If you’ve worked in the LTL industry for any bit of time, then you know that it’s always changing. Yes, sometimes that means it gets a bit more complicated. Rates adjust. Rules and processes are modified. Despite all this, there is usually one constant – the core LTL carriers we work with. Yet, in 2023, that changed; we saw the departure of the legacy LTL carrier known as Yellow Corporation. 

The closing of such a large and well-established LTL carrier is very rare. The industry hadn’t felt the void of such a large company since Consolidated Freightways closed 20 years prior. So, what happened? Considering Yellow Corporation was the third largest LTL carrier, what happened to all the freight they handled? 

As someone with a career in LTL, I saw this happen in real-time and have directly seen its ripple effects. I can answer some of those questions and share with you my thoughts, experiences, and observations of this impactful event in LTL history. 

The Fall of Yellow Corporation

Yellow Corporation (commonly referred to as YRC) was no stranger to financial turmoil. The company was laden with debt that was worsened with the Great Recession. It almost put them into filing for bankruptcy in 2009. 

A stint of other factors after that didn’t put them in a better position when COVID-19 rolled around in 2020. YRC was granted a $700 million COVID-relief loan by the U.S. government, which it used nearly half of to cover past due payments to healthcare and pensions, payments on equipment and properties, and interest accrued by its other debts. Fast forward to 2023, and that’s where their final chapter began. 

A few months into 2023, YRC and the Teamsters Union engaged in back-and-forth negotiations. YRC wanted to change operational procedures and sought extra funding to help it pay off its debts. Teamsters disagreed with the proposed changes. We saw news articles and hit pieces about the conflict, week after week. It was nearly impossible for the industry to ignore it. 

In July, whispers began of a possible union strike that would effectively halt YRC’s freight network. This was the writing on the wall for many shippers and third-party logistics (3PL) companies. At this point, the hull had been punctured, and water pouring in. Do you stay or do you go? 

YRC and its subsidiaries were promptly disabled from countless TMS platforms. No customer wanted their freight stuck in limbo if Teamsters were to go on strike against YRC. Because of this, YRC saw a sharp decline in freight volume and tonnage. A company that was in financial disarray was now losing its primary source of revenue. 

On July 30^th, Yellow Corporation ceased all operations. The Teamsters had not agreed to the negotiations, and the 11^th hour came and went. So, what now? 

The Aftermath of YRC’s Closing

YRC’s exit affected two parties: shippers using LTL and other LTL carriers. 

For shippers using LTL, they were two buckets: those who had already begun shifting their freight to other carriers in their pricing roster and those unfortunate enough to still have most or all freight with YRC. The latter had a more difficult situation to overcome as they now had to find an LTL carrier to move their freight without paying an arm and a leg. 

For LTL carriers, YRC’s existing freight had to go somewhere, so they had to figure out how to absorb it. Carriers such as Estes, FedEx, and XPO and their capabilities were pushed to their limit, now drinking from a firehose of incoming freight. Volumes increased drastically, and with such a rapid rise came decreased capacity. 

LTL carriers were making the difficult decision to exclude certain shippers in favor of others just to service accounts and keep their networks moving without bottlenecking. This left many smaller shippers stranded with a shorter list of available LTL carriers. 

As carriers became inundated with freight, their operating ratios took a hit, and something had to be done to regain control. A season of atypical general rate increases (GRI) began. LTL carriers needed to remain profitable lest they succumb to a fate like Yellow. 

3PLs and shippers alike started getting notifications from their carrier representatives about rates going up. Shipping LTL got more expensive now that the carriers had to pick and choose who they serviced with their finite capacity. The increased rate structures also priced out shippers that were used to YRC’s competitively priced tariffs or couldn’t stomach the increases.

For many shippers and 3PLs, the immediate aftermath of the Yellow Corporation bankruptcy was unlike any they had previously experienced. 

Now, that’s the long and short of it, but how are things today? Surely, the disappearance of a significant LTL carrier like that would have lasting, irreversible affects. 

Well, yes, but also no. 

The Current Impact of YRC’s Closing

Today the LTL industry has mostly stabilized. YRC’s freight volume has dispersed, and the dust has settled. The LTL carriers have course-corrected their capacity concerns. 

After the YRC bankruptcy, there were also new questions to answer, one of which was “What happens to their assets?” Those went through the bankruptcy courts, but the LTL carriers were eager to get a piece of it. 

The purchased terminals and trailers meant increased footprint and capacity, which can be the difference between being the best and the biggest for LTL carriers. Several carriers bid to acquire the terminals left behind by Yellow Corporation.

Estes Express, a prominent national LTL carrier, was one of the larger victors in the bidding war. As one of Trinity’s carrier relationships, I asked Estes if they could share the impact YRC’s exit had on their company. Here’s what President and COO Webb Estes had to say: 

While LTL carriers, larger shippers, and 3PLs came out in the black or relatively unscathed, others did not. Smaller shippers with all their freight lanes with YRC had no backup plans except to pay increased, non-discounted LTL rates with other carriers or risk their business operations. 

How Did Trinity Logistics Fare?

At Trinity, those first few months after the bankruptcy were interesting! We saw many new shippers start a relationship with us and saw some complications in LTL carrier transit lanes that bottlenecked. Don’t worry, they were quickly resolved. Since Trinity has a broad roster of national and regional LTL carrier contracts in place, our shipper relationships were able to use our rates to course correct from the YRC closure and effectively avoid any critical disruption. 

Is the last time we’ll see an industry-shaking event in the LTL space? Likely not. For now, the industry is stable, and many LTL carriers are growing and reporting profitable earnings. 

In my 10+ years working in the LTL industry at a 3PL, the Yellow Corporation was always a top LTL carrier for us. Seeing them fade into the wind after decades of LTL service was surreal, and I felt sad for the many YRC employees I’ve grown to know. 

Despite such an impactful event, now written in the history books, it’s a year later, and the LTL landscape is still thriving (and volatile), even with one less player at the table. 

Final Thoughts

Considering the size of Yellow and the steady decline until evaporation from the industry, I actually expected more disarray from it. Sure, the first weeks after the bankruptcy had the GRIs, shipment delays, and new shipper partnerships for Trinity to handle, but after a month or two, it was relatively smooth sailing back to normal. 

I think that speaks volumes to the age we live in. The amount of technology and time-saving efficiencies that LTL carriers invest in year after year. It allowed the industry to absorb the freight volume of one of the largest LTL carriers in the world and it did so in less than 60 days! It’s kind of crazy and a testament to the LTL industry and its controlled chaos. 

Working with Yellow for so many years, I grew familiar with some of the names worked there. People we would see at conferences, have calls with or see on emails. People who had been in the industry much longer than I have, had extensive backgrounds, and grew their roots at Yellow. 

The bankruptcy landed them in the middle of it all, but many of them went on to other LTL carriers and took their experience, adding value there. I think that’s a silver lining here. Despite the financial decision of Yellow as a company, it had people on its roster that brought purpose to LTL and now these people are creating an impact for other carriers and customers alike. For how vast it is, the LTL industry can be closeknit, so to see those former Yellow employees succeed at other LTL carriers is a bright spot in this saga. 

ABOUT THE AUTHOR

Curt Kouts holds the Director of LTL position at Trinity Logistics. Kouts has been with Trinity and in the logistics industry for 14 years, having held several titles among carrier vetting, account management, and within the LTL Team itself. His main responsibilities as Director focus on elevating Trinity’s LTL customers’ experience, helping the LTL Team support in operations and billing, and aiding the company in overall LTL sales and success. Kouts finds the LTL industry incredibly challenging, presenting him and his Team a ton of problems that they have a passion for solving. He enjoys learning more about LTL whenever possible and overall, making LTL an experience that keeps all his customers, both internal and external, coming back.

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

HOW LTL SHIPPING RATES ARE CALCULATED

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

Absolute Minimum Charge

This is the lowest rate a carrier will charge.

Accessorials

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

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

Base Rates

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

Lane

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

Freight Classification

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

Weight

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

HOW TO SAVE ON YOUR LTL SHIPPING RATES

Maximize Density

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

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

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

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

Aim to Avoid Peak Shipping When Possible

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

Evaluate Packaging and Product Design for Logistics

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

Consider “Economy Class” LTL Carriers

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

Ship Larger Loads Less Often

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

Consolidate to One Truckload

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

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

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

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

Negotiate with LTL Carriers

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

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

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

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

Avoid Accessorials When Possible

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

Provide Accurate Information

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

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

Use a TMS for Efficiencies

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

WORK WITH A 3PL

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

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

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

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

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.

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

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

TRUCKLOAD VS LTL: HANDLING AND TRANSIT TIME

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

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

TRUCKLOAD VS LTL: WEIGHT AND SIZE OF SHIPMENTS

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

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

TRUCKLOAD VS LTL: COST PER SHIPMENT

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

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

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

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

TRUCKLOAD VS LTL: REEFER AVAILABILITY

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

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

TRUCKLOAD VS LTL:  BENEFITS

Truckload

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

LTL

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

SO, WHICH MODE MAKES SENSE FOR ME?

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

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

Author: Christine Morris

Whether those buying your product are meat-eaters or vegetarians, gluten-free, or dairy-free or they’ll try anything under the sun – we all have to eat. All food must make its way from farms and factories to the dinner table. We all know that this multi-step process is particular and sensitive. Shipping frozen and refrigerated food together can be a recipe for disaster if not done right. The technicalities involved in packaging, warehousing, and transporting these goods are specific and time–sensitive. Let’s look at the logistics of frozen and refrigerated shipping and see how your product ends up safely on dinner tables. 

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

Refrigerated/Frozen Food Shipping: LTL vs. Truckload

The process of shipping food differs between truckload and less-than-truckload (LTL) shipments. Let’s look at how these two modes differ when it comes to shipping your frozen food. 

LTL

When you work with a refrigerated LTL carrier, you likely know that they have specific days that they pick up, depending on the region. Other temperature-controlled products traveling within that region in the same temperature range will be on that truck. 

The LTL carrier will pick up all these shipments within a specific window and deliver them the following week. Depending on the size of your business and the frequency of shipments, you may find it challenging to keep track of the various pick-up and delivery windows for specific carriers. Visibility of your shipment is imperative to ensure your product arrives safely to the store and in peak condition.  

Truckload

Large shipments of dairy, frozen meats, boxes of bananas, lettuce and watermelons, cans of soup, ketchup, you name it, can be shipped via truckload from distributors to grocery stores. Truckloads full of items leaving one location and heading to the same destination with the exact temperature requirements can be shipped together. However, if this isn’t the case for your product, remember to note this on your instructions for the carrier moving your freight. 

Since these trucks typically have one origin, one destination, and one driver, there aren’t necessarily specific days of the week that these are picked up. However, receivers may have specific days for delivery. Ensure your product arrives in peak condition by coordinating the pick-up and delivery times appropriately so food does not spoil. 

Grocery Delivery Services

The typical grocery store shipments are pretty cut and dry with how goods arrive at the loading docks. The waters get muddied up when it comes to services designed to help busy people get groceries without ever stepping foot into a store. 

Consumers can buy everything else online, so why not food? Grocery delivery services like Peapod, Walmart Grocery Delivery, Instacart, Freshdirect, and Amazon Fresh have turned e-commerce into a giant food pantry for busy people. In a five-minute website visit, people can add their groceries to a virtual cart and have the goods arrive on their front step the following day. 

While grocery deliveries are incredibly convenient and competitive price–wise for the average consumer, it’s a rather complicated process with a small profit margin for shippers. 

These last-mile grocery shipments are so tricky because of the precise instructions and temperatures for the items within a single shipment. Companies have a window of around 20 hours to get groceries from the warehouse to a customer’s fridge. Any moment that the temperature dips below the requirement could zap away the shelf life of your product. 

There’s also difficulty with grocery delivery because certain products cannot be shipped with others. Some produce items can’t be packaged in the same bag as others. Refrigerated items such as milk and cheese shouldn’t reach the temperatures that frozen microwavable meals demand and vice versa. 

Some of these grocery delivery services have refrigerated trucks that carry the groceries from house to house, while others do the temperature control within the grocery totes, using insulated boxes, large ice packs, or dry ice. 

Drivers who deliver these shipments must be more conscious about delivery windows to ensure that each food stays exactly how it is supposed to be, so the integrity remains when the bags make their way from the front step into the kitchens of consumers worldwide. 

Meal Service Delivery Kits

Meal Service Delivery Kits from providers like HelloFresh, Blue Apron, Green Chef, Sun Basket, and Plated are handled a little differently from grocery delivery service. 

Shoppers who want pre-portioned ingredients to prepare two or three meals a week for their family will sign up for these services. Ultimately, the providers, like HelloFresh, will have a preselected menu for the week. 

In this case, the providers are the ones deciding what produce, grain, dairy, and meat can be packaged together. These deliveries arrive at customers’ homes in insulated cardboard boxes. Meats are typically at the bottom of the box covered by large ice packs, with produce and dry items packaged on top. 

These deliveries are a little less complicated and don’t require immediate attention from the customer to stay fresh. While there are instructions to unpack in the fridge as soon as possible, food can stay cold with gel ice packs if customers are not home at the time of delivery. Typically, these items are kept at refrigerated temperatures and don’t fall into the realm of frozen food shipping. Proper packaging during this time helps maintain the integrity of your product. 

Multiple carriers still come into play to get food delivered from the meal service distribution centers to the doorsteps of customers, many times parcel companies like UPS and FedEx complete the last leg of delivery. These carriers need to have the knowledge and expertise of shipping frozen and refrigerated food. This will ensure that the meal kits are delivered properly and are safe for the customer to eat. 

Categorized Subscription Boxes

Subscription boxes have become a major trend in the food industry. Unlike the full grocery delivery services, these boxes differ as they often only offer a specific type of commodity. Examples of food subscription boxes are Butcherbox, Misfits Market, Jeni’s Pint Club, Carnivore Club, and Wine Down. 

These categorized subscription boxes are even less complicated to package and deliver than the Meal Service Delivery kits. Since all items are in the same category and require similar packaging and temperature control, there is no need to make sure certain items are at the bottom with more sensitive items at the top of the box. 

All items are packaged like the meal kits inside an insulated cardboard box covered by large ice packs and delivered the same way. Companies like ButcherBox can warehouse and deliver their boxes in one to two days with services like Direct-to-Consumer through our parent company, Burris Logistics. 

Third-Party Logistics Frozen Food Shipping

Originally published July 7th, 2017 By Brittany Siegel. Updated by Victoria Dalton.

Does the COVID-19 vaccine have your cold chain logistics worried? If not, you should be taking it into consideration. 

Everyone’s over the pandemic. We’re ready to be back attending public events, traveling to popular destinations, have our kids in school full time, and more. So much of 2020 has had to cancel or make the move to virtual and it’s not the same. Additionally, here at Trinity, the health and wellbeing of our Team Members, Authorized Agents, Carriers, and Customers is our number one priority.

Pfizer, Moderna, and others have quickly turned around vaccine solutions, making the light at the end of the tunnel seem in reach. With everyone looking to gain some sense of normal back into their lives, it means all hands will be on deck for the upcoming vaccine distribution. That means other cold chain commodities, will fall lower in priority. How will this affect your cold chain logistics?

THE IMPORTANT ROLE OF COLD CHAIN LOGISTICS FOR A COVID-19 VACCINE

Vaccines are fragile. Most have to store at specific colder temperatures to protect them from deterioration. If left out too long or exposed to fluctuating temperatures, vaccines can lose their effectiveness. According to the World Health Organization, one in four vaccines loses its integrity during transit. Due to their fragility and the extensive attention to detail that the logistics sector has to maintain, roughly 80 percent of a vaccine’s cost comes from its storage and transport. 

Usually vaccines transport in temperature ranges of two to eight degrees Celsius. Currently, nine COVID-19 vaccines are in their Phase 3 trials, with two, Pfizer and Moderna, being very close to distribution. Because of the quick turnaround the world is seeking, these vaccines are containing higher protein bases which need ultracold temperatures, as low as minus 80 degree Celsius. Those receiving vaccines will need to get two doses, each about three to four weeks apart. Over time, vaccines will be developedrequiring more typical refrigeration temperatures and single doses. Regardless, cold chain logistics will continue to play a vital role in the distribution of a COVID-19 vaccine and for now, the specifications will be strict. 

ALL COLD CHAIN HANDS ON DECK

Currently, Pfizer expects to produce and distribute up to 50 million doses of their vaccine in 2020 and 1.3 billion in 2021; Moderna expects 20 million in 2020 and anywhere from 500 million to one billion in 2021. Not to mention the other vaccines that will make their way as well. It is estimated that to immunize 7.8 billion people worldwide, 10 billion doses of a coronavirus vaccine will be needed.

The FMCSA recently announced their most recent extension of the Hours-of-Service waiver to February 28^th and included carriers transporting COVID-19 vaccines. This effort is expected to be the biggest challenge the logistics sector has ever faced. Currently, logistics experts are struggling to plan ahead because of the lack of very specific information that they need to know about, such as the packaging, amount of dry ice needed to maintain temperatures, warehousing, equipment needed, and more. 

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

AREAS TO WATCH

Through Operation Warp Speed, Moderna and other upcoming vaccines will deliver to the Mckesson distribution center in Irving, Texas, and then arranged deliveries to hospitals, nursing homes, and other determined points. Moderna will manufacture its vaccine in New Hampshire, Pennsylvania, and Indiana. 

Pfizer, however, has chosen to not distribute through Operation Warp Speed. They manufacture their vaccine in Michigan and plan to ship with transportation providers such as UPS and FedEx to locations around the country. They’ve chosen to directly ship to gain greater control and real-time insights into the status of their frozen vials. 

HOW IT AFFECTS CAPACITY

Obviously, reefer capacity is going to be needed for vaccine distribution. But, it’s already tight. If you’re in the cold chain, shipping temperature-controlled items, prepare to continue paying premiums for this service.

Recently, reefer rejection rates have been at almost 50 percent. That means almost one out of every two reefer shipments are being turned down by carriers. When the rejection rates are higher, the tighter capacity is, and the higher cost for you to get your cold freight moved. Reefer rates are already 20 percent higher year-over-year due to increased consumer demand while spending more time at home. 

WHAT THIS MEANS FOR YOU

If you ship temperature-controlled goods, the upcoming vaccine distribution efforts should be a concern for your business and logistics, especially if you regularly ship through less-than-truckload (LTL). Many top tier transportation companies such as UPS, FedEx, and DHL are ready to help Operation Warp Speed in the vaccine distribution. Everyone knows the vaccine distribution is the highest priority, but transportation providers also know they will be well compensated for their service of transporting it. This means other cold chain commodities will be pushed further down in priority. This will only continue on as more COVID vaccines become available to be distributed and until risk of COVID is greatly reduced. In the form of some ultracold transportation logistics, winter is coming and the demand for reefers will continue to rise. 

SHIPPING COLD CHAIN? WHAT YOU CAN DO TO PREPARE

Communicate.

Get ready now. Start talking to your relationships and providers to make sure you will have trucks to move your freight. Talk to your customers. Let them know now that things may slow down or get behind with the upcoming and expected vaccine distribution efforts.

Things may be getting tougher for you, but I think we all know this is good. We’re one step closer to returning to some sense of normalcy. Hold on, because the light at the end of the tunnel is there. It’s now in reach. We’re just in for a few more bumps in the road, but we’ll make it. 

Looking for an expert in cold chain logistics? 

Author: Christine Morris

If you move your freight through LTL (less-than-truckload) carriers, sooner or later you’ll hear the term General Rate Increases or GRI’s pop up. What is it and how can you reduce your impact from them?

What is a GRI?

GRI’s are the average amount that an LTL motor carrier will increase their base shipping rates. GRI’s have zero impact on contracted rates, but they give us insight on what to expect during contracted negotiations.

Typically, GRI’s only happen once a year. As of March 2020, industry leaders like FedEx, UPS, and Old Dominion have already announced and published their increases, which ranged from 4-6 percent. The rate increases assure that carriers continue to operate efficiently and maintain profitability. They happen for many reasons such as:

Offsetting Carrier Costs

GRI’s are meant to offset any predicted increases that carriers may incur. Increases in carrier costs this year were caused by technology upgrades, increases in regulatory compliance, and rising fuel costs.

Increased Competition for Drivers

Attracting new drivers and keeping current ones is still a hot topic for carrier companies. Keeping up with demand means offering carriers better pay and benefits. These includes things like higher driver wages, better sign-on packages, better health insurance, and 401Ks to stay competitive in the industry. Those costs work their way to shippers through General Rate Increases.

Equipment Costs

The need for companies to invest in new technology, manage and update their fleet, and brick-and-mortar costs can cause an increase in their rates.

Reducing Your GRI Impact

Shippers can often predict and plan in a General Rate Increase but working with a third-party logistics company like Trinity Logistics can help reduce your impact from GRI’s altogether.

3PLs are less impacted by GRI’s. You can count on our experience negotiating with carriers, buying power, and our LTL relationships keeping the impact of GRI’s to your company to a minimum.

Choose to ease the headaches of GRI’s and begin working with Trinity Logistics today.

Request an LTL quote

It is undeniable that consumers are seeking healthier, protein-dense foods, which is leading them to purchase more seafood. With trending diets, including Keto’s low carb, high fat fare, seafood is a popular choice for your consumers to get their protein intake. Seafood has many nutritional benefits to offer consumers. It’s high in heart-healthy omega 3 fatty acids and vitamins. It is also low in saturated fat and an ideal source of minerals such as iron, magnesium, and potassium. However, seafood is considered an easily perishable commodity, due to its ease of arriving bruised, thawed or spoiled. To keep your customers and consumers happy, you have a high concern for shipping seafood safely. How can you make sure you are doing all you can to get your seafood to where it needs to go, claim-free?

Your Part: The Packaging

Part 1 in shipping seafood safely is in the packaging. Seafood is often fresh or frozen and needs to stay at certain temperatures to keep it from spoiling. It is important to know the time to ship the products and package them to keep the required temperature. Having the correct packaging can provide enough protection and refrigeration to maintain the correct temperature environment.

Styrofoam coolers, placed inside a corrugated cardboard box are best for keeping temperatures maintained. Including insulated liners can help catch any water runoff from melting ice packs before the water can damage the outer packaging. Ice, dry ice, or gel packs are often your best options for keeping the product cool. However, keep in mind, there are certain regulations in place for shipping with dry ice. Also, if you decide to go with dry ice, do not place in an airtight container. Dry ice will release carbon dioxide, causing pressure to build up and your package to explode. While coolants help keep your product cold when shipping, be careful of the proximity as they can also damage your product if they come into contact.

Our Part: Arranging Transport

It’s important that the carrier hauling your seafood is knowledgeable in the temperature requirements and handling of your product. With our huge network of carriers and relationships, we can help you select a carrier with experience, transporting your seafood safely and timely.

Sometimes with seafood, a full truckload is not always needed. Refrigerated LTL (less-than-truckload), also known as reefer LTL, is an option available to you through Trinity Logistics. Refrigerated LTL is great for shipping smaller quantities of refrigerated products, but can often be harder to arrange, and generally more expensive alone. Thankfully, when partnering with Trinity Logistics and our carrier relationships, you can get your best rate shipping with refrigerated LTL.

Another reason to choose your carriers wisely when shipping seafood is that not all insurance covers it. Sometimes it can be excluded. It can be a lot of work to find a qualified carrier at a good rate, and then find out their insurance doesn’t cover your product. Even worse, finding out after the fact when there is a claim. Trinity can help. We make sure your seafood is covered by using our relationship carriers and contacting their insurance to ensure it is covered. And if it’s not? We cover it by purchasing additional insurance for it. You can feel relieved knowing that no matter what happens, your product is covered.

If you’re looking for an experienced partner to help you ship your seafood product, consider Trinity Logistics. We would love to help you get your fish to your customer’s dinner plates. Connect with us today.

AUTHOR: Christine Griffith

Customer specific pricing (CSP) is one approach that third-party logistics (3PL) brokers use in the Less-than-truckload (LTL) industry to pursue, secure, and operate LTL business. CSP refers to the negotiating and publishing of customer specific pricing programs with LTL carriers for a specific LTL shipper. This is in contrast to using generic or blanket pricing agreements with carriers to move LTL freight. LTL carriers provide blanket pricing agreements to a 3PL that can be used at any time for any shipper. Customer specific rate agreements may only be used for the designated shipper.

CSP is often negotiated for shippers with higher volumes of LTL freight. Usually, blanket pricing may not be competitive enough to gain business from shippers with high volumes of desirable freight. In these cases, CSP can be a good option for securing more competitive rates.

Benefits of LTL CSP

CSP can be a great way to protect our customers from general rate increases(GRI). Once finalized, CSP agreements are good for 12 months and any items negotiated are not subject to carrier General Rate Increases (GRI). CSP can also be beneficial due to the fact that the rates are negotiated specifically for the customer’s needs. For example, let’s say a shipper requires a Freight Of All Kinds (FAK) or has specific accessorial services they use often. These can be negotiated with the LTL carriers as part of the customer specific pricing.

Finally, customer specific pricing is better for both the customer and the carriers. Carriers usually prefer account specific rates. This allows them to put pricing in that they have developed around the needs and details of the customer’s freight. The dedicated carriers get familiar with the customer’s business, shipping and receiving requirements, and freight profile. This allows for a higher level of service for your customer, fewer carriers to work with, and fewer service failures.

How Does CSP Work?

Below are the key steps in the CSP process:

1. Data collection
2. • Information is collected for qualifying the account and preparing the bid packet.
3. Bid packet completion
   • An Request For Pricing (RFP) bid packet is put together to send out to LTL carriers
4. RFP
   • Target carriers are selected. The bid packet is sent out to the carriers. Selected carriers analyze the information and provide us with a pricing proposal.
5. Carrier bid analysis
   • The carrier proposals are reviewed and analyzed to determine competitiveness among each other and with the customer’s current rates.
6. Implementation
   • Winning carriers are selected, and the rates are put in place.

Working with Trinity’s experienced LTL CSP Team can help you meet rising customer demands to provide quality service at an affordable cost. It allows you to be able to negotiate upon a specific carrier-neutral rate base, which isn’t subject to periodic changes made by the carrier. This allows for an easier freight spend impact analysis. It offers you many carriers to choose from and guidance from our team to select the LTL carrier that is the right solution for your shipments.

Interested in gaining insight on how Trinity Logistics’ LTL CSP Team can help you?

Click Here to get in touch with Trinity’s LTL CSP Team.