June 1st through the end of November is considered Hurricane Season for the Atlantic and Gulf Coast, with heightened chances of storms occurring from early August to October. According to the National Weather Service, there’s an average of six hurricanes each year, with two typically becoming major storms hosting winds of 110-plus mph.
Even on its best days, the logistics industry is considered complicated. Throw a hurricane in the mix, and you can have straight-up chaos. Hurricane Season means supply chains should prepare for the worst in weather, like heavy rain, dangerous gusts of wind, limited visibility, and flooding. Shipping setbacks such as impassable roadways, stranded trucks and drivers, loss of cargo, and extended deliveries are just some of what can be experienced. Here’s what your organization needs to know to prepare during peak Hurricane Season so your company can avoid delays and a loss in revenue.
Supply Chain Tips for Peak Hurricane Season
Stay Informed
A hurricane’s path and level of impact can change very quickly. It’s crucial you stay informed of potential storms that could impact your supply chain during Hurricane Season.
Set up alerts to be notified of newly formed storms and hurricanes. When a potential storm is in your path find a trusted weather news source and check it often for updates. Don’t just follow the updates before the storm, but also during and after. You may also adopt and use advanced weather tracking systems to get up-to-date information to make informed, real-time decisions.
Maintain Communication
Natural disasters, like hurricanes, can have a huge impact on your company’s supply chain. An easy way to stay ahead is to be transparent and communicate openly throughout. Transparency builds trust and helps manage expectations during a crisis.
If a potential hurricane threatens your business, acknowledge it immediately. Then, start communicating with your customers and partners about the potential effects. Regular updates on potential disruptions and recovery efforts can go a long way in maintaining strong business relationships.
Have an Emergency Plan Ready
You should have a company-wide plan that outlines its actions during a hurricane. Your emergency plan should include important details like;
- an evacuation route for buildings affected
- a crisis communication plan
- assigned employee emergency roles and responsibilities
- instructions on how to protect inventory and equipment
- where emergency supplies are located and how best to use them
- how capable facilities will support when others are affected
When planning, make safety your company’s top priority during a hurricane. Once established, your plan should be reviewed often and updated as needed to ensure it remains effective. Additionally, running practice drills can help everyone know their roles and responsibilities.
Consider Alternatives
Consider what alternative workspaces and methods of transport you could use in the event of a hurricane. Are there temporary warehouse solutions where inventory could be stored? Could intermodal replace a truckload shipment that’s in the path of the storm? Are there alternative routes? How can facilities outside of the storm’s path support those affected? These alternative options should be included in your emergency plan.
While you may not have all the answers when planning, the more you include, the quicker you can make strategic decisions when needed. Having room for flexibility and adaptability is key to minimizing disruptions.
Have Visibility in Your Supply Chain
Visibility is needed now more than ever for supply chains. Having visibility not only helps you on good days but especially during hurricane season.
A transportation management system (TMS) can provide the necessary visibility during a hurricane. It provides critical data about your shipments and orders in real-time, giving you an advantage should a problem arise. This can help you make quick decisions to reroute shipments, avoid affected areas, and keep your customers informed.
See how a TMS could help youThink About Recovery
According to the Federal Emergency Management Agency (FEMA), almost 40 percent of businesses that have to shut down for 24 hours due to a natural disaster never open again.
Ensure your business won’t be in that 40 percent if it happens. Have a plan ready to roll for the aftermath of a hurricane. Prepare for the worst and then plan how to recover from it quickly. This will help prevent any potentially steep revenue loss.
Recovery Team, assemble! It’s time to identify the key employees and providers to get your business back to normal operations. An initial assessment will need to take place and your team’s sole responsibility should be to restore and resume processes. Having those alternative solutions and backup suppliers or providers will be handy here.
Weather the Storm with a Reliable Logistics Partner
Sometimes, you just need extra help. A relationship with a reliable logistics provider, like Trinity Logistics, can help your supply chain overcome the threats of Hurricane Season.
Hurricanes can roll in a cloudy overcast of unknowns, but Trinity shines a light toward safety and security. We have over 45 years of experience helping thousands of supply chains through ups and downs. We thrive on problem-solving and handling issues like the ones hurricanes can bring. We also have a dedicated After-Hours Team to support and quickly resolve any potential challenges – no matter the time of night, holidays, or weekend.
Our nationwide network of trusted carrier relationships ensures your shipments arrive safely at their delivery locations. Additionally, multiple transportation options offer the flexibility to keep your goods moving. Lastly, we’ll help you find real-time visibility with our customizable Managed Transportation solutions. Our dedicated Team (comprised of six Regional offices across the nation) is ready to help you maintain continuity and resilience in your supply chain.
Partner with Trinity logistics so your supply chain can stay afloat, no matter the weather. (Our exceptional service might just blow you away, though!)
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Most of us over the age of 25 can remember when the World Wide Web made its debut. We remember the “beep-boop” sound of dial-up and the big chunky computers that were as wide as a television set in the 1990’s. It’s been almost 30 years since the dawn of the Internet. It’s mystifying to look at the impact it still has on our everyday lives. Because of the Internet, e-commerce was born, and the need for flatbed shipping has increased.
The Beginning of ECommerce
Over time, ecommerce has taken the baton from traditional brick-and-mortar stores, leaving many big-box store retailers high and dry. Since Amazon Prime’s arrival in 2005, online shopping has exploded in the marketplace. The ease and convenience of it have forced many retailers to develop a strong online presence or risk closing their doors for good.
COVID-19 Creates Rapid Growth
Due to health concerns and social distancing practices, COVID-19 rapidly escalated the use of ecommerce. Total online spending in May 2020 was up 77 percent year-over-year (YOY), according to a report on online spending released in June by Adobe. In that report, Vivek Pandya, Adobe’s Digital Insights Manager, states that it would have typically taken 4-6 years to see the level of growth in online shopping that was seen then. Contactless online ordering helped individuals attempt to limit their exposure to the virus by shopping from home, so it’s easy to see why those reported numbers were so high.
Since the pandemic, the changes in the ways consumers shop have remained. While in-person shopping has increased compared to then, it still lacks in the amount of foot traffic that was received previously. Consumers continue to like the ease of online shopping, and with fewer in-person shoppers, companies are investing less in their brick-and-mortar locations, which has only made people less likely to want to shop in person. In fact, it’s estimated that 40,000 to 50,000 retail stores will close in the next five years, according to the UBS investment bank.
Ecommerce continues to experience growth, with 22 percent of retail sales being online in 2023, the largest U.S. ecommerce sales percentage to date, according to the U.S. Department of Commerce. As e-commerce growth carries on, it’s created a growing need for companies to expand their inventory and improve their ability to distribute their products. What used to be a problem of “too much” storage space for companies before the pandemic has quickly turned into a necessity in today’s time.
The Need for Storage Space
As online distributors continue to see growth, their need for storage space has grown as well. Prior to Covid-19, one or two warehouses could keep a medium-sized company running efficiently. Now, more space is needed to keep up with the increasing demand of companies. Having more than one distribution center can be a huge benefit to a company’s ability to stay successful these days.
This all trickles down to the construction industry. As demand grows for new or renovated warehousing, the need for building materials to meet that demand has also increased.
How ECommerce Growth Affects Flatbed Shipping
Flatbed shipping has always been a leading mode of transportation for industrial freight. Lumber, stone, racking, and other building materials travel best on an open trailer due to their odd dimensions and additional weight requirements.
Looking for an extensive guide to keep on hand for your over-dimensional shipping?
Download our FREE guide!Usually, flatbed shipping sees an increase in volume in the summer months. Construction companies take advantage of the warmer weather, which is most suitable for outdoor construction work. During this peak shipping flatbed season, it’s not unusual to see tightened capacity and higher freight rates, but any added demand for warehousing can add to that, making securing a flatbed carrier more difficult.
Strong Relationships Help
Having a relationship with a third-party logistics company (3PL can be a benefit to those who coordinate freight to be delivered to a job site. Typically, job site freight is very hands-on and has a perpetual knack for being time-sensitive. Installation crews are on-site to receive and install the material scheduled to be delivered. Even the slightest delay can cause significant ramifications to the completion of the construction project. Having a strong relationship with a 3PL can help companies mitigate risk, reduce costs, and provide peace of mind to those who are coordinating the freight.
Be Ready for Anything
It appears online shopping is here for the long-haul and whether it’s causing you to expand your warehousing or not a 3PL like Trinity Logistics can help you be prepared for any changes that may come your way. With Trinity, you’ll gain a Team of experts that can help you optimize your supply chain and arrange shipping for various of transportation modes, including flatbed, while offering end-to-end visibility of your shipments. No matter what changes the future brings, you can stay one step ahead when you choose to have Trinity Logistics by your side.
A carrier that receives their freight pay in a timely manner is a happy carrier. No one knows that better than us! If you’ve ever had a lengthy delay between hauling a load and receiving your freight pay, there may be a simple explanation. To avoid any hang-ups when hauling with Trinity Logistics and to get paid as quickly as possible, always follow these tips.
1. Fill Out the Carrier Registration Packet Completely
When you’re starting out as a newly registered carrier in our network, we require you to fill out our online carrier packet. You’ll receive an invitation from My Carrier Packet, allowing you to quickly fill out all the information we need to start hauling with Trinity. Not completely this will not only hold you up from your freight pay, but from you even being able to haul a shipment in the first place.
2. Meet Our Insurance Requirements
Not having the required insurance coverage will also hold up your setup and ability to be paid on time. To become registered within Trinity’s carrier network, motor carriers must meet these requirements:
- Have an active USDOT registered with the Federal Motor Carrier Safety Administration (FMCSA)
- A minimum of $50,000 in motor truck cargo insurance
- A minimum of $1,000,000 in automobile liability insurance
- A minimum of $1,000,000 in general liability insurance
- Worker’s compensation coverage as required by law
- Cannot have an Unsatisfactory or Conditional FMCSA safety rating
3. Provide Accurate Contact Information for Us to Reach You
Make sure the contact information you give us is accurate and up-to-date. Also, be sure to answer when we contact you. If there’s an issue, we’ll want to solve it for you right away, and being able to reach you as soon as possible will speed up the process.
4. Send Us the BOL for All Pickups and Deliveries
Not receiving the proper shipment paperwork or it being sent to the wrong person/Team is something we see very often, holding carrier freight pay up. We can’t process your business and release your freight pay without having your bill-of-lading (BOL) on file for the shipment you’ve hauled. Please send all shipment paperwork [email protected]. You also have the option of uploading your shipment paperwork in the TriumphPay portal if that’s easier for you.
5. Doublecheck and Ensure All BOLs and PODs Are Legible
If we’re not able to clearly read your BOL and proof-of-delivery (POD), we’ll need to reach back out to you. If you’re not able to scan a clear copy, you can mail them to us instead.
6. Register With Trinity Logistics via TriumphPay (and Choose Quick Pay)
Trinity Logistics works with TriumphPay to get carriers paid quickly. As a carrier in our network, you’ll need to register on the TriumphPay website (if you’re not already) and choose your payment terms. We offer two different payment options to suit your needs. You can choose our Quick Pay option to get paid in two business days for a very competitive fee of 1.5 percent. Or you may choose our standard pay option, which is within 24 business days, for no additional cost.
7. Mail Original Shipping Documents if Required
If the rate confirmation states that “originals” are required, please don’t fax or email your documents as your shipping documents must be provided by mail.
8. Did You Receive a T-Check for a Lumper?
We’ll need the receipt of that included with your invoice, otherwise your freight pay might be short.
Wondering what lumper fees are? Click here to learn more about them.
9. Are There Any Scale Tickets?
If scale tickets are stated on your rate confirmation, please send them in when sending in your invoice.
10. Doublecheck That the POD Is Signed by the Receiver
If it’s a stamp, make sure it’s dark enough to be legible for the customer.
11. Send Your Invoice and the POD Together
If they are sent separately, it may appear that pieces are missing, and this can delay your freight pay.
12. Make Sure the Shipment Number Is on the Invoice and POD
Not having this information can hold up the process of filing your shipment documents and releasing your freight pay.
At Trinity, there’s never a question of if you’ll get paid. It’s simply a matter of how quickly you can get us the required documentation so that we can pay you within a reasonable timeframe.
Find Your Next Trinity ShipmentWhat does being an Independent Freight Agent with Trinity Logistics mean? We are so glad that you asked! Trinity Logistics is a leading name in the freight broker community, and a big part of our growth is due to successful partnerships with Independent Freight Agents.
what is an independent freight agent?
An Independent Freight Agent is someone who partners with a third-party logistics company (3PL) and uses their brokerage license so they can arrange transportation of freight and utilize the support services of that company. The Independent Freight Agent owns their own business and gets to focus on the part of the business that they do well (moving freight) while Trinity Logistics, in our case, supports them through back-office applications such as billing customers, paying carriers, and more.
Being an Independent Freight Agent is the best of both worlds for an entrepreneur! If you’re a freight broker, you’re certainly aware of the expenses that are associated with the business, not to mention one of your most valuable assets, your time, which oftentimes gets overwhelmed with handling non-revenue generating activities. This is a primary reason freight brokers look to partner with a 3PL like Trinity Logistics.
why work with trinity logistics?
There are a number of companies that an Independent Freight Agent could partner with, but what sets us apart from many others are all of the “extras” that come with being an Authorized Agent for Trinity. We take those “extras” very seriously!
Relationships
The first one has to be the relationship! The culture of Trinity is second to none and treats team members like family and that relationship extends to the Independent Freight Agent. There is a division in our corporate office that is set up for the sole support of the Independent Agent and becomes a liaison between the Agent and Corporate Services. Because of the close relationship with that group, our company is consistently celebrating the individual successes of the Agent office, celebrating new babies and milestones in the lives of the Agents, and serving as a sounding board when an Agent just needs to talk with someone.
Continuing Education
In addition to interactive training to get you comfortable with moving shipments as a Freight Agent with Trinity, our team continually offers training and education designed to assist you with your business. And we realize education can not be a one size fits all approach. For that reason, we not only offer training that is geared towards common mode, sales, or operations opportunities, but as needed, the team at Trinity will work alongside you to assist, educate and train for specific needs. One of Trinity’s Guiding Values is centered on continuous improvement. We don’t just put those words on a website, we offer the support to truly allow you to advance your skill set and knowledge to grow your business.
Operational Support
Part of the support that Trinity Logistics offers Independent Agents is not only administrative but operational as well. With corporate teams specializing in Less-than-Truckload, Intermodal, Warehousing, Drayage, International, and Managed Services, the Independent Agent can get the support of experts in these modes while maintaining full service to their customer. Additionally, as a company that has been an integral part of the transportation industry for more than 40 years, Trinity has a well-established relationship with the shipper and carrier community. ‘
Having the Trinity name behind you as a freight broker can be the difference when a shipper has a choice of where to tender their freight, not to mention the impact it has on carriers when they see multiple logistics companies with shipments that match their available equipment. Having that nationwide brand recognition and reputation gives a single-person office the power of a major player in the industry.
Reputation
Partnering with Trinity Logistics partners an Independent Freight Agent with one of the Top 3PLs, as named by Transport Topics and Inbound Logistics. We’re also under the Burris Logistics umbrella, further expanding our brand reach and the solutions we can offer shippers.
Additionally, Trinity has a great culture that’s been recognized for several years and you can feel that company pride any time you talk with someone at the corporate office. The biggest impact that Trinity’s reputation has for an Independent Freight Agent is the creditworthiness of the company. Trinity maintains a Five Diamond Broker rating on Internet Truckstop. Part of our entire strategic plan is to develop relationships with carriers and paying them on time is a huge part of that!
This Agent testimonial says it all:
“Whether training on new Trinity technology, answering a billing or claims question, or offering advice on a customer – they help handle it directly. Each team member is a pleasure to work with and their positive outlook always leaves me smiling.” – Lyn, Maryland
Read more about Lyn's journey with us.join our independent freight agent network
Independent Freight Agents are an integral part of Trinity’s business and we are consistently working to expand our program.
We realize you have a choice in who you’d like to partner with in your business. However, if what you’re looking for is a long-term partnership that is supportive of your growth, offers you continued education to remain competitive, and most of all, is made up of a Team of people who are passionate, dedicated, and striving for excellence, then Trinity Logistics may be the Independent Freight Agent program for you.
If you want to learn more about our Independent Freight Agent Program, click the button below!
Join Trinity's Freight Agent NetworkEvery day, all day, your life as a Freight Agent is a steady stream of fires that need to be extinguished. From negotiations to late deliveries, and the phone ringing off the hook, keeping your head above water is the only thing that you dream about at the end of each day.
Remember those dreams of growing your Freight Agent business into a large income-producing machine? You knew that one day you wanted to take your business to the next level, but now the idea of taking time away just to pick up lunch is a pipedream – let alone planning a full-scale growth strategy.
So, how do you do it? How does a Freight Agent know when it’s time to take the leap into growing his or her business? How do you know what to do next? Keep reading to find out the first steps in recognizing the time for growth and moving your numbers in the right direction….Up!
How TO RECOGNIZE WHEN IT’S TIME TO GROW YOUR FREIGHT AGENT BUSINESS
Know Where You Are
The first step to reaching your growth goals, or even deciding what those goals are, is first knowing where you are now. This step always seems like a no-brainer. Sure, you know how much the deposit into your bank account is every week, but do you really know how it got there and how much you possibly left on the table at the end of the week?
This is where you have to take some time and learn your numbers inside and out. How many shipments do you move in a week? What is your average margin per shipment? What is your net revenue? How many customers do you arrange shipping for every week? Then, how do these numbers compare to this time last month? Last quarter? Last year? Have you grown since last year? Are you moving more shipments, but your deposits are the same? These questions will help you decide what your next step is in planning your growth strategy as a Freight Agent.
Know How Much it Costs You to Run Your Freight Agent Business
Don’t forget that time equals money! Do you have fees associated with the company you broker through? How much goes into your pocket compared to how much goes to the company? What does it cost to use their operating system, load boards, or ancillary services?
So, now that you know where you stand, are you ready to take the leap? Growth can be a scary thing, so here are two areas to help determine how to jumpstart your growth:
JUMPSTARTING YOUR FREIGHT AGENT BUSINESS GROWTH
Determine the Need for Additional Help
Are you a one-person operation moving 100 shipments per month? Think about the time it takes you to cover one shipment, track it, handle any issues that arise, and keep your customer informed throughout the entire process. Now multiply that by the number of shipments you have waiting to be booked, or in transit, each day. Maybe, it’s time to bring in some help!
You will never be able to bring on new business and keep the service level you need to maintain with your current customers when you are managing 15-20 loads per day all on your own. This seems to be a “sweet spot” for many freight agents. You know, that “magic number” to let you know that it’s time to bring in the help!
Start looking for someone who shares the same values and work ethic that helped your business get where it is today. Then, have them slowly start taking on some of the day-to-day duties that keep your head submerged underwater so that you can do what you do best – build those customer relationships!
Analyze Your House
No, not your real house…your work house. What is the company you broker with costing you at the end of the day? What do they offer to help you grow? Here are some questions to start asking yourself to make sure that you are partnered with the right company:
Devoted Freight Agent Support Team
Are you just a number when you call and have to leave a message? Do you talk with an actual person who knows your business and cares about your success?
Reputable Corporate Presence
Does the corporate headquarters have executives that know the value of Independent Freight Agents? Do you have teams at the corporate level who are billing your customers and paying your carriers that understand the value of your customer? Does the corporate office consistently communicate its vision and company goals with its Independent Freight Agents?
Fees
Is it costing you to broker with your current company? Are you charged fees? Upfront costs? Do you understand any adjustments to your commission payments and are they justified?
Continuing Education
Does your current company offer consistent education opportunities to help you stay on top of the market? How about classes to help refresh your sales skills? Does your Agent Support team continually offer coaching opportunities to find areas of your business that have growth potential?
Taking a step back to analyze all of this information will help you realize when it’s time to take your business to the next level. Make sure that you know your numbers, that you are looking for the right person to help you, and that the company you are working with is dedicated to helping you grow. Taking the leap into growth can be scary, but the rewards are abundant. Go ahead, take that first step!
TAKE YOUR FREIGHT AGENT BUSINESS TO THE NEXT LEVEL
Trinity Logistics has over 30 years of experience aiding in the success of our freight agent businesses, with many of our newer businesses seeing a 50 percent increase over a two-year period from joining. Consider joining our Authorized Agent Network today so you can gain more time to focus on your customers, and generate more revenue. We’ll focus on everything else.
To learn more about our Authorized Agent program and all the ways we can save you time and help you build a successful Freight Agent business, feel free to contact our Agent Team by phone at 800-846-3400 x 1908 or click the button below!
Join our Agent Network“Sense of urgency” is a term that is thrown around a lot in the business world today. And for good reason – the world around us is constantly changing, and we need to react right now! Trinity Logistics has made a sense of urgency a priority, and from what I’ve learned, most companies probably should.
In A Sense of Urgency, by John P. Kotter, the author very clearly defines the three stages of urgency and explains the importance of a true sense of urgency. We thought we would share his key points in the hopes that you are encouraged to put these ideas into place within your own organization.
The first stage of urgency is one of complacency.
Defined as “a feeling of contentment or self-satisfaction, especially when coupled with an unawareness of danger or trouble.”
When a person, department, or company is in a state of complacency, the general feeling is complete contentedness with the status quo. People tend to think: “I know what to do and I do it. If there is a problem, it’s not mine.” Their behavior is unchanging, opportunities and hazards are equally ignored, and their focus is purely internal.
The consequences? The world around you moves on while you stay the same. Competitors will change and innovate to meet your customer’s demands because for the complacent, change either doesn’t happen fast enough or it doesn’t happen at all.
The second stage of urgency is a false sense of urgency.
This is a flurry of energy and activity built out of failures.
Often, the failures are the result of complacency, leading management to put intense pressure on their team to perform exceedingly well and unrealistically fast. Someone in this stage is frantic, stressed, anxious, frustrated, and exhausted. There is a very high activity with very low productivity.
For these people, the problems still lie somewhere else, but now they will experience very defensive reactions. They will hold fast to what is being done right and will partake in finger-pointing attacks on others. The consequences of this are equally destructive to complacency. The unproductive activity and pressure are fueled by a team full of anxiety and anger. There are many wasted hours and lost opportunities.
The ideal stage is a true sense of urgency.
This is driven by a belief that “the world contains great opportunities and hazards” and “a gut-level determination to move, and win, now!”
There are four tactics laid out in the book that you can use to obtain a true sense of urgency in your organization, but I’m just going to touch on the one that I think is the easiest to implement right now.
We hear it all the time – your attitudes, feelings, and actions are contagious. The one thing you can do that will start a ripple effect of urgency is to behave with urgency every day.
In order to have a true sense of urgency and not slip into complacency, it’s important to remember that past successes tell us nothing about the future. Often, sports imitate life, and you don’t have to look too far to see prior success not resulting in success the following year… just look at the Super Bowl winners from 2008-2012.
Year Won | Team | Following Year’s Result |
---|---|---|
2012 | Giants | Missed playoffs |
2011 | Packers | Lost opening round playoffs |
2010 | Saints | Lost opening round playoffs |
2009 | Steelers | Missed playoffs |
2008 | Giants | Lost opening round playoffs |
Two didn’t qualify for the playoffs at all, and the three that did have a combined 0-3 record. I’m sure that complacency and the thought of “we did it this way last year, it’ll work again this year!” contributed to why these teams saw the results they did.
Winning today does not guarantee success tomorrow. We all have to work at it; we have to be better today than yesterday. Every day is an opportunity for you to win, so we must choose to do so and then make sure victory happens.
So where is your sense of urgency? Where is your department or your company? Where are your competitors, your customers, and your stakeholders?
We hope you will notice a difference when you call Trinity. Please do not hesitate to contact our team, as we want to show off our improved sense of urgency with your logistics!
Request a quoteHave you ever wondered what a freight broker is, what they do, and why they exist?
To put it in simple terms, freight brokers are simply matchmakers. They are the middleman between the shipper (the maker or owner of the product) and the trucking company that moves the freight.
Freight brokers perform a valuable service for both ends of the spectrum, however, they do not function as an actual motor carrier. Instead, they arrange for the transport of goods.
Freight broker activities are under the jurisdiction of the Federal Motor Carrier Safety Administration (FMCSA) which defines a broker as “a person who, for compensation, arranges, or offers to arrange, the transportation of property by an authorized motor carrier”. -49 C.F.R. Part 371
Brokerages
Freight brokerages provide assistance to motor carriers by filling their trucks and providing assistance along the route to help the truck driver deliver the order on time.
Not every motor carrier has a private sales force working to secure loads for their fleet and needs help accessing a network of shippers quickly to keep them rolling. Freight brokers also provide great financial service to truckers, providing fuel advances to help with cash flow and offering quick payment plans. Oftentimes, the carrier is paid before the freight broker collects payment from the shipper! Bottom line, a freight broker exists to help the motor carriers relocate their equipment to a better freight market, or in many cases, back to their home base.
Many companies find the services provided by freight brokers to be an important link in their supply chain. The importance of a freight broker is easy to understand; the freight broker makes sure that the shipments are arranged to deliver on time at a fair price with reputable providers. Without freight brokers, shippers would encounter an enormous investment of time and money trying to find the right motor carrier to transport their products, tracking the shipment, and auditing freight bills.
Frustrated with your shipment tracking? Check out Trinity’s Customer Portal and see how easy it is to track your shipments, view and pay your invoices online, and request freight quotes.
Discover Trinity Logistics AS YOUR FREIGHT BROKER PARTNER
Trinity Logistics, ranked by Transport Topics as one of the Top Freight Brokerages for the 20th consecutive year, moves an average of over 40,000 loads per month. With that amount of volume, we carry significant buying power and relationships with our carrier network. That translates into savings on each shipment that many shippers may not be able to obtain based on their volume alone.
Trinity Logistics saves shippers and motor carriers a great deal of time playing matchmaker. Our goal is not only to deliver your product on time but also to deliver time itself so that you can perform at your best without having to become experts in matching loads to trucks or vice versa.
Learn more about our solutions.There are several shipping options available for your freight. Sometimes it can be difficult to determine which mode of transportation will suit your needs best. One mode to consider for your freight is intermodal shipping.
If this mode has been one you’ve been interested in learning more about, we’re here to help. First, we’ll walk you through what intermodal shipping is, when you should consider this mode, its benefits, and how intermodal rates work, so you can be on your way to transporting your freight in a new way!
What is Intermodal Shipping?
Intermodal shipping is the use of two or more modes to get the product from shipper to receiver. This could include any combination of ocean, air, rail, or truck transportation. However, in North America, intermodal often refers to the combination of using trucks and rail to move freight in shipping containers.
Drayage
Another good term to know when talking about intermodal shipping is drayage. Drayage describes the trucking service from an ocean port or rail ramp. Drayage carriers are power only, meaning they only supply the truck or power unit. They pick up and drop off any equipment (the container and chassis) owned by the railroad, an intermodal provider, or ocean freight liners. Most often, drayage carriers will complete multiple loads in a day respective to their region.
When Should I Consider Intermodal Shipping?
Almost anything that can ship via truckload can be shipped intermodal. Here are some qualifiers on whether your shipments make sense to ship intermodal:
· You are looking to reduce shipping costs.
· You want to reduce risk during travel and have less handling of your product.
· You want your company to be more environmentally considerate with your shipping.
· You have long-distance shipments, over 750 miles.
· You have a lot of freight to move and a flexible delivery timeline.
· You have frequent shipments going to the same locations in similar quantities.
If any of the above qualifiers sound like you and your freight shipments, read on to learn about some of the benefits of switching up to intermodal shipping for your transportation.
Benefits of Intermodal Shipping
Moves a Lot of Product
A single train can move a load size equal to 280 truckloads. Essentially, you have an entire fleet at your disposal. As a result, high-volume shipments meet maximum efficiency when shipping intermodal. This can save you time and money by reducing fuel and labor costs.
Quick(er) Shipping
Most people wouldn’t imagine intermodal shipping being quick enough. Not too long ago, a coast-to-coast shipment would take about two weeks. Now, it only takes about seven to 10 days, depending on the lane. If your delivery date is more flexible and not immediate, intermodal can make sense for your shipments. Additionally, intermodal sees fewer disruptions, making it more reliable than truckload. Intermodal does not have to worry about traffic patterns, weigh stations, checkpoints, or other issues compared to trucking.
Stay Green
Intermodal is more fuel-efficient than trucking since more products can be moved almost 500 miles on a single gallon of diesel fuel. According to the Environmental Protection Agency (EPA), replacing Over-The-Road shipments exceeding 1,000 miles with intermodal shipping reduces greenhouse gas emissions by 65 percent. Additionally, better fuel efficiency means savings on shipping costs.
Reduced Risk
When choosing to ship intermodal, shippers have far less exposure to roadway collisions, which means less chance of damage to your product. The risk of damage is also lowered because freight is loaded onto containers and not directly handled when changing between truck and rail. In addition, theft concerns are reduced as railyards are constantly monitored and no one can go in or out without documentation.
Understanding Intermodal Rates
Intermodal shipping rates have three basic parts: an origin drayage rate, a rail linehaul, and a destination drayage rate. However, door-to-door rates are typically an all-in rate comprised of those three components.
Drayage Rates
Drayage carriers offer consistent rates since they start and/or end every load at a consistent location, the intermodal rail ramp. Like truckload, drayage rates are a flat rate plus a fuel surcharge. Drayage carriers often provide a point-to-point pricing matrix including pick-up and delivery rates from every intermodal ramp to dozens of destinations within their region. Unlike truckload spot rates, drayage rates are much less volatile because drayage carriers often update their pricing matrix once a year, unlike the spot market which fluctuates daily.
It’s important to note that when using drayage as a stand-alone service, you see other surcharges such as chassis fees or charges for port congestion or wait time at the rail or port.
Rail Rates
There are seven Class I railroads in North America:
- Union Pacific (Western U.S)
- BNSF (Western U.S)
- CSX (Eastern U.S)
- Norfolk Southern (Eastern U.S.)
- Canadian Pacific (Canada and Northern U.S.)
- Canadian National (Canada and Northern U.S.)
- Kansas City Southern (South Central U.S. and Mexico)
Your intermodal marketing company (IMC) will get pricing matrixes from these railroads, which include rates from their intermodal ramps to other ramps. Rail rates are a flat fee plus a fuel surcharge.
Important to note: Shippers cannot access intermodal rates directly from the railroads. You MUST work with an intermodal marketing company or third-party logistics company (3PL), like Trinity.
Don’t Forget About Accessorials
Because intermodal shipping depends on efficiency, accessorials are much more common than shipping truckload. Since intermodal shipping is very predictable and competitive, intermodal providers present shippers with the most efficient pricing, expecting to be compensated for any accessorials should they occur.
Because of this, ensure you understand your provider’s accessorial policy and find out how those fees are factored into their rates. Even still, there’s no need to fear intermodal shipping because of the accessorial fees. In the long-term, intermodal shipping, even with accessorials, makes the overall cost savings of the mode worth it.
Trinity Can Help With Your Intermodal Shipping
If you’re seeking to increase efficiencies in your supply chain logistics and transportation, intermodal is one mode to highly consider. The idea of using intermodal shipping over truckload can be intimidating, but choosing an experienced and knowledgeable provider, such as Trinity Logistics, can make the change an easy one.
Find out more about Trinity's intermodal option.One of the most common type of questions when people ask us about shipping intermodal is, what makes a good intermodal customer?
Or sometimes, what would constitute a not-so-great intermodal customer?
Location Matters
One of the first things to look at is, where are your shipper and receiver physically located? The U.S. rail intermodal network covers a large portion of the country, however there are some regions that may not be intermodal friendly. Some of these areas would include, much of Montana, Wyoming, the Dakotas, and Oklahoma. Even though an area may have rail service, every rail yard or ramp may not be an intermodal facility. If a shipper or receiver is more than 100- to 150- miles from the nearest rail ramp, the dray cost could prohibit that lane from being cost effective.
Another aspect to consider is, do your shippers and receivers have some flexibility with their shipping or receiving hours? Rail movements can be less than precise at times, for various reasons, which could include but are not limited to:
- Weather,
- An originating train not having enough freight to meet tonnage requirements resulting in delays by a few hours or a day or two,
- Longer than expected interchange times, which is when containers switch from one railroad to another. This is usually a two-day process, but can take longer.
Dray Carriers
Pick-ups and deliveries depend on dray carriers and their schedules. If they are detained on any previous movements, that can affect their entire schedule for the rest of that day. Sometimes this causes appointments to run late, or be missed entirely, resulting in having to reset the missed appointments for the following day or the soonest time possible. If you have a shipper or receiver who imposes financial penalties for missing appointments, intermodal would not be a good fit. At the very least, that customer would require consideration before committing to an intermodal shipment.
Guaranteed Delivery Window?
Something else to keep in mind is that any shipments that require a guaranteed delivery date and or time, would certainly not be a good fit for moving via intermodal. Again, because rail and dray schedules are not set in stone and each require a varying amount of flexibility in order to be effective.
These three areas are some of the most common topics that could lead to arguments against moving freight via intermodal. These topics aren’t highlighted to discourage anyone from using intermodal transportation, but instead to help interested customers make the best decision of whether they would be a good fit for the mode and increase greater opportunities for success. We are a team and we all want our customers to be successful, and important keys to success are intelligence and savviness.
As always, please reach out to your Trinity Intermodal Team for any intermodal rail related questions that you may have, no question is too small to ask. We are happy to assist you with any related situations that you may encounter. Happy shipping!
If you think intermodal shipping is for you, fill out our “Get a Quote” form today!
You may have heard the term “4PL” buzzing around the transportation industry. While there are many 3PLs (third-party logistics companies) in the shipping world, 4PLs are the new kids on the block. Let’s go over the differences between the two.
What is a 3PL?
To put it in simple terms, a third-party logistics company is a provider of outsourced logistics services, often including freight shipping arrangement and warehousing. The term “logistics” really covers a spectrum of services, all dealing with the management of the way freight gets from one place to another.
What is a 4PL?
As of right now, there doesn’t seem to be an official definition for what a 4PL company does, since it’s such a new and shifting idea. With that being said, there’s definitely a common understanding of the term. To best break it down, let’s talk about all of the different “PLs”.
If you consider what “1PL” and “2PL” might mean, a 1PL would be considered the shipper and 2PLs would be asset-based carriers. 3PLs are the match-making link between the two.
A 4PL, then, would manage a network of 3PLs on behalf of their customer (the shipper), in addition to providing the technology needed by the customer. Think of a 4PL as the “eye-in-the-sky” that determines which providers would best suit their customers’ shipping and logistics needs. The 4PL takes control of the ins and outs of these outsourced parties and becomes the main point of contact for the customer.
But wait… how is that any different from a 3PL?
The main difference would be the control and responsibility a customer would have, or need to have, when it comes to their supply chain. By hiring a 4PL in a contracted relationship, a logistics manager would essentially “give up” the responsibility to find the best logistics companies or carriers to take care of getting their shipments from one place to another. The 4PL would take care of all coordination of these parties behind the scenes (at a cost, of course).
Shippers who use one or more 3PLs are still responsible for finding and managing the relationships with these providers, along with any asset-based carriers they also work with. These shippers tend to work with many different providers in order to obtain the best service and pricing possible for each lane and mode of transportation they need. By managing your own logistics providers, the decision is up to you – there are no contracts requiring you to work with any certain providers.
Which is best to work with?
Both 3PLs and 4PLs have their perks in regards to ease of use and cost savings. At the end of the day, choosing between the two depends on what you’re looking to get out of your supply chain management. If you’re looking for a “hands-off” approach to your company’s logistics and someone to just take care of the entire process from start to finish, contracting a 4PL may be your best bet.
However, if you’re looking for more flexibility and would like to maintain control over your transportation processes, working with a 3PL is likely a better fit for you.
While Trinity Logistics fits the definition of a 3PL, we also offer 4PL services for those customers who want to outsource more and more of their logistics processes. From transportation management software to full-on freight management, we now deliver a wide array of offerings to provide you with that higher level of service, while still maintaining the benefits of working with a 3PL. So, whether you need someone to take over your entire logistics department and supply chain, or you’re just looking for a one-stop shop for a variety of shipping services, Trinity can be your go-to.
To learn more about how Trinity can help you and your business’ logistics needs, click here.