2017 has arrived and that means we are fast approaching the compliance deadlines for several laws, some that have been years in the making and could impact you and your operation. On April 6, 2017, most businesses involved in the transportation of human and animal food will need to be in FSMA compliance with the FDA Food Safety Modernization Act, the most sweeping reform of United States food safety laws in 70 years. We’ll go over the basics and go into a little more detail about the FSMA since we last told you about it in June of 2016.
What is the FDA Food Safety Modernization Act?
The FDA Food Safety Modernization Act (FSMA) shifts the focus from responding to food contamination, to preventing foodborne illness altogether. The Act was signed into law by President Barack Obama on January 4, 2011. FSMA consists of seven rules that put measures into place for all people and businesses that handle food in order to ensure that food is produced, handled, transported, and stored properly.
Here are the rules and when they were finalized:
Preventive Controls Rules for Human and Animal Food: Sept. 2015
Produce Safety Rule: Nov. 2015
Foreign Supplier Verification Rule: Nov. 2015
Accredited Third-Party Certification: Nov. 2015
Sanitary Transportation Rule: April 2016
Intentional Adulteration Rule: May 2016
Has anything changed in the FSMA Update?
We last updated you about the latest with the FDA Food Safety Modernization Act’s final rule for the sanitary transportation of human and animal food back in June. We discussed what the final rule is, when you need to begin complying with this rule, and what is expected of shippers, loaders, carriers, and receivers. Since the Sanitary Transportation Rule was finalized in April 2016, the Intentional Adulteration (IA) Rule has also been finalized as part of the FSMA. This rule is aimed at preventing intentional adulteration from acts intended to cause wide-scale harm to public health. The IA Rule was finalized May 27, 2016. The TIA has also revised contracts that cover FMSA rules.
What is the goal of the Final Rule on Sanitary Transportation?
The rule’s goal is to prevent transported food from becoming filthy, putrid, decomposed, or otherwise unfit for food, or being rendered injurious to health from any source during transportation operations. These rules apply to shippers, receivers, loaders, and carriers involved in any transportation operations of food. The addition of loaders to these new rules was a fairly recent revision.
What does the Final Rule on Sanitary Transportation mean for brokers?
Under this rule, freight brokers are covered under the “shipper” category since they arrange for the transportation of food by a carrier or multiple carriers. The reason for this is that the broker can be an extra step in keeping shippers accountable to this rule. Brokers will also provide carriers with information such as the specifications for the transportation equipment to maintain sanitary conditions, developing a written procedure about how they are going to comply with the regulations and verify that vehicles are sanitary, retaining records that the shipper provided the required specifications to carriers, in addition to any written agreements allocating responsibility.
What to Watch?
It will be interesting to watch and see if there will be any changes to the FSMA under the Trump Administration. In September of 2016, Donald Trump’s campaign proposed getting rid of the Food and Drug Administration’s “food police,” and said they “dictate how the federal government expects farmers to produce fruit and vegetables and even dictates the nutritional content of dog food.” According to the NY Times, the list of regulations to be eliminated was short lived and was removed from the campaign’s website shortly after it was initially displayed.
Who is affected?
This rule established requirements for shippers, loaders, carriers by motor vehicle and rail vehicle, and receivers engaged in the transportation of human and animal food. The regulations include practices to make sure that food is properly refrigerated during transport, that vehicles are properly cleaned between loads, and other best practices to make sure that food does not become adulterated. Read the full rule here.
What happens if a truck is found in violation?
The DOT is authorized and trained to conduct transportation safety inspections to identify any food shipments that are in violation of these new regulations. If a truck is found in violation, the FDA can stop the shipment and/or seize the food. Criminal prosecution is also possible as a part of this rule.
FSMA Compliance Dates for the Sanitary Transportation of Human and Animal Food Rule
Most businesses are required to be in compliance with the rule April 6, 2017, one year from the rule’s publication date. According to the FDA, there are some exceptions and delayed FSMA compliance dates, depending on the size of your business.
Delayed Onset:
– Small businesses, employing less than 500 people: April 6, 2018
– Motor carriers, having less than $27.5 million in annual receipts: April 6, 2018
Exemptions:
– Transportation activities on a farm
– Shippers, receivers, or carriers that have less than $500,000 in average annual revenue
– Transportation of food that is completely enclosed by a container except for foods that require temperature control for safety
– Transportation of food that is transshipped through the U.S. to another country (i.e., Mexico to Canada)
– Transportation of compressed food gasses and food contact substances
– Transportation of human food by-products transported for use as animal food without other processing
– Transportation of live food animals, except molluscan shellfish
Will I Receive FSMA Training or Assistance?
Part of the requirements for FSMA is mandated carrier training. All transportation operations personnel will need to know the responsibilities of the carrier, have awareness of potential food safety problems that may happen during food transportation, and basic sanitary transportation practices to address those potential problems. Documentation of this training is required. Read the latest on the FDA’s path to working with the public and private partners to provide FSMA training for those who will be required to follow the new FSMA standards here.
FSMA Final Rule Updates
We are watching FSMA closely and will continue to update the blog during the implementation process. We encourage you to go to the FDA’s website and read through the published ruling if you want more detailed information about how this rule will impact your business.
Your trusted Trinity advisor is also being trained on the rules and regulations so you can manage your shipments to follow the FDA’s new standards.
If you’re interested in working with Trinity for your produce, refrigerated, or packaged food shipments, fill out our form to get a quote now.
Editor’s note: This post has been updated to reflect the current weather predictions of the 2019-20 winter season.
The Postal Service has no official motto, but there’s a phrase that has become a tribute to the job that works through all conditions. It states “neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds.” This can also be said of those in the trucking industry, since a severe weather day doesn’t necessarily mean a day off from work. While it’s not exactly an episode of “Ice Road Truckers” every time bad weather strikes; fog, rain, wind, snow, and ice can still have major impacts on the way you get the job done.
This Winter’s Outlook
Whether you go by the Farmer’s Almanac, or you look to the National Oceanic and Atmospheric Administration’s outlook, parts of the United States are expected to experience colder and wetter temperatures for the 2019-20 winter season.
NOAA’s outlook shows an absence of El Niño or La Niña conditions; this is when the Arctic Oscillation drives winter weather and can result in large swings of temperature and precipitation. Overall, this winter looks to have warmer-than-normal conditions, with wetter-than-average conditions predicted in northern and eastern regions of the United States, and drier-than-average conditions in southwestern parts of the country. The Farmer’s Almanac shows an exceptionally cold winter season in the Pacific, Desert Southwest, Pacific Southwest, and Hawaii, but above normal winter temperatures elsewhere. Some parts of the country are predicted to have a long-lasting winter well into spring. It is predicted to have strong storms of rain, sleet, and frequent snow storms. Northwest could see a repeat of record-breaking extremes, while the middle of the country and New England area can look forward to snow and slush, freezing during the overnights.
Drivers: Check Before you Leave
Before we dive into ways that extreme weather can impact transportation, we just want to remind you of the importance of being prepared before you hit the road. Take time to check the weather forecasts along your route, plan for extra transit time if you believe there could be some hazardous conditions, and make sure you have any emergency equipment that you could possibly need.
Always complete your pre-trip inspection before hitting the road, even if you don’t expect any extreme weather.
Severe Weather Impacts
Whether it’s dense fog, rain, thunderstorms, wind, snow, or ice, severe weather can have significant impacts on commercial motor vehicles and the infrastructure they travel on. From the first few drops of rain, to when the mercury dips below 32 degrees, weather can cause decreased visibility, make it harder to handle your truck, or cause a travel time delay. We’ll go over some of the most common severe weather instances and how they can impact transportation.
Even if you feel that you are skilled in driving in bad weather situations, you could be indirectly affected by passenger cars stopping in breakdown lanes or driving hazardously around your vehicle.
Some of the weather events we will go over include fog, strong winds, snow, and ice.
Fog
There’s a reason many schools decide to delay opening on a foggy morning. Even the slightest bit of fog can reduce visibility distance. With that, you can expect traffic speed to be affected and a higher accident risk. Expect prolonged travel time when dealing with a foggy day.
Rain
Rain is the most common type of “bad” weather. Just a few rain drops on the road can cause issues with pavement friction, as water mixes with oils already on the roadways. As with fog, heavier rain can impact visibility distance, in turn slowing traffic speeds, and can increase travel time.
Water on the roadway could require increased braking distance. With water under your tires, there’s also an increased likelihood of wheel spinning and hydroplaning. According to the Federal Highway Administration (FHA), wet roads can double stopping distances.
As heavy rains continue, roadways could flood, posing more dangerous driving conditions and detours due to road closures.
Wind
While hurricane-force winds can be a nightmare for big rigs, even the slightest gusts of wind could make it harder to control your truck. After 50 mph winds, maintaining control of your truck is a significant challenge, at 60 mph, it’s nearly impossible. Bridges and overpasses can become especially dangerous, and may even be closed, so take caution.
Mix any of the other weather conditions with wind and you could potentially have a recipe for disaster. Research forecasted wind speeds before you hit the road, or you may find yourself facing wind restrictions, or even waiting for conditions to improve.
Snow
When the temperatures start to drop, that’s when travel concerns begin about freezing rain, snow, and ice. The main impacts of freezing rain and snow are decreased visibility and traction. Further impacts can include delays, road closures, and other driver control problems as bridges and ramps freeze.
When driving in snow, make sure that you have working wipers and a windshield defroster. Use your low beams to help with visibility and increase your driving distance to allow for safe braking.
Ice
With snow, freezing rain, and dropping temperatures, ice becomes a major travel concern. Significant risks associated with ice on the roads include difficult traction and control. You could also run into potential obstructions along your route due to fallen trees, electrical wires, utility poles, or other vehicles. On the weekend of Dec.17 to 18, 2016, icy conditions in Baltimore and Washington D.C. caused huge pile-ups of vehicles, including tractor-trailers. Listen to reports and watch your speed when icy conditions are possible.
Bridges and overpasses tend to freeze before main roadways, so expect significant travel delays due to decreased speed in those areas.
If you must continue your trip in icy conditions, the Federal Highway Administration recommends dropping to a lower gear to improve traction, or slow to 10 or 15 miles per hour. Keep your eyes on the vehicles ahead of you for any potential black ice situations, where you can’t necessarily see the layer of ice on the road.
Recap
While many of you reading this are professional drivers, it’s always important to remember that most of the other drivers on the road along with you don’t have the same training under their belt.
Here are the most important things to remember about weather events and their impacts on transportation:
1. Check the forecast for your route before you leave and make a contingency plan for bad weather.
2. Be prepared to wait out severe storms or high winds.
3.Expect travel delays.
4. Be alert for the actions of other drivers on the road.
Make sure to follow us on LinkedIn so you can stay up-to-date on industry news and trends. Thanks for reading!
AUTHOR: Brittany Siegel
Lumper. It’s not a four-letter-word, but to many in logistics, a lumper fee is often times viewed in a negative light. A lumper fee is charged to the carrier when a shipper utilizes third-party workers to help load or unload the trailer contents. Lumpers are often used at food warehousing companies and grocery distributors. These fees are often reimbursable to the driver by the shipper or the freight broker.
Why lumpers?
Some receivers outsource to lumping services that are independent of their core business, especially in the grocery distribution business. Lumpers allow for truck drivers to catch up on rest and save energy for their driving, and can sometimes save time for drivers.
Why the negative light?
The “can sometimes save time for drivers” is viewed just like that – sometimes. If you read any trucker forums, you may find many truckers state they have run into headaches when choosing to use lumpers because the lumpers often do their restacking on the trailers, which can be rather time-consuming. However, if the truck drivers decide against using lumpers, they could find themselves trying to unload with hand-jacks and possibly taking additional time to learn their way around a new warehouse.
Lumper Fees vs. Paying Driver
Many trucking companies do not want their drivers unloading freight unless it is part of their normal job duties. In order to keep their drivers well rested and ready for the road, trucking companies will choose to pay lumpers to unload freight rather than have their drivers expend energy or risk injury doing so. There’s no “industry standard” on this, some trucking companies won’t offer to pay their drivers additional money to unload freight to deter them from doing so, or others will offer to pay lumpers significantly more than they would their own drivers.
Service or Scam?
If there are truckers concerned when they go to unload their trailer, that lumper services will be focused upon them, there are protections under United States Law. Forcing a carrier to pay a service for unloading without reimbursement is illegal under Title 49 of the United States Code, § 14103. It says carriers should have the option to unload their own trucks, and if they are not given the option without being compensated for the lumper fee by the shipper or the receiver, then the law has been violated. If a driver is ever put in that particular situation, they should know that being coerced to pay out of pocket for lumper fees is prohibited.
3PLs
If you are a carrier working with a third-party logistics company, or looking to become a carrier for one, ask if they cover lumper fees. Most freight brokers include this in their carrier payment. Just make sure the covering of the lumper’s bill is submitted right away to prevent any delays.
Thanks for reading our blog! Make sure you subscribe to receive the latest updates. If you are a shipper and would like a freight quote, click here.
If you’re unfamiliar with third-party logistics companies, or 3PLs, you may be left with a lot of questions about what exactly they are, what to expect from 3PLs, or the benefits of working with one.
Whether you’re currently working with an asset-based company, you’re starting to shop around for the best rates for the lanes you need, or you’re working out of your basement in the business brainstorming stages, there’s no time like the present to check out why a 3PL could be best for your particular needs.
Here at Trinity, we’re all about teamwork (it’s one of our guiding values). So when you think of a “third-party” in terms of a 3PL like Trinity Logistics, it means we are more of an honorary extension of your team rather than just a silent partner. In this blog we’ll go over what to expect and benefits of working with a 3PL by using a few scenarios.
Scenario One:
Since these are hypothetical scenarios, we’ll make up names for our fictional business owners and associates. Let’s say Bob owns a small packaging company with about $45 million in annual revenue. His business has been family-owned from the start, and he has a good-sized staff that has done their best to manage his supply chain over the years, but their network of carriers is small.
Business is growing and Bob’s staff would either have to devote more time and resources to coordinating the increased freight, or hire additional staff. After meeting with leadership, Bob and his team decided they simply couldn’t afford to tie up any more resources in managing their supply chain.
Bob reached out to a 3PL and learned how he could leverage their experienced staff as an honorary extension of his own team. No longer would valuable time and resources be spent shopping for the best rates and finding carriers to cover their loads.
Working with a 3PL opened up many doors for Bob’s company. He developed a relationship with the manager of his account, who was able to give him a review of areas that could be improved to maximize efficiency. His 3PL was even able to find warehousing for his product, opening up even more opportunities for Bob’s business. Smart thinking, Bob.
Scenario two:
Stacy is an entrepreneur who started her own organic snacks business. She gained her business fame through social media marketing and exhibiting at various trade shows. Now the demand for her product is expanding and she doesn’t know the first thing about coordinating shipping.
Stacy has worked so hard to get her business to this point, so the last thing she wants to do is trust her product in the hand of strangers. In her research, Stacy stumbled across the term 3PL.
After contacting one, she quickly found out that it would be a perfect fit for her company. A 3PL would become an honorary extension of her own team: validating carrier’s insurance, managing her pricing requests, and coordinating the shipment of her products, whether it was less-than-truckload (LTL) or a full truckload, tracking them from start to finish.
Working with a 3PL helps Stacy focus on securing more customers and servicing her current ones better, with peace of mind that her products are arriving where they need to go, right on time.
Scenario three:
Of course, there are many scenarios where 3PLs would be beneficial to a company, but we’ll go through one more. Say Frank is the CEO of a company that makes and distributes private label cleaning supplies that stores purchase to sell as their generic brand.
Frank’s company has an annual revenue of around $140 million dollars. Right now they have inbound and outbound products moving multiple times a day from warehouses across the United States. As part of the company’s vision plan, they wanted to gain better control and visibility over their supply chain.
Frank reached out to a third party logistics company (3PL), and found out a 3PL could help his business save time and money by coordinating their freight. They also offered transportation management software to help Frank and his team see the inner-workings of their business.
Frank’s 3PL was able to offer him business reporting and personnel who would meet with his business to analyze how they could continue to improve their supply chain.
Here’s the moral of these scenarios: don’t go through all of the hassles and headaches of supply chain management alone! There are numerous reasons why partnering with a 3PL would be beneficial. Be like Bob, Stacy, and Frank, and see what a 3PL can do for your business.
Trinity Logistics has more than 35 years experience in the business. Our 3PL team coordinates freight, offers logistics consulting, supply chain technology, and logistics outsourcing services like warehousing, supply chain optimization, on-site freight management, and more. You can also trust that we are on top of the latest trends in shipping and logistics so we can stay ahead of how it would affect your freight.
Have a question? Ask here! If you would like to request a freight quote, click here.
Here’s your annual reminder: from April to July, warmer temperatures gradually creep across the U.S. and the transportation world gets rocked by produce season. Many people don’t realize that even if you aren’t in the produce business, this can still affect your supply chain. Not sure exactly what this means for shipping your freight? Let’s go over the facts so you can be prepared.
What does produce season do to truckload capacity?
From early spring to summer, crop harvest volumes are at an all-time high across the nation. More crops means more produce that needs to get to market, and thus, more trucks needed on the road. With trucks in higher demand, especially on the southern East Coast, capacity gets tight every year around this time.
Since produce is time-sensitive, and farms are usually in close quarters with each other, trucks can be especially hard to come by within specific, small geographical areas and within particular timeframes. The proximity of your pickup and drop-off locations to these areas can really have a big impact on the availability of trucks for your loads. This can also mean higher shipping rates are required to secure these highly sought after trucks.
Produce is almost always shipped on reefer (refrigerated) trucks, and since there’s a lot of freight needing to be moved, this especially cuts down on available refrigerated equipment during produce season. Unfortunately, since this type of commodity is so time-sensitive, intermodal or other alternative modes of transportation aren’t very popular options. This means capacity will be even tighter if your freight requires refrigerated equipment.
In summary: during produce season, peak volumes of fruits and vegetables are ready to be shipped to grocers around the country, demand for trucks gets higher, capacity gets tighter, and shipping rates may go up.
How can working with a 3PL, like Trinity Logistics, help me during produce season?
Whether you ship produce or not, working with a non-asset based shipping company like a 3PL can provide you with access to thousands of carriers available to ship your freight. Trinity works with a network of over 30,000 vetted carriers. The larger the network of carriers, the more likely a truck can be found that’s ready and willing to move your freight. Working with a multi-modal company can also provide you with other shipping options, like intermodal, if truckload capacity becomes an issue and there are acceptable alternatives for the commodity you’re shipping.
Trinity Logistics is also a member of the Produce Marketing Association (PMA). This means that educated sales reps familiar with the produce industry are arranging the shipment of your time-sensitive and high-value produce. Our common practices include asking carriers to check the pulp (internal) temperature of the produce to check if it’s warm before loading, providing daily tracking updates, and encouraging remote temperature readings from carriers.
We have over 200 actively shipping customers in the produce industry. If you’d like a to request a shipping quote, or simply have a question about the upcoming produce season and how it might affect you, call 866-603-5679 or click here.
When it comes to managing your company’s logistics and supply chain, life can quickly get hectic. Needing to seek out carriers for each mode of transportation that you require costs you time, money, and resources. This is why working with a one stop shipping solutions provider can save you from a major headache.
You’ll only need to establish a relationship with one party.
Working with a third-party logistics company (3PL) that is able to provide multiple modes of transportation including truckload, less-than-truckload (LTL), intermodal, and international, as well as technology solutions, gives you an all-in-one avenue to get your freight where it needs to go in the most cost and time-efficient manner. A 3PL, like Trinity, will assign you to a single sales representative that will be your main point of contact for shipments of any kind, versus needing to establish relationships with multiple representatives across multiple shipping companies.
Time is money.
If you’ve got your employees tied up in rate shopping and tracking shipments, you could be wasting some of your most valuable resources. Whether you’re currently working with multiple 3PLs or routing your shipments through asset-based carriers, you might be wasting more time than you think. By working with a one stop shipping solutions provider, you can free up your team to accomplish bigger and better tasks. Let your provider do all of the dirty work behind getting your shipments where they need to go.
More volume to one provider means lower shipping rates.
The higher volume of shipments you’re able to provide to a single 3PL, the more leverage they’ll have with carriers to negotiate shipping rates. So, instead of spreading your freight out to multiple providers, choosing a 3PL that can service all of your needs could end up saving you not only time, but money as well.
You’ll be able to simplify your administrative tasks.
After you find multiple different carriers to haul your freight, you may end up with a pile of invoices bigger than you. Perhaps one of the most relieving aspects of working with a one-stop shop is eliminating the need to pay multiple invoices to a range of carriers. By choosing one logistics solutions provider, you’ll only need to worry about paying a single shipping company.
Aside from the time and money savings, choosing a one-stop shop logistics provider can relieve you from stresses that go along with managing contact lists and invoices. If you’re seeking this kind of provider, Trinity Logistics offers a variety of logistics and shipping services that cater to a variety of industries and customers’ needs.
To learn more about how Trinity’s total solutions provider approach can help you, click here.
At the end of November, the FMCSA published a new rule that will prohibit truck driver coercion. This affects motor carriers and other transportation parties, including shippers and receivers. Let’s go through what you need to know.
What is the ruling?
The new FMCSA ruling makes driver coercion illegal. Driver coercion is defined as behavior and communication that would entice or intimidate a commercial motor vehicle driver to drive outside of legal operating restrictions, including hours-of-service (HOS) and CDL regulations. An example of this would be a carrier threatening to punish or fire a driver for refusing to accept a load that would require driving outside of the federally regulated HOS limits.
What is considered driver coercion?
The FMCSA said that the following must have happened in order for coercion to have occurred:
1. A motor carrier, shipper, receiver, or other transportation intermediary requested that a driver perform a task that would directly result in the driver violating Federal Motor Carrier Safety Regulations, Hazardous Materials Regulations, or Federal Motor Carrier Commercial Regulations.
2. Following the questionable request, the driver informed the party requesting the task that accepting would violate federal regulations.
3. There then must be a threat or action against the driver’s employment or work opportunities to get the driver to take the load or deliver the shipment, knowing this would require the driver to break regulations.
When does it go into effect?
This new ruling will take effect on January 29, 2016. The FMCSA will also begin accepting coercion complaints from drivers on that date.
Why is this happening?
According to the FMCSA, financial and unreasonable economic pressure in the transportation industry can inhibit overall safety. If drivers are pressured about loads to the point of committing unlawful acts to fulfill the request, this obviously creates a hazardous situation.
This new ruling gives the FMCSA a way to pinpoint troublemakers. Those who coerce drivers negatively impact the overall welfare of not only the drivers, but everyone traveling the roadways. Those found to be in violation of this new law can be fined up to $16,000 per incident.
To learn more about the driver coercion ruling, visit the FMCSA’s website here.
Being a Certified Claims Professional (CCP) sounds nice and fancy, but what difference does it make for your business to work with a transportation company who staffs them? Let’s delve into what this certification means and how choosing a transportation provider with CCP members could make your life easier.
What is the certification?
In 1980, a Blue Ribbon Steering Committee meeting was held in D.C. with over 30 shipping executives from all modes of transportation. It was realized at this meeting that standards were needed across the shipping industry for the process of handling freight claims. This led to the creation of the Certified Claims Professional Accreditation Council (CCPAC) and the CCP certification.
CCPAC is a non-profit organization that seeks to raise the standards of knowledge and professional competence for those that handle freight claims. Those that have met the requirements of being a member, which includes a comprehensive examination, and proof of education and work experience in the field, are named as Certified Claims Professionals (CCP).
The CCP certification serves as proof that an individual exhibits extensive knowledge in the subjects of cargo and freight claims. This includes the preliminary investigation, minimizing loss for all parties, and the claims filing process. This also shows the investment the certificate holder has in the claims field and validates their status as a professional in cargo claims management within the transportation industry.
How does one get the certification?
In order to become a CCP, one must meet the minimum requirements in education and experience in transportation cargo claims, which includes college credits and dedicated work hours to certain claims procedures. Once the educational and experience requirements have been met, the applicant must take and successfully pass the CCP examination.
The extensive CCP exam includes questions and essays on topics ranging from bills of lading, cargo insurance, concealed loss or damage contracts, and common carrier liability.
After the initial certification, one must refresh their status every three years by fulfilling the continuing education requirements by participation in CCPAC accredited transportation educational courses, organizations, outside seminars, conferences, webinars, or by re-examination.
Why should I look for a 3PL that has CCP members?
Not every third-party logistics company has a claims department, let alone one that has CCP members. This should be a consideration when you are deciding on a transportation provider.
Those 3PLs that do have an in-house claims team can assist with filing cargo claims that arise when they have arranged the transportation of your shipment. Acting as the liaison between your company and the carrier that moved your freight, they can collect all the paperwork and submit it to the carrier (or their insurance, depending on the amount of the claim) on your behalf.
To make things that much better, an in-house claims team with CCP members can provide even more support throughout the claims process, and using their extensive knowledge and experience, may even be able to deescalate and minimize the issue altogether. As they are leading cargo claims professionals in the transportation industry, they will also be the most apt to know about trending claims issues and how to prevent them.
Trinity recognizes that the logistics industry is constantly growing and changing. We want experienced, educated team members assisting our customers and carriers with issues concerning cargo claims and managing risk, which is why we have two of our very own CCPs on staff.
Whether you’re trying to cover a load on the spot market or attempting to predict transportation costs for the next fiscal year, truckload capacity has a huge impact on these processes. How many trucks are available on the road at any given time can be difficult to predict, and there are many components that affect truckload capacity. To help you better prepare, let’s review the major factors:
Seasonal Capacity
In the shipping world, there are two major seasons to mark on your calendar. The first is produce season, which starts around April and ends in July. This is the time when produce harvesting hits its peak and those distributing it require a large amount of trucks to haul their loads. Even if you aren’t a produce shipper, you could be impacted by the high demand for equipment at this time, especially if you’re on the East Coast.
Peak shipping season is the other time period to be aware of. It’s generally from August to October, adjacent to produce season. This is when sales for customers in the manufacturing and retail industries skyrocket due to everyone going back to school and preparing for the holidays. Shipping volumes shoot up dramatically across the U.S., and this always tightens truckload capacity.
While truckers are happy to be hauling a large number of loads, shippers feel the impact of tightened capacity, and shipping costs may go up. The basic economic principle of supply and demand can be applied here. There is a high demand for trucks and drivers, but a lower supply. This is good for truckers, and bad for shippers.
Regional Capacity
You may have found that some areas in the country are considered danger zones for truckers. Some spots in the country are just not attractive to drivers and are colloquially known as “black holes”. Essentially, this means that drivers may be able to find loads in the area, but have a hard time finding outbound loads to get home (known as backhauls). With that being said, low outbound shipment areas generally have tighter capacity.
Typically, areas with high consumption and high population, but with low numbers of manufacturing and distribution centers in the vicinity, are undesirable spots for truckers, so shipping to these areas will come at a cost. Examples of these places would be Denver, Orlando, Dallas, Seattle, and Phoenix.
Equipment Availability
Sometimes it’s not the driver that’s hard to come by, but the equipment itself. Perhaps you need a reefer truck for your produce or a flatbed for your machinery, but there simply aren’t any available on that particular lane. This can happen due to any of the previously discussed reasons, but a major one in the pipeline is the equipment crunch set to hit later this year.
The holiday rush will begin at the end of August or Early September, which marks peak season for intermodal shipping. Since shipping over the rail requires dray carriers and trailers, truck capacity will tighten. Since the housing market is improving, new construction is on the uptick, and the economy is relatively healthy, peak season should be extremely busy. With truckload capacity issues, this could shape up to be a perfect storm for shippers trying to get their goods to market.
Driver Shortage
If you’re in the shipping industry, you’re likely already aware that the U.S. is experiencing one of the worst periods of truck driver shortage in history. The trucking profession has simply lost its glam as the average driver age hovers around 52 years old, and younger drivers are hard to come by. Truckers are retiring left and right due to low pay rates and the hardships of being away from family for days or weeks at a time, in addition to several new federal restrictions.
Larger carriers are experiencing driver turnover rates in the 90 percent range, which means they need to replace nearly their entire fleet each year. Sure, fleet operators have tried to push incentive programs and pay raises, but the shortage is still prevalent. According to the American Trucking Association (ATA), the trucking industry is estimated to be short by 64,0000 drivers. The stronger the economy grows, the more obvious the shortage becomes.
Until the fleet operators and industry leaders are able to figure out a long-term solution to the driver shortage issue, tight truckload capacity will continue to affect you and your business. Shipping rates can go up at a moment’s notice, especially on the spot market. This is why working with a high-volume third-party logistics company (3PL), like Trinity Logistics, is such a game changer for your business. We can help you navigate the unpredictable world of truckload capacity, as we have a reliable network of trusted carrier relationships across the nation. Chances are if there’s an issue in the transportation industry, we know about it and can help you make educated decisions for the best outcome for your business.
GET HELP FROM TRINITY LOGISTICSOn May 5, Freightliner Trucks debuted the first road-legal driverless truck to hit North America. This new advancement has left many wondering where this will take the industry and what it means for both freight carriers and their drivers.
How does the driverless truck work?
Freightliner’s self-driving truck has been named “Inspiration”, perhaps due to the feelings it evokes from those looking forward in the trucking industry. The futuristic truck features a technology that works to keep the truck within lanes and at legal speeds with the use of cameras.
At this time, the truck is fitted with the technology to drive itself on highways, but is not completely self-sufficient. Licensed truck drivers are still needed to sit behind the wheel to takeover control for surface roads, exiting highways, or bad weather.
When a situation requires a human driver, the truck will sound a loud beep. Otherwise, the truck will stay in its lane and maintain a safe speed and distance from other vehicles on the road, according to Alex Davies, a magazine editor who was at the truck’s demonstration. If the driver does not respond to the beep and take over, the truck will begin slowing down until it is at a complete stop.
Will this replace truck drivers?
Ground-breaking new technology always stirs up a little bit of fear for those who work in the affected industry, as it could potentially change or replace their job. However, Freightliner has eased some of this anxiety by mentioning that the self-driving truck still needs a driver to monitor it.
Some current truckers are not fazed by this new advancement.
“Well it’s coming, like it or not. Cars, trucks, planes; there will always have to be someone behind the wheel monitoring the vehicle until they figure out how to get a level 4 fully self-driving vehicle,” said Jeffrey Buford, a driver from Riverside, California.
Other drivers feel the pitfalls of technology could prevent the extinction of the truck driver position.
“I once ran into a scenario where I-30 in Texas was closed for a wreck and police officers were physically directing traffic around the wreck two different ways depending on what vehicle you were driving,” said Steve Lapp, a driver from Jacksonville, Florida. “Who could possibly determine how the police officer could communicate to a driverless vehicle how to do that?”
Is this the future of the trucking industry or just a fad?
The real question burning in everyone’s minds after the debut of this driverless truck is how this technological advancement will impact the trucking and shipping industry. Is this just another buzz topic to be shared on social media and brought up in passing at truck-stops, or is this really something to think of as an imminent reality?
Drivers who are skeptical, like Michael Smith, an owner-operator from Jacksonville, Florida, think there won’t be a positive outcome from the new line of self-driving trucks.
“I think a lot of smart people built a smart truck and one day there’ll be a really smart wreck,” Smith said.
The Freightliner Inspiration truck is currently being tested on roads in Nevada, but the company says the truck won’t be widely commercially available for another decade or so. Regardless of opinions, the truck has been passed through legislation and deemed legally operational. The question remains how many other self-driving vehicles will be in the line-up for the race to autonomy.
“In my mind I see road trains miles long cruising across the prairies; dedicated lanes and nodal points across the country waiting for drivers for local delivery. I’m looking forward to it,” said Steve Singfield, an owner-operator. “Anything to keep me safer, more comfortable, relaxed instead of being weary and bodily worn out, is something to embrace rather than to just dismiss with derision.”