Oversized shipping can take a lot of work. Since oversized shipments require extra handling and planning, it’s easy to run into some challenges with them. In this blog, we’ll cover the top five challenges that come with oversized shipping and solutions, so you’ll know how to overcome them.  

• Oversized Shipping Challenge 1: Late or Lost Freight 
• Oversized Shipping Challenge 2: Meeting Regulations 
• Oversized Shipping Challenge 3: Finding the Right Carrier and Equipment 
• Oversized Shipping Challenge 4: Safety 
• Oversized Shipping Challenge 5: Lack of Communication Among Partners 

Oversized Shipping Challenge 1: Late or Lost Freight 

The construction and manufacturing industry is one that relies on oversized shipping. This industry has tight schedules to meet to keep their projects moving. This is why professionals, such as construction project managers are responsible for coordinating shipments of equipment or material to and from job sites. When planning, transit and arrival times must be clear and transparent to coordinate labor and proper personnel to be onsite when deliveries arrive.  

Because freight must arrive at the right time and place, it’s important not to fall behind or incur additional labor costs. Project managers also often juggle multiple projects, and without the right processes in place, this can become overwhelming. Too often, project managers receive too late notice on delayed freight causing them to have to push back their project schedule. Additionally, at times shipments somehow don’t reach their delivery location or may arrive at the wrong one.  

Your Solution: Use Logistics Technology for Visibility 

Adopting logistics technology will allow you to easily track all your shipments, no matter how many projects you must manage. There are many logistics technologies options you can choose from for visibility. For example, a Transportation Management System allows you to not only receive tracking notifications, but automatically share them with you external partners. Additionally, you can use outside tracking vendors such as Fourkites or TruckerTools. 

While searching for the right technology for your company’s needs can be daunting, consider working with a third-party logistics provider (3PL), like Trinity. It can be less costly to access the technology you need through them, and you’ll have experts on your side to help you. 

Oversized Shipping Challenge 2: Meeting Regulations 

Drivers hauling any load that exceeds legal limits in weight or size MUS get a permit for the state they are traveling through. If an oversized shipment travels through multiple states, that may mean multiple permits, or else it can result in fines.  

Oversized shipments may also require pilot cars and/or police escorts depending on the characteristics of the load and states they travel through. Both permit and escort regulations vary by state, and depending on what is needed, the processing time could take several hours or days to obtain. As a result, planning shipments and making sure guidelines are adhered to can be both frustrating and time-consuming.  

Solution: Simplify your workload by outsourcing 

Take the weight off your shoulders and let someone else handle the logistics. Outsourcing opens up your schedule so you can focus on what you do best. But, don’t just outsource to anyone. Instead, make sure to choose a logistics provider who understands your freight’s regulations and has experience in doing so.   

Oversized Shipping Challenge 3: Finding the Right Carrier and Equipment 

Besides meeting legal regulations, oversized freight needs the right equipment and carrier to move it, at the right price for your budget. Sometimes that can be tough to find on your own, especially when capacity is tight.  

Solution: Make Use of a 3PL’s Network 

What’s another reason to consider outsourcing? Using a 3PL means you’ll have the advantage of their vast carrier network. A 3PL’s sole service is logistics, so they need relationships with carriers to move freight. A quality 3PL will often have an extensive carrier network with a nationwide presence.  

Oversized Shipping Challenge 4: Safety 

Safety equipment for oversized shipments includes warning signs, flags, and lights to give visibility to other drivers of the oversized load and its edges. Rules and regulations vary again by state. Additionally, there is proper tarping, strapping, and securement of your freight on the truck that is needed. Loose cargo that falls off can cause traffic problems and has the potential to be deadly or hurt someone. Making sure the right materials are used to tie down the freight and make it visible to everyone is important.  

Solution: Make Sure Who You Work with Has Experience 

You don’t want just anyone moving freight: you want the best. Unfortunately, it can take a lot of your tome to find the best carrier to safely move your shipments. 3PL’s have experience working with carriers and have built relationships over time with ones who provide the best service. We properly vet our carriers during the shipment selection so that we can guarantee your freight will arrive at its destination safely.  

Oversized Shipping Challenge 5: Lack of Communication Among Partners 

Too often, there will be lack of communication between shipper, receiver, and carriers. It could be a lack of communication about a needed permit and who has to get it, or about the proper equipment that is needed to unload at the receiver. This can lead to frustrated parties and delays in a project. 

Solution: Gain Help with Managing your Logistics 

A 3PL can be described as the middleman between customer and carrier. We help manage your logistics so jobs run smoothly, and you can focus on other aspects of your business.  

At Trinity, we pride ourselves on proper and extensive communication before, during, and after a shipment. If making use of a TMS, you can choose how extensive you want to integrate the technology with your supply chain, allowing both you and your external partners more visibility and coordination with your shipments. This allows everyone the ability to stay connected and up to date. 

It seems like many of oversized shipping challenges can be solved by selecting to work with a 3PL. of course, you can choose to try to solve them all on your own manually, but why not save the time and consult an expert, like Trinity, for help? We offer you a range of services and technology to make your workload easier. We’ve been in the business forever 40 years and take pride in what we do – solving complex logistics problems for companies like you.  

By: Christine Morris

The chemical industry serves as support for many other industries, like agriculture, automotive, construction, and pharmaceuticals. According to an American Chemistry Council report, 96 percent of all manufactured goods trace back to chemical manufacturers. Chemical manufacturers often process raw materials into refined products used in other industries or within the chemical industry. However, raw materials costs have been rising recently, along with additional operating costs in the chemical industry.  

As chemical manufacturers face increased expenses, many find it more challenging to remain profitable. How can chemical manufacturers better manage their operating costs? In this blog, we’ll take a walk through what chemical manufacturers are currently facing and how they can better manage their operating expenses.  

Rising Raw Material Costs 

Raw materials costs have been rising in recent years. Part of the cause for increased prices is because they’ve gotten scarcer as the demand has risen for them. For example, raw agricultural materials have increased 117 percent since 2000, rubber has seen an increase of 359 percent, and steel is up 167 percent.  

Crude oil, which many chemical companies use for energy and other materials, is up 250 percent since 2000. Crude oil prices are the most important ones to watch because it affects so many different markets. For example, many basic ingredients originate in the oil and gas fields and then travel through a global supply chain to make materials like plastics, packaging, fertilizers, lubricants, paints, and much more. Additionally, higher energy costs mean higher operating costs for the chemical industry.  

Logistics Operating Costs in the Chemical Industry 

The strength of long, global supply chains continue to be tested. From the start of the Covid-19 pandemic to battling intense weather and labor shortages, prices for logistics operating costs in the chemical industry have skyrocketed. Chemical supply chains have had their weaknesses exposed, from their dependence upon the volatile oil and gas sector to their global shipping networks. It’s caused additional cost as many of the materials needed to operate are out of stock due to shipping congestion and backlogs. According to a survey done by the National Association of Chemical Distributors, 85 percent of chemical industry distributors reported at least one imported item out of stock. 

How to Better Manage Operating Costs in the Chemical Industry 

Interestingly enough, skyrocketing logistics costs are beginning to outweigh other operating expenses for chemical manufacturers. Finding better management and control in your logistics may be the thing to keep your chemical company cost competitive. As a result, a growing trend among chemical manufacturers is turning to outside help for their logistics. Many chemical companies find that using a third-party logistics company (3PL) makes a lot of sense. It helps them free up resources to focus on other aspects of their business. Here are some ways working with a 3PL can help you manage your operating costs.  

Find the Right Carrier – In Less Time 

We all know the stress and workload of finding a carrier to move your freight, especially for chemical manufacturers who need carriers that know how to handle their products safely. Capacity can be limited when looking for a hazmat certified, or tanker endorsed carrier for a decent shipping rate. Outsourcing your transportation is one solution to that problem.  

3PLs will take over the responsibilities of finding and vetting qualified carriers. A 3PL should make sure carriers have the proper credentials, insurance, and experience for your freight. Take control of your time and let someone else take on the workload so you can gain time for the rest of your business.  

Create Efficiency With A 3PL’s Technology 

Working with a 3PL also offers you access to their technology services, like shipment tracking, automated workflows, and detailed reporting. By replacing your manual processes with logistics technology, you’ll find more visibility into your supply chain. And that visibility can help you find efficiencies to help you manage your operating costs. While the technology itself can be an extra cost alone, most 3PLs offer you technology applications along with freight arrangements. Additionally, you’ll have experts you can rely on to help you navigate those applications.  

Transportation Management Systems 

All chemical companies are focusing on streamlining their operations, whether they choose to outsource their logistics or not. Many companies are turning to transportation management systems (TMS) to optimize their transportation networks. 

A TMS can help your business gain visibility into your supply chain, create new efficiencies, and automate your manual workload, so you can better manage operating costs.  

When using a 3PL, you often have options to choose how you want to integrate your TMS. Trinity Logistics offers you customer integration and a specialist to work with you every step of the way. No matter what option you choose, you gain the visibility and automation you’re looking.  

Control Your Logistics Costs 

In business and life, there are certain aspects that you can manage and control. As a chemical manufacturer, you must manage those costs that you can control and plan for those variances in costs for those you cannot. Logistics is one operating cost you can manage when you choose to partner with a 3PL.  

And you don’t have to look too far to find one. Trinity Logistics is well-versed in the chemical industry and understands your complicated market. Our Team of experts is here to help you find the quality carrier you need while offering technology to help you create efficiencies. We can help you gain control over your logistics costs, so you can make room for those other unknowns.  

If you’re ready to get a handle on your operating costs in the chemical industry, let’s get connected.  

Author: Christine Morris

There’s been a lot thrown at supply chains lately. The up and down Covid-19 surges, material shortages, increased consumer demand, and more. And we can’t forget to mention other factors like the new covid variants, port congestion, and dock delays.  

Many of you might be wondering what Trinity is doing to stay agile during these supply chain bottlenecks. Let’s first quickly dive into what the supply chain is currently facing, and then we’ll go into how Trinity keeps moving forward.  

Current Supply Chain Bottlenecks 

Labor Shortages 

I’m sure you’ve heard and seen all the effects of the labor shortages today. Whether the companies are big or small, or in fast-food or logistics, every single industry is facing this issue. 

Over the past 22 months, businesses have been hit hard with workers’ pandemic-related absences. According to an analysis from the Integrated Benefits Institute, these absences have cost employers more than $78.4 billion. That’s nearly $1 billion every week. 

Along with this, the new omicron variant is leading to more staff shortages as people take sick leave and suppliers navigate new restrictions. This includes factoring in China’s zero-COVID strategy, which is likely to continue to disrupt both production and transportation of goods, possibly for the entire year.  

However, backorders in many sectors have been filled, but consumer demand may well be cooling now that furloughs have ended, and interest rates are beginning to rise. So, some companies might end up with an oversupply of goods after everything is said and done.  

While some people thought that these issues would stay in 2021, the start of 2022 is showing no signs of slowing down these disruptions.  

The beginning of this year has been filled with high levels of return volume from the holiday season, along with the suspension of air on-call pickups for packages. All these issues are mixed effects from weather, omicron, labor shortages, and more.  

Struggling to Keep Shelves Full 

A direct effect of the worldwide labor shortages is businesses struggling to keep shelves stocked. While Covid-19  rampages across the country, it’s not just healthcare and hospitality businesses feeling the effects. Grocery stores are getting gut-punched by the virus as well. 

Product shortages have been widespread throughout these 22 months of the pandemic. These shortages have varied in many different products, from toilet paper and hand sanitizer to different types of meat to even bread and soda. As a result, empty shelves have returned at supermarkets as grocery employees call out sick and truckloads of food arrive late.  

While all companies feel the effects of empty shelves, shipping companies, like FedEx are especially struggling with on-time delivery of packages and products due to the massive truck driver shortage nationwide. Unfortunately, the only solution currently for these issues is time.  

Ongoing efforts are continually in use to increase the recruitment and retention of truck drivers to combat these supply chain issues and stop bottlenecks from occurring.  

Struggling Imports 

Port congestion and backup is another huge issue facing the logistics industry and the entire world right now. Ports worldwide are seeing high wait times and a lower percentage of on-time delivery. In addition, many containers and ships are forced to dock and wait until they can be unloaded due to labor shortages.  

Although many different countries are facing this congestion and delay, no other is struggling more than China. Covid-19 flare-ups in China are straining supply chains as authorities tighten movement restrictions in various cities to stamp out the virus. 

Ningbo, a port city of around 8 million, is dealing with a partial lockdown. Its Beilun district has been especially hard hit, and that’s spelled major problems for the shipping industry. According to The Loadstar, “Many truckers live in Beilun, and there are complicated Covid-19 control policies there, so it’s extremely difficult to bring containers in or out.”  

With the Chinese New Year approaching, some cargo has been rerouted to the Port of Shanghai, which is already congested, The Loadstar reported. In addition, many smaller shipping services providers have already suspended operations this year ahead of the holiday, which starts on February 1^st.  

No Signs of Slowing Consumer Demand 

As of right now, however, demand is stronger than ever and shows no indications of an immediate post-holiday crash. As a result, changes on the demand front are likely to be slow and steady, leading to gradual market shifts over the next several months.  

Combined data from the OTVI and the OTRI indicates that accepted volumes were up three percent year-over-year in early December. Additionally, tender rejections are currently down about 25 percent year-over-year. Rejection rates are at their lowest levels since July 2020.  

Decreasing tender rejections indicates that freight is being moved at contract rates, which is a hopeful sign for shippers. Still, with a rejection rate of over 19 percent, strong demand and constrained capacity continue to stress the market.  

Unfortunately for shippers, spot and contract rates have continued to climb as demand surges, shortages drag on, and peak retail season continues. In early December, dry van spot rates rose to $3 per mile for the first time ever. Likewise, dry van contract rates reached an all-time high – $2.96 per mile – simultaneously, according to Arrive’s December market update. 

Shippers that can create more flexibility in their transportation strategies will fare best as conditions gradually improve in the upcoming year. Moving away from annual RFP’s in favor of shorter contracts, one-way shippers can take full advantage of any upcoming rate drops. While these shippers are also exposing themselves to slightly more risk in the event of unexpected rate hikes, taking a chance might pay off in 2022. 

How Trinity is Here to Help 

Keep You Updated 

At Trinity, we make sure we keep you up to date on all the industry’s information and news. We provide: 

• our monthly freight market updates 
• weekly news updates 
• monthly customer newsletters with industry-specific updates,  
• communications from your representative.  

Giving You The Trinity Experience 

Along with giving up-to-date news and information regarding every industry, we are also here to provide you with exceptional service and communication, especially when facing these bottlenecks. 

Hear from some of our Team Member Experts on how Trinity is staying agile during these times: 

• “Labor Shortage at the shipper or receiver due to COVID outbreak and/or protocols – day of pickup or delivery. Not a whole lot we can ‘solve’ but providing everyone involved with a friendly, calm, timely, communication goes a long way. We often talk about drivers but one area of our industry that seems to get less press are those shippers/receiver teams. The good ones are gold baby!” – Benjamin Bowne, Sales Executive 

• “I would echo Mr. Bowne’s assessment. Handling the conversations with carriers, customers, and warehouse alike with care and empathy goes a long way. Everyone has been impacted over the last year by the pandemic, it’s the experience that our overall Team provides throughout the transaction that has proven invaluable. This is echoed in the feedback we have received from all the parties throughout the pandemic. We care about what we do.” – Chad Eckland, Director of Sales 

• “We are being more agile by focusing on internal as well as external adjustments. A large percentage of our staff are working remote to avoid being short manpower due to illness. Those that are in person are participating in higher safety standards within each location. We are asking customers what are their Covid standards, when applicable, and how they are adjusting so we can conform to their needs. We are checking on trends for spiking locations across the U.S. to see how it will affect imports/exports and its affects of capacity in that area. This is a little harder to do but definitely on the radar. If a shipper/receiver is affected, then we prompt carriers to know what expected delays may occur while costing that into what we are offering carrier.” – Tony Austin, Director of Sales 

• “In addition to all the good points already mentioned, I would add that even though I always try to consider any and all viable solutions for my customers, I do a little extra now, because of the circumstances, to help educate customers on conditions, market changes, expectations, and challenges. In addition, I emphasize that I do look under EVERY rock to help them get their freight moved by leveraging all of the modes and resources we have available, as well as be thorough in understanding the factors to be considered in moving their freight (flexibility in dates, rates, modes?). I feel like we have more detailed and personalized conversations, and I provide an added level of insight to show customers that I am truly being a partner to help them through this difficult time.” – Kimberly Meadows, Sales Executive 

We Are Experts 

While this may be our first pandemic, after 40 years of being in this industry, it certainly isn’t our first season of supply chain disruption, high freight volumes and rates, or tight capacity.  

We are well versed and experienced in many different situations, and we know when and how to pivot quickly and keep business moving forward. We follow through on our efforts. When issues arise, we work until they are resolved and keep open communication every step of the way.  

We Help You Plan 

You can always use your Trinity relationship to discuss current and upcoming projects. This helps us give you things to look out for to keep your transportation aspect of business more stable and reliable.  

Having a solid relationship with an expert like Trinity will prove to be your largest asset no matter what supply chain bottlenecks you may face.

If your ready to get support in your logistics with Trinity Logistics, no matter what issue the supply chain has, lets get connected.

By: Christine Morris 

Trinity Logistics is proud to announce their 2021 Distinguished Providers of the Year. Trinity began their Distinguished Providers of the Year Award Program in 2020. The program was created to give Trinity Team Members a chance to recognize top providers within all the company’s transportation modes.

Distinguished Providers are selected carriers within the Trinity network that continue to support their customers and provide exceptional service, despite the continued challenges faced in supply chains set forth by the pandemic. Those awarded are well known amongst the company as providers that are highly valued partners for Trinity Logistics. 

Trinity Logistics thanks these carriers for their continued commitment and service, as they have become an integral part of the day-to-day operations.

2021 Distinguished Providers of the Year

“We are honored to recognize these Service Providers which were selected among Trinity’s deep book of relationship partners demonstrating consistent value to our Shipper Customers throughout 2021,” says Bradley Palmer, Director of Carrier Development and Pricing at Trinity. “Building upon years of experience with these partners, they each distinguished themselves among their peers when reviewing feedback from our Operations teams across the country. And with pride, Trinity Logistics presents its “Trinity Titan” award to three small fleets our Leadership was compelled to honor their dedication and grit hand in hand with our partnership.” 

In addition to the top providers recognized by mode, there is also the “Trinity Titan Award”. This specific award recognizes very small fleets within Trinity’s network who regularly dedicate their capacity and demonstrate uncommon value, or “grit” as we like to call it, throughout the year. This award is determined by a person of exceptional importance and reputation that stands out for greatness of achievement that reflects Trinity’s values. 

2021 Trinity Titan Winners

“I can’t believe we have closed another year and what a year it was,” says Hayley Dobson, Group Vice President at Trinity. “It will certainly be one not soon forgotten. We couldn’t have gotten through it with such success without the help of all our carrier partners. They are truly the lynchpin of the supply chain.   We had several amazing carriers to review and struggled to make final selections, but I believe the ones that rose to the top were a shining example of what a true partnership means. We are so thankful for the dedication and excellent service they provide day in and day out. 

Each of the winners will be presented with a crystal award to commemorate their success and achievement with Trinity Logistics. 

“Trinity’s Authorized Agents are grateful for the support and service of these Distinguished Providers,” says Greg Massey, VP of Agent Development. “Trinity’s Agent Team had the opportunity to work with several of these amazing providers and we are honored to have been given the opportunity to help nominate and select this year’s winners. Thank you for your commitment to Trinity and the exceptional service you provide us every day.” 

Trinity appreciates our contracted carriers with several other unique benefits and awards. Carriers within Trinity’s network can make use of a 1.5 percent QuickPay rate through TriumphPay, access to over 1,000 loads daily, and technology options that help make your job easier. To find out more about our great customer service and benefits to carriers, visit https://trinitylogistics.com.

About the Trinity Logistics

Trinity Logistics is a Burris Logistics Company, offering people-centric freight solutionsâ. Our mission is to deliver creative logistics solutions through a dynamic mix of human ingenuity and innovative technology, enriching the lives of those we serve. 

For more than 40 years, we’ve been arranging freight for businesses of all sizes in truckload, less-than-truckload (LTL), warehousing, intermodal, drayage, expedited, international, and transportation management solutions.

Trinity is currently recognized in the Top 20 freight brokerages on Transport Topics’ Top 100 Freight Brokerage List, in the Top 100 3PLs list by Inbound Logistics, and is named a Top Company for Women to Work for in Transportation by Women in Trucking.

Russ Felker, former Chief Technology Officer (CTO) of GlobalTranz, now joins Trinity Logistics as their CTO. 

For the past 30 years, Russ has been leading technology changes, not only as a CTO, but also as a founder and technology advisor, creating technology solutions for business problems. He’s worked with companies both small and large, international and national. No matter the industry, he’s always had a passion for using technology to improve customer experience and help companies allow their people to focus less on clicks and more on service. 

Russ says that Trinity’s core focus on company culture and people is one of his primary reasons for joining the company. He’s thrilled to begin working with Trinity to bring technology solutions that will create more ways for people to connect, build relationships, and improve efficiencies.

He finds his recent work at GlobalTranz and several other transportation companies has only heightened his interest in the industry and business.

“I’ve learned that in transportation, disruption and change is all around us,” says Russ. “I want to work with Trinity to put us right in the middle of it all. While that might sound scary to some, I want people to talk and know about Trinity as the company that brought positive, creative disruption to the industry. I know with this great opportunity, and the amazing people at Trinity, that we can do just that, together.” 

“We are excited to have Russ’s creative and intuitive talent join our executive team and lead our technology into the future,” says Trinity’s President, Sarah Ruffcorn. “He has a passion for creating excellent experiences for shippers and carriers that will help us take the Trinity experience to the next level.”

We are looking forward to the insight and experience Russ will bring to the business in its dedication to best-in-class experiences and technology initiatives over the next several years. 

To learn more about Trinity Logistics, visit https://trinitylogistics.com. 

About Trinity Logistics

Trinity Logistics is a Burris Logistics Company, offering People-Centric Freight Solutions®. Our mission is to deliver creative logistics solutions through a dynamic mix of human ingenuity and innovative technology, enriching the lives of those we serve. 

For the past 40 years, we’ve been arranging freight for businesses of all sizes in truckload, less-than-truckload (LTL), warehousing, intermodal, drayage, expedited, international, and technology solutions.

We are currently recognized in the Top 20 freight brokerages on Transport Topics’ Top 100 Freight Brokerage List, a Top 3PL and Cold Storage Provider by Food Logistics, and a Top Company for Women to Work for in Transportation by Women in Trucking.

Trinity Logistics, a Top 20 3PL and the freight brokerage division of Burris Logistics, has acquired Scottsdale, Arizona-based Team Eagle Logistics. Team Eagle Logistics will become Trinity’s seventh Regional Service Center, further expanding the company’s footprint to the West Coast, positioning for better service and carrier relationships in the Western 11 States.  

“We are so excited to have Team Eagle as our west coast Regional Service Center. Their commitment to providing excellent shipper and carrier experience, paired with their focus on growing through an empowered culture, makes them a fantastic fit with Team Trinity,” said Sarah Ruffcorn, President, Trinity Logistics.    

Team Eagle Logistics was founded in 2014 by Michael Gentile and Bill Grieder, with the mission to build and maintain lasting, intimate business relationships through industry-leading levels of service and communication. Since inception, Team Eagle has grown to revenues of $53 million annually. By joining the Trinity Logistics family, they will continue to offer relationship-based service and expand freight and technology offerings to their customers and carriers as Trinity’s Scottsdale RSC.   

“From humble beginnings to the rise of Team Eagle, our focus has always been on providing an unparalleled service where Integrity has been our driving force and competitive advantage in the logistics Industry. Our specialized Western 11 States focus coupled with the strength of the Trinity Logistics national presence will yield great benefits for our customers, truckload carriers, and employees. We are thoroughly excited to join the Trinity Logistics Family!,” said Michael Gentile, owner of Team Eagle Logistics. 

“Team Eagle Logistics has spent the last eight years building a dream from scratch. We have provided an opportunity for our employees, carriers, and customers to thrive and grow at a professional and personal level by offering our boutique-style methodology. This has allowed us to create an extensive network of providers in the 11 Western States. As we look to the future with Trinity Logistics, we have discovered many synergies within our people-centric approach and are blessed to become a part of the Trinity Logistics Team,” said Bill Grieder, Team Eagle Logistics.  

Trinity Logistics has been in the freight brokerage business for over 40 years and, as of 2019, is part of the Burris Logistics family. Trinity offers truckload, less-than-truckload, intermodal, expedited, drayage, international, warehousing, and technology solutions to businesses of all sizes. The Team Eagle acquisition brings greater coast-to-coast capability and enhances the Trinity Experience for shipper and carrier customers.   

“We are absolutely thrilled to welcome Team Eagle to our family! This will give Trinity a much-needed presence in the southwest and allow both companies to mesh our strengths to continue providing high-quality People-centric Freight Solutions® for shippers and carriers,” said Donnie Burris, CEO, and President, of Burris Logistics.  

Team Eagle will adopt the Trinity Logistics name and brand. For further details on the acquisition as well as recruiting opportunities for team members, carriers, freight agents, and other partners, visit https://trinitylogistics.com.  
 

About Trinity Logistics 

Trinity Logistics is a Burris Logistics Company, offering people-centric freight solutions ®. Our mission is to deliver creative logistics solutions through a mix of human ingenuity and innovative technology, enriching the lives of those we serve.  

For more than 40 years, Trinity Logistics has been arranging freight for businesses of all sizes, offering truckload, less-than-truckload (LTL), warehousing, intermodal, drayage, expedited, international, and technology solutions. 

Trinity is currently recognized in the Top 20 freight brokerages on Transport Topics’ Top 100 Freight Brokerage List, in the Top 100 3PLs list by Inbound Logistics, and is named a Top Company for Women to Work for in Transportation by Women in Trucking.  

 About Team Eagle Logistics 

Team Eagle Logistics (coined as “The Best In The West”) was founded in June of 2014 by Michael Gentile and Bill Grieder.  Since inception, our mission has been to build and maintain lasting, intimate business relationships through industry-leading levels of service and communication. At Team Eagle, our job has always been to make yours easier.  

At the time this article is being published, it’s been 22 months, just shy of 2 years, with Covid-19. As time has passed and treatments and vaccines have become available, most (though not all) of life has returned to normal. A “new normal” as many now call it. In-person gatherings and events have returned, remote and flexible workstyles have become the new norm, kids are back in school, and online shopping and inflation have rapidly risen. So, what are we wishing wasn’t part of this “new normal”? Supply chain disruption.

The Start of Supply Chain Disruption

As COVID-19 began to spread, governments responded with lockdowns. Nonessential businesses closed, and panicked consumers bought out paper products, soap, and disinfectants. With many businesses closed or down to a skeleton crew, this meant longer transportation times. To make do, alternative routes and modes were sought out, but even those became backlogged too. Shipping networks started to become strained. With people staying home and governments offering financial help, online shopping quickly increased.

Amidst the waves of Covid-19 came more supply chain disruption. There was the Texas freeze that caused many manufacturing plants to shut down. Then there was the Suez Canal blockage which caused severe delays in imports from several days of being blocked. There were the wildfires that raged across the west coast, adding further supply chain disruption. As a result, companies have faced material shortages, increased freight costs, labor shortages, tight capacity, and more. 

Current Conditions

In the standard supply chain, raw materials get sent to factories to manufacture goods. Then shipped to warehouses for storage, then to retailers or consumers. Currently, companies face warehouse shortages, labor shortages, tight capacity, exponentially high freight rates, and import delays. It’s gotten so bad for so long that supply chain disruption continues to be a headline in the news. Even people not in or knowledgeable about logistics are talking about it. 

The hot topic in the news as of late is the overwhelming demand surging at U.S. ports. Demand for goods has grown so rapidly since the start of the pandemic that it’s equal to adding about 50 million new Americans to the economy, as reported by Insider. Lately, we’ve seen record highs in ships waiting to dock, containers waiting to unload, a lack of storage space to put goods, and empty containers sitting in truck lots and streets, with no place to go. 

What to Expect in 2022

Experts continue to say that we will keep seeing supply chain disruption and delays through 2022, if not to 2023. This is because we’ll still have our current supply chain bottlenecks to work through, labor, material, and warehousing shortages to figure out, and Covid-19 remains an issue. 

But perhaps we will begin to see some easing of supply chain disruption this coming year. For one, the recently passed infrastructure bill will hopefully begin to affect and strengthen supply chains through its funding into roads, bridges, and ports. More and better infrastructure will help keep certain supply chain disruptions at bay, such as offering more warehousing space and keeping bridges and roads safe and free from closing. Nonetheless, this is longer-term and farther out. 

Ideally, what would give the supply chain some short-term relief would be if consumers slowed down a bit with their online shopping. It’s still expected that consumer spending will at one point switch back to travel and entertainment at some port, but no one is quite sure when that may happen.

Tips for Shippers

The past (almost) two years have shown us that supply chains aren’t as resilient as we thought they were. Considering we’re still in the thick of supply chain disruption, it makes sense to improve your supply chain and logistics. Here are some tips you may find useful in keeping your business moving forward until we get back to normal.

Consider Shortening Your Chain

Global supply chains are seeing the worst disruption in their logistics. If anything’s come to light since Covid-19 began, it’s that businesses might want to look into shortening their supply chains. One way to do this is by moving your manufacturing back to the U.S., also known as onshoring. 

Identify Any Vulnerabilities 

By understanding where any risks lie, you’ll be able to better protect yourself from supply chain disruption. You’ll need to take some time to map out your entire supply chain, down to your distribution facilities and transportation hubs. Though this may be time-consuming and expensive, it can help prevent you from facing a surprise disruption that brings your business to a stop and can be much more costly. 

Diversify Your Supply Chain

Once you’ve identified where risk is in your supply chain, you can take that information to address it. This can be done by diversifying your resources. Instead of heavy dependence on one high-risk source, you can add more sources in locations that are not vulnerable to the same risk, so if one gets disrupted, you don’t have to be shut down completely. 

Begin Holding Safety Stock (if possible)

This may not be possible for all shippers, and now may not be the best time to start this considering all the current bottlenecks supply chains are facing. But, when possible, this is something that could save you from supply chain disruption down the road. 

Keep Up With Timely Communication

Communication is always needed to run your best business, but even more so during this pandemic. Make sure you are communicating properly and timely with your carriers and transportation providers on any new sanitation procedures, requirements, changes in operating hours, or upcoming closures. 

Also, Keep Transparency

Be transparent with your audiences. They appreciate it more than you think.

Stay Informed

COVID-19 and many other supply chain disruptions came quickly, and the future remains uncertain. Be sure to stay updated on current developments that may end up slowing down your business.

Find Support in a Transportation Partner

Third-party logistics companies, such as Trinity Logistics, can help you find creative ways to your logistics challenges. We’re experienced in complicated situations and stay knowledgeable on what is going on in the industry. We were quickly able to pivot when the pandemic first hit, so we could keep your business moving forward. We know that even in times of disruption, the shipping industry does not stop, so neither do we. 

If you’re ready to gain support in your logistics with Trinity Logistics, no matter the condition of the industry, let’s get connected.

Author: Christine Morris

Using transportation management software (TMS) is a powerful way to gain control and visibility over your supply chain. But trying to decide which transportation management provider to use can be overwhelming. There are so many different software platforms available and providers that offer transportation management software. How can you choose the best software and provider for you?

When starting your search for a transportation management provider, there are several questions you should ask yourself: 

• Do I want a cloud-based TMS or otherwise? 
• What capabilities do I want from the TMS? 
• Do I want a Managed Services option? 
• Am I looking for more help than just technology when it comes to my logistics? 
• Most importantly, do I want to buy the software outright or outsource it?

BREAKING DOWN THE TWO TYPES OF TRANSPORTATION MANAGEMENT PROVIDERS

On a high level, there are two different types of companies that offer TMS products. There are software companies whose sole purpose is to develop and sell TMS software. Then there are third-party logistics (3PL) companies that offer TMS software as one element of the many other logistics and transportation services they provide. 

There are differences and advantages to working with each kind of transportation management provider. Particularly, sourcing your TMS through a 3PL provider can have some major benefits, especially for small- to medium-sized businesses.

In the past, implementing a TMS was usually out of reach if your company was not of a certain size. However, advances in transportation management software have made it an option for more companies than ever.  

For this reason, deploying a TMS can be a new experience for small- to mid-sized companies. And working directly with a software provider can be intimidating if that’s the case. Additionally, logistics may not be a core focus for smaller companies, so they might need an extra hand in determining their best solution.

TRANSPORTATION MANAGEMENT SOFTWARE COMPANIES

The transportation management software of today is nothing like it was years ago. However, implementing a TMS will often make it the new backbone of your supply chain. And if you’re looking to purchase software outright versus outsourcing with a 3PL, you’ll soon realize that not all transportation management software companies offer the same thing. 

When shopping around for your own transportation management software, you’ll want to look for these capabilities:

• Rating and contract management
  • This will help you with managing freight rates, sourcing, contract management, and bid RFP tools.
• Order planning
  • This will help you with routing, optimizing your delivery processes, integrating your delivery data, and getting a granular view of all transportation stages.
• Optimization
  • This will help you by offering more comprehensive load-building tools so you can identify opportunities to reduce costs, whether through consolidation, multi-stops, zone skipping, pool distribution, or other methods.
• Load Tendering
  • This helps you by automating tendering, managing your carriers, and helping turn quotes into loads.
• Tracking
  • Simple enough, this helps you by giving you end-to-end, real-time visibility.
• Reporting
  • This gives you more insightful data into your processes, so you can review expenses, carrier performance, and more to find what’s working and what’s not.
• Financials
  • This helps you by helping automate financial operations.

According to Intek, these are some of the top transportation management software providers:

3GTMS

BLUEJAY

CLOUD LOGISTICS

DESCARTES

JDA

KUEBIX

MANHATTAN

MERCURY GATE

ORACLE

SAP

TMC

TMW

TRANSPLACE

A TMS ALONE MAY NOT BE WORTH IT

Just like buying QuickBooks doesn’t automatically make you an accountant or purchasing Adobe Creative Suite doesn’t make you a graphic designer, purchasing a TMS outright doesn’t automatically make you an expert in how to use it. 

To start seeing the benefits of transportation management software, you’ll need a team of experts to use it. You’re going to need to build out a team of transportation management software specialists who can expertly use, read, and pull reporting from your new TMS. Unfortunately, the amount of expertise and support needed can be difficult to find, establish, and maintain. 

This is where you might find a greater benefit to using a transportation management software provider who does more than sell TMS software.

MAKING A CASE FOR A 3PL PROVIDER

You might think 3PL companies only handle arranging freight, but they offer so much more and can be an ideal transportation management provider.

Transportation Management Software

A 3PL can be an excellent option for a transportation management provider. Not only do you gain access to their TMS technology, you know that they will know the software inside and out as most make use of it themselves. You’ll have access to experts who know how to make use of all the tools and reporting. Additionally, many offer Managed Services with their transportation management software, meaning you could have a team of TMS specialists ready to help you from Day 1. No worries over finding, training, and retaining your own in-house team.

Access to Their Relationships

Outside of their transportation management software, you’ll also gain access to a 3PL’s relationships. This includes their carrier, vendor, and technology relationships. So, whether you need them or not, it’s still good to know that should the time come when you need some extra help, you have a 3PL on your side to support you through their built industry connections.

Expertise

Often, 3PLs have seen it all. They’ve most likely worked with many different companies, freight, and complicated situations. They’ve faced supply chain disruption, tight turnaround times, and transportation inefficiencies. Having a logistics expert like a 3PL on your side can be an exponentially significant benefit. It can be near impossible to source the type of knowledge and consultative expertise a 3PL has without directly working with one. 

Customizable Solutions

Generally, a 3PL will work with your team to deploy a system that specifically meets your needs, while a software company is more likely to offer an “out of the box” solution. That’s perfectly fine if you know exactly what you are looking for. But for smaller companies with less logistics experience, it can be overwhelming. A 3PL can help fill the knowledge gaps and ensure your investment is valuable and will have ROI.

This difference can also have an impact on the cost of implementation. Software companies tend to consider a customized solution as more work for their implementation team, which translates into person-hours, and into higher implementation fees for your company. On the other hand, an experienced 3PL can guide you through the process and advise the best options for your company, and that’s not considered an additional service. Again, this may not be required for companies with very experienced and knowledgeable logistics departments – especially if they have implemented a TMS before – but it’s extremely valuable for businesses that may be doing this for the first time.

TRINITY LOGISTICS COULD BE THE TRANSPORTATION MANAGEMENT PROVIDER FOR YOU

Trinity Logistics is an excellent example of a 3PL that offers a TMS to its customers while also offering many other services.

At Trinity, we understand everyone’s needs are different, which is why we offer a highly configurable system. To start, we offer you three main options in transportation management software:

• Software-as-a-Service (Saas)
  • Looking just for transportation management software? Through this option, you’ll get the tech, support, and account management. 
• A managed TMS
  • Looking for a TMS and some additional support? Through this option, you’ll get TMS technology and operational support to offload your day-to-day processes.
• An Integrated outsource TMS
  • Want to fully outsource your transportation management? This option gives you the TMS plus a fully outsourced logistics team with an integrated partnership.

If none of those three options fit your business’s needs, we can further customize a solution for you, so you get exactly what you’re looking for. No matter your unique needs, you’ll gain access to our best-in-class technology backed by superusers with logistics expertise. And through our People-Centric service, you’ll gain valuable insight, support, and knowledge for your company’s logistics management. 

NOT LOOKING FOR A FULL TRANSPORTATION MANAGEMENT SOFTWARE EXPERIENCE?

We understand committing to a transportation management provider is a big change. That’s why we also offer you Trinity’s Customer Portal, exclusively for shippers working with Trinity. There’s no commitment or additional charges and you’ll get to experience a sample of our TMS technology. Through the Customer Portal, you can track your Trinity shipments, request quotes, and view and pay your invoices online – all in one place.

Author: Christine Morris

What is a freight agent versus a freight broker? Is one better than the other? How do they work together?

These are commonly asked questions of us. Being a freight broker who works with freight agents, we have experience with both. In this blog, we’ll walk you through what a freight broker is, what a freight agent is, how they compare, and how they work together.

WHAT IS A FREIGHT AGENT?

A freight agent’s primary role is to help arrange the movement of freight between their customers and carriers. A freight agent can be one person or group of people that work as an independent contractor under a freight broker’s operating license.

Unlike a freight broker, a freight agent doesn’t have their own operating authority and legally can’t arrange the movement of freight on their own. Therefore, the only way for them to do business is by working with a freight broker. Because of this, freight agents assume very little liability, as that lies on the freight broker.

Sometimes a freight agent may be called a sales agent since they often sell services for the freight broker they work with.

Freight agents earn money on a commission percentage that’s agreed upon between them and the freight broker.

While they often have their own culture, they represent the reputation of the freight broker they work with. So, freight agents want to make sure the culture of the freight broker they choose to work with is similar or aligned.

Freight agents are responsible for building their own customer base and book of business. Freight brokers will often have a clearance process in place to check that the customer is not already working with one of them or another freight agent with the company.

WHAT IS A FREIGHT BROKER?

Freight brokers are companies that arrange the movement of transportation between customers and carriers. 

It is a requirement for freight brokers to have a property broker license from the Federal Motor Carrier Safety Administration (FMCSA) and a surety bond for the minimum value of $75,000. They also need to carry the proper insurance. Freight brokers need to maintain a level of compliance yearly as guided by the FMCSA. The FMCSA requires that freight brokers keep all records on file for at least three years.

Freight brokers have the responsibilities of overseeing the invoicing of their shippers, paying their freight agents, working with freight factoring companies, and making sure their carriers receive payment for any loads moved. Freight brokers are also required to keep their records for three years and to hold insurance.

SIMILARITIES BETWEEN A FREIGHT AGENT VERSUS A FREIGHT BROKER

Freight agents and brokers can both be considered freight service providers. Both provide a high level of freight capacity and service, with many considering them to be problem solvers and logistics consultants for their client base. Both freight brokers and agents work to match available freight shipments from their customers with their carriers to optimize service and price. Both also negotiate with their customers and carriers on pricing to earn a profit.

DIFFERENCES BETWEEN FREIGHT AGENT VERSUS A FREIGHT BROKER

Freight agents have less liability in comparison to a freight broker. Freight agents need freight brokers to operate, whereas freight brokers can operate without freight agents.

A freight broker will have a more consistent brand look and feel across its office(s) versus freight agents that operate under the broker.

In comparison to size, freight agents are often smaller businesses, not always, but most often. While freight brokers are usually a much larger entity.

When it comes to daily tasks, freight agents only take care of finding their own customers and carriers and arranging their own freight. Whereas freight brokers do that and everything else, like invoicing, compliance, claims, credit checks, and more.

Freight brokers can offer other services like transportation management and technology. Freight agents have the opportunity to do that too, but those resources are only available based on the freight broker they work with.

WHY WOULD ONE PREFER TO BE A FREIGHT AGENT VERSUS A FREIGHT BROKER?

There are many reasons one might choose to work as a freight agent vs. a freight broker. For one, there is a much lower cost to being a freight agent because of the entire back-office support provided by a freight broker. This includes those tasks like invoicing, payables, receivables or collections, and curating marketing materials. It also consists of the larger costs like technology, such as a transportation management system to operate, cargo and liability insurance, the required surety bond, and contract management.

Additionally, a freight agent’s potential customer base may not like working with a small broker but would work with a freight agent knowing they are protected at a higher level by the freight broker they work under.

A freight broker also provides the freight agent with long-standing motor carrier relationships and contracts that are available to offer shipper solutions for them from day one.

Working as a freight agent would essentially simplify the business for them. Working as a freight agent allows them to focus on what they do best, cultivating customer relationships. In contrast, the freight broker handles many items a freight agent would otherwise have to operate, pay, and worry about if they were a stand-alone entity.

WHY THEY WORK GREAT TOGETHER

By working with a freight broker, freight agents get to focus on what they do best – building a strong customer base and servicing them with robust logistics solutions. In addition, small freight agents can quickly grow with the support and reputation of a well-known freight broker.

By working with freight agents, freight brokers can grow a nationwide or worldwide presence without building or obtaining office space. Additionally, freight brokers can see a growth in revenue by working with freight agents who work well at building new customer relationships.

TRINITY’S FREIGHT AGENT PROGRAM

Some people simply prefer tasks a freight agent has to complete versus a freight broker. They enjoy what they do and don’t want to worry about the rest of it. If that’s you, Trinity has a great agent program for those who like working more independently.

At Trinity, we have 30 years of experience aiding the success of our agents, with many seeing a 25 to 45 percent increase in their business over a two-year period from their initial start date with us. In addition, we offer many extras for our freight agent network, such as:

Continued Education Opportunities

We have an in-house Education Team available. Every month, they host virtual classes offered to increase sales skills, learn more about our logistics solutions, or help with technology. They also provide many virtual classes through our Learning Management System that you can take on your own time.

Technology

We offer many best-in-class applications and an entire Team of in-house software engineers, constantly striving to provide you and your customers with the best logistics technology available.

Agent Support Team

We also have a Team solely dedicated to assisting and encouraging our agent network. These Team Members work with you to help you set and reach your own goals, offer suggestions, and help you every step of the way. You’ll never fall behind or feel unsure with Team Trinity rallying behind you.

Consider joining our Agent Network today, so you can gain more time to focus on your customers, generate more revenue, and we’ll focus on everything else.

Author: Christine Morris

Many companies and consumers are waiting and wondering, where are my goods? If you work in logistics, then you know exactly where they are. A significant number of ships are waiting outside of U.S. ports, carrying millions of dollars worth of goods ordered by Americans. What started as a binge in online ordering during the pandemic has had lasting effects on supply chains. There’s continued to be overwhelming demand, creating port delays which then caused higher shipping rates, newly created fees, and so many more issues brought to light among global supply chains. We’ve seen record-breaking highs of imports throughout the year and currently, there’s no end in sight. Many are trying to find solutions and put them into place to get out of this hole we’ve dug, but is it working?

PORT PROBLEMS

Before the surge of imports faced by the ports, containers would wait at terminals for up to four days on average before unloading and delivering to warehouses. For those delivering by rail, it would take less than two days. Now, the average for ships waiting is nine days, if not more. Some have waited weeks. According to reported data by the Port of Los Angeles on November 12th, the average time ships had to wait at anchor was up to 16.9 days.

Besides the growing wait times are the increasing number of ships that are stuck waiting. According to Marine Exchange,before the pandemic, ports would see no more than 17 ships waiting to dock. However, recently it’s been common to find upwards of a hundred or more ships lingering in the ocean near ports, waiting.

It doesn’t seem there is one particular problem that is causing these backlogs and port delays. Rather, many port problems are being highlighted.

Returning Empty Containers is a Struggle

One of the loudest heard complaints adding to the port delays is the struggle truck drivers and companies are facing in returning empty containers. In a survey by the Harbor Truck Association, 15 companies responded that they had a combined 4,251 empty containers sitting. Additionally, 86 percent of them were on wheeled equipment and the rest were in stacks. One motor carrier stated that they had been stuck with empty containers since August 31st because the terminal would not accept them.

Many motor carriers and importers say there are port delays and cargo not getting picked up because the port terminals don’t allow drivers to return their empty containers and make a swap. Meanwhile, the port officials are saying they first need to make room to be able to accept them. Additionally, these sitting empty containers are further adding to these port problems by creating a chassis shortage.

Where are the Chassis?

First off, if the term chassis is new to you, let me briefly explain what it means. The chassis is a special trailer used to carry and transport the ocean container over the road. They are needed for truck drivers to be able to haul and deliver these containers.

A short supply of these chassis is another problem causing the growth in port delays. Typically, a truck driver will go to the port to swap the empty container they have and retrieve a full one to deliver. However, when truck drivers are turned away from the port with their empty containers, they will often park them and the chassis, at truck lots. But, without the chassis and ability to make a swap, they then can’t go pick up a full container from the port. So, currently, most chassis in Southern California are sitting under empty containers, strewn across truck lots.

Simply No Space

Another reason for the port delays is simply a lack of space. Warehousing and truck yards have been so full lately that they have little room to receive a new container of goods. Local officials have indicated some shippers eager at avoiding extended delays, ordered their goods earlier for next year, essentially using the ports as a makeshift warehouse for the time being. And even with the recent implementation of 24/7 operations at the Southern California ports, the ports may be running 24/7, but the warehouses are not. There’s just not a lot of space to put all the containers.

Lack of Labor

The labor shortage has affected every industry, but the ports are having a tough time clearing out all the freight due to a lack of labor. A shortage of dockworkers and truck drivers is one reason for port delays. Being that two-thirds of the cargo at the two ports in Southern California is hauled by trucks, these terminals are saying that the driver shortage may be to blame.

Inefficient Appointment Booking

Others are blaming the ports’ outdated booking system for the growing port delays. Usually, truck drivers must make an appointment to return an empty container and pick up a full one. But with the surge of freight and no space, port terminals have placed new restrictions. Every terminal has its own set of rules on when and where containers can be returned and picked up. This even pertains to the color of the container. With no centralized database, truck drivers are making bets by placing multiple appointments at different terminals in hopes they’ll meet requirements somewhere and get to return an empty container. Yet lately, the marine terminal could decide last minute that the terminal is full or that they aren’t accepting a certain color container that day and turn the truck driver away, usually after they have already waited a while. Terminals are saying that there are more no-shows lately with the truck drivers, stating that they just don’t show up 50 percent of the time.

Too Much to Handle

What may be the biggest problem with the port delays is that there is too much freight to be handled. Gene Seroka, the executive director at the Los Angeles port recently told 60 Minutes that the entire system is overwhelmed with the tsunami of orders that are flooding in from Asia to the U.S.

There can be many reasons to attribute to the growth in port delays. With everyone pointing fingers, one of the questions is, how do we get everyone to take some time off from playing the blame game and instead talk through a plan to clear out the backlogs at the ports? Because until then, the number of ships waiting off the coast of the ports is repeatedly breaking record highs.

PORTS HITTING RECORD HIGHS

Los Angeles and Long Beach

The number of ships waiting in the San Pedro Bay to dock at the port of LA and the port of Long Beach broke the previous record of 87 ships on November 15th, according to cFlow. To put that into perspective, the number of containers on those waiting ships is roughly 24 percent more than the port of Los Angeles imported during the entire month of September.

Back around October 14th, the cargo waiting off the two Southern California ports was worth around an estimated $25.5 billion, which is more than the annual revenues of McDonald’s.

At the start of November, there were nearly 60,000 containers at these ports that had been there for more than nine days, according to reported data by American Shipper.

Both Southern California ports are moving 19 percent more containers than in 2018, which held the previous record. Currently, the ports look to outpace 2018’s record of 17.5 million containers processed in 2018. This year alone, the two ports are looking to handle a combined 20 million twenty-foot equivalent units (TEUs).

Virginia

In October 2021, both the ports of Charleston and Virginia achieved container volume records. The Port of Charleston reported 234,923 TEUs handled, while the Port of Virginia’s new record was 318,000. That’s about a 16 percent increase year-over-year (YOY).

Combined, the Virginia Port Authority said that since August 2021, 444,600 imported TEUs had been processed, which is a 19 percent increase YOY. Additionally, there was a nine percent increase in exported TEUs, with a volume of 254,600.

South Carolina

Since the start of the fiscal year, South Carolina ports have faced a 15 percent increase in processed containers YOY, having handled 919,440 TEUs. In October, South Carolina ports handled 107,773 imported TEUs, a 12 percent increase, with furniture imports rising 55 percent YOY and vehicles up 5 percent.

Georgia

In October, the Georgia Port Authority announced that, for the first time ever, the Port of Savannah had processed more than 500,000 TEUs in a single month. The previous record was 498,000 TEUs in March 2021, with the new record being 504,350 TEUs, an increase of 8.7 percent YOY.

TRYING TO SOLVE THE PORT CRISIS

24/7 Southern California Operations

In October, the Biden administration unveiled its plan to help the port delays in Southern California. Since the ports of Los Angeles and Long Beach account for 40 percent of the sea freight in the U.S., they wanted those two ports to be running 24/7. Having round-the-clock operations and pushing truck drivers to make appointments outside of peak times should help address some of the backlogs there.

Southern California Implements Fees

Also in October, the two ports announced that they would begin fining shipping companies $100 a day for every container left on the docks, past an allotted time. In their guidelines for the fees, shipping companies have six days to move containers if their next step is rail or nine days if the next step is by truck. Every day over, the fee would be increased by $100; so $100 the first day, $200 the second day, and so on.

The fees were initially supposed to go into effect November 1st, but it was then delayed to November 15th to give shippers and carriers more time to avoid the new fees. Even with the delay, the ports started keeping track of containers waiting on the docks on November 1st. As of publishing this article, the charges are delayed to November 22nd.

These emergency port fees were aimed at getting containers moved out of the ports faster. The charges will go to the carriers who would then pass it along to the shippers. These charges, if they go into effect, could become millions of dollars in fines. According to port data. as of Friday, November 12th, the Port of Long Beach had 17,314 containers for trucks over nine days and 575 containers by rail over six days. If the fees had gone into effect that day, ocean carriers would owe at least $1.8 million in combined fees.

Port of Long Beach Ups Container Stacking

The City of Long Beach also recently loosened zoning restrictions on container stacking temporarily. It used to be that only two containers could be stacked together at container yards and warehouses, but now they are allowing up to five to be stacked. The higher stacking could help free up some space.

The State of California Makes Efforts

The state of California has been working on its own efforts to improve the backlogs and port delays. Governor Gavin Newsom recently directed agencies to find any state-owned properties that could store containers near the ports by December 15th.

Additionally, starting November 17th, Newsom announced that California will increase weight limits for trucks carrying goods in and out of ports. The weight restriction has increased from 80,000 pounds to 88,000 pounds in hopes it will help speed up the processing of containers. This will be applicable through June 30th.

By the end of this year, the California Labor and Workforce Development Agency also have a plan to help the labor shortage affecting the ports. They plan to name an industry panel to explore how to increase training and education programs for port workers and others in the supply chain who could lose jobs with automation and the transition to clean-fuel vehicles.

Washington Also Implements Fees

In early November, the Port of Tacoma and Washington United announced one-off long-term dwell fees of $315 and $310 for loaded containers that sit at the terminals for more than 15 days. This is in addition to their current late fees of $230 every day for any that are waiting more than four days.

Pop-Up Container Yard Projects

Georgia‘s Port Authority is reallocating $8 million o open five pop-up container yards in Georgia and North Carolina. This will free up dock space for the Port of Savannah, which leads the U.S. in agricultural exports.

Cargo congestion has been so bad at the Port of Savannah, those officials are planning to use a small airport in Georgia as their temporary overflow yard. Containers will move to these pop-up yards by truck or rail to create more space for cargo coming off ships.

Infrastructure Bill

Lastly, there’s also the $1.2 trillion infrastructure package to help aid U.S. ports. This package contains funding for port equipment and upgrades, dredging and channel maintenance, marine highways, rail needs, safety improvements, and emissions lower projects. This includes $5.2 billion in direct funding for any ports that handle 90 percent of internationally bound cargo, according to the American Association of Port Authorities.

GOOD NEWS

Even though the port delays seem like there is no end in sight, there has been much good news on the situation recently. For one, the recent shift to 24/7 operations at the Southern California ports has already improved service times for container ships. The LA and Long Beach ports have seen a 20 percent reduction in the number of container ships spending more than nine days as more shippers have agreed to move cargo during off-peak hours.

Additionally, the recent fees announced by the Ports of LA and Long Beach have been delayed to November 22nd. This is because the port of Los Angeles has seen a 32 percent decline in the number of containers qualifying for the fee compared to October 28th. Both ports reported a combined 26 percent decline in aging cargo. Because of the significant improvement in clearing containers, the ports decided to push back the fee another week to give shippers and carriers an extended grace period. They will continue to track the data to see what steps to take next.

Since September 1st, the Port of Savannah has seen a decrease of 60 percent in waiting containers, as retailers have been picking up cargo more quickly. Because of the extra space for dockworkers, Savannah reduced the number of ships waiting by 40 percent. As a result, their turnaround times have been much quicker, around 41 minutes for a single move and an hour when dropping an empty container to pick up an import load.

ADVICE FOR SHIPPERS

Even still, experts don’t foresee a large slowdown anytime soon. Instead, port problems and delays will continue into 2022 because of all the challenges supply chains have faced and some of the solutions are longer-term.

What we’re seeing is more cargo owners working with their ocean carriers to try to diversify their supply chains. Some of this includes rerouting to less busy and backlogged ports or ordering only what is needed to give the ports more time to move containers instead of creating more backlogs by ordering too early.

The best advice we can give you when working with your logistics provider is to make sure you are communicating your shipments early on. Giving AT LEAST two weeks or more notice (more is better here!) will help you secure any type of capacity.

You should also prepare for any extra costs. This includes demurrage, port wait time, per diem, or other fees and charges.

Lastly, make sure you work with a provider who helps you with more than just arranging your shipments. Find a provider who also works as your logistics consultant. You want someone who has eyes and ears on the market and can communicate and help you navigate any current or future disruptions so you can get ahead.

LOOKING FOR A LOGISTICS CONSULTANT?

Trinity Logistics is here and ready to help you. We stay updated on the freight market and help you pick up on any early warning signs of disruptions or delays, finding ways to help you prepare for potential constraints to your shipping.

We treat your shipments as our own and work with you to find the best alternative solutions when needed. We stay dedicated and do not stop working until we can help resolve any challenges you may face with your logistics.

Our Team Members are true experts in the logistics industry. We’ve been in business for more than 40 years and have been through many cycles of the logistics market. Because of that, we do more than just arrange your freight. When you choose to work with Trinity, you’ll find you have a whole Team of logistics partners invested in your business. Our only goals are to simplify your logistics so you can succeed and see growth.

Author: Christine Morris