Trinity Logistics, a leading third-party logistics (3PL) provider, is proud to share that the company has received a bronze sustainability rating by EcoVadis. 

EcoVadis is a trusted and globally recognized provider of business sustainability ratings and insights. Over 1,000 enterprises rely on EcoVadis to assess and manage sustainability practices within their supply chain. EcoVadis measures the sustainability management system of a company through 21 criteria focused on its four key performance areas of Environment, Labor and Human Rights, Ethics, and Sustainability Procurement.

The assessment includes a questionnaire completed by the company assessed and an expert analysis by EcoVadis. A bronze rating is given to companies that place within the top 50 percent of all companies assessed. In addition, the company must meet the following requirements:

• Cannot operate in the manufacturing of tobacco products, weapons, ammunition, or the mining of coal and lignite
• Cannot have any severe findings
• Cannot have one or more major findings in two or more performance areas
• Cannot have five major findings in any single performance area
• Cannot have 25 minor findings in any single performance area
• Cannot have two or more performance areas with at least five minor findings in each

“The rigorous EcoVadis assessment called for documented proof of processes, actions taken, and additional forms of backup to score Trinity Logistics’s commitment to environmental, social, and governance (ESG) principles,” said Kristin Deno, Director of Operation Risk at Trinity Logistics. “EcoVadis allows us to maintain a strict level of accountability to our Team Members, stakeholders, and the world at large. The scorecard shows where we sit currently, but more importantly, it provides an opportunity to highlight areas where we can continue and even expand efforts on our path to sustainability.”

Sustainability is something Trinity has always taken very seriously. Since 2008, Trinity Logistics has participated in the Environmental Protection Agency’s (EPA) Smartway Program to reduce greenhouse gas emissions and air pollution that is caused by freight transportation. Trinity has also been partners with the American Chemistry Council’s Responsible Care® since 2009, which involves staying committed to improving company performance through community awareness, security, distribution, and pollution prevention. Additionally, Trinity recently became a Carbonfree Partner® with Carbon Fund to become “carbon-neutral” by donating funds to offset emissions. 

“We are honored to be awarded a bronze medal and be ranked among the top 50 percent of companies in sustainability by EcoVadis,” said Sarah Ruffcorn, President of Trinity Logistics. “Doing the right thing has always been foundational to Trinity’s culture, and that includes our part in sustainability. We know it is a never-ending journey of continuous improvement and we look forward to making even more progress as we work towards next year’s assessment.”

About Trinity Logistics

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

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

We are currently recognized as a Top 3PL and Cold Storage Provider by Food Logistics, a Top Freight Brokerage Firm by Transport Topics, and a Green Supply Chain Partner of 2023 by Inbound Logistics.  

Motor carriers aren’t the only ones affected by deadheading.

While every mile driven takes a toll on the environment, research shows that deadhead miles account for over a third of carbon emissions in trucking. In fact, 36 percent of trucks travel empty in the U.S. every day, averaging roughly 61 billion miles deadheading every year.

Simply put, deadheading is an inefficiency problem within the logistics industry, one that we all know we need to improve. According to a survey by Convoy, 69 percent of respondents said reducing deadhead miles is important to them. By reducing deadhead miles, both shippers and carriers can slash their supply chain costs while also making an environmental impact.

WHAT IS DEADHEADING IN TRUCKING?

Deadheading, deadhead miles, or empty miles – they all mean the same thing – that a truck is driving empty. Usually, this happens once a driver has made a delivery to the receiver, and they don’t have freight to pick up until their next destination. This means they drive empty back to the original shipping point or to their next pickup location. Empty miles waste time for a carrier by failing to generate revenue. It also causes them to incur extra operating costs and contribute more emissions into our atmosphere.

Ideally, the most efficient use of a carrier’s time is finding a backhaul shipment. This is a nearby shipment that needs to be picked up and delivered close to or at their next destination, so either their pickup origin or next pickup.

HOW DEADHEADING POSES PROBLEMS

We’ve already discussed how deadheading contributes to C02 emissions and how carriers lose money running deadhead miles, but what about shippers? How are they affected?

Well, those carriers need to make up the money and time they lost deadheading somehow. They’re likely to charge a higher rate on their following shipments to do so.

Also, driving empty miles can be dangerous when severe weather occurs. A truck can weigh about half its weight empty than when it’s full, making it more susceptible to accidents. While truck drivers are trained in managing high winds and road safety, that’s often with a full truck and not an empty one. The same winds that shake a passenger car have been known to flip an empty truck.

WHY IS DEADHEADING SO COMMON?

It’s often difficult for a carrier to find their own backhauls, nor do shippers have the time to focus and invest their time in them. They need the truck to pick up and deliver and return to pick up the next shipment, not thinking of the in-between. Other carrier relationships and contracted shipments can get in the way, making it difficult to arrange or find backhauls.

HOW TO REDUCE DEADHEADING

It’s possible for shippers to keep backhauls for carriers in mind to both help keep carrier relationships moving and make headway on sustainability initiatives.

Make Use of Technology

Technology makes it much easier to match a truck with an available shipment. You can make use of digital freight matching (DFM) tools like Trucker Tools or DAT, which give shippers and carriers an easier way to find each other and match up based on suitable capacity for a shipment. Automation and machine learning in those applications help quickly find and create those matches.

A transportation management system (TMS) can also be helpful here. A TMS brings together information on all shipments and digital freight networks to help make sure trailers are utilized fully and backhauls gain the coverage they need. A TMS also gives you the opportunity to optimize your routes to reduce any deadheading.

Consider Consolidating Your Freight

Combining your partial shipments into a full truckload to one distribution point to then be delivered by a regional carrier or vice versa can allow for fewer empty miles and trucks on the road, saving you money and reducing your emissions.

Consider Continuous Move Planning

This plan involves stringing loads together to make the most of fleet utilization and driver time by bundling low-volume and high-volume lanes together. Carriers will add lanes across many customers, creating closed-loop routes to keep freight moving constantly. As a benefit, shippers often receive per-mile rates since they are making use of a carrier’s empty miles. This can be a bit more complex, but with a TMS and proper communication, can be an effective way to reduce deadheading.

TRINITY CAN HELP YOU REDUCE DEADHEAD MILES

Deadheading is an industry-wide problem that we all need to work on together to resolve. Carriers need to dedicate time for searching and finding backhauls, just as shippers need to work with carriers to reduce their empty miles. That’s one way an intermediary, a 3PL like Trinity Logistics, can step in and help. We can work with both parties to arrange shipments so that each company has its unique needs met.

We have over 40 years of experience arranging shipments between shippers and carriers. Our Team of experts can help shippers plan and organize their shipments and recommend freight consolidation strategies when it’s suitable. We also have a Carrier Development Team dedicated to growing our carrier relationships by learning their wants and needs. We reach out and gather their preferred lanes and capacity to better match them to available shipments to keep them moving and generating revenue.

Trinity Logistics is also recognized as a Green Supply Chain partner for its sustainability initiatives and solutions available to offer shippers more options for their logistics that can reduce their carbon emissions.

If you’d like to talk to one of our experts about your shipping needs and find more sustainable options, click the button below so we can get started.

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

Length of Haul Does Impact Acceptance Rate

If you’ve been following the overall U.S. volume and shipment rejection rates this year, aside from the typical blips seen around the holidays, these have been relatively stagnant. The overall rejection rate has hovered very near the three percent range.  

However, if you break that down by the length of haul, it’s clear that carriers clamor for those short-haul shipments, anything less than 250 miles, as this typically will allow the drivers to be home at night. On the other end of the spectrum, those mid-range shipments (250-450 miles) are seeing the highest rejection rate, just below four percent as seen in Figure 1.1.  

There could be several reasons for this. Most likely it’s the fact that a driver can make a trip of that length in one day, but it’s not a full day’s worth of driving. So, if the driver is getting a per-mile rate and not driving for the full 11 hours that are eligible, this length of haul “loses” money when compared to longer shipments that allow the driver to hammer down for the full allotment of driving hours.  

Now, I realize four versus two-point-five percent doesn’t seem like a big gap, but that is a 60 percent variance. If the freight volumes and capacity begin to balance, and rejection rates by length of haul follow the same trends, you could see mid-range rejection rates in the 15 percent range while shorter hauls only see rejection rates in the six percent range. Certainly that will have an influence on future rates.

SPOT AND CONTRACT GETTING CLOSER

As expected in Figure 1.2, the variance between contract and spot rates continues to shrink. Since the widest gap this year, when contract rates were about $0.78 per mile higher than spot rates, the gap has shrunk by almost 30 percent in a three-month period. 

For the most part, spot rates have found a floor, and if anything, have seen a modest uptick. Contract rates have seen frequent requests for re-pricing. Carriers continue to refine their contracted rates balanced with the expectation of almost 100 percent compliance with freight tenders and excellent service.  

In 2021 and 2022, shippers were open to expanding their carrier and broker pool as capacity constraints and increased volume necessitated more choices. Now that the balance has shifted, shippers are looking to right-size their partners, with a mix of compliance, price, and service steering their decision-making process.

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Stagnant Freight volumes Continue to Push Carrier Compliance

2023 continues to see freight volumes showing little fluctuation. With freight volumes dipping more than 30 percent lower than the industry experienced over the past year, and little attrition at this point with carrier capacity, shippers are seeing freight tenders gobbled up almost exclusively as soon as they are offered.  

While there was a slight increase during the July 4^th holiday week, primarily due to drivers taking extended time off the road, rejection rates have returned to their normal place of three percent on the van and reefer side (Figure 1.1).  Flatbeds continue to see rejection rates almost three times what vans and reefers are experiencing, but the trend has been slightly downward over the past two months.  

With no major signs of a rebound in volume, carriers will continue to strive for 100 percent compliance with freight tendered to them, and push for impeccable service to show why they need to continue to be a mainstay for shippers.

Start Preparing for a Balanced Market

There seems to be a tightening of the gap between contract and spot rates (Figure 2.1).  This was helped a bit by spot rates seeing an increase at the start of July, but contracted rates being rebid over the last three months have been the primary driver. 

In a normal market, the spread between contract and spot rates is around $0.15 – $.20 per mile. Currently, contract rates are $0.65 per higher per mile.  

As shippers expanded their carrier network in 2021 and 2022, look for a trimming over the next six months as shippers look to honor their volume commitments to contracted partners but provide themselves an opportunity to realize savings with capacity in the spot market.  

We do expect the supply and demand cycle to balance as we head into 2024, so shippers need to ensure they are not creating hurt feelings with carriers that find themselves on the outside looking in. Remember, this industry is a three-legged stool, and everyone benefits when things are in balance.

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There are some common misconceptions out there about less-than-truckload (LTL) shipping. If you fall victim to any of these LTL shipping myths, you could end up thinking this mode isn’t for your freight. Or worse, spending extra time or money that you could have saved with your LTL shipping.

Here are some of the most popular misunderstandings about LTL shipping and why they’re simply not true.

LTL SHIPPING IS DIFFICULT

Many companies actually find this mode of shipping to be the most flexible and easy to book. As long as you’re working with a quality LTL carrier or third-party logistics (3PL) provider, you’ll find that LTL shipping can be one of the easier modes of transportation to work with.

LTL SHIPPING RATES ARE NON-NEGOTIABLE

Some believe that there’s no room for negotiation when it comes to rates for this mode. In reality, you can negotiate your LTL shipping rates but you’ll need a solid relationship with your carrier to see any benefit. You can also negotiate outside of peak shipping season when companies are more likely to offer lower rates. When you choose to work with Trinity for your LTL, you can trust that our experts negotiate on your behalf to get you the best rate for your specific shipping needs.

ALL LTL ACCESSORIAL FEES ARE THE SAME

In reality, accessorial charges in LTL shipping can fluctuate between carriers by as much as 50 percent.

To determine the accessorial fees charged by a specific carrier, you can look at their rules tariff. This will give you a breakdown of all the accessorials they charge. Some of the most common accessorial charges include liftgates, residential delivery, hazardous material fees, and limited access charges.

One reason these charges vary between carriers is whether they calculate the fee based on cents-per-hundred-pounds or by a flat rate. They can also vary based on different pricing agreements or contracts already in place. 

“I’VE BEEN SHIPPING THE SAME FREIGHT FOR YEARS, AND MY CLASS HAS NEVER CHANGED, SO I DON’T HAVE TO WORRY ABOUT IT CHANGING IN THE FUTURE.”

It’s important to always double-check to confirm your freight class hasn’t changed. The National Motor Freight Classification (NMFC) board meets twice a year and revises the freight classes for dozens of different commodities, so there’s always a chance that your freight class could change without warning.

Even if you’ve never had issues with re-classifications in the past, LTL carriers remain strict about having accurate classifications on the bill-of-lading (BOL). Carriers often equip their drivers with tape measures and scanning devices to determine dimensions and double-check your freight’s class.

LTL SHIPPING TIMES ARE GUARANTEED

Unless specified as guaranteed, LTL shipping times are estimates. Due to LTL’s flexible service offerings, carriers cannot truly guarantee specific times.

This means both your pick-up and delivery times are never guaranteed (unless specified). Even with a specified guarantee, there can sometimes be a delay or missed window.

The good news is that you can receive tracking notifications from the carrier, so you know once they have picked up. The same goes for your delivery. You’ll receive an estimated delivery date but should be able to track and trace through your provider and receive any notifications if there’s a delay.

You can check with your LTL carrier or provider if they can offer guaranteed LTL shipping as an additional service – meaning there’s an extra charge for this. In this case, it’s imperative that you list the delivery time clearly on the BOL.

A guaranteed delivery time only takes effect once the shipment is picked up from the shipper’s address, and delays in pick-up will not be factored into that time. Transit time does not include the day of pickup or weekends and holidays. It’s also good to note that added requirements at the delivery location, like delivery appointments, can also void the guarantee. 

TEMPERATURE-CONTROLLED SHIPMENTS CAN’T GO WITH LTL SHIPPING

Many businesses assume that freight like produce or ice cream can’t ship via LTL because of their need for temperature control. LTL’s flexibility often gets overlooked. With refrigerated LTL, your temperature-controlled freight will be on the same truck as another customer’s freight that needs a similar temperature range. While there are a limited number of LTL providers that can offer this service, it isn’t true that you can’t use LTL for your temperature-controlled shipments. Refrigerated LTL can be a great way to ship any temperature-controlled goods without having to pay full truckload prices. 

WORKING WITH A 3PL FOR LTL SHIPPING ISN’T WORTH IT

This is the common misconception we come across when it comes to LTL shipping. Many companies don’t realize all the benefits that come with using a 3PL for their LTL.

Working with a 3PL like Trinity Logistics gives you the competitive edge of working with an expert in LTL who has a network of strong and trustworthy carrier relationships. What does this mean for you?

Getting LTL shipping quotes and booking shipments with quality LTL carriers is even easier. Especially through Trinity’s Customer Portal, with our LTL Quick Quote feature available. You’ll also have full transparency over your shipment’s transit.

And if your freight is temperature-controlled? No problem. We can help you with any refrigerated LTL shipments. 

Additionally, through our relationships with both large and small LTL carriers, we’re able to negotiate accessorial charges and LTL shipping fees to get you the best service at an ideal rate.

Keep in mind, too, that LTL shipping is about more than just rates. If you experience any service failures or frequent lapses in communication with your current LTL provider, switching to a best-in-class 3PL with top-notch People-Centric service such as ours can save you time and money, even if the rates are the same as before.

See how Trinity Logistics can offer you a better LTL shipping solution.

HVAC contractors and plumbers continue to face supply chain woes like material shortages and rising costs. 

Battling these issues is making it tougher for HVAC contractors and plumbers to meet their customer’s demands in the short term and perhaps even longer. Here’s what HVAC contractors and plumbers can do to rise above. 

WORK WITH MANY SUPPLIERS 

If current suppliers can’t meet your needs, then it’s a good time to explore other ones. Many suppliers are ready to strike up new relationships and may be willing to be more flexible with contracts. Shopping with multiple suppliers will not only gain you access to more resources but can offer you more varied pricing options to consider. 

CONSIDER ALTERNATIVE MATERIALS 

It might be worth checking into other materials as they may be easier to get your hands on. Considering other brands of materials or equipment can keep your projects from staying stagnant. 

COMMUNICATION IS KING 

In difficult times like these, communication can be something that gives your company a competitive edge. Not only is it a vital aspect of a successful business, but it helps build trust and long-lasting relationships. While no one likes delivering bad news about backorders or delays, keeping your customers informed will go far, as they’ll appreciate your honesty and transparency. 

IMPROVING CUSTOMER SERVICE 

While material shortages and delays are out of your hands, great customer service will keep your current customers and help you gain new ones. In addition, extra attention to customer service can help address any frustrations among your customers. While these challenges may not last forever, your reputation will, so make sure yours remains good, if not great. 

PRE-ORDER MATERIALS AND EQUIPMENT 

Many HVAC contractors and plumbers often only order the materials and equipment as needed. Instead, plan and stock up on the materials you most often use for your projects. This way, you’ll have what you need ready instead of waiting for materials to deliver. 

CONSIDER MODE DIVERSIFICATION 

Trying different modes of transportation could help you offset your increased costs. Keep an eye on transportation costs across the different modes available. Being more flexible with your freight shipping can give you some financial benefits. 

INVEST IN TECHNOLOGY 

Logistics technology, like a transportation management system (TMS), has tools available to help you stay on top of your supply chain and plan efficiently. One example is helping you with your routing decisions by matching your freight with the best carriers, lanes, rates, and transit service. It will also enable you to better track and manage any service disruptions or shipment delays in real-time, thus increasing your service levels and improving your customer relationships. 

THINK ABOUT ONSHORING 

Onshoring is a strategy that HVAC contractors and plumbers can use to mitigate supply chain woes and improve competitiveness. Onshoring strategy can ensure resilience in your supply chain and give your company a competitive edge. 

Onshoring refers to the overall practice of moving manufacturing operations from foreign soil back to the United States or outsourcing to domestic contract manufacturers rather than overseas. An example of onshoring would be having operations moved to Mexico versus China.

Onshoring allows your supply chain shorter travel times since materials and products are much closer than if they were overseas. This not only keeps your projects moving that much quicker but reduces your transportation costs. Additionally, you’ll also have the benefit of being greener due to less fuel being used. 

CONSIDER OUTSOURCING YOUR LOGISTICS 

According to the 2020 Annual Third-Party Logistics Study, 67 percent of shippers stating using a 3PL contributed to reducing their logistics cost, while 83 percent said it improved their service. By outsourcing to a 3PL, like Trinity Logistics, you won’t have to spend hours worrying about your logistics and get the help you may need to be more flexible with your shipping options. 

“In this market where it’s difficult to meet demand and project deadlines due to material and product shortages, it may not be the best option to send it via LTL as you may save a few dollars on the front end but pay for it with extended estimated transit times, and the possibility of the parts being damaged as they go from terminal to terminal throughout transit. Working with a 3PL, like Trinity Logistics, can bring you other possibilities on how to move your freight efficiently, such as dedicated full truck options, expedited (straight trucks/sprinter vans), partial, and hot shot options to keep your freight moving to arrive on time so you can achieve your project deadlines.”

– Michael Whitaker, Business Development Representative at Trinity Logistics 

If you’re looking for a reliable 3PL provider to help with your HVAC supply chain, consider Trinity Logistics. With Trinity, you gain a Team of experts to help optimize your supply chain, help arrange shipping using other modes, and end-to-end visibility through our available technology.

Freight is always on the move, every single day, seven days a week, 24/7. There are different types of ways to move freight, whether it’s shipping international, drayage, truckload, or intermodal, all have different paths to the same destination. But what about those last-minute shipments or freight that has a quick turnaround?

Throughout this article we will discuss:

• The basics
• The difference between this and standard shipping
• The importance and benefits of shipping freight expedited
• The different forms of expedited shipping
• How to partner with the right company

WHAT IS EXPEDITED SHIPPING?

Expedited shipping sounds just like what it is, a means to move freight as quickly as possible from point A to point B. This shipping mode is for those time-sensitive shipments you may have. 

It’s also an option when the freight is high-value or fragile, and you would like for it to go in a dedicated truck instead of using truckload or less-than-truckload (LTL) shipping. Or for when you might just need a sprinter van or straight truck for your freight.

Any freight requiring expedited is on a single truck and typically has one driver, but team drivers can be made available upon request. This helps reduce long transit times by having the drivers take turns to keep the truck moving without any stops.

Expedited shipping can be between one and twelve pallets and under 10,000 pounds. This shipping method can be over-the-road (OTR), less-than-truckload (LTL), or air international shipping. While this mode of transportation is often used for perishable goods, many also use it for dedicated or tradeshow freight. 

While expedited shipping is not as popular as some other modes of transportation, its use is on the rise, due to the “Amazon Effect”. Amazon, known for its fast delivery of products, has caused people to expect other packages and goods to be delivered at this rapid pace. With, consumer demand growing to expect goods shipped faster, expedited shipping has become more popular. 

EXPEDITED VS. STANDARD SHIPPING

How does expedited shipping differ from standard shipping? Let’s look at some of the differences between the two.

Cost

One of the biggest differences between standard and expedited shipping is the cost associated with it. Expedited shipping is higher in price because it has a strict deadline and moves at an above-average pace. 

Standard shipping transports at a slower pace, so often it’s less costly due to the less strict delivery deadline. However, it’s important to note that the cost for any shipment varies depending on the nuances of each shipment. 

Time Frame

Expedited shipping delivers anywhere from the same day to three days. Standard shipping time frames are going to vary greatly. They can be anywhere from a week to as high as a month, depending on the pick-up and delivery locations. 

Types of Shipments

Expedited shipments often include goods like tradeshow materials, perishable goods, new product launches, or just those last-minute shipment needs. Standard shipments transport goods of all kinds. 

Unlike expedited shipping, standard shipping can consist of multiple trucks, drivers, pick-up and delivery locations, and stops in between.

IMPORTANCE & BENEFITS OF EXPEDITED SHIPPING

Expedited shipping has many benefits outside of having your freight delivered faster. It allows you to meet tight deadlines, like if you run out of a product in a store and need to restock quickly, then expedited is the solution for you. 

While expedited may not be the most popular mode, it’s an important tool to have in case of emergencies with your freight. Also, with e-commerce demand consistently growing, expedited shipments are here to stay and become more commonplace.

YOUR EXPEDITED SHIPPING OPTIONS

Expedited shipping can take many different forms. Below are some examples:

Dedicated LTL Shipments

These are your normal LTL shipments; however, no other freight is on the truck besides yours. Thus, it eliminates the need to drop off other shipments along the way to the destination.

Airport Recoveries

When freight arrives from shipping in the air, airport recoveries mean the freight is being picked up directly from the airport where the freight has landed. 

Liftgate assistance

This machinery loads and offloads the freight on a truck, usually when the shipper or receiver doesn’t have a dock, when delivering to a storefront location, or when a truck is broken down and need to transload the freight to another truck. 

Next day option

This option is when goods are ordered, and they are available for delivery immediately and will arrive at the destination the following day. 

Tradeshow freight

Any items, booths, collateral, promotional items, and televisions for tradeshow events.

STRATEGICALLY PARTNER WITH A 3PL

It can be difficult to navigate supply chains. Every company has unique needs and looks for custom-tailored logistics solutions to meet them. Your solution could be as simple as partnering with a trusted third-party logistics company (3PL) to handle all your shipments for you.

A 3PL can offer you real-time visibility and updates on your shipments and can adapt quickly to delays and disruptions that may occur. 3PLs understand the nuances of each shipment and the urgency for on-time delivery while having the tools, experience, and expertise to provide you with the best logistics solutions. 

IS TRINITY LOGISTICS THE RIGHT PARTNER FOR YOU?

At Trinity Logistics, we handle all types of shipments and have years of experience handling expedited shipments. With our network of relationship carriers, we ensure your freight is taken care of from receiving to destination.

Our Team of Experts is here 24/7, day or night to help you. We also provide you with the Customer Portal where you can track and trace your freight any time of day, see its status, and its estimated time of arrival. 

If Trinity sounds like the 3PL for you, click below to connect with our Team of Experts by requesting a free, no-obligated freight quote.  

Or, if you’d like to learn more about our expedited shipping solutions, click here.

SEAFORD, DE, June 16, 2023 – Trinity Logistics, a leading 3PL provider of transportation and logistics solutions, is proud to share its selection as a Green Supply Chain Partner of 2023 by Inbound Logistics. This recognition showcases Trinity’s commitment to sustainability and its efforts to reduce its environmental impact. 

“We’re honored to be recognized by Inbound Logistics for our commitment to sustainability,” said Sarah Ruffcorn, President of Trinity Logistics. “We believe that improving our sustainability is the right thing to do, so we’re always looking for ways to reduce our environmental impact in all aspects of our business.”

Each year, Inbound Logistics editors select 75 companies that go above and beyond to prioritize green initiatives and help global supply chains become more sustainable. Inbound Logistics recognizes these companies as dedicated to developing and implementing best practices to leave a positive footprint on the world. 

Trinity has a long history of sustainability initiatives. In 2008, the company became a member of EPA’s SmartWay Transport Partnership, a voluntary program that helps companies reduce their greenhouse gas emissions and air pollution from freight transportation. Trinity has also been a member of the American Chemistry Council’s Responsible CareⓇ program since 2009. Responsible CareⓇ is a global initiative that promotes the responsible management of chemicals and their safe use. The program also helps companies improve their environmental performance in areas such as pollution prevention, employee health and safety, and security. 

Just last year, Trinity became a CarbonfreeⓇ Partner with CarbonFund, a non-profit that works with its partners to help them become “carbon-neutral” by donating funds to offset their emissions. This year, Trinity expanded its efforts to not only offset the corporate location in Delaware but included the Iowa and Florida offices as well. This year, the company offset 90 tonnes of carbon emissions by donating to the N20 Abatement Project. 

Trinity is proud to be named a leader in the green supply chain space and remains committed to making a positive impact on the environment in all ways possible. 

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

Why are Contract Rates Elevated in Comparison to Spot Rates?

If freight volumes are, by some accounts, 30 percent less than what we experienced in the over-heated freight market of ’21 and most of ’22; and rejection rates are almost nil, why is the gap between contract and spot rates so wide, currently at $0.62 per mile as seen in Figure 1.1?  

Typically, the gap between spot and contract in a “normal” freight market hovers around $0.15 per mile. During 2021 and most of 2022, spot rates were higher than contract rates for an extended period. For the majority of 2023, spot rates have fallen short of their contract rate counterparts. 

As rates were high, especially on the spot side the last few years, capacity, particularly single-truck or small fleet operations, flooded the market. When challenging consumer conditions presented themselves towards the end of 2022, that meant less freight was traveling on America’s roads. So, you had a situation where less freight was in the contract space, which meant contract carriers were less likely to say “no” to freight tenders. This meant less freight flowed downstream to the spot market. When it did hit the spot market, there was a glut of carriers just waiting to bid for it, oftentimes doing so at break-even or very skinny profit margins just to keep the wheels turning.  

We have seen in recent days the gap narrow. Part of that is due to continued pressure on contracted rates and another part of that is due to recent holiday and safety events that have stymied spot capacity. The gap will continue to narrow, mainly due to contract rates continuing to recede as spot rates, while maybe not at their floor, have very little room to move downward before they put carriers in a negative profit situation.

HO, HUM

On the topic of volumes and rejection rates, not much has changed since we last visited our trusty SONAR charts (Figure 2.1). 

There was a brief blip in volume around the Memorial Day holiday, but that was short-lived, and volumes are returning to the levels we have become accustomed to over the past several months. Additionally, rejection of freight briefly pushed past the three percent mark but has since fallen back into the mid-two percent range.  

Produce season will certainly give a boost to volumes, and drive rejections a tad higher. As well, depending on the situation with labor disputes at the west coast ports, that could potentially cause a brief halt to movement out of the west coast ports. When the labor disputes are resolved, it will give a burst to freight coming out of the ports of Los Angeles and Long Beach especially. But for now, things are a bit ho-hum.

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READY FOR A REBOUND?

Given the sluggish flow of freight in 2023, seeing any signs of life is encouraging. The industry muddled through the first four months of the year with the volume index registering very little movement as seen in Figure 1.1. 

Heading into late April, and the early part of May, seeing upward movement was a welcome sight to carriers and intermediaries. Mid-spring typically brings a bounce from produce and seasonal freight, and this year we are seeing that lift, albeit not at an aggressive pace. Still, even with the slight upturn, freight opportunities continue to be gobbled up by carriers, particularly on the contract side. Historic low rejection rates of under three percent not only mean less freight heading to the spot market, but shippers continue to have the pendulum in their favor with regard to rates.

FLATBED SEES BALANCE

Speaking of tender rejection rates, the low rejection rate is not being felt across all types of equipment as we see in Figure 2.1.  

Vans and reefers are pretty much accepting anything that comes their way. These are two equipment types that saw increases in their number from mid-2020 through 2022, primarily in response to the overwhelming consumer goods demand which typically travels in these types of trailers. Now that demand for these items has cooled, vans and reefers find themselves in a situation where demand is still there, just nowhere near what it was the past few years.  

Flatbeds, on the other hand, did not experience the same demand. In the over-heated freight market, we experienced in the last few years, flatbeds felt the most normal with regard to freight patterns and demand. While they did not get the direct benefit of shippers clamoring for their services, flatbed carriers have also not experienced the same falling out. As a result, they enjoy a balanced market with rejection rates hovering in the mid-teens. This could be short-lived as downward trends in manufacturing and industrial production, combined with a cooling housing market, will lessen the demand for flatbed services.

the gap remains

Carrier rates continue to normalize.  

As seen in Figure 3.1, the spot rate on the van side seems to have found a bottom. Contract rates have contracted slightly, but the spread between carrier-published rates and those available with spot rate pricing continues to push past $0.70 per mile. An uptick in spot rates may relieve some of the pressure from shippers on the contracted side for carriers.  Ideally, a spread of $0.15-$0.20 would be more balanced.  

Could this modest uptick in volume shrink the rate gap even more?  Stay tuned to June’s update to find out.

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