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Tag: FREIGHT

LTL 101:Dealing with Damaged Freight 

Posted 5 years ago

Damaged freight is an unavoidable part of transporting freight, and while frustrating and challenging, there are things you can do to help mitigate the loss. Check out our tips on dealing with damaged freight below.

1: What do I do when I receive damaged freight?

Sign the delivery receipt as damaged… I repeat, SIGN THE DELIVERY RECEIPT AS DAMAGED!  If the receipt is signed as “clear”, it is almost guaranteed that your freight claim amount will be reduced to a settlement, or worse, denied altogether.

Below are a couple things to remember when signing for damages:

  • Notate all damages – If only one item is noted as damaged, more than likely the carrier will only refund that one item
  • “Subject to Inspection” is NOT a valid notation – This notation is not enough to hold the carrier liable.  When in doubt, notate “Damaged.”
  • If you must, refuse the freight – In cases where the driver will not let you sign or check for damages, refuse the freight.

2: Does the carrier need to be notified?

In short, yes, the carrier needs to be notified. Proper notations on the delivery receipt constitute as notifying the carrier.  If damages are noticed after the delivery, the carrier should be notified ASAP, and MUST be within 15 days of the delivery.  In most cases, any damaged shipment where the carrier was notified later than 15 days after delivery will be immediately denied by the carrier.

3: What do I need to file a damage freight claim?

When filing a freight claim, the more documentation, the better.  However, there are a few key documents that you should include with every freight claim.

  • Completed freight claim form
  • Product invoice/sales invoice
  • Proof of delivery/delivery receipt
  • Original Bill of Lading
  • Carrier freight bill (for freight charges)
  • Repair cost invoice (if applicable)

4: What should I do with the damaged freight?

Through every freight claims process, the freight needs to be available for the carrier, usually for inspection or salvage pickup.  This means the freight needs to be held onto until the freight claim is resolved.  DO NOT throw away the freight, including the packaging as this could result in the carrier denying the freight claim.

Your options are as follows:

  • The consignee can accept the freight and sign the POD as damaged/short and hold the freight until the freight claim is resolved
  • The consignee can refuse the freight and have it shipped back to the shipper (usually Free Astray) where the shipper will hold the freight until the freight claim is resolved
  • In some rare cases, carriers will dispose of the freight themselves if given the okay by the customer due to a complete loss of the product.
  • The carrier WILL NOT hold onto the damaged freight during the freight claims process and storage charges will accrue if disposition is not given to the carrier in a timely manner.
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LTL 101:Freight Classifications

Posted 5 years ago

It is VERY important you understand freight class. If you incorrectly classify your item to be shipped it can be reclassified by the freight carrier. Disputing this is difficult, time consuming and you will be charged the difference (usually without a discount).

The National Motor Freight Classification® (NMFC®) is a standard that provides a comparison of commodities moving in interstate, intrastate and foreign commerce. Commodities are grouped into one of 18 classes—from a low of class 50 to a high of class 500—based on an evaluation of four transportation characteristics: density, stow-ability, handling, and liability. Together, these characteristics establish a commodity’s “transportability.”
 
By analyzing commodities on the basis of the four transportation characteristics and ONLY on the basis of those characteristics, the NMFC provides both carriers and shippers with a standard NMFC number or code by which to begin negotiations and greatly simplifies the comparative evaluation of the many thousands of products moving in today’s competitive marketplace.

If you don’t have an NMFC number/code listed on your BOL, there is a good possibility that your freight will be reclassified. Some carriers will assign an arbitrary class if there is no code listed on the BOL, often outlined in a carrier’s rules tariff. This, along with the proper code, will greatly reduce the possibility of additional reclass charges.

Don’t forget we are participants of the National Motor Freight Traffic Association which means we have access to multiple ways of obtaining the correct NMFC number/code for your shipments. If you have any questions or doubts regarding your product’s freight class, please reach out to the LTL Team.

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Training Tuesday:Consistency

Posted 5 years ago

There are a million sales tips and “tricks” out there designed to help you become a better salesperson, but you may find the biggest key to long term success is consistency. You must be consistent – create a routine of practicing your sales presentation, prospecting, maintaining relationships with existing clients, and pitching to potential customers. If you do not do these things regularly, you can’t guarantee that you will have reliable sales numbers.

If you can consistently practice your sales presentation, you can make the presentation itself more consistent based on what works in real sales situations and you can continue to fine tune it. If you don’t practice and instead rely on charisma and “winging it,” you cannot necessarily reproduce an effective sales pitch. Without a dependable sales presentation, the level of success you can expect from a prospect in a sales interaction varies widely.

Having a steady sales pipeline also relies on consistent prospecting and interactions with existing customers. If you don’t spend ample time each day or week prospecting, it doesn’t matter how stellar your sales presentation is, because you won’t have a potential customer to share it with. You must also maintain relationships with your existing customers, both to help prevent them from leaving for the competition and to increase your chances of successful referrals to their contacts who may need your services.

Consistency is key – that may be a cliché, but it certainly applies to sales. It is crucial that you put in reliable work and effort in order to create and maintain a steady rate of sales success.

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LTL 101:Unexpected Charges for LTL Loads

Posted 5 years ago

It is important to educate shippers and consignees so they know what to expect at the time of pick-up and delivery, but it is equally as important to remind them of potential unexpected charges and things to watch out for when shipping an LTL load.

Did you know that many customers get invoiced at a much higher rate due to their shipments being “hit” with Cubic Capacity, Exceeds Linear Feet, or Oversize Dims? All three of these things are different and very expensive so pay close attention to what your customer is shipping.

Cubic Capacity
This is when a shipment is greater than 750 cubic feet and an average density of 6 or less (some carriers are 4 or less).

  • Example of a Cubic Capacity load:
    • 6 Pallets at 2600 lbs., each pallet is 48x48x55, cubic feet is 768, and the density is only 5.91
  • This shipment would get “hit” with cubic capacity without a quote.

Linear Foot Rule
Each carrier has their own version of the linear foot rule. If your shipment equals more than the LTL linear foot rule for that carrier then it will get “hit” with the “exceeds linear feet” fee.

  • Example of Linear Foot load:
    • 5 pallets at 5000 lbs., each pallet is 49x49x50, and because the pallets cannot be placed side by side this shipment takes up a little more than 20’ of space

Oversize
Each carrier has an over dimension rule; most LTL carriers are 12′. The oversize accessorial should be applied to any shipment 12’ or more. You can find the “Linear Foot Rule” for most carriers by looking at their carrier tariff on their websites.

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Community Involvement:Proud Corporate Partner of Truckers Against Trafficking

Posted 5 years ago

SunteckTTS is proud to be a corporate partner of Truckers Against Trafficking (TAT), an organization that proactively trains truck drivers to help spot, stop, and prevent human trafficking.

Human trafficking is defined as recruiting, holding or transporting people into a “situation of exploitation through the use of violence, deception, or coercion and forced to work against their will”. Victims of human trafficking include men, women, and children, who are involuntarily used for labor or sex work.

Those who are victims of trafficking are often drugged, coerced, or physically forced to participate in unsafe and illegal activities, which can create a cycle of fear, dependence, and violence that can be almost impossible to escape from without assistance.

We are proud to be a sponsor for an organization that is working to help reduce human trafficking through a national program for education and empowerment of those in a unique position to help those who have been trafficked. Truckers Against Trafficking works to educate members of a group that is often exposed to victims of sex trafficking, and to empower truckers to recognize and report suspicious activity and suspected cases of human trafficking.

The training provided by TAT covers how to recognize possible instances of human trafficking, what action to take, and to whom and how they should report the situations and people they encounter. This training empowers truck drivers to take immediate and concrete action that has, in many situations, led to investigations and convictions of traffickers and the rescue of their victims or intended victims.

About Truckers Against Trafficking

Truckers Against Trafficking (TAT) is a 501(c)3 non-profit that exists to educate, equip, empower and mobilize members of the trucking and busing industries to combat human trafficking. You can read more about the TAT mission at www.truckersagainsttrafficking.org

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LTL 101:Pick-Up and Delivery Tips

Posted 5 years ago

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 an 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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Training Tuesday:Problem Solving

Posted 5 years ago

Being able to solve problems for your customers is one of the most important skills you can have as a sales person. Solving problems will require time, thought, and individual attention, but once you have a set of skills in place, you can begin to handle problems quickly, easily, and consistently.

The first step should always be to actively listen to what they’re saying. If you don’t understand the question the customer is asking, how can you expect to provide a helpful solution or answer? You should make every effort to clarify their question, problem, or objection before you even start to formulate a solution. In the clarification process, hopefully your prospect or customer will give you additional details that can help you solve their problem.

After you have defined the problem, you can begin to brainstorm solutions and identify options. Once you have a list of options, you’re better equipped to determine what will actually work for a particular customer and situation.

After you’ve come up with a viable solution, you should answer the question head on, honestly, simply, and succinctly. Present the solution and then, if accepted, implement it efficiently.

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LTL 101:Educating Consignees

Posted 5 years ago

It is very important to educate your consignee BEFORE the freight is delivered about what the process will be like. Will they need a liftgate? Will the driver be helping unload the freight in any form or manner? By asking these questions in advance, and by making sure that the consignee and you are on the same page, you can minimize additional charges on your invoice.

On the delivery receipt/proof of delivery (POD), issues should be notated if you suspect that the value of the product has been compromised. Make sure to notate any damage to the packaging, and/or missing product. Having these notes on the POD makes it easier to file a freight claim with the carrier. Claims can take quite a long time so anything that you can do upfront saves time down the road.

Another tactic you can take is to refuse the shipment upon delivery if damage is present. Refusing a shipment means that the consignee does not accept the freight in the condition presented – meaning you will eventually file a damage claim. This will alert the carrier that something is wrong with the shipment and that they should get in touch with the appropriate party. Make sure you use this tactic responsibly, because if a shipment is not damaged the carrier can actually tack on a redelivery fee. Yikes!  

Five of the most common additional services on a POD include:

  1. Lift Gate – Hydraulic lift on the rear of a truck used to assist in the unloading of freight.
  2. Inside Delivery – The driver is only responsible for moving the freight off the truck. If the driver helps move the freight more than a few feet away from the truck, even if it’s not “inside,” then an Inside Delivery fee may apply. Be very careful with this one because the terminology can be misleading and it varies by carrier.
  3. Limited Access (Residential) – This is up to the carrier’s discretion, however, there are locations that will always be deemed limited access. If a business is run from a home, or is in a residential area, carriers may charge this fee.
  4. Sort/Segregate – Certain locations may require a carrier to sort and segregate a shipment. This is additional handling beyond the normal duties of a driver that will incur additional fee(s). This charge is especially prevalent in grocery stores or distribution centers.
  5. Detention – With most LTL carriers, the first 30 minutes from when the driver arrives are free. Any additional time is subject to an additional detention fee. Again, the length of this “free time” as well as the charge for it varies by carrier.

So the next time you sign a POD when receiving your shipment, be sure to review it and see if any additional services listed are being used. If a service is pre-printed on the POD, then the need for this service was most likely known in advance. However, if the driver marks that an additional service was performed, then there will be an additional charge. In some cases, it may be good practice to have your consignee obtain a copy of the POD themselves.

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LTL 101:Reconsignment and Fees

Posted 5 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. This charge 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 be made by the shipper or paying party always.
  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, who 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:Drop Trailers Overview

Posted 6 years ago

From time to time you may run into a drop trailer with one of your LTL shipments.

A drop trailer is a trailer that is left at a location for an indeterminate amount of time. It’s “dropped,” and picked up later. Most of the time, a drop trailer is used at locations that ship or receive often enough to fill up or unload a full trailer in a week or even a day, depending on production. The location doesn’t matter as much as the amount of freight that is moving in or out of the specified location and the agreement in place with each LTL carrier.

Think about it like this: Let’s say you have a shipment going to a warehouse that multiple manufactures ship to as well. This warehouse has pre-established relationships with a handful of LTL carriers. In order to save time and money they will consolidate and reduce traffic flow to their receiving docks by collaborating with LTL carriers and advise them to only “drop” a trailer at their location when the LTL carrier has a full trailer. This could potentially delay your expected delivery date.

There are numerous ways in which the LTL carriers can handle a drop trailer situation, but the main thing to keep in mind is that your shipment may not deliver on time due to it being a drop trailer which may also change the way in which the PODs are received from the consignee. Due to the nature of drop trailers, PODs are usually handled differently and will almost always take longer to receive considering the consignee is unloading a full trailer of shipments from multiple shippers.

Though the use of drop trailers isn’t exactly common, it’s not something to be afraid of when it comes to your LTL shipments. A little understanding goes a long way. Here are some things to keep in mind when dealing with drop trailers:

Drop trailers can sometimes lead to delays. Before you panic about delays, remember that the manufacturer is often very aware a drop trailer is being used, and so should the buyer. Don’t be afraid to ask if the shipper or consignee have any drop trailer processes in place so you can educate your customer as well. Most drop trailer situations do not revolve around freight that is time-sensitive. If your freight is on a tight schedule, make sure to use a different carrier.

Not all carriers do drop trailers. Just because one carrier uses a drop trailer at a certain location doesn’t mean that EVERY carrier uses a drop trailer there. Trailers belong to carriers, so if you can’t afford to have a drop trailer on a shipment, simply look at using a different carrier. It may not be the cheapest of the bunch, but there will always be options available.

Stay away from perishables. For obvious reasons, if you’re shipping perishable items, make sure you’re not dealing with drop trailers.

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