How does the cold chain process differ from your typical supply chain? The cold chain is a variation of your standard supply chain. It involves the movement of refrigerated or frozen products from temperatures of two degrees Celsius (35 degrees Fahrenheit) all the way down to negative 70 degrees Celsius (158 degrees Fahrenheit). The cold chain involves industries such as food and beverage, pharmaceuticals, and chemicals.

WHAT IS THE COLD CHAIN PROCESS?

The cold chain process is a logistics management process for perishable products that need refrigerated temperatures to maintain quality and safety from end to end. It involves performing a chain of tasks to prepare, store, and transport products in the cold supply chain. 

Logistical planning and management protect the integrity of cold chain shipments. This involves using proper packaging, proper transportation equipment, carefully chosen transportation routes, perfect timing, and visibility throughout to ensure that what’s expected is what happens. The cold chain process is best done by using technology and data at every point of the process.

WHY IS THE COLD CHAIN IMPORTANT?

The cold chain ensures perishable products are safe, of high quality, or potency at the point of consumption or use. Failure to keep those products at correct temperatures results in degradation, discoloring, bruising, or microbial growth. When you have quality cold chain products, you’ll have satisfied customers, meaning greater demand, and the protection of public health. 

Additionally, cold chain providers contribute a great deal to the economy and workforce. According to GCCA, approximately $6.1 billion is generated by the refrigerated warehousing industry annually. Not to mention, the North American refrigerated warehousing industry employs more than 62,774 people annually on a full-time basis, with 92 percent being permanent employees versus contract or temporary.

WHAT ARE THE MAIN ELEMENTS IN THE COLD CHAIN?

Storage

The cold chain starts with the storage of the product at a refrigerated facility. If manufacturers of cold chain products don’t have storage equipment needed to keep their products regulated, they’ll have to outsource their cold chain operations to a partner who can provide the proper equipment. 

Common cold storage equipment and facilities include refrigerated containers, cold rooms, chillers, cold boxes, blast freezers, and vaccine carriers.

Packaging

Temperature-controlled products need correct packaging to maintain their quality. Proper packaging helps reduce the risk of product contamination and ensures energy-efficient storage along the cold chain. 

The most common refrigerants used in packaging are dry ice, gel packs, gel bricks, phase change material (PCM), and EPS panels (expanded polystyrene or Styrofoam).

Monitoring

Tracking certain information for specific cold chain products is a necessity. This includes temperatures and other environmental parameters, like humidity levels. Without monitoring, suboptimal conditions can happen and damage the quality of the product. 

Cold chain monitoring often refers to the use of the Internet of Things (IoT) or other sensor software. These monitoring systems can detect temperature problems, keep track of all cold chain products on one platform, and improve predictive maintenance through the integration of sensor data with supply chain management software, like a transportation management system (TMS). 

Delivery

Cold chain management also involves the delivery of shipments. Delivery is based upon the end-user consumers’ preferred methods for receiving cold deliveries. 

WHY IS AN EFFICIENT COLD CHAIN PROCESS IMPORTANT?

Unlike shipping non-perishable products such as furniture, interruptions in the cold chain can result in damage to the quality of the product, making it unusable. An efficient cold chain process uses monitoring and reduces the amount of handling from end to end. 

The cold chain industry has standardized temperature zones classified to maintain the quality of products. These classifications are: 

Banana

Bananas and other tropical fruits like oranges, pineapples, or even potatoes have a temperature range of 12 degrees to 14 degrees Celsius (53 to 57 degrees Fahrenheit). This helps control ripening during transport. 

Pharmaceutical

Most pharmaceutical products need temperatures between two and eight degrees Celsius (35 to 46 degrees Fahrenheit).

Chill

This classification is between two and four degrees Celsius (35 to 39 degrees Fahrenheit) for many other fruits, vegetables, and fresh meat.

Frozen

This temperature range is between minus 10 to minus 20 degrees Celsius (50 to 68 degrees Fahrenheit) for frozen meat, cakes, and bread.

Deep Frozen

Seafood, ice cream, and other frozen foods need colder temperatures at minus 25 to minus 30 degrees Celsius (minus 77 to minus 86 degrees Fahrenheit).

Ultra-Low

This is a new and growing temperature range often for pharmaceutical products that need temperatures reaching minus 70 degrees Celsius (minus 158 degrees Fahrenheit), like certain vaccines. 

Shipping temperature-sensitive items? Check out our Temperature Shipping Guide for temperature suggestions.

WHAT ARE SOME INDUSTRIES THAT USE COLD CHAIN?

Food and Beverage

Controlled temperatures are needed for transporting food and beverage products such as milk, produce, or meat. Interruptions in the cold chain can lead to spoilage or bacteria or mold growth. As mentioned above, many fruits like bananas ripen during their shipment.

Pharmaceutical

Many pharmaceutical products need temperature control. This includes products like vaccines, medication, or biologicals, like blood or plasma. Spoilage of these products can mean a loss in efficacy and can become a public health hazard if not caught.

Chemical

Temperature control is critical when it comes to some hazardous chemicals. Specifically, ones that can be susceptible to reactions due to heat release. If heat escapes from a chemical good that requires it to remain at a certain temperature, it can cause a spark, flame, or explosion to occur, not only damaging the product but potentially harming others.

Oil and Gas

This sector uses explosion-proof refrigerated containers on oil rigs, oil tankers, and offshore locations.

Military

The U.S. military must control the temperature of its medical supplies, which often travel long, hard-to-reach areas. Because of this, the cold chain process can become more complicated when handling products for the military.

WORK WITH AN EXPERIENCED PROVIDER

Not all temperature-controlled products are the same. Each product is unique and requires specialized solutions throughout the cold chain. Many cold chain manufacturers are turning to third-party logistics companies (3PLs) to handle their complex challenges in the cold chain process. For your cold chain to be successful, you need to be sure to work with a provider who understands your industry, regulations, and product requirements.

Luckily, you don’t have to look very far to find one. Here at Trinity, we have more than 40 years of experience in specialized industries such as cold chain. 

Contact us today to find your customized logistics solution for your cold chain process.

Author: Christine Morris

What do semiconductors, plastics, furniture, chlorine, and more all have in common lately? They are near impossible to find. As disruption after disruption has interrupted supply chains, shortages are now messing with shipping and demand. Specifically, raw material and product shortages are affecting the chemical industry. With many other industries relying on the chemical industry, this is becoming a significant challenge to overcome.

MATERIAL AND PRODUCT SHORTAGES

Shortages in the chemical industry have worsened over the last quarter. According to a June survey of 84 National Association of Chemical Distributors, nearly 85 percent of distributors report at least one imported item as out-of-stock. This is a huge jump compared to only 47 percent found in March. Inventories in the chemical industry have begun increasing, but they have yet to reach their pre-pandemic levels. These shortages are not only hurting the chemical industries but the many industries that rely on them. One example is the shortage of citric acid, as it’s often used in vitamin or electrolyte drinks, even in soda. These material shortages mean tight supplies, high prices, and continued delivery delays.

Some recent materials and products that currently face shortages in relation to the chemical sector:

Semiconductors

Many manufacturers worldwide are having trouble securing supplies of semiconductors, delaying the production and delivery of goods, and increasing prices. Several factors are driving the crunch, which first affected the auto industry. The shortage is going from bad to worse, spreading from cars to consumer electronics. With the bulk of chip production concentrated in a handful of suppliers, analysts warn that the crunch is likely to last through the rest of 2021. Materials most vulnerable in semiconductor production include wet chemicals, solvents, photoresists, gases, and substrates. Several semiconductor process materials in the petroleum supply chain are also running short. Those materials include acetone, PGMEA, NMP, and IPA, and a few of several solvents.

Plastics

Yet another shortage complicating business is plastics. Food packaging, automotive components, clothing, medical and lab equipment, and countless other items rely on them. Since March 2020, a perfect storm of events has been putting severe strains on the supply of plastic raw materials, base plastics, and compounded plastics. This shortage has hit plastic product manufacturers very hard. 

The demand for plastics continues to surge, especially for food packaging and automobile components plastics production. Plastics required by high purity chemical providers for packaging and wet processing equipment are experiencing raw material price increases due to availability issues.

Plastics make every kind of product imaginable — from food packaging, appliances, smartphones, and car parts to exercise equipment and roller skates. So with the ongoing surging demand for goods, it’s easy to see why these shortages are a big deal.

Chlorine

The swimming pool boom from the pandemic created a higher chlorine demand, thus contributing to a shortage. There was also a manufacturing lab fire in August of 2020 in Louisiana that only further aided the shortage. 

Some pool supply stores have imposed quantity restrictions. In certain regions, prices for chlorine tablets have doubled from last year. The chlorine shortage is widespread, and it will likely worsen as homeowners use their swimming pools for the season. 

Gas, Oil, Fuel

It’s not quite that there’s a huge shortage of crude oil or gasoline. Instead, it’s a shortage of tanker truck drivers who deliver it. According to the National Tank Truck Carriers, 20 to 25 percent of tank trucks in the fleet are parked due to the shortage of qualified drivers. The driver shortage has been an issue for a while, but the pandemic multiplied it. 

Gas prices, which typically rise at the start of the summer as seasonal regulations take effect — requiring the more expensive “summer blend” of gasoline needed to combat smog — are also rising. The national average has surpassed $3 a gallon this summer and could get even higher if any hurricanes hit the Gulf Coast or if there are any other disruptions to supply, such as a refinery fire. 

Other Raw Materials

As countries work to switch over to green energy, the demand for copper, lithium, nickel, cobalt, and other rare earth elements is soaring. And these raw materials are vulnerable to price volatility and shortages as limited access to known mineral deposits is another risk factor. Only three countries together control more than 75 percent of the global output of lithium, cobalt, and rare earth elements – the Democratic Republic of Congo, China, and Australia. Constraints on the supplies of their raw materials — especially polyethylene (PE), polypropylene (PP), and monoethylene (MEG) — are leading to factory shutdowns, sharp price increases, and production delays.

SHORTER SUPPLY + HIGHER DEMAND = HIGHER COSTS

Consumer spending rapidly grew because of the pandemic. Remote working and schooling created an increased demand for electronics. Higher demand came for food packaging and healthcare markets. Automotive production rebounded and surged beginning in the third quarter of 2020. All these and more are impacting the chemical industry.

These disruptions have undoubtedly led to rising prices. Echemi reported in late March that more than 20 chemical companies including BASF, DuPont, Dow, DSM, and LANXESS, have raised prices. These price hikes are largely due to difficulty in getting raw materials used to make products. And there’s less supply than there was a couple of months ago. As demand is rising relative to production, prices have increased for chemicals, like polypropylene, acetone, and other solvents. 

…AND LOGISTICS DELAYS

Not only have shortages worsened since March, so have delays. NACD’s survey found that 82 percent of respondents are dealing with an average uptick in travel time for their shipment of 11 days or more. And these issues extend throughout the supply chain. 

Containers and boats to ship products from overseas are in short supply. Products could be sitting in a factory overseas for months because they can’t get loaded onto a ship. Then you have the ports struggling with delays. Currently, you can look at live video outside of Los Angeles and you’ll see up to 30 boats driving around waiting to get an appointment because there are so many ships coming in. Ships are waiting longer to get in and once they do get in, there is a shortage of drayage drivers that only adds to the congestion. 

A lack of truck drivers and warehouse workers has contributed to the delays as well. The driver shortage was an issue before COVID, but the recent labor shortage in warehouse workers has created a larger problem. Say you do have a truck available. But if you don’t have somebody in the warehouse to pull the goods out of the racks and load them on the truck, then that’s another issue causing delays.

Supply chain issues continue to hamper the whole of manufacturing. It’s hard to look at the global supply chain and not think, “everything that can go wrong has.” The impact of these issues continues to impact many industries downstream. On raw materials such as chemicals and plastics, inventories are unlikely to be rebuilt amid continuing strong demand. There’s simply not going to be a quick return of inventories. 

WHAT YOU CAN DO DURING THESE TOUGH TIMES

Begin building a more resilient supply chain

Consider moving manufacturing operations closer to home. This can help reduce your transportation times from future delays or disruptions. Make plans now to be prepared for all potential disruptions. Disruptions to the supply chain are not new, but this current phase of repeat instances has been rougher than most.

Gain access to technology

Integrating technology into your supply chain has now become a necessity. Implementing technology like a transportation management system (TMS) will help all stakeholders maintain real-time communication and visibility. A TMS can help you optimize your routes and work with the best carriers, increasing your service levels and reducing any delays. It can provide you with data-driven insight so you can better manage current and future disruptions. And by using data analytics, you can recognize which carriers most likely have available capacity, reducing your time spent on transportation coverage. Gain insight into what’s happening across all markets, ensure proper rates for shipments, and keep more control over your budget and logistics costs with TMS technology.

Work with experts that keep a pulse on the market

An expert can help you pick up on early warning signs and help you prepare for potential constraints. They can also offer you alternative solutions when needed. 

Here at Trinity, we are a Team of experts. We do more than arranging your freight. When working with Trinity, we become logistics partners in your business and aim to help you with your growth. We can help you streamline your logistics procedures and give you insight into the freight market. We keep a close eye on it and keep you educated to help you plan and forecast. 

We also work very hard to follow through on what we say we are going to do. When issues arise, we work until they are resolved, keeping communication every step of the way. We have over 40 years of experience in logistics and industry challenges in supply chains is our day-to-day.

Industry experts and forecasters are saying this tough market is far from over. It may even look to extend into 2022. So don’t hesitate in asking for help. We’re here and ready to provide you with our People-Centric approach for you during this historical time in logistics.

Author: Jennifer Braun

If you work in logistics, you’ve likely heard the term TMS before. TMS is the acronym of a transportation management system. A TMS is a software program that allows you to manage your entire supply chain, including your internal logistics department, suppliers, warehouses, carriers, vendors, etc. Having a TMS for your supply chain can help provide your company with greater visibility, better reporting, and improved performance through automating many manual processes. Many companies use a TMS for their logistics management, like e-commerce companies, retail businesses, manufacturers, distributors, even logistics service providers such as 3PLs (like us!). If you’re reading this article, more than likely you’re interested in a TMS but are hesitant. Let’s talk through some of those hesitancies and see if we can help resolve them.

TMS HESITANCY 1:  I WANT TO KEEP CONTROL. I FEAR OF LOSING MY ROLE IN LOGISTICS MANAGEMENT.

Most fear losing control of their logistics operations or that it won’t be done correctly. However, a best-in-class TMS allows you to decide the amount of control you would like to have. You can opt for a TMS that integrates with your current system, using your own carriers and rates. Or if you want to be more “hands-off” you can outsource your TMS with a 3PL that provides software, account management, and use of their carrier relationships and rates. If you’re in between, you can have help with account management but still be involved and a mix of your own carriers and rates and your 3PL’s carriers.

Even with all those options, no matter your role in logistics management, a TMS isn’t going to do it all for you. Instead, technology like a TMS simply helps you do your job more efficiently by automating those very manual and time-consuming tasks that we do every day!

TMS HESITANCY 2: IT COSTS TOO MUCH

This is often a misconception. With software as a service (Saas) and a cloud-based or web-based TMS, sometimes there are no costly up-front investments. It also means you won’t have to worry about having software installed on company servers and continuously managing updates.

It really depends on your logistics needs and the solutions your provider can offer you. At Trinity, we offer technology solutions for companies of all sizes and with different levels of services. A TMS can often end up saving you money in the long term by helping you better manage your freight spend and performance.

TMS HESITANCY 3: MY BUSINESS IS TOO SMALL. WE DON’T WANT TO MAKE ANY CHANGES.

No business is too small! And even if you don’t want anything to change in your process, change is inevitable as it will happen in your industry and business. Will your business be ready for when that happens?

It’s vital to adopt technology, like a TMS, into your business before you grow too fast rather than waiting until while you are growing quickly. What you have in place may work for now, but when your business really starts growing, the cost and time to manage your workload will be growing too. Can your process handle that?

We all know change can come quickly and unexpectedly, causing disruptions in our processes. 

A TMS can help you be better prepared and ready for any changes.

TMS HESITANCY 4: IT’S TOO COMPLICATED TO USE. WE TRIED IT BEFORE AND NO ONE WOULD USE IT. 

Some TMS’s can be difficult to navigate and if there’s not a lot of support, you may abandon it. But a best-in-class TMS should be user-friendly and configurable to the needs of each individual user. You should also have access to a support system that can help you when needed.

There’s a big difference between purchasing software to use from a company and working with a 3PL that offers it as a solution. Considering a 3PL often uses their own TMS, they’ll know how to use it and help you. Quality TMS providers will work with you to make sure the TMS meshes well with your other systems.

ARE YOU EXPERIENCING ANY OF THESE CHALLENGES?

Struggling With Keeping Your Quotes Organized

If you work with several different shipments, it can be time-consuming and overwhelming to be on the phone or going from website to website asking for rates from carriers in your network. Contacting all those carriers for your different shipments and keeping track of those quotes can take you away from the other important aspects of your business.

Managing and Selecting the Best Carriers

We know that not all shipment is the same. Some shipments need temperature control, require special delivery services, or need to be handled with extreme care. Because of that, not all shipments are handled by the same carrier. There are carriers best suited to handle all your shipment needs. However, managing them all can be difficult.

Keeping Track of Your Shipments

As mentioned above, most often all your freight is not hauled by the same carrier. It can be common for several different shipments to be in transit aboard different company trucks all over the country/world. Because of this, freight tracking can be challenging. Without a TMS, there will have to be someone entering shipment numbers into forms on several different carrier sites.

Not Getting Insight into Your Logistics

Without proper reporting from a TMS, it can be hard to gather data to determine which carrier was the cheapest throughout this past year. Or analyze which carrier had the best performance. Or find out what your freight costs were on certain lanes. 

Not all TMS’s may generate the reporting you need, but a best-in-class TMS can off you advanced reporting to go into specific logistics metrics. Without TMS technology to offer you data-driven insight into your business, can you really know how you are doing year after year?

STILL NOT READY TO COMMIT TO A TMS?

Say Hello to Trinity’s Customer Portal

We understand. Committing to a TMS can be a big change. We listened and heard you.

That’s why we now offer our Customer Portal for shippers working with Trinity. There’s no commitment, no additional charges, with a sample of TMS technology right at your fingertips.

Track your shipments, request quotes, view and pay invoices, or view and duplicate historical quotes. See how easy it is.

Start shipping with us today to gain access.

LOOKING FOR MORE?

Trinity’s Managed Transportation

We’re here and ready to help you with your logistics management. Our combination of experienced account management and best-in-class TMS technology offers you a customized solution to help achieve your unique supply chain goals. Through Trinity’s Managed Transportation, there’s no need to worry about an out-of-the-box solution that doesn’t fully meet your needs.

Whether you’re looking for Saas, a Managed TMS, a fully Integrated Outsource, or something in between, we’ll work with you to design a solution unique to your business, not the other way around. You’ll gain control, visibility, improved performance, reduce costs, and eliminate manual, time-consuming processes.

So, what do you have to lose?

Looking to learn more about Trinity’s unique TMS solutions? Schedule a risk-free live demo with Ryan O’Halloran to learn more about our customizable solutions.

AUTHOR: CHRISTINE MORRIS

All industries are currently facing challenges with their logistics and the supply chain. Challenges that include overwhelming demand, tight capacity, rising freight rates, and shortages in materials, products, labor, and drivers. However, industries facing high flatbed demand, like construction and manufacturing, are seeing more difficulty than others. 

These industries have been dealing with capacity challenges throughout the pandemic as they have remained in high-demand. As it continues to rise, the needs for their supplies have increased, creating a surge of flatbed demand that’s weighing on the supply chain. Let’s take a deeper look into these challenges and present some considerations for how those in the industry can overcome them. 

FLATBED DEMAND VS. VAN AND REEFER

Finding truck capacity of any type is proving to be difficult. Flatbed capacity seems even more challenging because of the continued demand in construction and manufacturing. As a result, flatbed spot rates are reaching new highs and convincing more shippers to look for solutions. 

According to DAT, the flatbed load-to-truck ratio is up 169.3 percent year-over-year (YOY) from June 2020 to June 2021. In comparison, reefer’s load-to-truck ratio is up 111.7 percent YOY. Van load-to-truck ratio is up 57.8 percent YOY. 

The monthly national average flatbed spot rates have risen for eight consecutive months, reaching $3.15 per mile in June. There’s not looking to be any fall soon, as the industries pushing the flatbed demand are cranking it into the next gear. 

FACING DISRUPTION AFTER DISRUPTION

The return to normal may be farther away than you think. With demand, there are still projects waiting in the wings until materials can be properly sourced and shipped. And demand already has construction projects beyond their pre-pandemic heights. Just look at the Associated Builders and Contractors’ Confidence Index, which is now positive for sales, profit, and staffing level expectations for the next six months. 

Covid-19 Hit First..

When the pandemic hit, people had found they had nothing to do while staying home. And so, we saw a rapid uptick in those wanting to buy a new house or remodel. Demand quickly exceeded supply. Supply shortages and delays have put pressure on contractors as the demand rose despite a lack of supply.

..Then There was the Texas Freeze..

In February and March 2021, Texas saw their lowest temperatures in years and were not prepared for the intense weather conditions that they experienced. Many manufacturing plants in the area had to shut down, which created more disruption in the supply chain. 

..Then the Suez Canal Blockage..

The ship that blocked the Suez Canal for several days caused severe delays in the imports of many products needed. This created many shipping bottlenecks that we’re still experiencing the aftermath of today. 

..Now the Wildfires.

Currently, the raging wildfires on the west coast are causing further disruption and delays to an already stressed supply chain.

Issues such as these are causing supply chain disruption after disruption, resulting in increased costs and delays. Many companies rely on materials that come from delayed or now-unavailable, global manufacturers. This has shifted companies to search for regionally based suppliers, creating higher demand on smaller supply chains. After over a year of continuous supply chain disruptions, there’s been an industry-wide realization that building resilience into supply chains is vital. 

RISING FUEL PRICES

One of the areas affecting logistics cost are the continuing rise in the costs of fuel. The latest Energy Information Administration data shows the national average diesel price is at $3.34 per gallon, a $.05 increase from one month ago. Regional diesel prices range from $3.08 in the gulf coast states to $3.48 in the central Atlantic region. California diesel prices are averaging $4.19 per gallon.

SHORTAGES AND DELAYS

Lumber shortages continue to be a significant problem nationwide. Both steel and electrical supplies have faced steep price increases in the past year. According to the U.S. Census Bureau’s Small Business Pulse Survey, 59.7 percent of respondents reported domestic supplier delays which is a huge jump over the national average of 36.3 percent. These aren’t domestic only issues as 19.1 percent of respondents are also dealing with foreign supplier delays. 

MATERIALS THAT HAVE BEEN EXPERIENCING SHORTAGES

• Timber
• Steel
• Roof tiles
• Cement
• Electrical components
• Paints and sealants
• Plaster and plasterboard
• Concrete
• PIR insulation
• Bricks and blocks
• Aggregates
• PE and PP plastics
• Screws
• Plumbing items

THE RAW MATERIAL SHORTAGE

There is currently a global shortage of raw materials. This comes from factory slowdowns and, in some instances, factory closures due to many reasons. The shortage of raw materials continues to put a strain on the production of products, like insulation, paints and adhesives, and packaging.

THE LABOR & DRIVER SHORTAGE

Another cause of rising costs and delays is the shortage of labor and drivers. Labor rates have skyrocketed in recent months. This is due to the high labor demand and trades raising their rates because of the overwhelming amount of work. The big challenge these industries face is finding qualified labor to perform work, whether that be driving a truck to deliver materials and products, painting a house, or installing plumbing. In logistics, driving a flatbed truck, especially one hauling an oversized load, requires a different skill set than your typical van trailer trucking.

HIGH PRICES KEEP HEADING HIGHER

The Associated General Contractors of America (AGC) released a survey recently showing 93 percent of more than 1,400 respondents reported higher costs for materials, parts, and supplies. Construction material prices have increased so much in 2021 that the AGC issued a rare Construction Inflation Alert. This hasn’t taken since place 2008, citing a 12.8 percent jump of input costs for projects since the pandemic began. While that number is notable, some materials have risen even more. Lumber and plywood jumped 62 percent and steel recorded a 20 percent rise since April 2020. Diesel fuel, the lifeblood of the heavy equipment and transportation haulers needed to build major projects, has surged 114 percent. Even when materials are ready to be shipped, the transportation market is trying to play catch up. As mentioned earlier, there is currently more demand than there are trucks available. 

Rising costs and supply chain disruptions have pushed more hardships on the construction and manufacturing industries, slowing down their projects and business progress. Data found that more than three-fourths of construction firms have indicated projects are being postponed or canceled due to unavailable materials or cost overruns. 

POSSIBLE SOLUTIONS

Experts are estimating that the high demand in these industries and flatbed demand may continue through 2022. Not to mention, who knows what other possible disruptions we may see soon. Hurricane season is upon us and could cause some more delays. 

It’s never too late to find ways to improve your supply chain and keep costs budgeted. Here are some suggested solutions to facing this difficult time we’re in.

LOOK FOR ALTERNATIVE ITEMS

It might be worth checking into other materials to offer your customers. Many other companies are doing what they can to keep their projects moving forward and communicating this with their customers. For example, with rising lumber costs, you may find redwood or cedar to be more affordable alternatives. They may also be much easier to get your hands on. 

INTEGRATE TECHNOLOGY

Integrating technology has become a necessity for all stakeholders to maintain real-time communication and visibility. Gain total visibility and trust from your stakeholders with logistics technology like a transportation management system (TMS). A TMS can help you with routing decisions by matching your freight with the best carriers, lanes, rates, and transit service. 

Having a best-in-class TMS also provides you with data-driven insight to better manage disruptions and budget your logistics spend. By using data analytics, you’ll be able to recognize which carriers are most likely to have capacity and have a full view of your transportation management and what’s happening across all markets. 

CONSIDER NEW OPTIONS

When possible, see if you can use van options for your transportation, considering the load-to-truck ratio shows less demand and lower freight rates. You may also be able to consider other modes, if possible, but any oversized freight must be hauledwith a flatbed trailer. 

PLAN IN ADVANCE

Many other companies are stocking up on available supplies or finding other ways to look far ahead. Consider doing the same. Stock up on what materials you use most often for your projects. Do keep in mind that the more you stock up on, reduces the overall supply, increases demand, and thus pushes prices higher. Don’t go overboard and hoard ALL of it but do try to keep some stock in supply. Try planning your projects far enough out, correlating with the longer lead times we’re experiencing. If the material you need says it will take nine to ten months, then plan your project around that time frame.

BUILD A STRONG NETWORK OF CARRIER RELATIONSHIPS

Due to the over-demand of freight, load boards don’t move shipments the way they once did. Strong relationships will get you the coverage you need, better pricing options, and often better service. If building a large enough network for you seems daunting, you can always partner with a third-party logistics company (3PL), whose main role is their relationships among shippers and carriers. Here at Trinity Logistics, we have over 70,000 qualified carrier relationships to help haul your freight. 

BUILD A RESILIENT SUPPLY CHAIN

At a time when your costs are a critical issue, reimagining your supply chain could be a way to build resilience and reduce costly disruptions before they happen. Now is the perfect time for companies to build resilience into their operations to be better prepared for future disruption we may see.

Opportunities to do so range from reevaluating your business models and building efficient industrial supply chains, to building new and more regional manufacturing and distribution facilities to help with the vulnerabilities the pandemic brought to light. You could put in place more flexible sourcing and distribution strategies, including shifting your suppliers closer to home.

WORK WITH A QUALITY 3PL, LIKE TRINITY

We do more than arrange your freight. Consider us your logistics consultants. As logistics experts, we keep a close eye on the market, keeping you educated so we can help you plan and forecast. 

No matter the market, you can use your Trinity relationship and discuss your current and upcoming projects, even if they are in the planning stages. This helps us give you things to look out for to keep your transportation aspect of business more stable and reliable. When markets fluctuate, having a solid relationship with experts such as Trinity will prove to be your largest asset. 

Should issues arise, we at Trinity, work until they are resolved through and communicated. In the logistics industry, things will happen, and bad news doesn’t get better with time. We stay upfront with any challenges, and we bring solutions. When given the chance to prove our communication and service, we make sure to set the bar high. 

If you’re ready for a reliable provider to help you with your shipping needs and logistics management through People-Centric Freight Solutions®, then request your first quote to get started.

Author: Paul Nelson

Trinity Logistics is proud to announce our earned recognition on Inbound Logistics’ Top 100 Third-Party Logistics Provider list for 2021. Hundreds of companies submitted their credentials to Inbound Logistics to be considered, not only making the challenge for their selection team difficult but truly showcasing Trinity’s growing brand of People-Centric Freight Solutions® among our shipper and carrier audiences. 

“This year’s theme for our annual ‘3PL edition was 3PLs Have Your Back.’ After a year of hardships and disruptions, our audience continues to express increased interest in how 3PLs can help them improve their service, manage costs, and hone execution,” states Felecia Stratton, Editor of Inbound Logistics. “Outsourcing supply chain, logistics, and transportation solutions to a trusted partner have never been more important. The selected Top 100 3PLs exhibited trusted relationships with their partners, providing great service and solutions to the logistics industry.” 

“We are honored to be included as a 2021 Top 100 3PL Provider by Inbound Logistics!” says Sarah Ruffcorn, President of Trinity Logistics. “This has been one of the most challenging years we’ve experienced as an industry, and we are incredibly proud of the way our Team responded. They showed daily determination and resilience, serving our shipper and carrier customers.”

Here at Trinity, we consistently strive to be our best by offering our audiences customized logistics solutions through our People-Centric approach. We are honored to receive this recognition as we continue positively representing our company’s legacy by providing excellent service to the logistics industry.

A frequently asked question among new Agents is, “How much money can I make as an Independent Freight Agent?” The good news is the earning potential for talented Freight Agents is truly unlimited. You have your own book of business, manage your own time and ultimately, control your own salary. 

It’s important to say working as an Independent Freight Agent is not an easy task. Many factors contribute to your business’s success and your income. The most important factor is how much effort you are willing to put in to build and grow your business. Other factors include your level of experience, gross revenues from your book of business, the profitability of those customers, your business structure, and the support and technology offered to you by your freight broker. 

How Does an Independent Freight Agent Get Paid?

You might be wondering; how does an Independent Freight Agent get paid? Independent Freight Agents are contract workers paid through commissions via 1099 from their licensed freight broker, based on the gross margin or net revenue they produce. 

Your commission rate will depend on the freight broker with whom you work. Industry standards range from around 50 to 70 percent of gross margins paid to you. Maintaining proper insurance coverage, covering back-office operating expenses, supporting necessary technology to run your business and providing administrative support to your agency all covered by the percentage of the gross margin retained by the freight broker.

What’s the Average Salary for an Independent Freight Agent?

It’s nearly impossible to give concrete numbers on exactly how much annual revenue you should expect. This figure depends on several factors such as your experience, the size of your book of business (your customers), and the amount of time and grit you are willing to devote to the success of your business. 

It’s estimated that Freight Agents newer to the industry earn an average of $30,000 to $50,000 per year in commissions. However, some more experienced Freight Agents have been known to earn anywhere from $100,000 to $400,000 or more per year. Ultimately, determining your business plan and how much effort you are willing to put into your business will decide how much earning potential you have. 

Let’s look at a scenario example for more insight into an Independent Freight Agent’s pay.

Let’s say we have an Independent Freight Agent generating two million annually in gross sales with an average margin per shipment of 15 percent. This would yield that Freight Agent an annual income of $180,000, assuming a 60 percent commission rate with their freight broker. Comparing to the most recent published median U.S. household income of $74,580, you can see how being an Independent Freight Agent can be quite a lucrative career!  

Don’t Forget About Your Other Benefits

Money certainly holds a big value, but we know it isn’t everything. Working as an Independent Freight Agent has many other benefits outside of pay. The biggest benefit may be flexibility. Since it’s your own business, you can work from home and choose how successful you’d like to be.

Not to mention the help your freight broker offers you. By working as an Independent Freight Agent, you don’t have to worry about operating costs, licensing fees, insurance, or anything else that you would otherwise need as a freight broker. Of course, every freight broker is different in what they offer you, so make sure you do your research before signing up to partner with any company.

Do I Have to Work with a Freight Broker?

Yes, this is an absolute requirement as an Independent Freight Agent. As an independent contractor, you are not licensed to be held liable for the transportation of any shipment. Therefore you need to work with a freight broker. They are registered and licensed through the FMCSA to arrange transportation and be held liable should any problem arises. 

Make It Easier to be Successful

In any business, your success or failure correlates to your skills, planning, resources, and hard work. Make sure you have the support and technology you need to make it easier to be successful. 

By becoming an Authorized Agent with Trinity Logistics, you can gain more time to focus on your customers and generate more revenue, while we take care of everything else. We have best-in-class technology available for you, your customers, and carriers, and a whole Team ready to serve you and your growing business. 

To learn more about how Trinity Logistics’s Authorized Agent Program:

Call at 800-846-3400 x1908, 

Email [email protected], or

Author: Holly Cooper

When was the last time you reviewed your logistics network and technology? If it’s been more than six months, then you’ve stumbled upon the right article. Now, you might be thinking, “I don’t feel like our process is necessarily broken. Is it really worth trying to fix it? Do I really need a transportation management system?” Yet, what if you could strategically reduce your overall spend while transforming your team from being reactive and task-oriented to proactive and customer-oriented. What kind of impact would that have on your company’s bottom line? 

If your business;

• has a freight spend of $1M or more,
• utilizes a mix of transportation modes,
• has multiple locations that utilize their own mix of broker and asset providers,
• procures a majority of freight via the spot market, or
• manages most of your data via Excel spreadsheets;

Then keep reading as we’re going to take a look at some common areas of improvement you could see with a Managed Transportation approach.

You’ll learn how Trinity’s unique solutions focus on finding the right mix of people, process, and technology. Through this, we can help leverage your supply chain into a competitive advantage for your organization.

Let’s dive in.

PAIN POINT 1: LACK OF EFFICIENCY

Lack of efficiency in your business is a direct result of a decentralized and very manual approach. Programs like Outlook and Excel were just never intended to handle a freight spend of $1M or more. If your freight spend is $1M or more, you’re probably working with a couple of hundred orders a month, with who knows how many stakeholders to help micromanage quotes, tenders, tracking, and tracing of shipments.

How much time is being wasted across your organization with overwhelming manual processes?

Does this process save you any money when it comes to freight spend?

Do you know if you are utilizing the right carriers?

Would contract pricing cost you less than the spot market in the long run? 

The bottom line is this is a reactive strategy focused on individuals’ tasks. To optimize your team and freight, you need a major shift towards being more proactive and customer-focused. This is where Trinity’s technology can help you. All of our Managed Transportation features a cloud-based TMS platform that creates a centralized freight command center, replacing your redundant manual processes with automation. Our TMS helps you manage the entire life cycle of an order and we can even integrate with your order management system to truly optimize your workflow. This means no more phone calls, typing out shipment details, or wondering where your freight is or when it’s going to deliver. Technology is one of the critical aspects of our solutions here at Trinity and also a major catalyst to transforming your supply chain.

PAIN POINT 2: PERFORMANCE

Efficiency isn’t just about getting faster; it’s about getting better. Finding and creating better team performance, better carrier performance, and ultimately improving your bottom-line company performance. So, is there room for improvement in these areas for you? Are your current strategies effective? Can they be measured? You may have answers to these questions that vary from location to location. You’ll usually find some of your distribution centers are better at procuring freight than others.

While a siloed strategy may have made sense for you at one point, companies grow and change. Considering change is a constant, a more wholistic approach will typically yield a better overall cost and carrier performance for you. This is what we consider to be the process part of our solutions. Data is a key driver for the strategy on this one.

On the surface level, it will appear that you simply are spreading your freight too thin across too many carriers or brokers. At Trinity, our Team of Logistics Consultants can quickly diagnose if you are leveraging your overall volumes to the best of your ability. Through strategic sourcing and customer-specific pricing, you can yield savings of six to ten percent, sometimes even more. It can also have a significant effect on improving on-time performance. Best of all, with Trinity’s Managed Transportation, you’ll always be able to track these metrics. You’ll be able to know exactly how your teams compare to the market and are able to adapt quickly when things change. 

PAINT POINT 3: VISIBILITY

It’s hard to overstate the importance of real-time visibility in today’s supply chain. When a customer or sales rep asks for a delivery ETA or if the warehouse needs to know what trucks are scheduled to come in; that can all fall back on your outdated and manual processes. Things like picking up the phone, back and forth emails, creating and sharing spreadsheets, that’s just your day-to-day visibility. What about those overall performance metrics and being able to measure your team or your carriers? Unfortunately for many shippers, there can be too many roadblocks for effective communication and a lack of overall supply chain awareness. 

However, with the right strategy and technology, visibility can shift from a challenge to a strength. Having access to a TMS takes over a lot of the heavy lifting for you, acting as a virtual control tower for all logistics updates and communication. With Trinity’s solutions, we included unlimited users who can access updates and data 24/7 via the cloud. We can even create push notifications where your team, your warehouse, and your customers can receive updates for their specific tasks automatically. For most shippers, real-time visibility has fully transitioned from an optional benefit to a business necessity – which is why Trinity brings all of this valuable information right to your fingertips. 

PAIN POINT 4: BUSINESS INTELLIGENCE

Data has quickly become one of the world’s most valuable resources. In order to make effective decisions, proper data and analysis are needed, especially for logistics strategy or more enterprise-level decisions that reach far beyond the supply chain.

Now let’s say you do have access to good, tangible data. Even still, most likely your data is spread out among various laptops, email accounts, and carrier portals. Trying to compile complete and accurate information is difficult in itself this way, but the greater challenge is what can you do with this data?

That’s where working with Trinity comes in hand. We help compile and present a key analysis in a way that is easy for you to understand and collaborate on action steps for your company’s continuous improvement. Our customers are able to successfully leverage their data to lower costs, improve performance, and drive their company forward. There are many types of helpful reports you can expect to see such as carrier scorecards, customer profitability reports, to network analysis, and distribution projects.

From Surviving to Thriving

Whether or not your challenges have already been identified, through a Managed Transportation Discovery Call with our people-centric approach, you can learn how to take your business from surviving to thriving. Your consultation is free and the only thing you have to learn is how your business can operate more efficiently and strategically. 

What do you have to lose?

Intrigued? 

Not quite ready for a consultation but still interested in learning more about Trinity’s TMS? Register for a brief presentation specifically focused on our TMS.

Interruptions to the cold chain create problems such as spoilage, changes in the appearance, taste, or smell of a product, growth of harmful bacteria, or lost potency. Preventing any interruption of the cold chain is one of the main responsibilities of a logistics manager. Let’s look at some of the significant cold chain challenges you may have to face, and how you can keep issues at bay.

REGULATIONS

Regulations for the cold chain are ever-changing and complex, which is why they are one of the major challenges faced today. If your cold chain is worldwide, it can be more complicated as there is no one entity to regulate on a global scale. Each region has its own regulations, compliance mandates, and enforcement agencies. Some examples of these are:

U.S. Food and Drug Administration (FDA)

In the U.S., the federal regulatory agency for food and pharmaceuticals is the FDA. 

Most cold chain food regulations come from the FDA’s Food Safety Modernization Act (FSMA) of 2017. This regulation covers the cleanliness and function of equipment, protocols set in place for transportation, employee training on the proper handling of food in cold chains, and records of all FSMA compliance.

When it comes to pharmaceutical products, many regulations affect the cold chain. Some of those include:

• 21 CFR 203.32
  • Addresses the need for maintaining drugs under stable conditions and meeting manufacturer’s specifications.
  • 21 CFR 211.150
    • Provides guidance on the written procedures for managing expirations and a reliable system for identifying the distribution of drug samples in the event of a recall.
  • 21 CFR 203.36
    • Outlines the responsibilities of manufacturers and authorized distributors.
  • 21 CFR 205.50
    • Minimum requirements for storage and handling of prescription drugs and maintenance of distribution records

Canadian Food and Drugs Act

In Canada, the regulatory authority is the Government of Canada. The Canadian Food and Drugs Act was passed in 1920 and revised in 1985. It regards the production, import, export, and transport across provinces for food, drugs, and cosmetics including products like soap and toothpaste. It ensures products are safe, ingredients disclosed, and drugs are effective. 

International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use (ICH)

Many other countries, refer to ICH guidelines gathering data on a product’s safety and efficacy to establish a cold chain strategy. ICH brings together many regulatory authorities to discuss data and establish those guidelines. Gathered data is used to consider the duration of temperature excursions that can occur across distribution channels. 

Regulations can be complex and demanding at times, but they all have the same goals of retaining the safety, quality, transparency, and efficacy of cold chain commodities. The biggest key to keeping compliance with cold chain regulations is increasing end-to-end visibility in your cold chain. Keeping proper documentation of data throughout your supply chain can seem difficult but modern technology like a transportation management system (TMS), can simplify this cold chain challenge. Current technology applications like GPS tracking, ELD data, Internet of Things (IoT), and a TMS can give you advanced analytics and reporting that would otherwise be comprised of manual processes. Not only does technology offer you savings in time but of human error as many processes become automated. 

SUSTAINABILITY

Another significant cold chain challenge is the increasing spotlight on sustainability. The distribution and transportation of temperature-controlled products have shown to be major causes of greenhouse gas emissions. In comparison to other supply chain transportation, cold chain transport consumes 20 percent more fuel than other heavy vehicle types due to the refrigeration equipment. The biggest issue facing sustainability is the high-power consumption or combustion of fossil fuels necessary to power the cold chain’s cooling systems. 

There are also growing issues and increasing regulations on refrigerant gases used in cooling systems like hydrofluorocarbons (HFCs) as they are responsible for high greenhouse gas emissions. In 2015, the European Union set strict limits on the production and sale of high global warming potential HFC refrigerants. In the U.S., the Manufacturing Act of 2019 was passed which established a timeline of phasing down the use of HFCs by 2036. 

Because of the increasing pressure of sustainability and its regulations enacted on the cold chain, many large food and pharmaceutical companies have plans in place to reduce their carbon emissions. In 2015, more than 150 businesses in the U.S. signed the Business Act on Climate Pledge which launched for private sector businesses to express their support on international action on climate change. Also, in 2015, the Paris Agreement was created, signed by 195 countries at the United Nations climate change summit. This agreement aims to reduce greenhouse gas emissions to prevent the planet from warming by more than 2 degrees Celsius. 

Being sustainable in the cold chain is also something you can be recognized for now with awards such as the Supply & Demand Chain Executive Green Supply Chain Award or the Council of Supply Chain Management Professionals’ Supply Chain Sustainability Award. Some ways to consider in adding sustainability to your cold chain is improving your cold chain management to reduce waste and your carbon footprint or considering alternative transportation modes like intermodal versus truckload when shipping your products. While you’re working on improving sustainability in your cold chain, make sure the providers you work with are equally interested in sustainability as well. Here at Trinity, we are proud of our sustainability efforts and to be recognized as a SDCE Green Supply Chain Award winner and as a Food Logistics’ Top Green Provider. 

TEMPERATURE VARIANCES

Shipping temperature-sensitive items? Check out our Temperature Shipping Guide for temperature suggestions?

It’s one of the biggest and most common cold chain challenges: maintaining the required temperature of the product throughout the entire supply chain. Any temperature that is higher than the set temperature can affect a product’s quality. Not all products that get exposed to a temperature past their threshold will spoil right away, as it depends on how steep and frequent the exposure was. Once a product has begun to thaw, it is considered contaminated. Depending on the product and temperature, that window of time can be very short. There are many times during cold chain in which a product can be exposed to a temperature variance: during unloading and loading of the product, from poor packaging, handling, or broken equipment.

Loading and Unloading

As your product moves through the cold chain, it can get exposed to temperatures outside its set temp. Whenever loading and unloading your product, handling should be as quick as possible. Preventing prolonged exposure to temperature changes prevents having problems with quality. 

Poor packaging or handling

There are many different ways to package your cold chain freight so it can keep its cool. If it’s not done right or in mind of your transit time, your goods can spoil before arrival. When handled poorly, they can become damaged, causing lost product.

Equipment problems

One way the cold chain can be interrupted is when your equipment breaks down. Refrigeration equipment can malfunction due to damage, inadequate maintenance, or losing power. 

In cold storage, doors becoming damaged are one of the common challenges they face. When cold storage doors become damaged, they can’t maintain their specified temperatures.

Due to inadequate maintenance, there can be a buildup of condensation in coolers and freezers, causing slippery surfaces and unsafe conditions for workers, as well as a spoiled product. Another maintenance challenge is handling the growth of mold or mildew, which can happen with poorly maintained temperatures. Should this happen, the freezer will need to be cleaned thoroughly and inspected for any problems. 

Transportation Breaks Down

Vehicles can break down at any time. Any hold-up in your cold chain shipment could mean more than just a time delay, it can mean a spoiled product. Make sure you’re working with a qualified carrier who inspects their truck or other modes of freight before the journey begins.

Keeping track of the temperature throughout your cold chain is another way to combat having your products exposed to changes in temperature. Temperature monitoring systems are quickly replacing any manual processes of collecting temperature information, saving time, and preventing spoiled products. This also allows cold chain managers insight into their problem areas and being able to fix them.

Some of these temperature monitoring systems are RFID or wireless sensor network, thermal imaging, and temperature loggers. RFID or other wireless sensor networks are the most common in the cold chain. These sensors capture the location and temperature, communicating the information back to a database and allowing parameters like an estimated shelf life to be calculated. You’ll often find these in warehousing and cold storage. Thermal imaging is exactly what you think it is; imaging that is taken showing the different temperatures of everything in the photo. Thermal imaging uses a sensor to convert the radiation given off at different temperatures into a visible light picture. This is also often used in warehousing and cold storage. Lastly, temperature loggers are another type of sensor placed next to cargo in transportation. They can be set to record as frequently as every second, minute, or hour. Once removed, they can be plugged into a computer so the temperature data can be transferred and analyzed.

TEMPERATURE-CONTROLLED SHIPPING CAPACITY 

Another significant cold chain challenge is available capacity. Capacity is always a challenge for any industry, but even more so for the cold chain, especially right now. With freight in high demand across all industries and capacity slim, drivers can pick and choose what shipments they want to take based on (already) high rates. Reefer trailers are already limited with the increased demand on cold chain, but when rates for moving other high-demand commodities such as lumber or retail keep increasing, those drivers can choose to utilize their reefer trailer as a dry van to haul should those rates be better paying, further reducing cold chain capacity. Cold storage warehousing is seeing the strain as well because of the growing freight demand. More storage space is needed in the supply chain and new buildings are being built, but those currently in production or needing their building supplies (which are also in high demand), puts yet another strain on shipping capacity until that demand has decreased. With the cold chain demand increasing and available equipment and drivers doing quite the opposite, can the logistics sector keep up? Read more in our current whitepaper.

DON’T LET THE COLD CHAIN SCARE YOU

There is a lot of juggling to do when managing the cold chain. If even one ball is dropped, it can affect the whole cold chain. You can prepare as best as you can for these cold chain challenges, but sometimes it’s nice to know you have backup when you need it most.

Luckily here at Trinity, we’re experts in complex situations. In fact, I would say it’s our specialty. We’ve seen every possible problem there could be and are happy to help. By working with Trinity, you can gain access to the data you need to improve your performance and output, find equipment and capacity when you’re finding it difficult, and work with someone who understands current regulations, no matter the region or type of commodity you work with. We’re here to have your back regardless of what cold chain challenge comes your way.

Not ready to request a quote? Subscribe to our YouTube channel and watch our latest State of the Industry and Freight Market Update videos to stay on top of what’s going on in cold chain. 

Author: Christine Morris

The Trinity Foundation held its 11^th annual Heart and Sole 5K this past Easter weekend.  Since its inception in 2010, the Heart and Sole 5K has benefited cardiac rehabilitation efforts for our local hospital, TidalHealth. Prior to this year’s event, we were presented with an opportunity to help the 1-year grandson of one of Trinity’s team members. 

Dawson Lankford, the son of Steve and Jessica, and grandson of Burnie Lankford, was diagnosed with Leukemia in late 2020. He’s undergone several procedures, such as a bone marrow biopsy, a spinal tap, and several blood transfusions. Dawson also started chemotherapy just two days after being diagnosed. Both Steve and Jessica were out of work for the first week that Dawson was in the hospital. Now, Steve is back to work while Jessica stays with their son. 

While the “heart” in our event title has always referred to cardiac rehab efforts, this year that word has taken on a different meaning. Through the support received, we feel the heart of our community, the heart of our gracious sponsors, and the heart of those who have lifted up the Lankford family as they continue to win this fight. 

The 11^th annual Heart and Sole 5K had a wonderful turnout with 204 runners/walkers. In total, we were able to raise $55,175.25 to support Dawson and his family! It is also important to note that prior to the event, it was announced that Dawson was in remission and cancer-free! We are immensely grateful for the turnout of the event, the money that was raised, and support from our sponsors and community. 

Learn more about the Trinity Foundation and their efforts.

With multiple modes of transportation to choose from it can be a hard decision to find the right one for your shipping needs. The two most commonly used modes are truckload (TL) and less than truckload (LTL). They may seem similar, but they have some significant differences. Whether you have only used one mode and are thinking about expanding to another or maybe your business is growing and you are looking at a different shipping option, Trinity Logistics can help you find the best solution for your shipping needs.

TRUCKLOAD VS LTL: HANDLING AND TRANSIT TIME

Truckload: Shipments moving full truckload will be the only shipment on that trailer. Once the shipment is picked up at the shipper’s location the freight will not be moved off the trailer until it reaches the consignee. Transit time with this mode tends to be shorter and more controllable since the freight remains on the trailer and will only be handled by a single carrier.

LTL: This mode allows multiple shipments from different shippers to be on one trailer. The shipper is essentially sharing the trailer with other shippers. Freight will move through several different terminals and be taken on and off the trailer multiple times. Transit time will vary due to different factors such as weather, higher freight volume, or assessorials that may require more time at either the shipper or receiver (delivery appointments, liftgate, etc.)

TRUCKLOAD VS LTL: WEIGHT AND SIZE OF SHIPMENTS

Truckload: Shipments ranging from 24 to 30 pallets depending on trailer and pallet size. The weight of a truckload shipment can vary drastically between light shipments around 5,000 pounds to heavier capacity loads around 45,000 pounds.

LTL: Shipments that are 1-10 pallets and generally under 20,000 pounds. There are different rate options depending on the size of the shipment. If a shipment consists of 6 pallets and/or weighs over 5,000 pounds this may qualify for spot quoting, which can be more cost effective in some cases.

TRUCKLOAD VS LTL: COST PER SHIPMENT

Truckload: When shipping truckload, you have use of the full trailer, even if the freight does not take up the entire trailer space. The cost of shipping truckload completely depends on the market. Unless there is an arranged contract with a carrier, pricing can change and fluctuate with the market and capacity.

Rates on truckload vary on some constantly changing factors: shipment weight, fuel costs, different seasons, and lane. Trinity Logistics works with our carrier partners through phone, email, or digital freight matching applications to find the best rates for our customers.

LTL: Cost tends to be the biggest difference between LTL and Truckload. Unlike truckload, the cost per shipment has many different variables that determine the LTL rate. LTL shipping is regulated by the National Motor Freight Traffic Association (NMFTA), which classifies and assigns an NMFC (National Motor Freight Classification) code to different freight commodities. These codes greatly impact an LTL rate and they indicate the commodity’s density, liability, and ease of transport.

With LTL shipments the rate is determined by the origin and destination cities, states, and zip codes, the freight’s classification(s), number of pallets, pallet dimensions, and total weight. If any additional services (accessorials) are needed those will each have an additional fee added to the final rate. For example, if a shipment is delivering to a construction site (limited access delivery) and a liftgate is needed at the time of delivery a carrier would charge an additional fee for each service.

TRUCKLOAD VS LTL: REEFER AVAILABILITY

Truckload: Reefer trailers are fairly common and readily available. In general, modern temperature-controlled trailers can range from below zero to 70 degrees. Since it’s only your freight on the trailer, the shipment can move on the schedule and temperature you need. Besides temperature monitoring and rate differences, refrigerated shipments aren’t all that different from a dry truckload shipment.

LTL: Refrigerated LTL shipments are a bit different than dry LTL shipments. Most reefer LTL carriers run on strict schedules that are based on certain lanes and temperatures. For example, a refrigerated LTL carrier might pick up in Los Angeles on Thursdays and Fridays only, and may only run at 45-50 degrees. Multiple customers’ freight is shared on a single reefer LTL trailer with similar temperature ranges to maximize efficiencies for the carrier since a lot of carriers operate on appointment schedules that are set and routed a day or more in advance. This can make finding an available reefer LTL carrier difficult at times, especially on short notice. If you’re an LTL shipper who ships temperature-controlled freight and you have the potential to size up to truckload, this is a situation where it could be a great benefit for you to do so.

TRUCKLOAD VS LTL:  BENEFITS

Truckload

• Dedicated truck for only your freight
• Time sensitive and high value freight
• Less handling of freight

LTL

• Cost effective option for freight that does not require a full trailer
• Flexibility with shipping and delivery times
• More service options (residential delivery, inside pickup and/or delivery, liftgate etc.)

SO, WHICH MODE MAKES SENSE FOR ME?

LTL and Truckload both have their advantages. The best option for your freight depends on your needs, freight volume, budget, frequency, and deadlines.

Our Truckload and LTL experts can answer any additional questions you may have and help find the right mode for your shipping needs.

Author: Christine Morris