LTL 101:Confirming BOLs and Avoiding Disputes

Please remember LTL carriers employ “weight & inspection coordinators” whose sole responsibility is to catch the “bad guys” who list an inaccurate weight or class on their BOL?

  • They keep an eye out for any shipments whose description on the BOL doesn’t seem to match up with its appearance.
  • They will physically examine your freight, and if they deem it necessary to inspect the contents or check the weight, they’ll issue an inspection certificate.
  • You will foot the bill for the additional inspection.

It is for this reason we need to make sure our shippers understand the follow:

  • It is imperative to make sure the weight and class on the BOL are accurate.
  • Don’t just guess, and don’t try to be sneaky, either! You can’t classify furniture as lumber, even though it was once lumber… (Yes, believe it or not, people actually do this!)
  • Include the weight of your pallets in the total weight calculation of your shipment.
  • If you forget multiple pallets, they could add up to an additional 500 pounds or more; that’s not just a few pounds off.
  • Most LTL carriers have scales installed right on their forklifts that double-check the weight listed on the BOL automatically.
  • Make sure you are measuring the freight with extreme accuracy (to the nearest inch)
  • Some LTL carriers make it mandatory for drivers to carry a tape measure and measure the freight at the time of pick up.
  • A couple of inches can add up to hundreds of dollars when classifying freight.
  • Shippers who misrepresent freight need to understand carriers are not taking any more chances and the time to do the right thing is now!
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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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Training Tuesday:Dress Rehearsals

Practice is essential to increasing success on sales calls, and one excellent way to practice is to have a “dress rehearsal” with a coworker or trusted peer. There are certain things you can do to make the role-playing situation the most helpful preparation for the sales call.

  • Set a clear objective. Setting a defined objective for what you want to get out of the practice call, what skills you’d like to improve, and what you’ll have as a goal in a similar real call.
  • If you’re role-playing with a mentor, have them model the skills you’d like to work on in that session. You can also try to model the individual skills you’d like to work on, and then practice putting them all together in a full simulated situation.
  • Remove the fear of failure. Role-playing helps remove the fear of failure in the real-life situation by creating a space to practice various techniques. If a method doesn’t work, you can then use the role-play situation to workshop what went wrong and how to change it. This allows you to fail and learn from it without jeopardizing a sale or relationship with a customer.
  • Role playing can also be helpful in the role of observer or customer, because you are able to see how various techniques play out and what it’s like to be on the other side of the sale. It can help you to identify what you’d like change about your current sales presentation – either by offering new techniques to incorporate or showing you what doesn’t work and should be removed.
  • You can also provide and receive open, objective, and constructive feedback from your partner in the role-play exercise. This feedback is an essential part of the process, and a huge benefit of role-playing and “dress rehearsals”
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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:More Tips for Managing Stress

Last week we addressed ten of our top tips for reducing stress and the negative effects that long lasting stress can have on success. Reducing stress is an important life skill involving techniques that take only minutes to learn, but a lifetime to master. This year, make it a point to work on managing your stress in healthy ways.

Below are ten more tips on reducing stress and improving general happiness and success:

11.Figure out the source of your stress. Focus on whether or not it’s your fault and if so, whether there is anything you can do about it.

12.Talk to people who work in similar jobs – it doesn’t necessarily have to be transportation sales, but preferably someone in outside sales.

13.Talk to someone who will help you develop an objective perspective of your situation. It can be someone at work you trust, a friend, or a professional.

14.Find something that makes you laugh. Hold onto it and pull it out when you need a good laugh.

15.Spend more time with people who make you laugh. Get together with co-workers regularly to share funny stories about daily disasters with an eye towards constructive solutions.

16.Smile more. Smiling is a great way to reduce stress and improve confidence and feelings of happiness.

17.Eat healthy. When we’re under stress, our bodies use up nutrients faster and less efficiently than they ordinarily do. Give yourself a boost by opting for healthier foods, increasing intake of vitamins and proteins, and reducing fats, caffeine, and sugar.

18.Stick to a regular sleep schedule.

19.Write down what you expect to accomplish and then get it done.

20.Start your day prepared. If any one factor will relieve more stress than another, it’s preparation.

Embracing even just a few of the ideas that we’ve mentioned is a great way to work towards reduced stress, greater happiness, and improved success.

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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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