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

Not Interested in Reading? Check Out Our Video Instead!

2023 Crystal Ball

It’s usually this time of year when predictions for the upcoming year start to make headlines. It’s safe to say that most folks could make some predictions based on what has transpired recently, so I wanted to highlight a few of those as we kick off the new year.

The gap between spot and contract rates will stabilize.  

Now, this does not mean that they will be equal – that rarely happens. Just about a month ago, the spread was quickly approaching $1.00 per mile between contract and spot rates (with contract being higher). That gap is slowly starting to shrink (Figure 1.1). Some of that is due to spot rates seeing a holiday bump, and part of that is related to new contract rates taking hold. With many carriers taking an extended break from the road since mid-December, less capacity has pushed spot rates higher. This upward trend will be short-lived and expect rates below $2.00 per mile to become the norm as we chug through winter and into early spring. Contract rates will also trend downward, finding a floor most likely in the middle part of the year.

Few sectors will see bright spots in 2023.  

I don’t think anyone thought the economy could continue to chug along at its rapid pace seen in the latter half of 2020 and through most of 2021.  Even though 2022’s growth was not as robust as the prior year, the U.S. Gross Domestic Product (GDP) should seek out a modest two percent growth rate. However, where that growth occurred sets the stage for this year.  

2022 saw a return of spending on services versus goods. So, while things like healthcare are important to the overall economy, from a freight standpoint, service spending has much less impact on transportation. Expect auto sales, both new and used, to continue their strong run. As parts and inventory issues continue to be resolved, vehicles with temporary tags will be more commonplace as Americans continue to purchase cars and trucks.  

On the opposite end, most notably, the housing market will have a rough 2023. With Americans seeing inflation compete for more of their take-home dollars, and the cost of borrowing increasing, many will choose to remain in their current situation. And it’s not just the building materials that will see less of a demand. With fewer new homes comes less demand for things that go in those homes – like appliances, carpets, and furniture.

Following the building industry, manufacturing will be the next downstream effect, and banking will also see less demand for consumer and business loans. Overall, expect 2023 to see, at best, no year-over-year (YoY) growth in GDP, with 2024 being a rebound year (Figure 2.1)

Import activity will continue to slow. 

As we saw in last month’s update, Figure 3.1 shows the impact of the ship backlog being resolved and container movement starting to slow. That will be a common theme this year. While 2022 saw year-over-year import activity down almost 20 percent, that downward YoY story will continue in 2023. This will have an immediate impact on intermodal activity, but also over-the-road and less-than-truckload volumes will feel the impact.

One thing to keep in mind as we see recent actual and forecasted numbers showing negative, that is against a backdrop of a very successful 2021 and modest growth year in 2022. So while 2023 will not continue that positive trend, by comparison to a recent down year like 2019, 2023 will be up from an overall volume standpoint versus just a few years ago.

Stay Up To dAte

Looking for a more frequent update? Subscribe to our newsletter and receive Weekly News Updates every Friday by selecting “Weekly News Update” when you select your preferences.

Every day, all day, your life as a Freight Agent is a steady stream of fires that need to be extinguished. From negotiations to late deliveries, and the phone ringing off the hook, keeping your head above water is the only thing that you dream about at the end of each day.

Remember those dreams of growing your Freight Agent business into a large income-producing machine? You knew that one day you wanted to take your business to the next level, but now the idea of taking time away just to pick up lunch is a pipedream – let alone planning a full-scale growth strategy.

So, how do you do it? How does a Freight Agent know when it’s time to take the leap into growing his or her business? How do you know what to do next? Keep reading to find out the first steps in recognizing the time for growth and moving your numbers in the right direction….Up!

How TO RECOGNIZE WHEN IT’S TIME TO GROW YOUR FREIGHT AGENT BUSINESS

Know Where You Are

The first step to reaching your growth goals, or even deciding what those goals are, is first knowing where you are now. This step always seems like a no-brainer. Sure, you know how much the deposit into your bank account is every week, but do you really know how it got there and how much you possibly left on the table at the end of the week?

This is where you have to take some time and learn your numbers inside and out. How many shipments do you move in a week? What is your average margin per shipment? What is your net revenue? How many customers do you arrange shipping for every week? Then, how do these numbers compare to this time last month? Last quarter? Last year? Have you grown since last year? Are you moving more shipments, but your deposits are the same? These questions will help you decide what your next step is in planning your growth strategy as a Freight Agent.

Know How Much it Costs You to Run Your Freight Agent Business

Don’t forget that time equals money! Do you have fees associated with the company you broker through? How much goes into your pocket compared to how much goes to the company? What does it cost to use their operating system, load boards, or ancillary services?

So, now that you know where you stand, are you ready to take the leap? Growth can be a scary thing, so here are two areas to help determine how to jumpstart your growth:

JUMPSTARTING YOUR FREIGHT AGENT BUSINESS GROWTH

Determine the Need for Additional Help

Are you a one-person operation moving 100 shipments per month? Think about the time it takes you to cover one shipment, track it, handle any issues that arise, and keep your customer informed throughout the entire process. Now multiply that by the number of shipments you have waiting to be booked, or in transit, each day. Maybe, it’s time to bring in some help!

You will never be able to bring on new business and keep the service level you need to maintain with your current customers when you are managing 15-20 loads per day all on your own. This seems to be a “sweet spot” for many freight agents. You know, that “magic number” to let you know that it’s time to bring in the help!

Start looking for someone who shares the same values and work ethic that helped your business get where it is today. Then, have them slowly start taking on some of the day-to-day duties that keep your head submerged underwater so that you can do what you do best – build those customer relationships!

Analyze Your House

No, not your real house…your work house. What is the company you broker with costing you at the end of the day? What do they offer to help you grow? Here are some questions to start asking yourself to make sure that you are partnered with the right company:

Devoted Freight Agent Support Team

Are you just a number when you call and have to leave a message? Do you talk with an actual person who knows your business and cares about your success?

Reputable Corporate Presence

Does the corporate headquarters have executives that know the value of Independent Freight Agents? Do you have teams at the corporate level who are billing your customers and paying your carriers that understand the value of your customer? Does the corporate office consistently communicate its vision and company goals with its Independent Freight Agents?

Fees

Is it costing you to broker with your current company? Are you charged fees? Upfront costs? Do you understand any adjustments to your commission payments and are they justified?

Continuing Education

Does your current company offer consistent education opportunities to help you stay on top of the market? How about classes to help refresh your sales skills? Does your Agent Support team continually offer coaching opportunities to find areas of your business that have growth potential?

Taking a step back to analyze all of this information will help you realize when it’s time to take your business to the next level. Make sure that you know your numbers, that you are looking for the right person to help you, and that the company you are working with is dedicated to helping you grow. Taking the leap into growth can be scary, but the rewards are abundant. Go ahead, take that first step!

TAKE YOUR FREIGHT AGENT BUSINESS TO THE NEXT LEVEL

Trinity Logistics has over 30 years of experience aiding in the success of our freight agent businesses, with many of our newer businesses seeing a 50 percent increase over a two-year period from joining. Consider joining our Authorized Agent Network today so you can gain more time to focus on your customers, and generate more revenue. We’ll focus on everything else. 

To learn more about our Authorized Agent program and all the ways we can save you time and help you build a successful Freight Agent business, feel free to contact our Agent Team by phone at 800-846-3400 x 1908 or click the button below! 

The chemical industry faces challenges such as volatile raw material prices, shortages, supply chain disruption, and more.

The chemicals industry is one of the most important sectors, with 96 percent of all manufactured goods depending on them. With many moving parts and various stakeholders involved in the chemical supply chain, there are several challenges this industry faces. Here are some of the biggest challenges affecting the chemical industry.

CHEMICAL INDUSTRY CHALLENGES

• Managing Raw Materials
• Transportation Disruptions
• Regulations
• Large Amounts of Data
• Complex Supply Chains
• Lack of Visibility
• Climate Change Pressure

MANAGING RAW MATERIALS

The chemical industry, specifically chemical manufacturing, relies heavily on raw materials. Raw material prices, such as those for crude oil, are volatile and can fluctuate at any given time. This can make it difficult to forecast costs and budget and, keep prices competitive.

Keeping an adequate supply of these materials can be an additional challenge. Having too much inventory can potentially lead to chemical waste or spoilage while too little can make it difficult to meet customer demand.

TRANSPORTATION DISRUPTIONS

Chemical industry supply chains can be long and complex. They have many moving parts, making the transportation of chemical products a challenge. If you add in transportation disruptions, it makes it even more problematic.

While transportation disruptions usually occur at some point, in recent years, there’s been a lot of supply chain disruption caused by the onset of Covid-19.

According to a survey by the American Chemistry Council, 97 percent of companies reported having to change to their operations due to supply chain issues in recent years. Because of this, the chemical industry must stay on the tip of its toes and be able to adapt quickly whenever disruption may happen.

Also, global supply chains see the most impact from transportation disruptions. The chemical industry has more global supply chains than other industries, making this challenge more difficult.

REGULATIONS

Chemical products are often specialized and need specific storage and handling. In addition, they face strict regulations on the transport of their products, especially hazardous materials. These regulations are necessary to have in place to protect the environment and people.

In recent years, several high-profile incidents have involved the release of hazardous chemicals into the environment. This has caused governments to introduce more strict regulations. As a result, this has increased the costs for chemical companies to operate. It’s been estimated that chemical companies will have to spend more than $300 billion over the next few years to meet regulations.

The chemical industry must be more vigilant than ever to remain compliant. These increased regulations put more pressure on chemical companies already trying to meet global standards.

The chemical industry has to work with many different regulations and agencies, such as;

• Environmental Protection Agency (EPA),
• Food and Drug Administration (FDA),
• Good Manufacturing Practices (GMP),
• Occupational Safety and Health Administration (OSHA),
• and Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH).

LARGE AMOUNTS OF DATA

The chemical industry handles a lot of data. All manufacturing and operational data must be recorded, categorized, and processed. It’s estimated that chemical companies handle up to;

• 50,000 data points per raw material,
• 100 samples per test,
• 10,000 pieces of equipment per plant,
• 150 data points per customer!

This massive amount of data can be a challenge, especially with supply chain management.

COMPLEX SUPPLY CHAINS

The chemical industry is a complex one. It can include various kinds of chemical processes with products in all forms, from raw to intermediate, to finished goods. There are also many stakeholders involved, from chemical manufacturers to distributors.

Additionally, chemical products are often required to have very specific characteristics with little to no room for variations. Chemical companies also handle more complex items, like hazmat or temperature-controlled. Chemical supply chains are often worldwide, making them much more complex than other industries.

LACK OF VISIBILITY

Due to its complexity, lack of visibility can be a challenge for chemical supply chains. It can be difficult for chemical suppliers to know their inventory levels or how products are being used. Therefore, it’s important for chemical companies to have an accurate picture of their inventory and supply chain. Improved visibility can provide insight into opportunities to reduce costs without sacrificing quality.

CLIMATE CHANGE

The chemical industry is one of the top contributors to global carbon emissions. As the world becomes more concerned about climate change and sustainability, there’s more pressure added onto chemical companies that already face strict regulations.

There’s also a growing demand from consumers for more green and ethical products. For example, many companies are having to find alternative solutions for plastic or use recycled materials.

To keep up with the ever-changing market and demand, chemical companies need to change their processes. They must find ways to create less waste and more products that help reduce their environmental impact.

Also, as the planet warms, more severe weather is taking place. This is causing more disruptions to chemical industry processes. Whether causing a halt in transportation or a shortage of oil, climate change presents several challenges for the chemical industry.

OVERCOMING CHEMICAL INDUSTRY CHALLENGES

The chemical industry can be a tough market to compete in. To overcome these challenges, chemical companies need to remain resilient and competitive. As the world and market continue to change, they need to be able to adapt.

Finding like-minded, expert partners with applicable technology is ideal to overcome these challenges. A third-party logistics (3PL) company, like Trinity Logistics, is one such resource.

Trinity Logistics has been in business for over 40 years and has worked with chemical companies of all sizes. Trinity is a trusted partner to help chemical companies better navigate their complex supply chains. We’re well-versed in the chemical industry and can help find a quality carrier for your shipment or offer improved visibility through our customized technology solutions.

When choosing to work with Trinity, our Team Member experts keep you up to date on industry news, upcoming regulation changes, or any other relevant information your business needs to stay successful.

Additionally, we’re a Responsible Care certified partner, meaning we’re committed to providing you with the best service for your logistics and transportation management while staying committed to sustainability practices.

At Trinity Logistics, we’re not your typical 3PL. We’re invested in your business and are here to help your business succeed. If you’re looking for a like-minded logistics partner to help you overcome some of your industry’s challenges, we’re here and ready to help.

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

As we near the end of 2022 and the start of 2023, let’s look at three things in relation to the freight market: freight volumes, the rates, and what’s happening in the maritime segment. 

SLOWING FREIGHT VOLUMES

In Figure 1.1, you can see the contracted outbound tender volume index over the past four years. The yellow line on the top represents 2021, the blue line represents 2022. 

Since about the end of the first quarter of this year, we started seeing those volumes pacing around the same way as last year, but then all of the sudden they started to take a nosedive. Contract volumes are down around 15 percent below 2021 levels. What that means is we’re seeing less volume trickling to the spot market and this trend will certainly continue as we go into 2023.

FALLING RATES

Speaking of rates, in figure 2.1, you’ll see the top green line represents the average van rate for contracted freight. The blue line is vans for the spot market. 

As you can see, just like with freight volumes, they were running neck and neck until about March, and then there was a discrepancy. We’re seeing this on the rates side as well. Typically, the difference between contracted and spot rates is maybe 10 or 15 cents per mile. The fact that right now it’s about 70 to 80 cents a mile, we’ve never seen it at that high of a discrepancy.  We do feel that as we get into the bidding season, new contracted rates will start to kick in, so we do anticipate that the green line will trend down.  I’m not sure how much the blue line, the spot line, can continue to go, as it’s currently sitting at just below $2.00/mile. We may soon reach a point where carriers are not profitable on spot rates. 

FINDING MARITIME BALANCE

On the maritime side of things, in figure 3.1, the green line shows the number of actual containers that are clearing customs. They are coming off the ships, being unloaded, and clearing customs to be distributed via warehouses, intermodal, truckload, and what have you. The blue line shows the number of actual import bookings that have happened. 

You may say to yourself, that doesn’t make sense. If somebody is booking freight and that number is going down, how come we are still clearing these containers? Remember, throughout much of 2021 and even 2020, there was a backlog of ships, particularly on the West Coast, waiting to get unloaded. So, while the flow of ships is not coming into the ports as greatly as it was, it just kind of shows you how big of a backlog there was, that it’s taken six months and we’re still not through this backlog of ships, both on the West and East Coast.

Overall import volume is down 20 percent year over year. Yet, East Coast and Gulf ports are up as shippers moved their freight to the East Coast when the West Coast was originally facing backlog delays. 

KEY TAKEAWAYS

Low, single-digit rejection rates on contracted freight mean less is hitting the spot market, by some accounts 30 percent less than last year. 

Carriers need, and we need carriers, to remain solvent. Be diligent in negotiations with carriers but understand that we are very close to the floor for when a carrier becomes unprofitable.

Less freight is coming through the ports. Short-term will trigger an over-supply situation, particularly on ports with declining YoY volumes like Los Angeles and Long Beach. Other ports like Savannah, Houston, New York, and New Jersey will see more capacity balance.

Stay Up To dAte

Looking for a more frequent update? Subscribe to our newsletter and receive Weekly News Updates every Friday by selecting “Weekly News Update” when you select your preferences.

The following is an opinion article on AI in supply chains, written by Russ Felker, Chief of Technology (CTO) of Trinity Logistics.

Artificial intelligence (AI) continues to grow its presence in our everyday lives, businesses, and now, supply chains. In a recent MHI Annual Industry Report, 17 percent of respondents said they use AI, with another 45 percent stating they will begin using it in the next five years. And of more than 1,000 supply chain professionals surveyed, 25 percent stated they plan to invest in AI within the next three years. While AI in supply chains has its benefits, it continues to be overhyped as a replacement for human cognitive abilities.

AI in Supply Chains: We Need to Change Our Focus

The technologies leveraged by today’s AI offerings fall flat when applied to the complex day-to-day of supply chain interactions. We need to stop chasing the inflated promises of artificial intelligence and start focusing on the very powerful pattern recognition and pattern-application technologies marketed today as AI to support our teams more effectively. Instead of focusing on AI, we need to reorient on CAI (computer-aided intelligence).

Now, this might seem like a semantic argument, and to a certain extent it is, but the difference between artificial intelligence (AI) and computer-aided intelligence (CAI) is distinct. You might ask, “What does it matter if the technologies are being put in place and create efficiencies?”  “So what if it’s called AI?”  I would say it makes all the difference in the world.

What AI in Supply Chains Currently Does Well

First off, let’s talk about the technologies backing the products that include AI.  As with many technology implementations, they are, by and large, applying rulesets to data. Being able to quickly process a defined pattern against a large data set is both no mean feat and hugely beneficial in a supply-chain setting. In the end, however, these implementations are no different than a rules engine – albeit one with a high degree of complication. For example, take an area of the supply chain that has had this form of technology applied to it, quite successfully, for many years – route optimization.  

Optimizing a single route is relatively simple but optimizing the routes of multiple vehicles in conjunction with related schedules of item delivery commitments and layering in things like round-trip requirements and least amount of non-productive miles (miles driven without a load) and the level of complexity moves well beyond what an individual could do in a reasonable period of time.  What can take on this type of task is a processing engine designed to apply complex patterns within a given boundary set – and that’s what current implementations of AI can do. And they do it well.

Why AI Can’t Replace Humans

The first problem comes in when we examine the stated goal of AI – the ability for a machine to work intelligently. The difference between hype and reality is in how we interpret a keyword – intelligence. Even the most recent and hyped AI systems continue to fail at the same core intelligence functions such as understanding nuanced context and broader application of existing patterns.  

Take Gato from DeepMind, a division of Alphabet, as an example. While it can examine an image and draw basic conclusions, the context and understanding are both entirely missing from its analysis. Tesla provides another example where a driver had to intervene as autopilot couldn’t recognize a worker holding a stop sign as something it should avoid. These limitations minimize the tasks for which AI technologies can, and should, be leveraged.  

The second problem is related to the first. The acceptance of “AI” from teams has been wrought with, at a minimum, intense change management and, in the worst case, rebellion. If you are bringing in AI to a team, why wouldn’t they draw the conclusion that your goal is to replace them? To start down the path of both realistic expectations from senior management and more widespread adoption of technology, we must change the approach we take with stakeholders impacted by implementations of AI. We need to talk about CAI.

It’s Time to Set the Stage for CAI

Just the acronym alone talks to a much more practical and achievable marriage between a person and a computer. It’s not the computer that’s intelligent; it’s the person using the computer. What a computer can be taught to do, is to effectively deliver relevant information to a person at the time they need it based on their job function and recognized point in the process. So instead of using a technology such as a recommendation engine to pick a product you might like or a movie you’re likely to want to watch, let’s turn our focus to delivering salient business information to our people. We can effectively use analytics and machine learning to create data recommendations and deliver those recommendations directly to users in their primary applications at the right time in their process, so they don’t have to go find data in multiple reports or sites. Once a pattern is recognized, by people, and the data is organized correctly, again, by people, we can use things like machine learning and analytics to deliver that result set effectively and consistently.  

What this approach achieves is reduced interaction by a person and the machine reclaiming time for people to connect with customers outside of transactional conversations. By providing relevant data in-process, you make your team more efficient in their use of the system and create more opportunities for person-to-person interactions and relationships. The goal of any system implementation should be to reduce the time needed for a person to interact with it to achieve the desired result. This is different from having the perspective of the machine doing what a person does – which can be a misguided goal of AI. Instead, the system needs to be built to strategically leverage AI in areas that support the reduction of repetitive, rote work, enabling teams to focus on higher-value work.

A 3PL Focused on People

As a 3PL, a large part of our work tends to gravitate toward the identification and management of exceptions, but many times that is reactionary. We can leverage the technologies present today to enhance exception identification and management. Via AI-enabled supply-chain systems, information can be more present for teams to apply their intelligence, experience, and skill to solving issues optimally. The ability to recognize early in the life of a load the potential of a delayed delivery enables teams to make proactive adjustments with the receiving facility and the recipient. We can gather documents automatically and provide the information in a consumable fashion reducing the amount of manual effort to extract relevance from the documents.

As a 3PL we rely on two primary skills – intelligent use of data and building and maintaining relationships. Neither a computer nor an algorithm can do either of those alone, but a person backed by a Computer-Aided Intelligence system can. Creating systems that focus on CAI is what allows Trinity’s true source of intelligence, our team, to shine and deliver consistently phenomenal results for our customer partners. Now, you might be the exception and prefer to converse with a chatbot, but I’m guessing if you read this far, you’d rather talk to a person – which is what you get when you call Trinity – a person, backed by computer-aided intelligence systems, who is ready to do the work to create a relationship with you and deliver phenomenal results.

Flatbed shipping is an essential part of the logistics industry.

Flatbed trailers are incredibly versatile and offer many benefits to shippers. Not to mention, flatbed shipping has been on the rise in recent years. In this blog, we’ll divulge to you our comprehensive knowledge of flatbed shipping so you can master this transportation mode. 

Want your flatbed shipping to seem effortless? Join our inner circle of customers that make their flatbed shipments easy by getting a quote with Trinity Logistics.

WHAT IS A FLATBED TRAILER? FLATBED SHIPPING?

Flatbed Shipping

Flatbed shipping is often the transportation choice for cargo that doesn’t need the enclosure of a dry van. It’s ideal for cargo that cannot be loaded or unloaded from a dock as the shipper or receiver can load or unload from a variety of ways. The design of a flatbed trailer allows for cranes and forklifts to unload and load goods from a loading dock, from the side with a forklift or crane, or from above with an overhead, gantry, or crawler crane. This makes a flatbed trailer versatile and critical for numerous loading and unloading scenarios including at job sites, warehouses, and distribution centers. 

Flatbed Trailer

A flatbed trailer is the most common type of open-deck trailer used in commercial, over-the-road, long-haul, and specialized trucking such as oversized or over-dimensional shipments. A flatbed trailer is a 48ft or 53ft trailer, that can accommodate loads up to 48,000lbs. They typically have two axles, air-ride suspension, and kingpin for a standard 5th wheel hook up. 

Flatbed Freight

Flatbed freight tends to be more industrial than truckload dry van freight. There is a wide variety of flatbed freight in the marketplace. Some higher volume products like lumber or building supplies will generally pay less than more industrial items that support our country’s energy and core infrastructure needs, like construction equipment, generators, fabricated steel, and other project or job site-related freight.

WHAT CAN BE HAULED ON A FLATBED TRAILER?

The most common freight shipping uses for flatbed trailers are:

o Formed concrete items

o Lumber

o Construction materials

o Steel beams

o Scaffolding

o Trusses

o Electrical transformers

o Oil, gas, and petrochemical equipment

o Solar panels or wind turbines

o Commercial heating and air conditioning units

o Landscaping materials

o Large quantities of wrapped and stackable products

WHAT INDUSTRIES USE FLATBED TRAILERS?

Because flatbed trailers have no enclosure, the freight they carry can be versatile and their use extends across several industries, such as;

o Housing

o Construction

o Renewable energy

o Agricultural

o Warehousing

o Manufacturing

o Mining and drilling

o Military

o Automotive

o Landscaping

WHAT ARE THE BENEFITS OF A FLATBED TRAILER?

There are several benefits to using a flatbed trailer for your freight. With a flatbed trailer, there is dimensional flexibility for loading or unloading freight since there are no physical walls or a ceiling to restrict its use. Any cargo that is oddly sized or irregular-shaped can be easily moved with a flatbed trailer. 

WHAT ARE THE DISADVANTAGES OF USING A FLATBED TRAILER?

When selecting the type of trailer your freight needs, you should know the disadvantages of each. Compared to traditional hauls, all flatbeds take considerable skill, effort, and time.

Since there are no physical walls to restrain freight, cargo securement and balance are two significant concerns with flatbeds. The FMCSA has a lengthy section in rules specifically for securement, as insecure cargo is a serious safety hazard.

Proper securement is needed for your freight too because if not done correctly, your freight can get damaged from the securement itself. Also, shipments often shift some during transportation, so even weight distribution and securement are necessary.

Another disadvantage to flatbed trailers is that there are no physical walls. It’s a positive for loading and unloading. Still, it can also be a negative as no enclosure means dealing with the elements (wind, rain, snow, sun, animal or human interference, truck smoke/smog, dust, and road debris). To combat this, there is the option of tarping your freight or using a Conestoga trailer.

There are even more significant risks and responsibilities with any oversized freight as these shipments have even more strict regulations to follow.

FLATBED SHIPPING TIPS

Know your cargo

Be sure to know all the details of your shipment. This includes commodities, value, dimensions, and weight. This information will help logistics providers know how to properly secure your cargo ahead of time. 

Understand what trailer you’ll need

Familiarize yourself with the different types of flatbed trailers before booking a shipment so you can make the most cost-effective and safe choice. Each type of flatbed trailer has certain limitations. For example, a specific flatbed trailer like extended trailers and Conestogas can be harder to find so your provider may need advanced notice when they are required.

Be aware of accessorial charges

Flatbed shipping may involve moving specialized loads which can need special equipment or extra services. Make sure you have the proper equipment and services needed for your freight to avoid extra charges, freight damage, or delays.

Choose to work with an expert

Arranging flatbed shipments on your own can be time-consuming and expensive, making sure all regulations are met and your cargo travels safely. Consider working with an expert in flatbed shipping to help secure capacity and locate the right equipment for your freight.

FLATBED RATES AND SEASONALITY

Freight shipping demand, which includes flatbed demand, is something that is often based seasonally. No matter the market, shipping rates fluctuate throughout the year and rise as the demand for freight rises.

Flatbed shipping is very closely connected to construction and industrial production, which can be highly dependent on the weather. These industries often slow down in the winter months, so normally, the demand for flatbed shipping will soften at the end of the year.

Smaller to medium-sized companies often slow down during winter and resume activity when warmer weather returns. However, larger companies are affected less by the seasonality and continue to move their commodities regardless of the time of the year.

Because of the seasonal rise and fall, you’ll find volume and rates lowest in the late fall/early winter, with the peak flatbed season being from April to October. This is when the volume of flatbed loads is highest, as are the rates.

FLATBED SHIPPING WITH TRINITY LOGISTICS

Did you know Trinity Logistics is an industry leader in brokering flatbed freight to small and midsize carriers throughout North America?

Our vast network of Independent Freight Agents, combined with our Regional Service Centers deliver the best-in-class flatbed shipping through our expert carrier relationships. We accomplish this by supporting core energy and infrastructure clients with their project-based, unique, and often specialized freight.

“Sense of urgency” is a term that is thrown around a lot in the business world today. And for good reason – the world around us is constantly changing, and we need to react right now!  Trinity Logistics has made a sense of urgency a priority, and from what I’ve learned, most companies probably should.

In A Sense of Urgency, by John P. Kotter, the author very clearly defines the three stages of urgency and explains the importance of a true sense of urgency. We thought we would share his key points in the hopes that you are encouraged to put these ideas into place within your own organization.

The first stage of urgency is one of complacency.

Defined as “a feeling of contentment or self-satisfaction, especially when coupled with an unawareness of danger or trouble.” 

When a person, department, or company is in a state of complacency, the general feeling is complete contentedness with the status quo. People tend to think: “I know what to do and I do it. If there is a problem, it’s not mine.” Their behavior is unchanging, opportunities and hazards are equally ignored, and their focus is purely internal. 

The consequences? The world around you moves on while you stay the same. Competitors will change and innovate to meet your customer’s demands because for the complacent, change either doesn’t happen fast enough or it doesn’t happen at all.

The second stage of urgency is a false sense of urgency. 

This is a flurry of energy and activity built out of failures. 

Often, the failures are the result of complacency, leading management to put intense pressure on their team to perform exceedingly well and unrealistically fast. Someone in this stage is frantic, stressed, anxious, frustrated, and exhausted. There is a very high activity with very low productivity. 

For these people, the problems still lie somewhere else, but now they will experience very defensive reactions. They will hold fast to what is being done right and will partake in finger-pointing attacks on others. The consequences of this are equally destructive to complacency. The unproductive activity and pressure are fueled by a team full of anxiety and anger. There are many wasted hours and lost opportunities.

The ideal stage is a true sense of urgency.

This is driven by a belief that “the world contains great opportunities and hazards” and “a gut-level determination to move, and win, now!” 

There are four tactics laid out in the book that you can use to obtain a true sense of urgency in your organization, but I’m just going to touch on the one that I think is the easiest to implement right now.

We hear it all the time – your attitudes, feelings, and actions are contagious. The one thing you can do that will start a ripple effect of urgency is to behave with urgency every day.

In order to have a true sense of urgency and not slip into complacency, it’s important to remember that past successes tell us nothing about the future.  Often, sports imitate life, and you don’t have to look too far to see prior success not resulting in success the following year… just look at the Super Bowl winners from 2008-2012.

Two didn’t qualify for the playoffs at all, and the three that did have a combined 0-3 record. I’m sure that complacency and the thought of “we did it this way last year, it’ll work again this year!” contributed to why these teams saw the results they did.

Winning today does not guarantee success tomorrow.  We all have to work at it; we have to be better today than yesterday.  Every day is an opportunity for you to win,  so we must choose to do so and then make sure victory happens.

So where is your sense of urgency?  Where is your department or your company?  Where are your competitors, your customers, and your stakeholders? 

We hope you will notice a difference when you call Trinity. Please do not hesitate to contact our team, as we want to show off our improved sense of urgency with your logistics!

Optimizing your logistics can make all the difference in your business’s bottom line. However, to fully understand your logistics processes you need to look at your logistics analytics.

To start, you’ll need access to the right technology. One such piece of technology is a transportation management system (TMS). A TMS is an excellent investment and according to Logistics Management Magazine, has been shown to reduce transportation costs by up to 30 percent.

Not interested in reading? Find out these priceless tips on improving your logistics processes.

To get the most out of a TMS and your logistics, you’ve got to know what you should be watching. All the data a TMS provides can be overwhelming and the possibilities of what you could analyze are endless. Ultimately, sifting through that data can be complex and time-consuming. So, to make things easier for you, our Team of TMS experts found the top 5 reports you should be running so you can see your best return on investment (ROI).

TOP 5 LOGISTICS REPORTS YOU NEED

• Freight Accruals
• Cost Allocation
• Carrier Scorecard
• Least Cost Carriers
• Power Lanes

Getting the data you need for a good overview of your logistics processes doesn’t need to be complicated. These reports should give you a broad view of logistics analytics to help you reach your KPIs.

Freight Accruals

Freight accruals is a report used to keep track of the costs associated with transporting your goods to a customer. These costs begin accruing from the moment the goods deliver, and they get discharged once a freight invoice is paid.

Tracking freight accruals allows your company to calculate your true net revenue at any given time. As a result, you’ll gain a better insight into any outstanding balances accumulated during a specific timeframe, whenever you may need it.

Cost Allocation

A cost allocation report breaks down your freight charges by a mile, pound, or SKU.

For any multi-stop loads, or loads made up of many POs, freight charges can be allocated to each order based on the percentage of distance, weight, or quantity the individual order contributed to the whole. Therefore, tracking your cost allocations will give your company a better look into the true cost of transporting your goods. You can then use this report to identify your most costly SKUs or lanes.

Carrier Scorecard

Carrier scorecard reporting helps you track a carrier’s performance. This will show data such as tender acceptance, on-time pickups, and on-time deliveries.

A carrier scorecard report can help you find which carriers are meeting your transportation needs and which are causing extra work. For example, carriers who bid low on a request-for-proposal (RFP), proceed to decline tenders, or provide poor service can cost your company. Without knowing how your selected motor carriers are doing, you could be facing thousands of dollars in extra expenses or, worse yet, lose customers.

By tracking your carriers’ performance, you can reevaluate your routing guide by selecting more reliable carriers on trouble lanes, improving both your costs and customer service. Additionally, this can help you set solid KPIs with your relationship carriers so you can better communicate your needs.

Least Cost Carriers

Least cost carrier reporting helps you identify loads where the carrier with the lowest cost didn’t haul the freight, the reason why, and the extra freight charges that occurred as a result.

This logistics report can help your company identify potential problem areas, resolve the underlying issues, and prevent unnecessary expenses from occurring in the future. If you’re looking to cut freight costs, this report clarifies where your missed opportunities are located.

Since cost isn’t the only factor when selecting a carrier, this report can also help you identify carriers that get repeatedly passed over despite offering lower rates. Therefore, these carriers provide you with the opportunity to work with them on a service-level agreement before you award business solely based on cost.

Power Lanes

Power lane reporting identifies new lanes and provides a benchmark for negotiating contracted rates with carriers.

You can identify a new lane as an origin-destination pairing that occurs a set number of times. Once a new lane is identified, the spot market rates paid to move that lane get broken down by load, mileage, pound, and more. This helps you have a point of reference when negotiating rates with carriers.

Identifying power lanes will help you secure fixed rates and better predict future freight costs.

Note: Most transportation management software products have the ability to run the five reports listed above. If you’re missing out on these exclusive reports, or you’re interested in a TMS for your supply chain, request a special demo with our logistics experts, who can help assess your needs!

MAKE LOGISTICS ANALYTICS MEANINGFUL

The logistics part of your business is complex and dynamic. There are lots of moving parts with many potential bottlenecks, so it’s important the metrics you report on are meaningful.

The right logistics analytics will help you measure performance, optimize routes, and streamline functions. Without the proper data, your business growth will be stagnant. There’s no way to know what needs to be changed if you don’t have visibility.

Additionally, unfound inefficiencies can impact your customer service and carrier relationships and can lead to lost sales and higher costs. Having the right logistics analytics can be one of your most powerful tools and make a big difference in your everyday business activities.

START LEVERAGING YOUR LOGISTICS ANALYTICS

According to research, 93 percent of shippers believe logistics analytics are critical to making intelligent decisions. And 71 percent believe that data improves quality and performance. Yet, too many businesses continue to use manual, time-consuming processes to analyze their logistics.

Take advantage of logistics technology and innovative logistics analytics so you can find actionable insights with the right reporting. And if you need help with your logistics analytics, we can help.

Start hitting that easy button because a TMS with Trinity can make tracking your logistics data a breeze. Not only do we understand everyone’s needs are different and offer customized solutions, but you also have the option of as much or little support from our superusers as you want.

And if you’re looking for expert advice based on your logistics analytics, Trinity offers Quarterly Business Reviews so we can help you find efficiencies.

So what are you waiting for? Let’s get connected and see how we can optimize your processes.

Trinity Logistics, a Burris Logistics company, is proud to share that Food Logistics has named the company as a recipient of the 2022 Top 3PL & Cold Storage Providers Award.

Food Logistics is the only publication exclusively dedicated to covering the movement of products and information through the cold food and beverage supply chain. The Top 3PL & Cold Storage Providers list recognizes leading third-party logistics and cold storage providers in the food and beverage industry. Companies on the list play a pivotal role in keeping the food and beverage industry’s products stored, transported, and stocked while maintaining the product’s quality. 

“These past 18 months have been so challenging for U.S. supply chains. It’s the continuous bottlenecks that require fleets to re-tool and pivot accordingly. But it’s the drivers, the fleet, the warehouses, and software/technologies that really keep today’s supply chains in line,” says Marina Mayer, Editor-in-Chief of Food Logistics and Supply & Demand Chain Executive.  “These 3PLs and cold storage providers have collaborated on all facets of their operations to achieve full visibility, complete forecasting, end-to-end leverage, and the ultimate in sustainability. Now is the time to honor and celebrate those companies making magic happen behind the frontlines.”

Trinity works with thousands of shippers in the food and beverage industry, making the company well-versed in its requirements and regulations. Equipped with state of industry technology and with Burris Logistics, one of the top cold storage providers in North America, as its parent company, Trinity provides exceptional service to those in the cold chain.  

“We are honored to be named a Top 3PL & Cold Storage Provider, and very fortunate to be part of the Burris Logistics family,” said Mark Peterson, SVP of Sales at Trinity Logistics. “Having a parent company with 90+ years of cold storage & food distribution experience gives us a distinct advantage. From the 3PL viewpoint, our focus is on optimizing the efficiency of our distribution network. The pillars of that effort are gathering and analyzing the right data; clear and consistent communication with our partners; and the highly educated and motivated team of professionals at Trinity Logistics.” 

The full list of 2022’s Top 3PL & Cold Storage Providers will appear in Food Logistics’ August issues, as well as online at www.FoodLogistics.com. 

About Trinity Logistics

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

For 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 on Transport Topics’ Top 100 Freight Brokerage List, a Top 3PL and Cold Storage Provider by Food Logistics, and a Top Company for Women to Work for in Transportation by Women in Trucking.

If you’re a company that ships products, you need to learn about all shipping options available to you. This allows you to manage your costs better while keeping your product moving. When applicable, freight consolidation is an option that can save on your shipping. There are also many other benefits to consolidation. We’re here to help you better understand what freight consolidation is and what it can offer your logistics.

WHAT IS FREIGHT CONSOLIDATION?

Freight consolidation is when a shipper combines multiple shipments within a region into a single load hauled by a carrier to a destination region. The load gets broken down into smaller parts and delivered by a regional carrier to their many destinations. Or vice versa, they get picked up by a regional carrier to merge into a single shipment and delivered to their destination. Freight consolidation is ideal for shippers who frequently move a few pallets or smaller amounts of product. 

WHAT ARE THE BENEFITS?

Savings

Often, shippers will only use half or two-thirds of a trailer but still pay for the entire space. Whereas, with freight consolidation, you can earn preferred rates and optimize your logistics. Most importantly, you save time and money. 

By consolidating your smaller, regional freight, you can avoid paying a higher rate. By shipping your freight all at once instead of sending loads individually, you’re able to pay bulk rates. 

You can also avoid the costs that come along with using storage sites, inventory management facilities, and your own fleet of vehicles. Freight consolidation providers can provide these for you to better manage your shipment until its delivered. You won’t have to store your shipment on your own. Instead, you’ll be able to send it to the facility where it will ship to your retailers. This will help streamline the process should you need more inventory. 

Taking it a step further, you’ll also have fewer trucks on the road. As a result, you’ll be spending less on fuel and spending less per mile since it will be on one truck instead of many. The savings can be significant enough to make a big difference in your company’s bottom line. This can be a real difference for mid-sized and smaller businesses that see their profits cut by their shipping costs. 

Reduce Risk

You’ll also see increased security. Damaged freight continues to remain a lingering issue for shippers. Things happen in shipping and can be the reality of doing business. Consolidated shipping is not only more cost-efficient, but it reduces the on-again, off-again handling of your freight. Ultimately, when using an experienced shipper and consolidating your freight, your products will be in safer hands. 

And not only that — it will be in those hands less often. Having your freight consolidated also means that it will be on fewer trucks, making the odds smaller of it being in an accident. 

It goes beyond safety too. Freight consolidation also benefits through added reliability. Because your product is handled less, there is a lower risk of something going missing or delivering to the wrong place. There’s also less of a chance that something will interrupt your delivery, causing it to be late. This all adds up to you gaining peace of mind and having happy customers on the other end of your shipment. 

Improved Flexibility and Time Management

Freight consolidation will improve the flexibility of your shipping needs and make your orders more timely. Freight consolidation often offers faster transit times and reduces wait times for transporting small loads. By storing your freight at a consolidation facility, your products will be ready to go when needed. This improves your timeline and inventory flexibility, which your customers will appreciate. 

Changes happen in orders and can throw things into a real mess sometimes. Yet, freight consolidation will not hinder your ability to get your products to your customers on a short turnaround. Through a consolidation strategy, you can get your freight delivered on your schedule. Expert providers will help you put a plan into place so your freight gets on a truck and the road while better utilizing truck space and time.

Better Visibility and Control

With consolidated shipping, your visibility improves, as does your control. Let’s say for some reason, quality control alerts you that there’s a problem with your shipment and it’s already been shipped. Normally, you would have to wait for the supplier to send a replacement, meaning your delivery timeline is now out of your hands. In contrast, consolidation allows you to perform quality control measures as soon as the product reaches the warehouse. This reduces the chances of losing time and control due to unforeseen problems.

Using freight consolidation also gives you more control over your due dates and production schedules. You’ll be able to manage the entire distribution chain on your own or with a logistics partner. 

Improved Relationships

This process not only benefits you but your customer or retailer too. By shipping smarter, you’ll be able to build better relationships with other companies, customers, and your carriers.

First, you can establish relationships with other businesses that use LTL shipping. If you find another company that ships a similar product or sized load on the same schedule to a shared retailer, you can establish a shipping partnership. This partnership can help reduce costs for both of you and build smarter loads through shared freight consolidation shipments.

As for your customers, they’ll appreciate that you’ve gotten together for more efficient shipping since they work with both companies. They’ll also appreciate the savings that freight consolidation provides. 

Having the right carrier relationships will make it all happen for you. You’ll need a carrier relationship you can rely on to manage your orders and make sure products deliver on time. Perhaps your products have special needs that your carrier will have to accommodate. Not having a good relationship established won’t reassure you that your shipment will turn out fine. Having consistent relationships with carriers can also lead to you receiving better pricing. 

CHALLENGES WITH CONSOLIDATION

Finding Carriers

Because freight consolidation can seem complicated, not all carriers are willing to haul them. Even when you can find a carrier willing to transport your consolidated shipments, be sure that you are well-informed and charged appropriately. Partnering with a third-party logistics company (3PL) can help assure you find a carrier to haul your shipment and get a fair rate for it.

More Time Planning

Although it can save you time transporting, consolidated shipping does need some extra time spent organizing and planning. You’ll need to be aware of factors such as pricing, dimensions, timing, and other specifics to guarantee that your shipments arrive both safely and on time. 

WHAT’S HOLDING YOU BACK?

Freight consolidation can save you headaches. There are many businesses using freight consolidation to help streamline their shipping process, get products to their customers faster, and help to build and maintain relationships. However, it’s crucial you have a complete understanding of how consolidation works to ensure proper delivery. 

One of the best practices of consolidated shipping is to use an experienced provider. By working with an experienced provider, you’ll be able to overcome the challenges that come with freight consolidation and solely reap the benefits. 

Luckily, here at Trinity, we’re experts in freight consolidation. By working with Trinity, you’ll gain peace of mind knowing your shipments are taken care of. Our Team of experts can help you plan and organize your shipments, recommend freight consolidation when it’s suitable, and you’ll gain access to our vast network of carrier relationships.

If freight consolidation is a shipping method you’re interested in but need guidance on, we’re here to help.

AUTHOR: Christine Morris