Proper carrier selection may be one of the most important tasks for Freight Agents to keep their business safe.

I remember the first time I dispatched a driver to pick up a shipment thinking, “Wait, I just met this carrier for the first time. I’ve sent their driver to pick up a shipment for one of our top customers.”

Needless to say, I made about 10 calls to the driver, carrier, and shipper to verify everything was legit. It still boggles my mind to think that a shipper, whom I have never met, will entrust thousands of dollars in THEIR freight to a company that will then send a driver, whom they may have never met, to haul it away.

This scenario happens thousands of times daily across the U.S. and the world. Most of the time, everyone involved does what they say they will do correctly. But there are times, albeit very rarely, when one of the parties is involved for the wrong reason.

First, let me say Trinity Logistics and other logistics companies in our space get the chance to work with great carriers each day. Yet, there are still some bad actors out there. They want to involve themselves in our industry and do things the wrong way, often at the expense of hard-working and trustworthy carriers and Freight Agents.

So, Freight Agents, what can you do to protect your small business and the business of your customer, when arranging shipments with carriers? This is where having a carrier selection process is key to best serving your customer and mitigating any risk. Here are some items you should verify every time you arrange a shipment with a carrier to ensure its success.

CARRIER SELECTION PROCESS

Always Ask This Question

“What’s the name on the side of your truck?”

While this seems like a simple question, it’s the number one question that can identify a potential double-brokering situation. Now, there will be times when the name on the side of the truck doesn’t match the carrier with whom you booked the load. Leased-on drivers are a great example of this.

What do you do if the answer to this question is different from what you expected?

Well, it gives you the opportunity to ask follow-up questions to investigate. It’s far better to find out this information before versus after the shipment has been picked up. I‘ve also heard of some requiring the driver to text a picture of the side of the truck door for added assurance.

Does it Match?

Does the email and phone number match what is registered with FMCSA?

Again, there may be legitimate reasons for the phone number or email not matching the Federal Motor Carrier Safety Administration (FMCSA) website. Maybe the carrier’s contact information has recently changed for valid reasons. Perhaps it’s an owner-operator that registered with their home or office phone number but is on the road and calls from their cell phone.

In any event, it gives you a reason to pause and ask more questions to ensure you have confidence that this is the actual carrier with whom you trust to handle your customer’s freight.

Other Carrier Selection Vetting Freight Agents Should Consider

What about the stuff you can’t see by looking at the FMCSA website?

You can quickly see things like liability insurance coverage or a carrier’s operating authority history on the FMCSA website. But what about referrals – good or bad – from other logistics companies?

Luckily there are tools available to see beyond the information reported by the FMCSA. There are platforms like CarrierWatch, Carrier 411, or Highway that provide a glimpse into any skeletons that may be hiding in the closet. It’s important to note that these are pay-to-play platforms. Freight Agents that choose to partner with an experienced logistics company, like Trinity Logistics, have access to a Carrier Compliance Team that continuously monitors these comments to protect you and your customer’s best interests.

FREIGHT AGENTS, DON’T OVERLOOK YOUR CARRIER SELECTION

Carrier selection is important as you are placing your trust in them to meet your customer’s shipment needs. Doing a little bit of homework and, when necessary, trusting your gut with your carrier selection, will save you future headaches and, ultimately, protect your Freight Agent business.

TRUST OUR QUALIFIED CARRIER RELATIONSHIPS

We’re here to help your Freight Agent business succeed all around, and that includes your carrier selection. Safety and exceptional service are our highest priority, and so our Carrier Compliance Team takes care of our rigorous carrier vetting to verify that the carrier you select is qualified and experienced.

With our People-Centric Team and best-in-class technology applications at the ready, Freight Agents working with Trinity Logistics can spend less time on back-end tasks like carrier selection and more time growing their business.

Go ahead and choose to get in touch with a Trinity Freight Agent Representative today so you can start receiving world-class support to get ahead of your competition. Call 800-846-3400 x 1908 or click the button below to begin your conversation with Trinity.

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If you’re a large-scale manufacturer, getting liquid freight transported in bulk is a non-negotiable complexity. Bulk transportation, especially liquid freight, has its challenges and may seem daunting. But, with the right information and provider, it doesn’t have to be. So, whether you’re new to bulk transportation for your liquid freight or a seasoned vet, this article breaks it all down so you can safely and efficiently have your liquid bulk product transported.

What Is A Bulk Product?

What Kinds Of Bulk Liquid Products Are There?

What Is Bulk Transportation For Liquid Freight?

Complexities Of Bulk Transportation For Liquid Freight

What Can Go Wrong With Shipping Bulk Liquid Freight?

What Kind Of Equipment Is Needed For Bulk Liquid Transportation?

How Do You Transport Bulk Liquids?

Bulk Transportation: Liquid Freight Regulations

WHAT IS A BULK PRODUCT?

Before we dive into bulk liquid freight, let’s go over what bulk products are. The term “bulk” is used in transportation to describe goods that are not in containers and loose, transported in mass quantities or volumes. Bulk products are usually packed in one large container to be moved, such as a tanker trailer. Bulk products are often not intended for general consumers but are useful to manufacturers. Examples of bulk products are raw materials, ingredients for food manufacturing, materials for landscaping, gravel, dried beans, oil, or grains.

Another term to be aware of when working with bulk products is “break bulk”. Breakbulk is when a bulk shipment is broken down into smaller containers. This is important to know because bulk shipments are handled as loose goods whereas breakbulk shipments are loaded individually in some sort of container. Therefore, when you have a product to ship, it’s very important to properly communicate whether your shipment is bulk or breakbulk.

WHAT KINDS OF BULK LIQUID PRODUCTS ARE THERE?

There are many sorts of liquid products that ship via bulk transportation. These types of liquids are often used in manufacturing, food processing, agriculture, and more. Some examples of bulk liquid freight are:

WHAT IS BULK TRANSPORTATION FOR LIQUID FREIGHT?

Bulk transportation for liquid freight involves using a tanker trailer instead of smaller drums or tanks. Bulk liquid transportation usually refers to the act of moving liquid freight by truck over long distances.

COMPLEXITIES OF BULK TRANSPORTATION FOR LIQUID FREIGHT

Bulk liquid freight, especially when it’s hazardous, can carry more risk than other types of freight. For example, an accident involving a tanker truck can cause the shutdown of roadways, manufacturing production lines, and ultimately, the loss of raw material needed for many products.

The first complexity of bulk liquid freight is the way it’s packaged and stored. Unlike other freight, it’s not packaged in totes or smaller containers. Instead, bulk liquid freight is stored and transported in large containers and tankers, and because of their liquid state, they can slosh around and spill.

Since bulk liquid freight shipments transport differently than dry van shipments, you’ll find complexity in its logistics like:

Longer Lead Times

Tanker transportation is considered more of a specialty compared to dry vans, so you’ll notice fewer tankers available. This can make finding an available tanker longer to find.

Higher Rates

Being a specialty type of transportation, it’s easy to see why rates will be higher for this type of shipping. First, carriers pay more for this kind of special equipment. On average a tanker trailer can cost $100,000 to $125,000 compared to the cost of a dry van around $35,000 to $40,000.

Also, your shipping costs will include deadhead miles every time as each delivery requires a trip to wash the tanker. And unlike other types of transportation, you’ll have the same rate regardless of how full the tanker trailer is since different liquid freight cannot be combined for motor carriers to create a “full tank load” shipment.

Different Driver Requirments

No matter the product, tanker drivers are required to have a tanker endorsement, and if the liquid freight is hazardous, they’ll also be required to have a hazmat certification as well.

More Insurance

Carriers hauling hazardous liquid freight in bulk must carry a minimum of $5 million in liability insurance.

WHAT CAN GO WRONG WITH SHIPPING BULK LIQUID FREIGHT?

A lot can go wrong when shipping bulk liquids, so working with an experienced provider is very important. Drivers must be extra careful when pulling a bulk tanker trailer of liquid freight. Just as you must be careful when carrying a glass of water, liquid freight in a bulk tanker sloshes around with movement. If a driver brakes too hard or turns too fast, the weight of the liquid freight can surge to one side and topple the trailer. And if the freight is hazardous, then massive environmental damage can also happen.

Outside of concerns about a toppled trailer, drivers must be mindful of other issues. For example, what happens when you shake or stir liquid? It agitates and causes foam. This also happens with liquid freight during bulk transport. While foam can be annoying when later unloading the trailer, at worst, too much aeration can ruin a shipment depending on the kind of liquid.

Another thing that can go wrong when transporting liquid freight is contamination. Therefore, tank washing is a requirement for every shipment. If a tank isn’t properly cleaned before the next shipment is loaded, residue from the previous shipment can contaminate it.

Lastly, leaky tanks are another serious issue with bulk liquid shipping. If a leak goes unnoticed, even a small one, a significant amount of product can be lost during transport.

WHAT KIND OF EQUIPMENT IS NEEDED FOR BULK LIQUID TRANSPORTATION?

Bulk liquid freight cannot be transported without the proper equipment. Most often, a bulk tanker trailer is needed to haul liquid freight. A bulk tanker is a large, cylindrical metal tank pulled by a standard freight truck.

But there are several different kinds of tankers that can be used for the bulk transportation of liquid freight. For example, there are tankers designed to keep a product’s temperature regulated or tankers with hoppers on the bottom to make unloading easier. In addition, some tankers include pressurized tanks or acid-resistant tanks. Which type of tanker you’ll need is determined by the liquid freight you need to transport.

Some questions to ask yourself, or that your provider may ask of you, to determine what kind of equipment is needed are:

Types of Tanker Trailers for Liquid Freight

Tanker trailers can be categorized into two categories, depending on the content they transport or their structures.

Tankers by Structure

General Purpose Tanker

These tankers are used to transport bulk liquid freight that doesn’t require special care or procedures. They are usually made of steel.

General Purpose w/ Heat Coils

These tankers are the same except for the addition of heat coils to help raise or maintain the temperature of the product.

Pneumatic Tanker

These tankers have a series of hoppers on their underbellies to help with unloading. Although pneumatic tank trailers are mostly used to transport dry bulk freight. They are also effective for liquid bulk.

Vacuum Tanker

This is simply a tanker with a pump to help load bulk liquid from underground or any other location into the tank. These tankers are most used to transport septage, industrial liquids, sewage, or animal waste.

Rubber Lined Tanker

These tankers are commonly used to transport corrosive chemicals.

Aluminum Tanker

These lightweight tankers can carry more volumes before reaching their weight limit and have lower operating costs. They are typically used to transport petroleum and petrochemicals.

Compartmentalized Tanker

These tankers have compartments built into them that allow tanker carriers to ship different chemicals.

Fiberglass Reinforced Plastic Tanker

These tankers are most used for food-grade bulk liquids, corrosive chemicals, and other hazardous liquid freight.

ISO Tankers

These tankers are built according to the standards of the International Standard Organization (ISO) for the shipping of most bulk liquid freight.

Tankers by Liquid Content

Fuel/Petroleum

These carry gasoline, fuel, oil, or propane. Most often these tankers are required to carry a hazmat certification, also making this a more dangerous job.

Food Grade

These tankers carry liquid freight like water, milk, or juice. These tankers can be equipped with heating or cooling systems for temperature control.

Chemical/Acid

These are used to transport many types of industrial chemicals. Some are designed to carry corrosive chemicals.

But Wait, There’s More…

Before we move on to the next section, two things you might want to know about are baffles and tanker weight limits.

Baffles

What are baffles? Remember when we spoke on liquid agitation earlier? That’s where baffles come in. Most tankers have baffles on the inside to help reduce the movement of the liquid. They act as different chambers to help divide the liquid up into smaller compartments, so the entire weight of the liquid is prevented from surging up against the side of the tank.

Tanker Weight Limits

Tankers are not limited by the amount of liquid they can contain, but by their weight. The U.S. Department of Transportation mandates that the maximum weight limit for trucks on public roads cannot exceed 80,000 pounds. So, if the liquid you need to transport is dense, like syrup or paint, you might not be able to fill an entire tanker truck. This is essential to keep in mind when arranging your bulk liquid shipments.

HOW DO YOU TRANSPORT BULK LIQUIDS?

Now that we know what kinds of equipment are used in transporting bulk liquid freight, let’s talk loading and unloading. These proper handling procedures ensure your liquid freight is transported safely.

Loading and Unloading

Before loading, the carrier must have the tanker cleaned so that it is without any residue or odor. The only time a tank washing may not be required is if the tanker is transporting the exact type of chemical it most recently unloaded.

They must also thoroughly inspect that nothing is out of place and there are no leaks. If there is any concern, the entire tank can be filled with water to test for leaks. Not only is a leaking tank inconvenient and expensive, but it’s also illegal.

There are two major methods for loading and unloading liquid freight from a bulk tanker: compressors and pumps. Pumps suck the liquid out of the tank while air compressors rely on pressure to force liquid out. It’s important to know that you cannot use air compressors for any flammable liquids as static electricity could build up and cause a spark.

Fun fact: When you unload a tanker of liquid freight using a pump, you must vent it by opening the hatch on top. The trailer can implode if this step is missed, just like your pressurized cooker at home. However, if you’re unloading with a compressor, make sure the hatch is closed.

When a bulk liquid shipment arrives for unloading, the receiver should always first take a sample to confirm the right product was delivered and in good condition.

Hazardous Labeling

Regulations mandate that any trailer transporting hazardous materials must be labeled. This helps anyone recognize the kind of content the trailer is carrying so they know what precautions are required.

WHO IS RESPONSIBLE FOR WHAT?

It’s important to know your and other parties’ responsibilities to ensure a safely transported bulk liquid shipment.

Shipper Responsibilities

Receiver Responsibilities

Carrier Responsibilities

BULK TRANSPORTATION: LIQUID FREIGHT REGULATIONS

Depending on what kind of liquid freight you’re transporting in bulk, regulations can vary. For instance, if you’re shipping liquid intended for human consumption, you’ll need to abide by any regulations set by the U.S. Food and Drug Administration (FDA), like the Food and Safety Modernization Act (FSMA).

If you’re shipping hazardous liquid freight, you’ll need to abide by any hazmat regulations.

Regardless of the kind of liquid freight you’re transporting, you’ll need to make sure the provider you work with has a tanker endorsement.

Managing transportation costs is a top challenge for shippers, while another challenge that goes in hand is sourcing consistent and reliable capacity. Here enters the contract and spot markets. Which one is best? Which has better shipping freight rates?

Some believe the spot market is the way for shippers to save money and stay on top of capacity, while others think it’s contract. Choosing to use spot rates versus contract rates can be one of the biggest decisions for a logistics manager. Understanding their differences and when is best to use them will help give your business success. So, let’s dive into each of these markets so you can better determine your business’s strategy.

TABLE OF CONTENTS
WHAT ARE SPOT RATES? WHAT IS THE SPOT MARKET? WHAT ARE CONTRACT RATES? WHAT IS THE CONTRACT MARKET? 
HOW TO TRACK RATES IN THE SPOT MARKET? HOW CONTRACT AGREEMENTS ARE SET 
WHO IS THE SPOT MARKET BEST FOR? CONTRACT RATE PROS/CONS
SPOT MARKET PROS/CONS HOW TO GET YOUR BEST SHIPPING FREIGHT RATE ON THE CONTRACT MARKET 
HOW TO GET YOUR BEST SHIPPING FREIGHT RATE ON THE SPOT MARKET WHAT HAPPENS WHEN A CONTRACT IS BROKEN? 
WHAT’S BEST FOR ME? TECHNOLOGY NEEDED FOR RFPS 
NEED HELP WITH YOUR STRATEGY FOR COMPETITIVE SHIPPING FREIGHT RATES?

WHAT ARE SPOT RATES? WHAT IS THE SPOT MARKET?

Spot freight rates are short-term transactional quotes for moving freight. These shipping freight rates are the price a transportation provider offers a shipper for a one-time quote to move their product from origin to destination. They reflect the real-time balance of supply and demand in logistics and the truckload market.

The quote is based on the value of the equipment needed at the moment of settlement. What determines the value of that equipment? Well, whether there is an excess or shortage of that exact equipment in the market and the lane at that time. Because market conditions directly affect spot rates, they are dynamic and can change day to day, even hour to hour. This is because the freight market can be more complex than simple supply and demand.

Thus, an increase in supply will lower spot rate prices if not accompanied by increased demand. And an increase in demand will raise spot rate prices unless accompanied by increased supply.


How to Track Rates in the Spot Market

You can keep track of the spot market through several industry websites and freight load boards to give you an inclination of what’s happening in the spot market. Some resources we like to follow are DAT and FREIGHTWAVES. 

We even push out a monthly update to keep you in the loop of rates and other happenings in logistics. You can find our latest Freight Market Update on our YouTube channel.

It’s crucial to stay on top of the spot market should you find the need to use it. Even if you decide to use contract freight, it’s good to keep a pulse on it as contract rates are affected by the spot market. The higher spot rates are, the higher contract rates are too.

Who is the Spot Market Best for?

Many carriers, shippers, and third-party logistics (3PL) companies turn to the spot market for competitive rates. No matter how big or small, every shipper will move some of their freight on the spot market at some point. The spot market is great for when you might have a one-off shipment outside your usual shipping lanes. It’s good for shippers who don’t have enough regular volume for contracts or those who need more capacity than they contracted out. Or even those specialty shipments or non-standard load requirements.

Spot Market Pros/Cons

HOW TO GET YOUR BEST SHIPPING FREIGHT RATE ON THE SPOT MARKET

Provide Accurate, Detailed Shipment Information

Though you can get a spot quote with as little as the origin and destination zip codes, pick-up date, and equipment type, it’s best to have ALL shipment information ready. Excluding any critical information may have you unexpectedly paying for it later. The more precise information you have, the more accurate your spot rate quote will be, so you won’t have any surprise added charges.

Information you should have for your best quote:

Provide Ample Lead Time

Shippers will request spot quotes anywhere from a week in advance to the day of. Most will request them one to two business days before their shipping date. The more time you can give before your shipping date, the better, as spot rates tend to increase as the pickup date approaches.

Giving yourself a few extra days to secure pricing and capacity will usually work in your favor and lead to less expensive freight rates. This is because there will be more carriers available versus trying to find one on your shipment day.

Don’t Wait Too Long to Confirm a Good Spot Rate Quote

Spot market rates are volatile and quickly change over short periods of time. Therefore, the quote you received yesterday may be different today. So, when you find a rate that works for your shipment, don’t wait to confirm it. Instead, lock it in ASAP for confirmed pricing and capacity. Once agreed on a rate, a reliable provider will rarely change it UNLESS an important piece of information about your shipment changes.

Set Appointments During Regular Business Hours

There is usually more capacity available during regular business hours. As incredibly hard-working as they are, drivers still like to be home on holidays, weekends, or nights when possible.

If your appointments need to be precise, make sure to include that information in your quote request so your quote can be accurate. But, if you can be flexible with your times, setting appointment windows instead of strict appointment times can open you up to more capacity. For example, drivers have to manage their strict Hours of Service so a flexible appointment window can help them better plan their day.

Spot Market Technology

Many providers offer digital freight platforms and give you access to free instant freight quotes. This can be a great way to stay on top of current pricing without sending a lot of emails to different providers. Good freight providers will have logistics experts on call should you have questions or need more help. But having the ability to get quotes on demand can add time back into your day.

Be Mindful of Carrier Selection

While cost is important when choosing your transportation provider, make sure you consider several other factors into consideration. You should consider their experience, efficiency, and service. While a cheap quote is great, it can sometimes result in a missed pick-up, hidden accessorial, or even a damaged product. All this could end up costing your business more.

When shopping the spot market, shop around and get quotes from a few different providers. Once you have a few quotes, evaluate the rates while considering your shipment requirements and ask yourself a few questions about your potential provider:

WHAT ARE CONTRACT RATES? WHAT IS THE CONTRACT MARKET?

A contract rate is a rate quoted by a transportation provider to a shipper for a set lane and its freight characteristics over a set period of time. Contract rates can also be known as primary rates, bid rates, committed or dedicated rates. In short, they are a long-term, stable pricing agreement between shippers and transportation providers.

The contract market is highly dependent on the spot market. Typically, the three to six months of spot market activity leading up to an RFP will influence contract rates.

Contract agreements are great for both shippers and transportation providers as the shipper gains committed capacity while the transportation provider gains fixed rates and dedicated freight volume. Everybody wins.

How Contract Agreements are Set

Contracted agreements or Requests For Proposals (RFP) can be set as mini bids (monthly), quarterly, bi-annually, or annually. However, since the contract market and its rates are based on the fluctuating spot market, it’s rare to see a contracted agreement set for more than a year to stay in tune with the market.

Contract agreements are set during the bidding process, aka the RFP. The shipper will take the RFP and send it to a network of transportation providers and those providers will reply with their quotes. At the end of the bid process, the shipper will award lanes to specific providers based on their rate, service, capacity, and any other considerations.

CONTRACT RATE PROS/cons

HOW TO GET YOUR BEST SHIPPING FREIGHT RATE ON THE CONTRACT MARKET

Any shipper has the opportunity to host a bid. There’s no set minimum shipment requirement. So, no matter how large or small you are, you can take advantage of an RFP.

Just like getting quotes for the spot market, the contract market requires detailed information to get your best rates. The more information you can tell your potential providers, the more reliable rates and capacity you’ll be able to get offered. Information that should be included in your bid:

What Happens When a Contract is Broken?

Sometimes, contracts will get broken. For both shippers and carriers, breaking a contract may result in fines. Most likely when a carrier breaks a contract, they will end up with a dissatisfied customer and disqualification from future bid opportunities. While shippers will face a damaged carrier relationship, less reliable capacity, and most likely, higher rates on the next bid.

Technology Needed for RFPs

While the practice of RFPs sounds great, what’s the catch? For an RFP to work effectively, shippers need to be organized in their execution and collection of information. No matter your size, every shipper needs a way to track and store their supply chain data and procurement information. It helps to have one central location to keep all your freight volumes, provider names, and awarded lanes.

Some smaller shippers will use tools like Microsoft Excel, Google Docs, or even their providers’ technology platforms to manage their RFP data.

But if you’re a larger shipper, those tools can be overkill. Instead, 90 percent of shippers use digital platforms, often transportation management systems (TMS) to manage their procurement information. A TMS can help take the complexity out of RFPs and take your process from a few hours to a few minutes. It allows you to enter your contract information quickly, select the transportation providers you want quotes from, and click send. It will also help you have one location to easily view bids and communication around your loads, keeping you from overwhelming clutter.

Regardless of which workflow you decide for your business, it’s crucial to have a well-documented record on hand to easily reference.

WHAT’S BEST FOR ME?

Usually, no shipper runs all their freight through the contract market alone. As there are positives to each market and it can be hard to predict all volume, most shippers work to have a strategic blend of both spot and contract rates. What works best for your business will depend on the current state of the freight market, your freight, and your provider relationships.

Some questions to ask yourself when determining what market will work best for you are:

If you have determined that your volume is sporadic and not consistent, the spot market may be best for you, but it doesn’t mean that you can’t work with a carrier contractually. You can still build an approved carrier list with strong relationships even if you have to use the spot market on every shipment.

If you decide contracted freight is best for your company, keep an eye on spot market indexes and position your RFP bidding based on the freight cycle when possible. By moving your RFPs to when the market is at its lowest levels, you’ll gain your best rates.

Some shippers budget for 70 percent contracted and 30 percent spot or 50-50. No matter your balance, the freight market is always changing and so should your strategy. Keep a pulse on the market and your business needs so you can always find what’s best for your company.

NEED HELP WITH YOUR STRATEGY FOR COMPETITIVE SHIPPING FREIGHT RATES?

A shipper’s decision in balancing the use of contract versus spot rates can be difficult. Finding a good strategy for competitive shipping freight rates can be a lot of trial and error.

If you’re having challenges deciding when to use each market, Trinity Logistics can help. We have the technology and expertise you need to simplify your logistics management and offer support. Our Team Member experts are here to help you with your logistics strategy, including offering Quarterly Business Reviews and Freight Market Updates, so you can keep a pulse on industry trends and your company’s growth.

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It’s produce season. That time of the year when produce shipments are at their peak and so are produce shipment rejections. According to DAT, up to 12 percent of shipments are rejected or delayed. Produce shipments are most often rejected because of the complexities of fresh food logistics. Because of their perishability, they are more likely to experience damage in transit due to improper handling, temperature variances, or delays. 

A produce shipment rejection can cause lost time, added fuel and shipping costs, wasted product, and sometimes even a strained relationship with your customer. In addition, these rejections can cause a domino effect of added issues, costs, paperwork, and make everyone’s day longer than it needs to be. Yet, with attention to detail, planning, and effective communication, you can prevent produce shipment rejections and manage your costs. Here’s some advice on preventing shipment refusal during produce season.

ARTICLE CONTENTS
REASONS TO REJECT PRODUCE
WHAT TO DO WHEN PRODUCE IS REFUSED
PRODUCE SHIPMENT REJECTION PREVENTION
HAVING HELP WITH PRODUCE SEASON

REASONS TO REJECT PRODUCE

With fresh produce being on average, 90 percent water, it’s a volatile product to ship. It can develop issues at any stage, during growth, harvest, storage, packing, or shipping. This makes the logistics of shipping produce that much more complicated. As a result, there can be many more reasons for produce shipment rejections to happen. So, what are some reasons for a produce shipment rejection?

Paperwork Errors/Wrong Product

The Bill of Lading (BOL) must match the shipment delivered. When the receiver checks the BOL to verify the purchase order (PO) number, skid, case count, and weight of the freight delivered, and it doesn’t line up, then the shipment may be rejected. This could happen for several reasons. For example, the product could be what they asked for but the wrong amount, or the product could be completely different. However, any discrepancy between what they ordered and what arrived will mean a rejected shipment.

*Important to note: A produce shipment should not be rejected if there is less than 50 percent of the product short or damaged.*

Pallet Configuration

Some customers require that the product arrives according to their specific guidelines for packaging. If their requested guidelines are not followed, or anything shifted, fell, or ripped while in transit, then they may refuse the shipment.

Improper Temperature Range

Maintaining integrity and freshness is serious when it comes to a perishable product like produce. If your produce shipment falls out of its needed temperature range, even by one degree, the receiver may reject your shipment. Unlike other types of freight, the chance for spoilage with produce is too high, so a receiver won’t often take on the liability with any temperature variances.

Delivered Late

Often, retail and grocery distributing centers operate on tight schedules, so a delay could impact their other appointments. Unfortunately, this means they rarely make exceptions when it comes to late shipments and your produce will be rejected.

Equipment Issues

The trailer could have been unable to keep the temperature in the range needed for your produce shipment or perhaps the trailer was not washed thoroughly before loading. Maybe the carrier showed up with a van and you needed a refrigerated trailer. There are several issues in which the trailer your shipment is delivered in can have the receiver refusing your product.

Reasonable Time to Reject

One important thing to know about produce shipment rejections is that there is a reasonable time for the receiver to reject the shipment. When shipping by truck, the receiver must not exceed eight hours to inspect and reject. When shipping by rail, the receiver must not exceed 24 hours to inspect and reject.

AS A SHIPPER, WHAT TO DO WHEN PRODUCE IS REFUSED

Many issues associated with rejected produce shipments can often be resolved quickly with extra communication and planning.

You’ll first need to figure out why the receiver rejected your produce shipment, so start with asking your receiver that. Ask for pictures showing any damage and a copy of the BOL. Next, ask for the report by the USDA inspector or another qualified individual, as it’s required for the receiver to have the shipment inspected, note any issues, and detail what the cause of damage was. Additionally, ask your carrier for a reefer unit download or a temperature recorder download so you can see if there were any temperature fluctuations during transit.

If you’re considering filing a cargo claim, you must know that cargo claims for produce will only be paid for proven physical damage.

Now, if a produce shipment is rejected and not unloaded, there are a couple of options for you to try to recoup the loss. You can reroute the shipment to a different facility that will accept it, donate the shipment, or have the carrier dispose of it. Regardless of which option you choose, you are responsible for handling where the shipment will go next.

What are any secondary markets the produce can go to if messed up? What’s the disposition? You’ll be the best resource for the area’s market. Be familiar with your shipping lanes and the secondary markets within your location to best salvage the produce if refused.

https://trinitylogistics.com/whitepaper/temperature-shipping-guide/

Secondary Facility

As long as your produce is still safe for consumption and solely rejected for the way it looks, you might be able to sell the shipment to a secondary facility. For example, a sauce maker or a french fry company might be willing to buy a shipment of tomatoes or potatoes that are still edible but visually unappealing.

Donation

It can be possible to reuse a rejected produce shipment through local donation, though there are still high standards for products if donated. Any food and beverage products donated must be safe enough to consume. Donations can be optimal as your produce can still be used, and you can receive tax credits for your donation.

Disposal

If your produce shipment is rejected due to a temperature violation or clear spoilage during transit, disposal may be your solution. When your produce is determined to be unsalvageable, it may be best to dispose of it. Although the other two options are better for the environment and your bottom line, it’s sometimes a necessary evil to dispose of the product. While recycling and reusing are ideal, they may not be workable due to compliance and safety standards. One of the benefits of disposal is that scheduling disposals are often quicker than scheduling to another facility.

Maintaining a Good Customer Relationship

Shipment rejections can stress even the best relationships. It’s best to keep in mind that you are in it for the long haul and produce shipment rejections that can happen even to the best of shippers due to its complexity.

It’s best to acknowledge the rejection, replace the product as soon as possible, and find the source of the issue to help reduce the chance of another produce rejection happening anytime soon. Take ownership of the problem and control of your shipment so you can manage your money from the salvage. Taking control over the disposition will help you maximize your return, reduce claimed damages, and reduce your risk of customer relationship loss.

While these are all great solutions for handling produce shipment rejections, it’s ideal to prevent them in the first place. For companies looking to focus on their bottom line, it’s important to know all necessary prevention measures for produce shipment rejections and plan for when they do happen.

PRODUCE SHIPMENT REJECTION PREVENTION

Paperwork and Communication

The first step to preventing produce shipment rejections is to have your paperwork and communication in order. Your agreement must be clear on the condition of the produce your buyer will receive. Being able to present your buyer with evidence that your produce is safe and of the quality you stated it’s in before transit will prevent most cases of rejection.

Communication with your buyer and your logistics team on how your produce is being handled before loading, during loading, and during transit must be done effectively and properly. This is especially crucial because of the Food Safety Modernization Act (FSMA). Be sure to provide photos, diagrams, or any other examples of proper pallet configuration to your warehouse and trucking partners. This kind of communication will help them pack and load your freight correctly from the start.

Carrier Selection

Produce shipments, especially during produce season, often pay a lot. This means you’ll have a lot of carriers bidding to haul for you. Therefore, quality carrier selection and additional insurance requirements, like reefer breakdown, are crucial aspects to prevent rejected produce shipments.

Make sure you confirm with your motor carrier that they are both authorized and experienced to haul your produce.

Additionally, make sure they understand all your shipments requirements, including FSMA. For example, do they need washout receipts? Do they have a good quality truck, updated trailer, or a quality reefer? Do they have or need temperature-monitoring devices or other technology to ensure the temperature is controlled and the cold chain uninterrupted? Can they pull a reefer download if required?

By finding a quality carrier and building a strong relationship with them, you’ll gain a dependable carrier to use regularly. This can help you reduce any transportation-related issues that could later result in a shipment rejection.

Loading

Don’t Overstack

When it comes to produce season, the number one cause of claims that we see comes from over-stacking your boxes or bins of produce when loading them onto the trailer. An example of this would be triple or quadruple stacking your boxes when they need to be double-stacked. While this depends on each shipping location, not all may be aware that each box has a maximum capacity it can withstand and not damage your produce. You need to know the weight-bearing amount of your boxes so you can place no more than that. When you over-stack, it’s will increase the risk of your produce getting squished and damaged. Certain produce can be very fragile, like berries, tomatoes, asparagus, or bananas. They tend to bruise easily, so single-stacking boxes are even more ideal for them.

No Hot Loads

Industry experts say that as much as 32 percent of all cargo is loaded at the wrong temperature.

This is often due to poor loading practices, like loading from a hot field. When it comes to produce, loading from a hot field is a HUGE NO. This causes the driver to start traveling with your produce at the wrong temperature, which puts compliance and financial pressure on carriers, as the load is at a high risk of spoiling. Your produce should be safely brought down to its required transit temperature before loading to prevent any spoilage.

Have the Proper Equipment

While this may seem silly, it still needs to be said: If a motor carrier shows up with a dry van and your produce requires a refrigerated trailer, DO NOT LOAD. While losing some time or causing a bit of a delay is not ideal, it’s better to have the proper trailer needed to keep your risk of shipment rejection from spoilage or damage low. Additionally, make sure your carrier’s refrigerated temperature monitoring system has the proper temperature, date, and time set. If there is a rejection due to temperature variance and the date and time are wrong, you’ll take the blame due to current regulations.

When it comes to your motor carrier and loading, it’s also ideal to allow them to inspect and pulp your product before loading. They have the right to do so, and the opportunity can give your carrier the confidence to haul your product safely. It also helps build a strong and loyal relationship, while helping you gain more insight that your product is okay before it’s in transit.

Keep Clean of Debris

Another way to help prevent produce rejections is to have a shipping platform that can be cleaned without leaving any splinters or debris in vehicles. Food-grade plastic pallets are ideal for solving many hygiene issues while helping reduce product damage during transport. Unlike wooden pallets, they don’t splinter or leave behind debris, and their nonabsorbent surface can be easily cleaned and dried.

Transit and Delivery

As mentioned during loading, make sure you have a way to track temperatures throughout the shipment and be able to receive notifications in real time. By getting early warning signs of issues, temperature variations can be quickly detected and dealt with right away instead of learning about them later at delivery.

Additionally, make sure you have a qualified inspector on-site at delivery. This will help should the receiver decide to reject your produce shipment to determine if your product is salvageable for you to recoup costs.

Before transit, it’s best that you set up the potential for rework facilities to accept your produce should the receiver refuse it. Talk to nearby receiving facilities to establish accounts, processes, and pricing ahead of time. This way, if there has been some visual damage or slight shifting, it can quickly reroute to the other location and be reworked, being proactive rather than reactive. This is especially important when it comes to produce since time is of the essence.

HAVING HELP

Produce shipment rejections can be complex and confusing at times. This is where working with a third-party logistics company (3PL), like Trinity, can come in handy. We have Teams to help you with the prevention of rejections as well as when one does happen.

Carrier Compliance

Our Carrier Compliance Team is here to vet our carrier network and make sure they have what you need to get your shipment delivered safely. Not only do we have a rigorous vetting process, but depending on your shipment requirements, we’ll make checks for extra insurance needs like reefer breakdown and make sure they are FSMA compliant. 

Claims

No matter how prepared one can be, unexpected things can still happen. Shipments may get refused and so that’s why we have a Claims Team here ready to assist you. It can be a real lifesaver to have a Team of certified professionals to help take the stress out of the claims process. Should it be needed, our Claims Team will help you start the process, be there to track progress, and assist until a resolution is met between all involved parties.

DON’T GO THROUGH PRODUCE SEASON ALONE

With proper prevention, compliance, and planning, produce shipment rejections can become less of a thorn in your side during produce season. Even still, they can and will happen at times. Make sure you’re ready and have the support you need by working with an experienced provider such as Trinity.

You’ll have the advantage of working with and trusting our risk departments, who work hard to help mitigate any risk to your shipments. In addition, you can trust that each of our carrier relationships is properly vetted for things like reefer breakdown coverage. Should you need it, you’ll have a whole Claims Team ready to help you sort through any unexpected shipment issues.

Gain the support you need to navigate the complexity of produce season with less stress.

LEARN HOW WE SUPPORT PRODUCE SHIPPERS HELP ME WITH PRODUCE SHIPMENTS

Staying up-to-speed in leading technology requires time and investments. With all the current and upcoming logistics technology, it can be confusing for shippers to identify what will have the best impact to stay competitive now and in the future. 

HOW LOGISTICS TECHNOLOGY CAN HELP

Businesses today have never been in so much need of change and upgrade with their technology. Their list of challenges to overcome is never-ending. They have retailers demanding more visibility. Then there’s the struggle of finding capacity, managing costs, meeting service requirements, creating a more resilient operation, and more.

There are several current and emerging technologies available to help to address many supply chain problems. There’s a lot to go through, so let’s dive in and see how logistics technology can help.

…WITH CAPACITY

The ability to match a carriers’ network to a shippers’ network is very important. At the end of the day, you still need to match a driver and truck with an available shipment. Available logistics technology can help make that happen, but there still needs to be more adoption of it for it to be more effective.

…..WITH RISK MANAGEMENT

One thing the pandemic taught us is the importance of risk management and resilience. Mitigating your risk comes down to using technology to make better decisions faster by using better data. You must use a network of data to measure yourself against the current market and your peers.

…WITH PRODUCTIVITY AND COST MANAGEMENT

Shippers have an ongoing need to improve productivity and cost management. Technology can help you create win-win opportunities to match loads to available capacity. Or get more committed capacity and good on-time service at a reasonable cost. Logistics technology can help you be more productive while better managing your costs.

…WITH CARRIER SELECTION

Carrier selection can be time-intensive. The process of calculating the best combination of rates and lanes for a particular shipment can be lengthy. Logistics technology automates the carrier selection process, reducing your time spent. It allows you to select the best carrier for every shipment in real-time based on the cost and service level. Technology also helps with carrier vetting through digital applications and API feeds. 

…WITH SHIPPING UPDATES IN REAL-TIME

Most customers and shippers now expect real-time tracking. Technology allows shipment data like tracking and more to your customer in real-time using methods like APIs or geofencing. The days of frustrating phone calls to chase down freight locations are now history.

…WITH IMPROVED ROUTING

Load planning and driver routing can impact your logistics costs. Companies that have complicated delivery patterns can’t really be sure their network is optimized no matter how much time and money they use to plan without technology. Technology can do in seconds what it would take a human hours to do and do it accurately every time. This comes as a major benefit when developing routes incorporates several factors, like rates, delivery windows, and more.

…WITH REDUCED PAPERWORK

Logistics has always handled a lot of paperwork and data. For shippers, it can be easy to become bogged down in all the manual processes that they are responsible for. Not to mention, a single error can cause problems up and down the supply chain. Technology allows you to cut down on errors and time, freeing you to concentrate on more productive tasks. It also allows for easier storage, giving quick access to anyone who needs it.

….WITH GREATER TRANSPARENCY

Thanks to technology, the supply chain is more transparent than ever. Your customer’s expectations and needs have increased to include transparency. Logistics technology enables your customers to receive instant answers to their queries and delivery status. This feature has gone from a nice extra into a necessity for you to stay competitive.

…WITH EFFICIENCY AND FASTER PROCESSES

Technology has led the way to supply chains becoming faster and more efficient. Through warehouse and transportation management systems, businesses can quickly pull data, track resources, and reduced stock with real-time reporting. Through full visibility across your supply chain, potential errors, risks, and opportunities are seen, allowing your business greater efficiency.

…WITH COMMUNICATION

Good communication creates improved business. Technology has made this possible by changing the supply chain for the better. The software enables teams to input data that is accessible for all stakeholders. Technology also allows better insight data, allowing your company to better forecast and communicate your requirements. An increase in your communication also allows for a stronger relationship between you and your stakeholders. 

…WITH HAPPIER CUSTOMERS

The ultimate consequence of the benefits outlined above is happier customers. More efficient logistics operations mean that your freight gets out of the warehouse and to your customer faster. Through centralized storage plus real-time tracking removes any uncertainty for your customers. Technology increases transparency and communication between all stakeholders. 

TECHNOLOGY TRENDS TO WATCH

The logistics industry has perhaps the most to gain from new technologies. In recent years, we’ve seen a massive advancement in areas like artificial and augmented intelligence, advanced analytics, and automation. These advancements also bring new expectations, forcing companies to adapt or fall behind. There’s also more pressure coming from customers demanding their products come faster and cheaper than before. 

Here are the top logistics technology trends your company should be keeping an eye on and consider implementing.

ARTIFICIAL AND AUGMENTED INTELLIGENCE

The logistics industry has started using artificial intelligence in their transportation and more. AI has been making a huge difference in logistics through applications like warehouse automation and predictive optimization. According to research, using AI in logistics can increase companies’ gain by more than 50 percent a year. 

There’s also augmented intelligence. Augmented intelligence combines human intelligence with AI automated processes. According to Gartner, augmented intelligence is its way to create $2.9 trillion of business value. This would lead to an increase of $6.2 billion hours of worker productivity globally by the end of this year. Augmented intelligence is expected to be used more to allow businesses to do their jobs quicker while reducing mistakes and allowing for cost savings. 

DIGITAL TWINS

Digital twins may be one of the most exciting logistics technology trends to keep an eye on. As many know, products are never the same as their models. Modeling currently doesn’t consider how parts wear out and need replacing, how fatigue accumulates, or how owners make changes to suit their needs. Digital Twins technology changes this once and for all. 

Digital Twins allows you to engage with the digital model of a physical object like we would with their physical counterparts. The potential uses for this in logistics are vast. Digital Twins could collect product and packaging data to identify potential weaknesses and recurring trends to improve future operations in shipments. Warehouses could use it to create accurate 3D models of their centers, experimenting with the layout or the introduction of new equipment to the impact with no risk. Logistics hubs can create Digital Twins and use those to test out different scenarios to increase efficiency. 

REAL-TIME SUPPLY CHAIN VISIBILITY

Supply chain visibility is no longer an extra benefit for companies to have. It’s now needed and is taking another step forward – becoming real-time. 

Real-time data is more in demand by customers and carriers than ever. New startups are creating technology that promotes a quick response to change by allowing companies to use real-time data. This data can include things like traffic patterns, weather, or road and port conditions. Companies that make use of an integrated supply chain are reporting to be 20 percent more efficient than those without.

IOT SENSOR TECHNOLOGY

You can’t mention visibility without bringing up the Internet of Things (IoT) Sensor technology. By using connected IoT devices on parcels, it allows warehouses to track inventory or shipped freight. Container management that’s powered by IoT can be made easier with real-time monitoring. You’ll see increased fuel efficiency, preventative maintenance, and container operations more proactive versus reactive.

BLOCKCHAIN

Blockchain is an open ledger of transactions distributed among computers in each network. Since everyone has access to the shared blockchain, there is complete transparency. This also makes it impossible for users to hack into. It also makes it easier for different carriers or shippers to share data. Before a company can completely adopt blockchain, there are a few steps required. First, companies need to digitize, standardize, and cleanse their data. Then companies must form an ecosystem of partners to operate in a shared, permissionless blockchain environment.

Blockchain has grown to be a big buzzword as one of the most overhyped logistics technology trends. That’s because it depends on its market development and on the partners using it. Blockchain’s concept has also been difficult for the public to grasp. Despite its strong potential both in and outside of logistics, there’s been a lack of real development. 

Yet, there are some pilot projects and small-scale operations in effect to keep watch of. UPS and Warren Buffet’s BNSF Railway recently joined the Blockchain in Transport Alliance. 

DATA STANDARDS AND ADVANCED ANALYTICS

Data in logistics has always been isolated. Companies store their data in whatever way they deem fit. This leads to a fragmented system, allowing inefficiency, and making it difficult to digitize operations. 

One of the biggest logistics technology trends points out that isolated data will not be an option if you want to keep up with changing times. The Digital Container Shipping Association (DCSA), created in 2019 recently set new data standards in container shipping. Their mission is to create common information technology standards for digitalization and interoperability to make the shipping sector more efficient for both customers and shipping lines. 

Other logistics fields still have work to do to solve data inconsistencies. There are many young startups focused on creating predictive and advanced analytics platforms as a solution. When data becomes standardized and digitized across the industry, all companies will benefit. Logistics data is essential for planning future deliveries and understanding what goods the market needs. 

GROWING NEWCOMERS

New technology isn’t the only one shaping the future of logistics. There are also new business models and industry players. Without a need for a rich asset background, these startups tend to focus on the asset-light parts of the supply chain. Since they have more flexibility, they can offer quicker pricing and quotes. 

An example of this is Uber which launched Uber Freight in the U.S. in 2017, now expanding into Europe and Canada. There’s also Amazon expanding its expertise in warehousing and transportation. They’ve already made plenty of headway with Prime Air, the electric drone service it’s building, to fly up to 15 miles and deliver packages under five pounds, to customers in less than 30 minutes. It’s also recently reported that the company has been importing new Amazon-branded intermodal containers. 

SUSTAINABILITY POWERED BY TECHNOLOGY

Sustainability is a trend across all industries. More people are choosing companies that have an eco-friendly reputation. Companies are investing more in reducing emissions. As a result, ecological technology is beginning to influence logistics. For example, last-mile delivery is very time and energy-consuming. It presents many opportunities for a fresh approach. To lessen its environmental impact, companies leverage technologies like electric vehicles or AI-based software to calculate a route with low emissions.

AUTONOMOUS VEHICLES

Autonomous vehicles are still in the early stages. Even so, it’s a huge, discussed technology. A few short years ago, they were more unreal, but many companies are investing in them. Self-driving trucks could be efficient in operating busy roads to predict and analyze traffic. They could also help ease some of the driver shortage and capacity.

WAREHOUSE ROBOTICS

Warehouse operations have undergone a significant shift recently.

Technology has been progressively integrated and the trend looks to continue. According to the Global Customer Report of 2019, there has been an 18 percent YOY increase in the testing of warehouse robotics. Robotic technology comes in various forms, like wearable technology, driverless vehicles, or multifunctional robots. No matter the form, it can improve the efficiency and speed of warehouse processes. Industry trends focus on the automatization of manual work. The goal is to make routine work cheaper and more comfortable for their business. It’s also used to improve monitoring, receiving, and dispatching products in the warehouse.

CURRENT TECHNOLOGIES YOU SHOULD LOOK INTO

TRANSPORTATION MANAGEMENT SYSTEMS (TMS)

A cloud-based TMS provides you with real-time visibility of your transportation, data insights, dashboards, reporting, and analytics. TMS technology may not be new, but its technology that continues to improve and offer a lot of insight into your logistics. Through real-time data insights, TMS technology can help you reduce risks and spot opportunities for cost savings through efficiencies. In an ARC survey, respondents indicated freight savings of 8 percent through the adoption of a TMS.

ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING

Artificial Intelligence (AI) and Machine Learning (ML) support inventory, demand forecasting, scheduling, and predictive analytics. Tasks that could take people days or weeks are reduced to minutes. Through automation, you can save time and increase efficiencies in your supply chain. The level of automation can be semi-automated, completely automated, or a mix of both. 

SHIPMENT TRACKING SYSTEMS

Years ago, customers would book shipments, receive an estimated delivery date, and then be left waiting. Now software allows customers to access tracking on their shipment 24/7. User experience is enhanced, and time and money are saved. Here at Trinity, we currently use FourKites, MacroPoint, and Trucker Tools for our shipment tracking. 

INTERET OF THINGS (IoT) AND RADIO FREQUENCY IDENTIFICATION (RFID)

Many devices made have built-in WIFI capabilities or sensors. The easy access to WIFI and the internet connects everyone to everything, which is why it’s called the Internet of Things. The adoption of IoT is on the rise. It opens many opportunities in the supply chain, like reducing costs and delays. Sensors can be placed into trucks, cargo ships, trains, on parcels, or more. They can also connect to an alarm system or have a dispatcher that monitors and tracks. One example would be temperature monitoring for temperature-controlled products. IoT isn’t new technology, but it continues to impact and grow in logistics. 

RFID technology is a popular way a company can track inventory. A tag or sensor gets placed on a product, and radio waves are sent out. Data then gets received and processed by the company. RFID tags are like barcodes, but the superior speed of delivered information and data processing is more appealing. 

AUTONOMOUS TRUCKS AND DRONES

Autonomous cars are already a reality with trucks not too far behind. Companies like Embark and Uber have already used autonomous trucks, and Tesla will be releasing their electric truck soon. Even though the trucks are not completely driverless yet, it’s a huge step in this breakthrough technology. As mentioned prior, Amazon will be using electric drones soon through Amazon Prime Air. The drone deliveries are still a few years out, but the idea of an even quicker delivery is appealing.

FIND TECHNOLOGY THAT WORKS FOR YOU

With so much available and upcoming in logistics technology, shippers should partner with experts who can offer customized solutions. Be sure their technology is not only flexible but that they stay on top of technology trends. Adopting technology in your business can provide you with more visibility, connectivity, advanced analytics, and more. Technology can help you enable better collaboration with your stakeholders and offer greater efficiency across your entire supply chain. 

Here at Trinity, we understand technology can make or break your supply chain. This is why we continue to stay ahead of cutting-edge tech and make sure to have the best technology applications available to you. Additionally, by working with Trinity, you’ll not only have the data and applications you need but the experienced tech and logistics professionals ready to serve you.

To find out more about what best-in-class technology applications you gain with Trinity, 

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To learn more about Trinity’s TMS and Managed Services through a free supply chain analysis, request a consultation. 

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Author: Christine Morris