight so that additional charges are not incurred

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