LTL 101:Educating Consignees

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:Drop Trailers Overview

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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Training Tuesday:Sales Pitching and Silence

Often the most important part of your sales pitch is when you are completely silent. We often rush through all the great benefits of why a customer would buy, without really listening to them tell us what they need and why they might buy from us.

Most people hate mimes. Why do they exist? Are they evil? If a tree falls on a mime does he make a sound? But, silence is the one important sales attribute that mimes demonstrate in abundance. So, on your next sales call, be a mime, at least for part of the call. Silence just may turn out to be the most important piece of the sales puzzle.

Why is it that so many salespeople think they must tell everything they know before allowing the prospect to talk? Why is it that some think the sales process involves a lot of talking when, in reality, the most successful salespeople do more listening than talking? It’s a fact that the more we listen, the more we can learn about our prospects and the easier we can find their “hot buttons.”  It’s not what we say that makes the sale, it’s what we can get the prospect to say.

Begin With Questions

Think about how many times you launch right into your presentation thinking you know what the prospect wants. Sometime later, often too much later, you find you’re on the wrong track. The prospect has an entirely different need – one you might have uncovered by asking open-ended questions that required more than a yes or no response. Then you could have focused on what the customer wanted instead of what you had to sell. Stop thinking so much about what you are going to say and concentrate on what the prospect is telling you.

It’s a paradox: the more we try to tell the prospect up front, the more barriers we create to the purchase. However, the more we listen to why he or she wants to buy, the more we can tailor our delivery to providing very specific information concerning how our product or service fits his or her needs.

Ask More Questions

The opening question is merely the first in a series of questions that guide the dialogue. It’s an approach as old as the art of miming. If we want to involve someone – the first step in convincing that person – every comment we make should end with a question that solicits more information. The person asking questions is the person controlling the direction of the dialogue. The one who is talking is providing information that helps the other adjust the direction.

After you ask a question, however, don’t be too anxious to fill the silence. Let the silence work in your favor. Too often we answer the question for the prospect by jumping in and providing him with an objection:

“Perhaps you don’t like the price,” or, “Maybe you don’t like the resources it would involve.”

Beware of the very real temptation to fill in the silence with a product weakness – the one we are most worried about.

Don’t Rush In With Answers

Salespeople have a terrible tendency to try to get their point in as soon as the customer stops talking. Think about how often you find yourself stepping on your prospect’s last words, rushing in right after the prospect has finished making a point.

Salespeople can break themselves of this self-defeating habit by training themselves to wait several seconds after the customer has stopped talking before they begin. That gives you ample time to think about your response and answer in a way that reflects the customer’s concerns.

Get in the habit of paraphrasing what the prospect has said. This will accomplish two things. One, it reduces the likelihood of misunderstanding what was said, and two, it boosts the prospect’s ego. People like to hear their thoughts repeated – it makes them feel like what they said was important.

Learn to Listen

Don’t listen with just with your ears. Listen with your eyes and your entire body. Use body language that shows you are paying more attention, and your listening habits will automatically improve. Lean forward intently, look the prospect in the eye, and focus on the valuable information you are hearing.

And finally, listen for buying signals. You’ll never notice a buying signal from the customer when you’re doing the talking. Sure, we want to talk so the prospect will learn how smart we are. But the prospect only really knows how smart we are when we’ve “listened” to the information he or she wants to share.

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LTL 101:DOT Hazmat Rules

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:Managing Stress

Training Tuesday: Stress Management to Improve Success

Selling offers more highs and lows than most other professions. Most salespeople suffer through periods of stress that are direct results of their sales jobs, but salespeople who succeed in the long run never let disappointments get the best of them. They know rejection goes with the territory and learn not to take it personally and instead, they view mistakes and failures as lessons that will help them improve. On the other hand, some very promising sales careers have died premature deaths due to stress. Stress sometimes causes sales people to lose confidence and then fill their day with nonessential activities and hide from their customers or prospects. We’re also faced with lots of rejection on our daily search for success. If you dwell on the negatives, they’ll bury you. You have to lighten up and look for ways to lessen the stress caused by your job. The start of the new year is a perfect time to star working on habits that will help you manage stress and increase your success in the coming year.

Below are 10 of our top tips to reduce stress:

1. Focus. Focus on what’s truly stressful to you about a situation and why – the idea being that understanding the stress lessens it and gives you some control over it.

2. Put stressful situations in perspective.

3. Postpone thinking about problems until an appropriate time. Successful people learn how to compartmentalize their thinking.

4. Take a deep breath. Size up stressful situations and decide which are worth worrying about.

5. Take vacations and occasional time off. 

6. Don’t be afraid to laugh at yourself.

7. Talk to others about job pressures.

8. Expect the unexpected. Allow time and reserve energy to deal with the inevitable stressful events that occur daily.

9. Do something for yourself.

10. Volunteer or do something in the community that is rewarding to you.

 

We’ll be addressing some additional tips to manage stress next week!

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LTL 101: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:

rules tarriff
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LTL 101:Limited Access Charges

Limited access charges were created to compensate LTL carriers for additional time spent at your shipment’s pick up or delivery locations and constraints that can result from these specific locations. Limited access is defined as meeting any of the following conditions:

  • Not open to the walk-in public during normal business hours
  • Not having personnel readily available to assist with the delivery or pickup function
  • Not having access to loading dock or platform
  • Sites where carriers are delayed with security related inspections and processes prior to freight tender

Did you know: Some of these high security locations will ask for a driver’s license and drivers have the right to refuse to do so? This causes the carrier to find a driver who is willing to do so, which in turn causes a domino effect or constraint on the daily operations of that particular terminal.

In order to avoid unexpected charges, it is best practice to ask the consignee if they have a dock or way to unload the freight and ask them if they need a liftgate for delivery. Liftgates are commonly associated with limited access and if the consignee advises they don’t need a liftgate, let them know that if the driver offers a liftgate and it is used OR signed for even without being used, there will be an additional fee that will be charged to them.

Limited access fees can be assessed on both commercial and non-commercial delivery sites. Charges and what constitutes as a limited access will vary based on carrier, but here are some of the most common examples:

  • Camps, Carnivals, Fairs
  • Churches, Mosques, Synagogues, Temples
  • Schools (not including colleges and universities)
  • Colleges and Universities without a dock
  • Medical/Urgent care sites without a dock
  • Prisons
  • Individual / Mini Storage Units
  • Mines, Quarries, Natural Gas or Oil Fields
  • Golf Courses, Country Clubs
  • Nuclear Power Plants
  • Military Bases/Installations
  • Parks, Farms and Rural locations
  • Courthouses
  • Daycares
  • Hotels, Motels, Retirement/Nursing Homes
  • Restaurants
  • Cemeteries
  • Convents
  • Amusement Parks
  • Construction Sites
  • Outdoor Flea Markets
Camps, Carnivals, FairsChurches, Mosques, Synagogues, TemplesSchools (not including colleges and universities)Colleges and Universities without a dockMedical/Urgent care sites without a dockPrisonsIndividual / Mini Storage UnitsMines, Quarries, Natural Gas or Oil FieldsGolf Courses, Country ClubsNuclear Power PlantsMilitary Bases/InstallationsParks, Farms and Rural locationsCourthousesDaycaresHotels, Motels, Retirement/Nursing HomesRestaurantsCemeteriesConventsAmusement ParksConstruction SitesOutdoor Flea Markets

Google Maps is a great tool that can be used to help explain whether or not a location has limited access. However, please keep in mind that even though the location is easy to get in and out of, and they may have the necessary equipment to unload, they may still be considered limited access. Some great examples of this are as follows:

  • Farms: While they are easy to get to and have equipment, they usually take the driver off his/her usual route which causes delays for the other shipments on the trailer
  • Mini Storage Units: The driver will have to use a smaller trailer with or without a liftgate and thus make fewer deliveries that day because of the space available on the trailer, so the charges are there to compensate
    • Carriers normally have fewer trailers with liftgates which makes this even more difficult when the volume of limited access or liftgate shipments goes up

Keep in mind: Commercial buildings with docks are normally clustered in the same area, a carrier can easily make multiple pickups or deliveries in a business park in the same time it may take to make one limited access delivery.

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Training Tuesday:Being a Confirmer

Being a successful salesperson requires a lot of practice, being able to envision making a sales call that results in sales success. Confirming the sale requires a lot of confidence and belief that you can make the sale and help the customer. The confidence you demonstrate when talking with a customer about our ability to deliver the service they need has the effect of transferring that confidence to them.

In the transportation industry, a lot of credit is given to a salesperson who is a proven closer. That has always been my reputation – a guy who always asks for the sale and expects the customer to say “YES.” Being known as a “Closer” is a big compliment. The only downside is the negative connotation of being a “closer,” when it is more accurate to call it “confirming the sale.”

Whatever you decide to call it – there’s no magic to confirming the sale. Right from the initial approach to the very end of your presentation, bit by bit, you should be confirming the sale. It’s when you find out if you did your job properly, but by following your instincts and confirming the sale throughout the process then the customer will let you know when it’s time to close the sale.

Closing or confirming the sale should be the most natural thing about selling. It’s the only reason for your job and it should become automatic. Don’t hesitate to ask a shipper for his or her business. The only time you shouldn’t be outwardly confirming the sale is when you’re on the fact-finding call, and even then, there will be a series of opportunities for minor closes that prepare your prospect for your next sales call.

You must have complete confidence in your ability to close the sale, if not, the prospect becomes consumed with doubt. The prospect can sense when it’s time for you to confirm the sale, and it’s up to you to ask for the order. They knew you were a salesperson when they agreed to see you, and if you lack confidence to ask for his business, they’re going to lack confidence in making a decision.

Confirming the sale is simply demonstrating a confidence that you’re ready to provide the prospect with the service they want and need. When the prospect feels comfortable with you in this regard, it’s time to say, “Okay, when are we going to handle your first shipment?”

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LTL 101:Density Based Rules and Price

Density is very important in selecting freight class. One carrier that rates solely on density of an item is Central Transport. Some carriers will rate based on density if the commodities’ National Motor Freight Classification (NMFC) is a density based item. Three carriers that do this are Midwest Motor Express, UPS, and Saia.

With these NMFC density based rating carriers the general rule is anything under 48 inches high will be calculated as 48 inches and anything over 48 inches but under 96 inches will be calculated as 96 inches for density purposes.

Please see the actual wording from one of the carrier’s rules tariff below:

So how could this affect your shipment?

Say you were shipping 1 pallet of sheet steel, or NMFC 175120, which is a density based item.
• The dimensions are 144” L x 45” W x 18” H
• The total weight is 550lbs.
• This equates to 8.1 PCF & Class 100
o In turn, sub 6 would be selected for this NMFC (175120-6)

However, if you change the dimensions based on the carrier’s rules tariff above, you now have the following:
• The dimensions are 144” L x 45” W x 48” H
• The total weight is 550lbs.
• This equates to 3.1 PCF & Class 250
o In turn, sub 3 would be selected for this NMFC (175120-3)

DUE TO THE HIGHER CLASS OF FREIGHT
THE PRICE WILL GO UP SUBSTANTIALLY!

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LTL 101:Delivery Appointments vs Notifications

This blog we will discuss the difference between an appointment and a notify before delivery.

Delivery Appointments:

  • Appointments cannot be set until the freight arrives at the destination terminal.
  • Contact must be made with the consignee to deliver.
    • LTL Carriers will always make appointments, we cannot make the appointments for them. However, if they cannot get a hold of the consignee we may assist them.
    • We can’t stress enough how important it is to contact the consignee even if they are not your customer in order to understand their appointment process.
    • It is best practice to then get with the carrier to insure they are not having trouble setting up an appointment and causing further delays.
      • It is not the carrier’s responsibility to understand every consignee’s appointment process.

A great example of the above is Grocery Warehouses: If the carrier needs to book an appointment online or reference PO#s in order to get the freight delivered then we need to put this info as clear and concise as possible on the BOL. This info must be entered on the “special instructions” section under the carrier tab in BTMS.

  • Appointments can sometimes delay transit by 1-2 days with the freight sitting on the dock.
    • Don’t forget that LTL drivers depart from their terminals early in the morning and if an appointment cannot be set prior to their trailers being loaded, your freight will be left behind.
    • Regardless if “THE FREIGHT MUST DELIVER TODAY” the drivers will not go back to the terminal once they have dispatched for the day.
  • A few things to keep in mind with appointments:
    • Specific delivery windows can cause a driver to take an inefficient route which has a domino effect on all shipments for that day.
    • Some consignees may have Drop Trailer schedules set up with certain carriers.
    • Some consignees may have standing appointments set up with certain carriers.

 

Notify Before Delivery:

  • Your shipment does not have to deliver at a specified time and may arrive any time between the standard LTL hours of 8am and 5pm local time.
  • This is typically used when shipping to residences, storage facilities, or even businesses with limited dock space.
  • Drivers do not call ahead to the shipping location. This is done by a dispatcher or clerk at the destination terminal and sometimes even at the corporate offices of the LTL carrier.
  • This can cause a delay in transit while the freight sits on the dock until the consignee can be notified.
    • Due to the high amount of volume in LTL and depending on the size of the terminal, there could be multiple, even hundreds of shipments that need to be notified for the day.
    • If the consignee cannot be reached on the due date of delivery after multiple attempts, it is highly possible that the freight will be held at the terminal until contact can be made.

 

Remember: If you’re looking to set up a Delivery Appointment you’ll need to select that particular service. But if you’re just looking for a “head’s up,” then Notify Consignee is the accessorial you’re looking for.

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