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LTL 101:Cubic Capacity

Posted 5 years ago

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

Posted 5 years ago

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

Posted 5 years ago

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

Posted 5 years ago

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

Posted 6 years ago

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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Training Tuesday:First Impressions

Posted 6 years ago

There are too many freight sales reps in the U.S. today to even come up with an accurate number. It is 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 they’re dealing with a professional.

If I know beforehand that the prospect knows little about my company, and nothing about me, I sometimes send over a short bio-sketch and a few magazine or newspaper articles that discuss the company or were written by me. I provide something tangible to the prospect that adds a new dimension to the relationship. Rather than simply sending them a brochure, I personalize it, and at the same time the articles express something about me and my philosophy on transportation.

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 in. 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 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.

Making a first impression requires a bit of work, but it is an essential part of the sales process and worth the effort.

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LTL 101:NMFC Transportability Characteristics

Posted 6 years ago

Remember 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.”

These characteristics can be defined as follows:

  1. Density (Weight, Length, & Height): Density is the space the item occupies in relation to its weight. The density is calculated by dividing the weight of the item in pounds by its volume in cubic feet. Your item’s volume in cubic feet is Length x Width x Height/1,728, where all dimensions are measured in inches. The density of your item = Weight/Volume, where Weight is measured in pounds and Volume is measured in cubic feet.
  2. Stow-ability: Most freight stows well in trucks, trains and boats, but some articles are regulated by the government or carrier policies. Some items cannot be loaded together. Hazardous materials are transported in specific manners. Excessive weight, length or protrusions can make freight impossible to load with other freight. The absence of load-bearing surfaces makes freight impossible to stack. A quantifiable stow-ability classification represents the difficulty in loading and carrying these items.
  3. Handling: Most freight is loaded with mechanical equipment and poses no handling difficulties, but some freight, due to weight, shape, fragility or hazardous properties, requires special attention. A classification that represents ease or difficulty of loading and carrying the freight is assigned to the items.
  4. Liability: Liability is probability of freight theft or damage, or damage to adjacent freight. Perishable cargo or cargo prone to spontaneous combustion or explosion is classified based on liability and assigned a value per pound, which is a fraction of the carrier’s liability. When classification is based on liability, density must also be considered.

Sub-NMFC Codes

Yes, there is more! There are also Sub-NMFC codes which are noted with a dash after the code (i.e. 41024-04). Make sure to confirm that the Sub-NMFC code matches the correct freight class. Carriers sometimes overlook this, but it’s also not uncommon for them to charge you at the higher class; whether it be the class that was listed, or the class corresponding to the Sub-NMFC codes on the BOL. These can often be disputed, but usually require a manufacturer’s specification sheet and a packing list proving the correct class. That’s more work for all parties and can be avoided by simply double-checking to make sure your class and NMFC code match.

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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LTL 101:National Motor Freight Classification

Posted 6 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.

 

Here at SunteckTTS, 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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LTL 101:Restricted Commodities

Posted 6 years ago

Did you know that certain types of commodities cannot be shipped via LTL carriers due to governmental regulations and that LTL carriers can refuse to accept certain items as a matter of company policy? In many cases, the root issue is liability — certain items are too valuable and/or high target items for theft to make them worth the risk to handle and transport.

Items of Extraordinary Value:
Carriers have different policies regarding these items and they may be willing to accept certain items if they have the appropriate insurance coverage and specialize in the transport of valuable merchandise.

Restricted or Prohibited Items:
Another group of items that LTL carriers may refuse to transport are those excluded by government regulations or due to being extremely hazardous in nature. In addition, carriers that lack the proper storage and stowage equipment to maintain the proper temperature will refuse certain items, such as refrigerated items. Finally, certain items (such as canoes) may be prohibited by certain carriers because of their size, shape, difficulty to stow and difficulty to handle.

Do your homework and research LTL carriers carefully!

Restricted Commodities are listed in the Rules Tariffs of each LTL carrier. To give you an example of how complex some of these Restricted Commodities sections are, please visit FedEx’s “Prohibited and Restricted Articles” section of their rules tariff by clicking the link: http://www.fedex.com/us/freight/rulestariff/prohibited_articles.html

Make sure to address specific questions to the carrier you are considering. Within the world of LTL carriers there is a great deal of specialization. For instance, some carriers specialize in the transport of perishable items or hazardous materials. If you have items to transport that fall into both of these categories, you may be forced to hire two separate LTL carriers.

Whatever company you choose to move your hard-to-handle item(s), make sure to do your homework. Make sure you select a freight company with a strong track record, solid liability coverage, and robust maintenance and quality control processes to ensure top performance.

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LTL 101:Billing Accuracy

Posted 6 years ago

Many shippers have expressed concern about accuracy of billing by LTL carriers. Having pushed the LTL carriers to be more vigilant with making corrections for weight and other aspects of shipments for proper revenue capture, SJ Consulting researched the validity of such perception by conducting an extensive survey with several large LTL shippers, 3PLs, and freight audit and pay firms, with particular thanks to Williams & Associates. The freight charges on LTL shipments by these companies exceed $8 billion over a 12­ month period, representing 22 percent of the total industry revenue. For decades, the LTL industry has relied on an honor system for shippers to provide true characteristics of their shipments, required to accurately bill the customers for their shipments.

The survey found range of billing accuracy was 94 to 99 percent depending on the carrier, with the average being 97 percent. The most interesting revelation of the survey was that what shippers perceive as a billing error actually is due to shippers providing an estimated weight or freight class for dimensional attributes of their shipment that are corrected on more shipments as more LTL carriers deploy scales and dimensional machines. Given that about 50% of bills of lading have errors in weight or description of the shipment, it’s no surprise that a correct invoice from a LTL carrier can get perceived as a billing error.

Despite shippers’ perception, the LTL industry has an impressive record in billing accuracy, and it is finally converting rapidly from an honor system.

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