Nearshoring to Mexico is the hottest trend in supply chains.

With Mexico now the top trading partner of the U.S., two-way trade hit a whopping $68.5 billion, according to data from the Census Bureau. In the first quarter of 2024 alone, trade has grown two percent between the U.S. and Mexico year-over-year (YoY).

This growth in shipping to and from Mexico is truly just the tip of the iceberg as companies invest in nearshoring strategies. According to Mexico’s Secretary of the Economy, there have been 378 foreign direct investments within the last year, and private sector businesses from the U.S. account for nearly 40 percent of it.

This surge is driven by companies moving parts or all their supply chains to Mexico, thanks to geopolitical tensions and disruptions like the COVID-19 pandemic. These have shone light on the gaps and difficulties faced by globally distributed supply chains. Companies seek more stability and budget-friendly solutions, finding hope in Mexico. While nearshoring to Mexico offers such benefits, there are common cross border shipping snags you should aim to avoid. 

What are the Benefits of Nearshoring to Mexico?

Location, Location, Location!

One of the largest benefits of nearshoring to Mexico is its location. Mexico’s proximity to the U.S. means faster shipping times and lower costs. It also offers more reliability, making supply chains less susceptible to disruptions.

Potential for Savings

Labor costs in Mexico are currently among the lowest in North America, even cheaper than in China. This can be a major draw for companies looking to reduce operational expenses. Shorter lead times also offer the potential for enhanced productivity and further cost savings.

Positive Economic Impact

Cutting costs and sped-up deliveries mean smoother operations, happier customers, and a boost in productivity. This isn’t just good for your business but beneficial for the Mexican economy, too. Businesses established in Mexico create new jobs and economic growth. The U.S. benefits, too, with stronger, more resilient supply chains that are less vulnerable to global disruptions.

But There Can Be Cross Border Shipping Snags

Many business owners don’t realize the complexities that come with shipping across the U.S.- Mexico border. Working with the right provider can make all the difference in whether you’ll face these common challenges.

Here are four major cross border shipping challenges you should be aware of with your nearshoring strategy.

Security Concerns

Cargo theft is a major concern in Mexico, with hijackings being the primary tactic. In April 2024, Mexico averaged about five cargo thefts per day, according to the National Association of Vehicle Tracking and Protection Companies. Unfortunately, that’s trending up compared to the previous year, that’s a 7.7 percent rise in activity. Most hijackings involve some type of violence and often involve food and beverage goods, household items, electronics, and auto parts.

Another security obstacle is Mexico’s poor highway infrastructure. The quality of Mexico’s roadways is significantly lower than in the U.S. According to the 2019 Global Competitiveness Report, Mexico ranks 49^th out of 141 economies in its road quality. In comparison, the U.S. ranks 17^th.  Mexico’s lacking infrastructure increases the potential risk of delays and accidents, as well as cargo theft with any truck breakdowns.

Despite all this, Mexican carriers are not required by law to carry cargo insurance. Many choose to opt out of having it and this often results in inadequate coverage of freight. Because of this, it’s recommended to look into securing your own extra coverage and aim to work with carriers that are certified with the Customs Trade Partnership Against Terrorism (CTPAT).   

Lost in Translation?

When working with those in other countries, it’s important to know how they operate. This includes Mexico. Understanding the language and business culture is essential to achieving success.

This fact may be well-known, but not everyone in Mexico speaks English! Spanish is the official language, spoken by about 90 percent of its people. According to a 2023 report, only five percent of Mexicans speak English. While larger businesses may have more bilingual employees on hand, dealing with smaller ones can be challenging if you do not have someone who speaks Spanish. Also, much technical or industry-specific jargon doesn’t often translate accurately. Without bilingual representatives available, it can be easy to have miscommunication issues.

Unlike the U.S., where we often like to get straight to business, Mexicans often prioritize building personal relationships before even discussing any professional matters. Due to this, negotiations can often be more indirect. Working with Mexican businesses means you’ll need to invest time in building strong relationships to foster trust and rapport with your contacts.

Facing Cross Border Complexities

Getting your freight across the U.S.–Mexico border can be complex. Many parties are involved, including several carriers and the customs broker. There are also several touchpoints during the shipping process, and disruption can happen at any of them.

Another hurdle shippers must deal with in cross border shipping is the lengthy transit time. Due to inspections, typical wait times for trucks crossing the border, especially from Mexico to the U.S., can range anywhere from three to 10 hours on certain days. Choosing the right crossing point can greatly affect the transit time vastly, and there are 48 points to consider!

Paperwork Troubles

Freight most often gets detained at the border for incomplete documentation.

Shippers are required to fill out many, often repetitive documents. It’s common for this paperwork to get misplaced or for shippers to not even be aware of the exact procedures required by authorities. When any of this important paperwork is left blank or filled out incorrectly, the carrier gets detained at the border until it is resolved. This can add extra days or costs to your shipment.

Ensure all necessary documents are in order, including:

• Commercial invoice (in Spanish)
• Bill of lading
• USMCA certificate of origin (if needed)
• Packing list
• Sales contract
• Proforma commercial invoice
• AES filing
• Customs declaration
• Insurance policy

Having these documents in both Spanish and English can prevent delays and misunderstandings.

Trinity Logistics: The Perfect Partner for Your Nearshoring Strategy

Navigating the complexities of shipping to and from Mexico can be overwhelming! One simple mistake is all it takes to cause delays and additional costs. That’s where finding a reliable logistics provider comes in.

Sure, perhaps you can do it all on your own, but trust us, it’s easier with help. You can outright avoid these four common mistakes when shipping to and from Mexico when you’ve chosen to work with a reputable logistics provider like Trinity Logistics.

We’ve been navigating the waters of cross border shipping for over 45 years, so we understand all the nuances. Our bilingual Team Members and Authorized Agents (some even based in Mexico) get the business culture and fluently speak the language, so there won’t be any miscommunication concerns. Not to mention, our People-Centric service always puts relationships first, regardless of nationality.

We’re customs process experts and have trusted carrier relationships ready to roll. Whether it’s Laredo, El Paso, San Diego, or another major U.S.-Mexico border, we have a variety of transportation modes available.

If nearshoring is part of your supply chain strategy but you’re concerned about shipping to and from Mexico, worry no longer. Instead, consider Trinity Logistics as your cross border copilot. We’ll handle the logistics so you can meet your business goals.

Don’t let your company get caught off guard by CVSA Operation Safe Driver Week, July 7th to July 13th, 2024!

Shippers and carriers, mark your calendars! Operation Safe Driver Week is approaching. While this annual event is designed to make our roadways safer, it’s also a crucial week for those in logistics. This pivotal time can impact operational efficiency for shippers and carriers alike. To be prepared, it’s important for all those involved in shipping freight to understand what Operation Safe Driver Week entails and its effect on the freight market.

• What is the CVSA?
• What is Operation Safe Driver Week?
• Impact on Shippers
• Impact on Carriers
• How Shippers Can Prepare 
• How Carriers Can Prepare 
• Let’s Work Together

What is the CVSA? What is Operation Safe Driver Week?

The Commercial Vehicle Safety Alliance (CVSA) is a non-profit organization dedicated to improving commercial motor vehicle safety through collaboration between law enforcement, industry stakeholders, and the public sector. In partnership with the Federal Motor Carrier Safety Administration (FMCSA), the CVSA launched the Operation Safe Driver initiative in 2007. The goal of this initiative is to reduce the number of deaths and injuries from crashes involving large trucks, buses, and cars.

This initiative includes an annual event, Operation Safe Driver Week. It aims to improve driver behavior through education and increased enforcement efforts, focusing on unsafe driving behaviors. It takes place across North America, so the U.S., Canada, and Mexico. Unlike the CVSA’s other two initiatives (International Road Check and Brake Safety Week), which solely focus on commercial drivers, this event affects all drivers on the road.

Each year has a primary focus with this year’s being reckless, careless, or dangerous driving. This includes actions like: 

• Speeding
• Texting while driving
• Drunk or drugged driving
• Following too closely
• Driving too aggressively
• Improper lane changes
• Failure to obey traffic control devices
• Failing to use a seat belt

Those drivers identified are pulled over by law enforcement and issued warnings or citations.

According to the National Highway Traffic Safety Association (NHTSA), drivers’ actions are the reason behind 94 percent of all traffic crashes. Research from the University of Missouri-Columbia has shown that interactions with law enforcement, not just education, are what brings change. During last year’s event, law enforcement interacted with 66,421 drivers! Drivers were informed and educated on how they can improve their driving behavior and do their part in reducing crashes.  

Why Should I Be Concerned About Operation Safe Driver Week?

It’s important to be aware of when Operation Safe Driver Week takes place because of the impact it has on shipping freight. Even though it’s just one week out of the year, no one likes to be unprepared for potential disruption or delays to their business.

Operation Safe Driver Week Impact on Shippers

Shippers may face potential delays, see reduced transportation capacity, and likely higher spot rates.

Potential Delays

Increased enforcement activity can lead to potential delays due to any road stop inspections or pullovers.

Reduced Transportation Capacity

The increased enforcement effort sometimes leads carriers to strategically choose to close their business temporarily for the week to avoid any risk of fines or penalties. You might find it more difficult to secure reliable carriers for any last-minute shipments.

Higher Spot Rates

With the potential for fewer trucks available and delays, spot rates can be heightened during this time.

Operation Safe Driver Week Impact on Carriers

Carriers are similarly affected, and there is the potential for delays, less freight volume, and higher scrutiny from law enforcement.

Transportation Delays

Just like shippers, carriers should expect to see potential delays in the movement of traffic due to the increased enforcement. This could disrupt your operations.

Fewer Shipments Available

Shippers may choose to plan around this week, reroute certain shipments, or even look into alternative modes. Less freight may be available during this week.

Increased Law Enforcement

Expect to see increased law enforcement, so more eyes will be looking for unsafe driver behavior, and drivers may receive fines.

How to Prepare for Operation Safe Driver Week:

Shippers

Ensure Documentation Accuracy

Double-check all shipment documentation. Ensure it is accurate and complete to avoid delays during any unexpected inspections.

Communicate Sensitive Shipment Needs 

If you have any special requirements or time sensitivities, communicate this well in advance. This helps your logistics provider plan effectively. Any last-minute communication risks delays.

Find Alternatives

Consider alternative transportation modes or routes if you expect any delays.

Keep Customers Aware

Be proactive and communicate potential delays during this week to your customers to manage expectations.

Share Any Concerns

Discuss any concerns you might have with your logistics provider. They can offer valuable insights and help develop strategies to reduce disruptions.

Pricing Awareness

Be aware of possible higher spot rates during Operation Safe Driver Week. When possible, plan shipments before or after this period to secure better pricing.

Carriers

Double-Check Credentials

Ensure all company credentials, like operating authority, hazmat endorsements, TWIC cards, and any other relevant permits, are current and accessible.

Driver Documents are Up to Date

Have drivers verify that all paperwork is up to date and accessible in case of inspection.

Vehicle Maintenance Check

Double-check that all vehicles have undergone any necessary preventive maintenance and are in top operating condition to avoid delays due to roadside repairs.

Prep Your Drivers

Make sure drivers are aware of this week and the potential for stops or delays. Train drivers on proper procedures for interacting with law enforcement. Make sure they know the channels to communicate any disruptions to their journey.

Book Ahead 

Shippers may choose to reroute shipments, choose alternative modes, or plan around this week. Consider booking shipments well in advance for this week.

Remember – Safety First

The importance of this week is not disruptions but road safety. This is a great time to talk with drivers about safe driving behavior. You could also help educate the public on proper driving behavior when interacting with trucks. Remember, this week benefits everyone who shares the road.

Let’s Work Together to Keep Our Roads Safe

We believe road safety is paramount. While Operation Safe Driver Week might cause some temporary disruptions, it serves a vital purpose in promoting safe driving behaviors.

By staying informed and taking proactive steps, you can likely see minimal effects of Operation Safe Driver Week.

For additional opportunities to stay ahead of disruption to your business during Operation Safe Driver Week, consider working with Trinity Logistics. We have over 45 years of experience helping thousands of shipper and carrier companies conquer more complicated shipping situations, like CVSA inspection weeks. We’re confident in our ability to make this week (and all others) a painless one for your business.

Stay up to date on the latest information on conditions impacting the freight market, curated by Trinity Logistics through our Freightwaves Sonar subscription.

A LOOK AT THE PAST AND FUTURE OF THE FREIGHT MARKET

The Outbound Tender Volume Index (OTVI) measures the volume of contracted freight in the U.S. While this does not account for the spot market, ebbs and flows in contract freight have a direct impact on spot market volume and pricing. The outlier on the graph below (Figure 1.1) is the yellow line, representing calendar year 2021. This was an unprecedented year for freight volume, primarily influenced by consumer spending. While many feel the freight market is suppressed, that is not necessarily the case. 2024 will follow a more traditional freight flow pattern, with volumes up five to eight percent, year-over-year (YoY).

Measuring the freight volume is not enough to predict swings in pricing. Being able to overlay the frequency in which carriers say “no” to freight tenders via the Outbound Tender Rejection Index (OTRI) gives a good picture whether the capacity side of the market can handle those swings.

The below chart (Figure 2.1) looks at the amount of contracted freight volume (blue line) with the frequency of tender rejections (green line) overlayed. As can see, most of 2019 and the first part of 2020 saw a market where freight volumes were easily handled. This was a result of lower than anticipated freight volumes versus a glut of carriers in the market.

Then March 2020 happened. Everything went on lockdown. Volumes and rejection rates plummeted. That was quickly followed by a freight injection and for the latter part of 2020, and all of 2021, the market struggled with a lack of capacity to handle the record freight volumes.

For example, most LTL carriers were operating at 105-107 percent of capacity when they normally are in the low to mid-90s range. The freight market pendulum was in favor of the carriers. When the market gets hot, everyone wants in, which is what was happening in 2021, and 2022 – new carriers raced to get in on the action while existing carriers looked to soak up as much rolling stock as they could to capitalize on the market.

2023 saw a return to more traditional levels, but the capacity remained. As a result, rejection rates for freight tenders took a dive to below five percent, indicating carriers were eager for any freight that kept their fleets moving. This caused freight rates to take a dive (Figure 3.1) and then stabilize as of late.

But how long will shippers be able to rely on rate stability? Most likely the best determination will be the pace at which carriers exit the market.

Figure 4.1 clearly shows capacity has been coming out of the market (blue line) for the past year. Most of that capacity is small – micro-fleets and owner operators. Certainly, this is dwindling capacity, but not to the extent of a large carrier pulling out of the market. A slow drip for sure.

The orange line represents the OTVI (volume) in the market, and that has slowly climbed over the last 12 months with the normal seasonal up and downs. At some point, as the volume inches up and capacity comes down, it’s simple supply and demand. Many are pointing to the end of this year, more likely spring of 2025 when that balance starts to shift. Now is the time for shippers to learn the contingency plans that are in place with their carrier and broker providers to account for this. 

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It’s a simple fact. People can’t survive without food. When times are tough, we can certainly make sacrifices in other parts of our lives, like our online shopping habits or a remodel we wanted, but not food. This makes food manufacturing a reliable and even diverse industry to run a business in. Yet, it doesn’t come without its own set of unique challenges, especially with its logistics. 

Today, the demand for fast and reliable shipping is higher than ever. Food and beverage companies need to meet the rising pressure to provide quicker turnarounds and deliver their products at optimal freshness to stay competitive. With already complex supply chains, how can a company keep up? Not to mention, what if there’s an issue found or a delay? Don’t stress. We’ll cover logistics challenges that commonly hurt food manufacturing businesses and how working with a third-party logistics (3PL) company, like Trinity Logistics, can solve and simplify your processes for shipping food.

Common Shipping Challenges Faced by Food Manufacturing

Diversity in Scheduling Applications Introduces Challenges

One of the biggest headaches for food manufacturers is self-imposed. Each shipper or distributor could be using a different scheduling portal or application. Some even just use Excel spreadsheets. Because of this, scheduling conflicts and communication gaps are often seen when shipping food. This can be very frustrating to the logistics departments arranging the shipments. 

Furthermore, the carriers they aim to work with may not know how to use the application or might not even have access to it. This inefficiency can cause issues with them scheduling their pickup or delivery appointments. It also can limit access to capacity, something that is truly needed for those requiring temperature control during peak produce season!  

Plenty of Time-Sensitive Freight in Food Manufacturing – Beat Must Arrive by Dates

As previously mentioned, food manufacturers face a growing demand for products that are at peak freshness, especially for those needing temperature control. It’s not unusual for these time-sensitive shipments to be last-minute orders requiring immediate action. Some of these can come in just the day before or even the day before and need shipping right away. Sometimes to help manage the influx of shipments, freight can be assigned with a “Must Arrive by Date” (MABD). This can put pressure on food manufacturers, and missed delivery windows can result in costly penalties. These fees, called chargebacks, usually get pushed back onto the customer and impact your bottom line and service.

Identify Visibility Gaps When Shipping Food

With many time-sensitive and temperature-control requirements, it’s important for food manufacturers to have complete visibility into their shipments. Food shipments often involve multiple stops, so it’s critical to understand where your product is and when it’s expected to arrive. Even though it is valuable, many food manufacturers find they have limited visibility of their shipments. This creates a lot of uncertainty, causing additional gaps in communication and possible delays or disruptions. Most importantly, it can jeopardize the safety of your food product, an important piece to meet the Food Safety Modernization Act (FSMA) regulation.

Keeping Food Shipping Logistics Budget in Control

Carrier selection for shipping food products can be a puzzle for food manufacturers to figure out. On one hand, you want to work with high-quality carriers to ensure your food products arrive at peak freshness. On the other hand, they cost more. One certainly wants to budget and find balance. Look to pay too little, and you may not find the quality service your products need. Finding that balance between the two can be difficult.

Market trends can also cause unexpected price fluctuations, further challenging their logistics budget. This can really hurt those needing to meet peak freshness as it’s not like they can’t ship their products as they may perish. Instead, they’ve got to adjust and pay the current price.

Food manufacturers must be creative and find solutions to keep their costs down but their quality up. They can consider other transportation modes as options to manage costs, but understanding which one makes the most sense for their product can be overwhelming.

Embracing Sustainability in Food Shipping

Sustainability is on everyone’s minds, including consumers. With global food and beverage production causing roughly 34 percent of greenhouse gas emissions, consumers are holding food manufacturing companies to higher standards. They’re researching more about the companies they purchase food products from. They want to know what positive practices they implement, such as sustainable fishing, the use of ecological pesticides, reforesting, fair trade, or the use of compostable packaging.

TRINITY Logistics SOLVEs Food Shipping PROBLEMS

With over 45 years of serving customized logistics solutions to thousands of food manufacturers, we’re fairly confident in our ability to help you overcome any of these challenges.

We Speak Your Food Shipping Scheduling Language

We’re in tune with most if not all, scheduling portals that food and beverage shippers use. You don’t have to worry about training us! Yes, we could even say we know how to navigate those scheduling apps “with our eyes closed.” Even if we have a newer Team Member who is unfamiliar with it, we can guarantee that at least one of our 400+ Team Members or 135+ Authorized Agents know it and can assist.

Time-Sensitive Titans: We Deliver Your Food Products When It Matters Most

At Trinity Logistics, we understand the urgency of time-sensitive food deliveries. Our Team excels in handling quick turnarounds, making us the “emergency room” for your time-critical freight. We are acutely aware of the potential repercussions of missed deliveries and leverage our strong carrier relationships to secure the capacity you need. These established partnerships allow for better planning and ensure that carriers are familiar with the specific needs of food commodities, pickup, and delivery locations.

Furthermore, in the unfortunate event that fees do arise due to carrier issues, Trinity acts as your advocate. We hold our carriers accountable and ensure that any associated charges are passed along to the responsible party. Our meticulous investigation process guarantees that only the root cause of the problem bears the financial burden.

Expand the View into Your Food Shipments

We’re champions of end-to-end visibility, great communication, and transparency because we know you deserve it. Our commitment to People-Centric service isn’t just our slogan; it’s our philosophy.

We leverage a combination of cutting-edge technology and a dedicated Team Member to keep you informed every step of the way. Use our Customer Portal to see real-time tracking of your shipments. If you’re looking for even more transparency, there’s our Managed Transportation service, offering you a customized Transportation Management System (TMS) solution that works for your business. Between our technology and our Team Members, you’ll find this proactive approach ensures you’re not left in the dark until delivery.

Find Balance in Your Logistics Budget

Starting out, our established carrier relationships not only gain you access to capacity but to leverage our competitive rates. Additionally, we have multiple modes to choose from and our Experts can help you explore which one suits your product and budget.

Now, we understand balance isn’t easy to obtain, so that’s why Trinity Logistics goes a step further in our service to help you find it. For those food manufacturers that build a shipping history with us, we’re able to review your data and conduct a comprehensive review of your logistics. This will give you a clearer insight into your logistics to find room for improvement. We won’t come empty-handed, either. We’ll make recommendations to add efficiencies and see if we’re on the right track for your company’s success.

Adding Sustainability into Your Logistics

We understand the importance of sustainability and are committed to helping you implement it throughout your supply chain. This includes connecting you with carriers that prioritize eco-friendly practices, finding sustainable shipping options, and exploring carbon offsetting programs. If you need further proof, Trinity currently holds a bronze medal rating by EcoVadis, the world’s largest and most trusted provider of sustainability ratings.

Bonus Benefit for Food Manufacturers! Trinity’s Relationship with Honor Foods

As a Burris Logistics Company, we have a direct relationship with Honor Foods. Honor Foods is a leading foodservice redistributor with locations throughout the Northeast, Mid-Atlantic, and Southeast regions of the U.S. They have access to thousands of reputable brands and can simplify your purchasing process. Honor specializes in frozen, refrigerated, dairy, and dry products with over 3,000 stocked items from 300+ trusted suppliers. Speed up your lead times and increase profitability with no extra storage space needed. Working with Trinity and Honor, you can get the best of both Burris Logistics brands and gain additional success in your business.

Operating in food manufacturing can be complex, but it doesn’t have to be. Try Trinity Logistics for your shipping and see just how easy it can be.

Do you feel like you could be spending less on your less-than-truckload (LTL) shipping rates? Most likely, you’re right. LTL shipping rates are affected by many different factors, so it can be pretty easy to make these simple changes and see your shipping costs decrease. While these tips may not be possible for everyone or every shipment, hopefully, you’ll find one you can start implementing to reduce your freight costs.

HOW LTL SHIPPING RATES ARE CALCULATED

Compared to truckload rates, LTL shipping rates can be very confusing. To make it simpler, here’s what goes into your LTL costs.

Absolute Minimum Charge

This is the lowest rate a carrier will charge.

Accessorials

These are extra charges for any services provided by the carrier that are beyond simply shipping from one point to another. Examples of common accessorials include:

• Inside pickup or delivery
• Lift gate service
• Residential delivery
• Detention storage

Base Rates

Each LTL carrier sets its own base rate, often quoted per 100 lbs., and based on the freight classification, weight of the shipment, distance traveled, and the origin and destination zip codes.

Lane

The lane plays a role in the base rate. The further the distance traveled in the lane, the more costly the LTL shipping rate can be.

Freight Classification

The product you ship has its own classification based on the National Motor Freight Classification (NMFC). Freight that is dense and difficult to break is in a lower class, making it the least expensive. Lighter and more fragile freight is at a higher freight class and thus, costs more.

Weight

LTL shipping rates are based on the total weight and number of pallets. The heavier a shipment, the less it costs per hundred pounds, as factored by the base rate calculation.

HOW TO SAVE ON YOUR LTL SHIPPING RATES

Maximize Density

LTL carriers make a profit by fitting as many different LTL shipments into their trailers as safely as possible. So, which do you think they prefer – a shipment that takes up 25 percent of their trailer or a shipment that takes up 10 percent? The less space your shipment can take up, the less it could cost to ship it.

While the weight of your shipment may be out of your control, the density is not. Increasing density starts with how you pack your LTL freight. Experienced shippers know that doing everything they can to compactly pack their freight on pallets will reduce their LTL shipping rates.

So, do everything you can to make your shipment take up less space. If your current pallets are not stackable, find a way to make them, if possible. Reduce any empty space between cases or products on the pallet. If possible, stack an extra row on top of each pallet to eliminate using an extra pallet. Brainstorm all the ways to make your shipment take up less space, and you’ll likely see savings.

*It’s important to note that you should never negate safety or product quality to reduce your shipping rates! 

Aim to Avoid Peak Shipping When Possible

While this may not always be possible, avoiding peak shipping times is an easy way to reduce your LTL shipping costs. When you can, plan and ship early or after peak times.

Evaluate Packaging and Product Design for Logistics

Now this tip is more of a hefty task, but it’s certainly one to consider. When in the early stages of product and packaging design, or even when re-evaluating, it’s ideal to get one of your logistics professionals involved. This will help your product and package designers consider details that can make your product easy to ship, stack, and organize. There’s nothing worse than having a great product only to end up with it being too cost-prohibitive to transport.

Consider “Economy Class” LTL Carriers

If your shipment isn’t time-sensitive, using “economy class” LTL carriers is an easy way to reduce your LTL shipping rates. Their rates are often cheaper but their transit times are longer, so you’re trading off higher costs for more time. If you have time to spare, this is a great option for savings. 

Ship Larger Loads Less Often

As you likely know, it’s cheaper to ship several pallets at once than one at a time over a few weeks. However, to use this strategy, you’ll have to convince your customers to take on larger orders. You can offer them a price break or agree to share some of the savings you see in shipping to do so.

Consolidate to One Truckload

Eliminating a shipment altogether is a surefire way to reduce your freight costs.

Have you ever considered consolidating your LTL shipments into a multi-stop truckload shipment? Shipping a full truckload of freight is often far less expensive than shipping multiple LTL shipments.

Of course, it depends on where your shipments are delivering. For example, a multi-stop truckload picking up in Maine and delivering in Florida, Minnesota, and California might not make financial sense compared to shipping LTL. But if your delivery points are close to each other, or if they form a line across the country (at least vaguely), getting a quote on a consolidated truckload shipment would be very wise

If you don’t have enough for a full truckload, you could still consolidate and combine two or more LTL shipments into one. It’s worth it to see if any sort of consolidation can reduce your LTL shipping rates.

Negotiate with LTL Carriers

It never hurts to ask or negotiate for a discounted rate with your LTL carrier. Perhaps you can have an accessorial fee waived or reduced based on shipment frequency.

If you ship all kinds of freight, you may be able to negotiate freight of all kinds (FAK) for reduced LTL shipping rates. Rather than getting a rate for different classes of freight (which can be time-consuming and complicated), you negotiate to have all your LTL freight rated in the same class, with FAK, which not only saves you time but money.

You could also negotiate for Customer Specific Pricing (CSP). This is contracted pricing, which could include a FAK structure if needed. LTL CSP allows carriers to have a better picture of your freight which not only results in more efficient, but often cheaper, pricing since the rate contracts are ONLY based on your shipments. 

Interested in LTL CSP? Let Trinity negotiate with LTL carriers on your behalf.

Avoid Accessorials When Possible

Accessorials in LTL shipping are common and some may be unavoidable, but many can be avoided when planning ahead. To avoid these extra charges, make sure to educate yourself on your LTL carrier’s guidelines and accessorial fees, aim to avoid weight, dimension, and oversizing adjustments, and ensure your bill of lading (BOL) is accurate. Taking these extra steps will ensure you don’t get hit with unexpected charges and keep your LTL shipping rates low. 

Provide Accurate Information

 Most shippers are aware that the rate for shipping their LTL freight is highly dependent on the size and weight. For this reason, some people are tempted to slightly underestimate the dimensions or weight of their shipment in the hopes it will result in a slightly lower shipping cost and the LTL carrier will be none the wiser.

Whatever you do, don’t do this! Rather than saving money, you may be opening yourself up to extra charges. Most carriers will double-check that the dimensions and weight of your shipment match what’s on the BOL. If it doesn’t match, you’ll be faced with extra, unexpected charges. Your shipment cost will be raised accordingly, but you’ll also be charged with an inspection or reweigh fee, and it’s possible the carrier will red flag your freight to be inspected every single time you ship with them, meaning you just caused increased LTL shipping rates for the future – the opposite of what you wanted.

Use a TMS for Efficiencies

Controlling your shipping costs can be difficult without having full visibility of your freight spend. So, if you’re really looking to take control of your freight costs, a transportation management system (TMS) is what you need. A TMS can give you clear insight into your logistics with comprehensive reporting so you can find more ways to save on your LTL shipping rates while also finding efficiencies in your operations.  

WORK WITH A 3PL

Probably the quickest and easiest way to save on your LTL shipping rates and your time is working with a third-party logistics company (3PL), like Trinity Logistics.

Because of the high volume of freight that 3PLs arrange for all their customers, means we have lower contracted rates (aka deeper discounts) available that you otherwise wouldn’t be able to access. This will result in significant cost savings, especially over time.

Working with Trinity Logistics also gives you the benefit of working with logistics experts who can help you not only with your LTL shipping but any other modes you may need or be interested in. We’ll help you determine what other modes make sense and what other benefits or savings they could offer your business. We also have a dedicated Team to assist you with Managed Transportation or implementing a TMS if that’s something you may need now, or in the future as you grow.

Whether you simply need help saving on your LTL shipping rates or would like a valuable logistics partner on your side for all your logistics needs, our Team is ready to help you and your business succeed.

Cargo theft and fraud is a common topic in many circles these days. No matter where we look, we see it mentioned in news headlines and see its impacts on price increases on the store shelves. In fact, CargoNet recently shared data showcasing that cargo theft has reached a 10-year high, increasing 59 percent year-over-year (YoY) in the U.S. alone.

While cargo theft and fraud have always been a risk in the world of logistics, the kind of theft and fraud we see today is evolving from what we used to know. Years ago, common cargo fraud involved extortion attempts via loads held hostage as well as t-check scams, where bad actors would book shipments and ask for a fuel advance, take the money, and disappear, often without completing delivery or even picking up the shipment they received the payment advance for.

While these kinds of fraud still occur, they are not as prevalent as they once were. Today’s cargo theft and fraud involve new strategies, and it’s important that companies stay aware of emerging tactics and remain vigilant to protect themselves from unnecessary and tragic losses.

The Evolution of Cargo Theft and Fraud

In the past, cargo theft was commonly known as the act of stealing from a truck or even unlawfully taking cargo from a storage facility. Usually this might occur when the truck driver was asleep or when the parked truck was left unattended in an unsecured lot. Now, cargo theft claims for lost product can be especially difficult to navigate as many insurance carriers have specific language and exclusions written within the pages of cargo policies limiting circumstances under which they will cover cargo payment for cargo theft incidents.

For example, some policies may dictate that the truck must travel within a specific radius only and cannot be left unattended unless in a secured lot. Unfortunately, the definition of “secured lot” is wide-ranging and debatable. Does “secured lot” mean there’s a locked fence, good lighting, cameras, surveillance, or a physical security employee on patrol? There’s simply a lot of confusion and unknowns when it comes to cargo theft in general.

The Federal Trade Commission (FTC) recently reported that the top scam type for 2023 involved imposters. We in logistics and other sectors have been experiencing this concept. Scenarios expand beyond just plain and simple identity theft, at least in the logistics industry. The current phase of cargo theft involving identity misappropriation is very strategic. In fact, CargoNet also shared data that strategic theft has increased 430 percent year-over-year (YoY). As quoted by Scott Cornell of Travelers Insurance, “Strategic theft is when they use various means to trick you into giving them the freight and that’s through methods like identity theft, fictitious pickups, double brokering scams, those methods are where we’re seeing the biggest increase over the last 18 months.”

This strategic cargo theft makes incidents that were already puzzling that much more difficult to solve. This kind of cargo theft often spans over multiple state lines (interstate) as opposed to intrastate. When this occurs, jurisdiction is not given to local or state authorities but may extend to federal jurisdiction. However, to establish a case seeking federal help, not only would more than one state need to be involved, but the cargo value must warrant federal attention to exceed $100,000 and perhaps even $500,000 or more, depending on the states involved. You may have police consider strategic cargo theft a civil matter that will not be taken under investigation.

Further, with these scenarios, there is confusion concerning who takes or issues the theft report Should that be the shipper, the receiver, or the freight broker? Is the report filed with law enforcement jurisdiction at the origin where freight was often last seen, or should reports be filed at the delivery jurisdiction, where the cargo never arrived? The cargo owner may attempt to file a police report where the transfer of goods occurred, which is the location where the driver took possession of the cargo for transport. 

The State of Strategic Cargo Scams

Certain states like California and Texas have become hotspots for these strategic cargo scams, often involving imposter identities. Many of these fraudsters operate outside the U.S., finding and exploiting weaknesses in the system so products may end up outside the country. This further hurts the U.S. economy when items are produced here and those companies don’t get a financial return, thus losing money that should be going back into the economy. There are other additional costs affecting manufacturers to consider, such as lost time, materials, and labor to duplicate the goods that were originally stolen. 

The Federal Motor Carrier Safety Administration (FMCSA) system, originally designed to verify motor carrier legitimacy, has become a target. Phishing scams and other methods have targeted carriers with a motive to change a carrier’s contact information and use their MC authority for nefarious purposes. Bad actors have been caught posing as valid, reputable carrier companies. They often go as far as creating web domains similar to those of established carriers or caught purchasing MC numbers from those going out of business or wishing to exit, especially with the recent market slowdown, with the new buyer updating that company’s contact information. They look and “run” as the previous motor carrier, using that previous authority and reputation to run their scams. This facade allows them to gain possession of or intercept the cargo and divert it to a pre-arranged location for a quick disappearance. The FMCSA is aware of these trending cargo theft scams and is actively looking to improve their vetting and even get rid of MC numbers for carriers.

There’s also a prevalence in double brokering. This is when an unauthorized carrier accepts a shipment or assigns it to another carrier lacking the proper authority to broker it in the first place. It can also involve the re-brokering of shipments without authorization to legitimate entities with broker authority. This creates a chain of uncertainty and lack of control over carrier selection while increasing the likelihood of unpaid delivering carriers, and double payments required from freight brokers and shippers, paying more than agreed for delivery services. 

Load boards, while usually valuable tools for shippers and freight brokers to connect with available carriers, are also now breeding grounds for fraud. Fake postings and compromised information have created a haven for scam artists. The more information presented on a load posting, such as commodity, value, or even location, the more opportunity for these scammers to successfully replicate fake loads and even steal rate confirmations from legitimate actors. Detailed information provided on load boards make loads easier targets for those with motive to engage in strategic theft and double brokering. 

Cargo fraud involving identity theft is not limited to carrier companies. Scammers also pose as shipper companies. These shipping requests will often come in as inbound leads rather than relationship leads. Scammers create fake web domains and use reputable companies to gain credit access, then use that access to pose as both a shipper and carrier. They’ll orchestrate this fake shipment of theirs, make it look as if it has been delivered with forged paperwork, and collect payment before being found out.

A lot of these shipments involving strategic cargo theft end up being diverted to alternate warehouses. In these cases, it is common for the carrier booked to be legitimate but for a bad actor to somehow get in the middle and divert the driver to deliver to a different location altogether, promising an increase in money. Once the freight arrives at the alternate location, there’s a truck en route or waiting to whisk away the freight quickly. Diverted items do not stay in one place for long, making it difficult to track and recover the cargo.  

How to Be Proactive and Prevent Cargo Theft and Fraud

Trust, But Verify

Whether dealing with a shipper company or carrier, thorough verification is needed.

For shippers requests, use sources like ZoomInfo, LinkedIn, and Google. Research the company along with the contact who reached out. Remember that most shipper scams involve inbound leads as opposed to solicited new business or existing relationships. Before agreeing to arrange or transport the movement of goods, use Google Maps to ensure the requested pickup and delivery locations are legitimate.

For example, if the shipping company is a well-known business but Google Maps Street View shows you a location that doesn’t look like one of theirs, something might be off. Another red flag could be if the commodity to be shipped doesn’t line up with their standard business, such as an electronics company trying to ship lumber or rice.

For carrier requests, first vet that they have authority to operate with the FMCSA. View their safety rating and be cognizant of shipper or load-specific requirements, such as drivers who have TWIC cards, and commodity specifics, like cargo type and value. Confirm the carrier has adequate insurance coverage for the shipment they are booking, such as reefer breakdown coverage, if they are to haul a temperature-controlled shipment. Cross-check any other shipment requirements, such as interstate authority or hazmat certifications.

Review relationship and load history if they have a shipment history with you and ensure the new request lines up with previous hauls. Be aware of MC misappropriating. Check if the FMCSA information or profile has recently been updated. Some things to look out for are contact, address, or email address changes. Double-check that the carrier company is not associated with any known bad actors and adhere to your company’s own internal vetting standards.

There are various informational and vetting applications like Highway and Truckstop to further qualify carriers. Ensure the equipment the carrier owns lines up with the equipment required for the shipment. For example, it wouldn’t make sense if a carrier books a temperature-controlled shipment when the carrier owns no refrigerated trailers.

Use Relationships, Limit Load Boards

While load boards offer convenience, strong relationships with carriers provide a significant advantage. Building trust and gaining a deeper understanding of their business reduces your risk of cargo theft and fraud.

When load boards are needed, be strategic with your postings and focus on the security of the information you share. Scam artists often use load boards as a resource for information to replicate or find their next victim. They often look at the locations, the kind of cargo, and more. Avoid posting detailed descriptions of your cargo. Keep the information you share as simple and minimal as possible. Protect that information until the carrier has been both vetted and confirmed.

Trust Your Gut

If something feels wrong at any time, report it to your Risk Team or dedicated personnel right away. With cargo theft, time is of the essence. The first 48 hours are critical as stolen freight typically doesn’t stay in the same place very long. Your best chance of recovering it is within those early hours of noticing it. 

Your first line of defense to prevent cargo theft and fraud incidents is your pickup location. Those workers have the eyes and, hopefully, surveillance to see if the truck coming in is the right one. They can check that the MC on the truck is correct, that the driver has the right equipment for that shipment’s requirements, that the driver is the one booked, and that they know the correct location they need to deliver to.

Shippers can also be proactive and place trackers in with their freight, which can be beneficial for trip progress tracking as well if the load gets stolen. While many carriers do have trackers these days, it’s best not to rely solely on them. Scam artists have been known to disable trackers or ping them to another cell phone, making the shipment look like it’s traveling where it is supposed to go, while it is, in fact, stopped or delivering to an alternate location.

Shippers can also ensure they use strong seals that are tamper-proof. Ensure your dock workers are informed and proactive in reducing potential incidents. Shippers may also consider investing in extra shipper’s interest for its product, for a first-party insurance policy which provides a layer of extra protection. Develop strong relationships with the freight brokers you work with. Know who the emergency personnel are on the shipper and broker side and be armed with their contact information so you know exactly who to contact at all times of the day should a theft or another emergency occur during shipping.

Knowledge is Power

Stay in the know of what’s going on and trending in cargo theft and fraud by networking with known associations, like CargoNet and the Transport Asset Protection Association (TAPA), as well as the additional connection of the Transportation Intermediaries Association (TIA) for freight brokers. These organizations constantly educate on evolving threats to keep members aware.

Ensure you have an emergency plan in place and educate your team so you can be well prepared for an incident. Develop relationships with law enforcement and investigation agencies who can help you put the word out about your loss and assist in finding your freight or the scam artists involved.

Combatting Cargo Theft is a Shared Responsibility

Combatting cargo theft and fraud requires collaboration from all within the logistics industry. Shippers, brokers, carriers, legislators and law enforcement must work together to create a more transparent environment with strict accountability to make it more difficult for thieves and fraudsters to operate.

Cargo fraud is growing, and tactics are ever-changing. Even with all the right measures in place, fraud may not be 100 percent preventable. That said, though we can’t stop it all, we can implement not only prevention measures but response strategies. By staying vigilant and educated, we can collectively demonstrate to these bad actors that it’s not worth the effort anymore. It is up to us to create a future where the movement of goods is more efficient and secure than it is today.

About the Author

Kristin Deno currently holds the role of Director of Operational Risk at Trinity Logistics. Deno holds a Certified Cargo Claims Professional certification through the Certified Claims Professional Accreditation Council (CCPAC), with almost 15 years of experience and knowledge in claims, insurance, compliance, and risk. She has a passion for knowledge and servant leadership, always looking to grow professionally and share her expertise to those interested. She’s well known at Trinity for assisting fellow Team Members, Shippers, and Carriers with complex claims and doing all she can to mitigate any potentially concerning scenarios. Deno consistently looks for opportunities to share her knowledge and insight outside of Trinity, having recently attended the TIA’s 2023 Policy Forum in Washington, D.C., Traveler’s and CargoNet’s Cargo Theft and Transportation in Q4 2023, and the TAPA T1 National Cargo Theft Summit in May 2024. 

Stay up to date on the latest information on conditions impacting the freight market, curated by Trinity Logistics through our Freightwaves Sonar subscription.

FREIGHT VOLUMES ARE ACTUALLY UP

It seems much of the news clippings have been around freight rates and how they remain suppressed. One could jump to the conclusion that this is a result of freight volumes being down. On the contrary, freight volumes are elevated from what we saw in 2023. 

As you can see in Figure 1.1, volumes for the majority of 2024 are between six to eight percent higher compared to 2023. What is driving (or not driving) rates remains the capacity in the market. 

Capacity is showing a net decline, albeit slower than expected. Much of that reduction is being felt in the less-than-10 tractor-fleets, so while the number of for-hire carriers is declining, the impact to actual trucks to haul freight is a slow drip.

That capacity continues to hold tender rejection rates at extremely low levels, meaning few loads are hitting the spot market. As a result, spot rates remain almost $0.70 per mile less than contracted rates. There has been some closing of the gap over the past year, as shown in Figure 1.2, but look for the gap to remain relatively consistent for the remainder of the year.

The Aftermath of The Francis Scott Key Bridge Collapse

It has been about six weeks since the bridge collapse in Baltimore. Removal efforts continue and certainly, a return to normal traffic flow is years away.  

In positive news, looking at the *headhaul index for that market (Figure 1.3), aside from the drop around the time of the collapse, things appear to be back to normal from a balance standpoint. Certainly, there are more out-of-route miles and freight that may be entering at nearby ports, but for the most part, outbound and inbound freight volumes appear to be back to normal for the Baltimore market.

*headhaul measures the variance in outbound versus inbound freight

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You can consider drayage service the unsung hero of shipping. It’s crucial to global supply chains, bridging the gap for both intermodal and international shipments.

Growing businesses often develop a need for drayage services but can easily get overwhelmed by it. Unlike truckload or less-than-truckload (LTL), getting your items picked up and delivered with drayage shipping sometimes isn’t a straightforward process. From port congestion to demurrage, it’s easy to get lost in the tangled process of drayage. Yet, with a few quick tips and the right approach, you can make use of drayage services to your supply chain’s advantage.  

What ARE COMMON CHALLENGES WITH DRAYAGE? How Can I avoid Them?

Route Planning

One of the primary challenges faced by shippers handling drayage services is route planning. Ports and rail terminals often operate in congested cities with lots of traffic and frequent road closures. Poor route planning can lead to delays, missed appointments, increased fuel consumption, additional fees, and, most of all, frustrated customers.

Chassis/Equipment Shortages

Just like there can be ebbs and flows with truck trailer capacity, drayage brings the concern of its own equipment shortages. Chassis are what the containers sit on when hauled by the carriers. It’s important to mention that drayage carriers don’t own chassis. Instead, they rent the chassis from the port or terminal, thus adding an additional complexity to drayage services. Chassis shortages most often happen during peak shipping seasons and can create delays or additional costs for shippers.

Port or Terminal Delays

Delays can happen at the ports or terminals for several reasons. Unforeseen events like canal blockages (Suez Canal), the Francis Scott Key Bridge collapse, or possible rail strikes have most recently created delays for shippers. Customs clearance is often the most common cause of delays as the process can be intensive, and any improper documentation or misclassified products can cause a holdup. Container reshuffling can also be an issue from time to time when there are too many containers, whether full or empty, at the ports or terminals.

Additional Charges

Additional charges may be the bane of drayage services, second to delays. Drayage can come with many accessorial fees that can catch shippers off guard if not prepared. The most common fee you’ll hear about in drayage services is demurrage.

Once a container is delivered to the port or terminal, you’re given a set number of “free days” for it to be picked up by a drayage carrier. This is called your Last Free Day (LFD), and that’s the date you want to ensure your container is picked up so you won’t face this additional charge.

There are also drop fees. Drop fees are for when the drayage carrier must drop the container and then come back to pick it up and return it empty to the port or terminal.

Lastly, if the empty container is returned late to the port or terminal, that’s an additional fee.  

Lack of Transparency or Communication

With drayage services, you really need to have a clear picture of what’s happening if you want to reduce the chance of accruing any additional charges, not to mention any delivery delays or customer dissatisfaction. Effective communication between shippers, carriers, logistics providers, and port or terminal authorities is essential for smooth drayage shipping.

TIPS TO Avoid DRAYAGE SERVICE CHALLENGES

If you’ve experienced any of the previously mentioned challenges with drayage service, the great news is there are really only two tips you need to make it seamless.

Proper Planning and Time Management

Most of the challenges with drayage are caused by improper planning, unforeseen circumstances, or misinterpretation at the port. Proper time management and planning are essential to avoid those challenges in the first place. Ensuring you have properly evaluated and documented your freight, selecting the right drayage carrier based on your needs, and taking into consideration factors like port or terminal timings or traffic.

Additionally, stay in the know of what’s going on in the market. Are there any anticipated delays or disruptions that could change your plans? Do you have a contingency plan in place should an unforeseen event occur? The more planning you’ve made ahead of your drayage shipment, the better your supply chain will operate.  

Work with the Right Drayage Provider

Working with the right provider can significantly impact the success of your drayage service. While that tip is easy to state, how do you determine if a provider is the right one for your needs?

When searching for a drayage service provider, you should ensure they:

• Gain you access to reliable capacity with experienced carriers,
• Offer excellent customer service and clear and timely communication,
• Technology tools to provide you with shipment visibility and tracking,
• Accurate billing practice,
• And has a high on-time delivery percentage.

By prioritizing these characteristics when looking for a drayage service provider to work with, you’ll quickly find that selecting the right one will improve your company’s competitiveness and service by helping you overcome these common challenges.

WORK WITH TRINITY FOR The Best DRAYAGE SERVICES

Speaking of reliable drayage service providers, you’re currently hot in your search already!

Trinity Logistics is a nationwide, top-rated third-party logistics (3PL) provider capable of helping you overcome any challenges you’ve been facing with your drayage service. You should consider us because:

Trustworthy Carrier Relationships

We treat and respect our carrier relationships and aim to build a strong partnership with each one to help their businesses be successful. Because of that, we’ve built trusted partnerships with those in our carrier network, gaining you access to the capacity you need and the service you want.

24/7/365 Support

No matter what happens, we’re ready to support you around the clock. We have a dedicated After-Hours Team to continue the monitoring of your freight and are ready to quickly resolve potential challenges, no matter the time of night, holidays, and every weekend.

Tracking and Tracing

We understand transparency is key to your drayage success, so we offer several ways to view and keep track of your freight, no matter the time of day.

Team of Experts

Our only job is logistics. It’s what we handle day in and day out. We’ve been working in this industry for 45 years and have seen all the ups, downs, delays, and disruptions the freight market has thrown at us, so we know how to handle tough situations. Additionally, we stay knowledgeable about what’s going on and keep you informed of anything that could come your way, with a backup plan at the ready.

Clear Communication About Charges

From the start, we are transparent about costs and help you understand all the different charges that you may see or come across with drayage service.

Your Trinity relationship will provide a list of any potential charges that may arise, such as any overweight, drop, or hazmat fees. Our goal is to ensure you know exactly what to expect so there are never any surprises.

An additional benefit to our trusted carrier relationships is our capability of keeping any fees from the port tied to the clearance of any containers from being billed back to you and being able to be competitive with those drayage rates.

Yes, drayage services can be complex and challenging at times, but it doesn’t have to be if you choose to work with Trinity Logistics.

At Trinity Logistics, we’ve always believed in doing the right thing. That concept is foundational and woven into the fabric of our company culture, from the services we provide to the impact we aim to make on the world around us. Being sustainable is an important focus for the company. It’s a responsibility we take seriously, so our sustainability initiatives are no afterthought.

Logistics Environmental Sustainability

The United Nations defines sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.”

Our company takes that message to heart. We recognize the critical part we play in taking care of our communities, making a positive impact, and reducing our environmental footprint. We want to leave a positive legacy behind that extends beyond our logistics services. This includes our part in taking care of our environment and the communities we touch.

Here’s a glimpse into how we take action to be sustainable.

Paving the Way to Less Emissions with SmartWay

The SmartWay program by the Environmental Protection Agency (EPA) helps companies improve supply chain sustainability and reduce transportation emissions by providing a system to track fuel and emissions so companies can select more efficient carriers and logistics strategies.

Trinity invested in a SmartWay partnership in 2008, making this our earliest sustainability initiative. This partnership enables us to access and build relationships with SmartWay-certified carriers that commit to tracking and minimizing their emissions. We’re able to leverage that network, empowering our shipper relationships to make sustainable choices by using these SmartWay-certified carriers whenever possible.

Chemical Safety with Responsible CareⓇ

Responsible CareⓇ is the chemical industry’s environmental, health, safety, and security initiative, hosted by the American Chemical Council.

Since 2009, Trinity has been a proud member of Responsible CareⓇ. Some of the ways we take this sustainability initiative into action include;

• carrying pollution liability coverage to cover costs associated with pollution clean-up or other pollution-related liability claims;
• stringent carrier vetting to select the right carrier with the right requirements, like being hazmat-certified;
• ongoing required Team Member training to maintain knowledge of proper procedures, especially regarding chemical transportation.

Offsetting Carbon Footprint in Logistics with ClimeCo

ClimeCo is a non-profit organization that helps companies offset their emissions by donating funds towards sustainable projects.

Trinity Logistics understands that climate change is a pressing issue, so we’re committed to doing our part. In 2022, we began collaborating with Carbonfund, now known as ClimeCo. At the end of each fiscal year, we calculate the electricity usage of our owned facilities. With that calculation, ClimeCo helps us identify sustainable projects to donate to and offset the emissions we produced that year.

We’ve already made a difference by contributing to the Texas Capricorn Ridge Wind Project and N20 Abatement Project. In 2022 alone, we offset 143 tonnes of carbon emissions, and in 2023, we mitigated another offset of 90 tonnes. That’s a win for the environment and a win for future generations.  

Building Sustainability in Our Offices

Sustainability isn’t only about grand gestures; it’s about the everyday choices we make. That’s why we seek out sustainable practices within our own facilities.

We offer convenient battery recycling through a partnered vendor, ensuring they’re disposed of responsibly. We also ensure any used paint gets recycled instead of ending up in landfills.

We offer multi-stream recycling to our Team Members as well. Each Team Member has their own container to recycle any paper documents, while a large bin outside collects glass and recyclable plastics. Knowledge is power, so we educate our Team Members on proper recycling practices, too.

Our Facilities Team also aims to make sustainable purchases as often as possible. They’ve already converted any lighting in our owned offices to energy-efficient LEDs. They also focus on purchasing eco-friendly supplies that are compostable and certified sustainable. For example, they buy compostable paper plates and takeout containers for our weekly lunches.

Recognizing the Power of Remote Work for A Cleaner Environment

We recognize the many benefits of remote work. It fosters a vibrant company culture, empowers our Team Members with greater flexibility, and contributes to a greener future. By embracing remote and hybrid work positions, we help reduce emissions from daily commutes and cut our office space requirements.

Currently, around 50 percent of our positions offer remote or hybrid options, allowing our Team Members to focus on time with their families, contribute to their communities, and be part of this impactful sustainability initiative.  

Empowering Shippers with Sustainability

For Trinity, sustainability is about more than our own initiatives. It’s also about helping our relationships find sustainable options in their supply chains.

For each shipment, we’re able to offer guidance on the most efficient transportation modes available. We offer regular business reviews to analyze our shipper relationship’s unique logistics profiles to find and suggest efficiencies. Our Team also works closely with shippers and carriers to tackle deadheading, a large contributor to carbon in the trucking industry.

Additionally, we’re always looking to explore new ways to push the sustainability envelope for our relationships. Currently, we’re looking into platforms that can help us provide our shipper relationships an extra avenue to offset their carbon emissions, too, like Patch.io.

Ecovadis – Recognition of Trinity’s Commitment to Sustainability

EcoVadis, a trusted and globally recognized provider of business sustainability ratings, recognizes our dedication. In 2023, they awarded us a bronze medal, placing us within the top 50 percent of companies assessed. While we acknowledge this is a significant achievement, at Trinity, we aim to continuously improve. Our sights are set on achieving a silver rating in 2024, reflecting our ongoing commitment to continuous improvement.

The Trinity Logistics Difference

As our mission statement says, we’re dedicated to “improving lives and supply chains by solving tough problems.” Sustainability is undeniably a complicated challenge. The good news is that our passionate Team Members at Trinity Logistics thrive on tackling tough problems and overcoming obstacles. We’re relentless in our pursuit of solutions, and we won’t stop until we’re satisfied with the results.

We understand sustainability is a never-ending journey of improvement. That’s why you can count on Trinity Logistics to remain a leader in sustainable practices. We’re constantly expanding our sustainability initiatives and deepening our commitment to a greener future.

Our dedication to sustainability is just one facet of the Trinity difference. If this is how seriously we take environmental responsibility, imagine the level of commitment we bring to solving your logistics challenges.

Stay up to date on the latest information on conditions impacting the freight market, curated by Trinity Logistics through our Freightwaves Sonar subscription.

FRANCIS SCOTT KEY BRIDGE IMPACT

Watching the video of the bridge collapse was surreal. To have that structure there one minute, then five seconds later be completely gone, was jaw-dropping. Certainly, our thoughts and prayers are with those whose lives were impacted by the collapse.  

Since the incident, clean-up has begun and a temporary waterway has been established, but it will take a while for the port to fully recover, let alone the bridge itself to be rebuilt. While the 30,000 plus vehicles that regularly cross that bridge is a sizable number, it’s about one-sixth of the volume that uses nearby major thoroughfares like I-695 or I-95 in the Baltimore area. Still, that traffic will need to go somewhere.  

From the trucking side, there will likely be two main areas of impact. First, local freight that is destined for ocean travel will now need to find another port of departure, likely destinations the ports of NJ/NY; Philadelphia; and Norfolk, VA. This means more freight will be heading out of the Baltimore area.  

Figure 1.1 below shows that since the end of March, right around the time of the bridge collapse, outbound volume, and freight tender rejection rates, have trended upward. Second, freight that travels around the Baltimore area will likely incur more out of “normal” route miles if the bridge was part of its route. 

More carrier miles = more time to deliver = less time for other freight = increased freight costs.

SOME BALANCE SEEN

Overall, freight volumes have trended slightly above 2023 (Figure 2.1).  

This has not dramatically impacted freight rates nationally or freight tender rejection rates. Excess capacity continues its slow runoff, and March saw an uptick in for hire carriers.  

On a more granular scale, flatbed freight seems to be more optimistic. As seasonal flatbed type freight, combined with an uptick in industrial production and manufacturing activity is occurring, it has pushed flatbed rejection rates to more normal levels over the past few months as seen in Figure 3.1.  

Flatbed rejection rates reached their highest point in over a year recently, and a 15 percent rejection rate is indicative of a more balanced freight market, if only for a certain equipment type segment.

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