Whether owning or renting, heavy equipment is a big investment in your business – and you don’t want to take unnecessary risks that can lead to loss or damage during transportation. Heavy equipment shipping can be challenging, but it’s not as complicated as it appears when you have the right provider. To help you ship your heavy equipment safely, here’s some additional information you may need. 

What We Cover in This Article

• What is heavy equipment shipping?
• Common types of heavy equipment
• Rules and regulations for heavy equipment shipping
• Trailers used for heavy equipment shipping
• What should I know about my heavy equipment shipping?
• How much does it cost?
• Preparing for heavy equipment shipping
• Shipping heavy equipment internationally
• Choosing the right provider 

What is Heavy Equipment Shipping?

Heavy equipment can be a broad term, but it usually consists of a piece of large machinery or equipment of at least 40,000 pounds or more. Due to its size and weight heavy equipment is often loaded and unloaded by a crane if it cannot be driven on/off the trailer. Often, these kinds of shipments can be oversized and/or overweight, requiring permits, escorts, route surveys, and an experienced motor carrier with specialized trailers to transport your equipment safely and effectively.

Common Types of Heavy Equipment

• Agricultural Equipment and Machinery
• Construction Equipment
• CNC Machinery
• Crawler Cranes
• Gas & Oilfield Equipment 
• Industrial Plant Machinery
• Military Equipment
• Mining Equipment Oilfield Equipment
• Renewable Energy Parts and Components

Heavy Equipment Shipping Rules and Regulations

When it comes to heavy equipment shipping, you should have knowledge of U.S. Department of Transportation (DOT) rules, regulations, and restrictions. Overlooking DOT regulations and restrictions surrounding OD/OW transportation can be both costly and time-consuming.

Heavy equipment shipping is regulated by the Federal Motor Carrier Safety Administration (FMCSA), the U.S. DOT, and state governments. Each state varies its rules, regulations, and restrictions for permitting OD/OW travel. Be sure to double-check state regulations before transporting your equipment. Or work with an expert in the field of over-dimensional shipping. 

Overweight and oversized shipments can be more comprehensive as, besides the permits, you may need oversized banners, flashing lights, civilian escorts, police escorts, route surveys, bucket trucks, or even a road closure. It’s important that you always take the time to double-check that you’re in compliance with DOT rules and regulations when transporting your heavy equipment.

Trailers for Heavy Equipment Shipping

Heavy equipment shipping is made possible by the various types of flatbed and specialized trailers available.

Flatbed Trailers/Open-Deck Trailers

Flatbed trailers allow for easy loading and unloading and can carry up to 48,000 pounds. When choosing your flatbed carrier, make sure to confirm that the trailer will be able to haul the weight of your equipment. Trailer dimensions are approximate: 48’ L x 102’’ W x 58’’ H   

There are other open-deck trailers to consider, like step-decks or drop-deck trailers. They can accommodate around 46,500 pounds and can legally haul taller products, up to 10’6’’ tall, and can be fitted with permanent or removable ramps to drive equipment on and off the trailer. Trailer dimensions range approximate:  48’ or 53’ L x 102’’ W x 36’’ to 42’’ H.   

Specialized Trailers for Heavy Haul Trucking

Due to the size, some heavy equipment may need a specialized trailer to accommodate its transportation.

Double-drops and Removable gooseneck (RGN) trailers are ideal for heavier machinery and equipment that needs easy loading and unloading or drive-on drive-off capabilities, and they are great for freight exceeding the legal height and weight maximums.

What Should I Know About My Heavy Equipment Shipping?

You’re ready to get started with heavy equipment shipping. What should you be prepared to answer when looking for a provider?

Know the Dimensions of Your Heavy Equipment

Size matters. The equipment’s dimensions and weight will help determine what kind of trailer the carrier will need to transport your freight and if any permits, escorts, or other accessorial charges are required that will ultimately determine the total shipping costs. 

Breaking Down or Shipping in One Piece?

Does your equipment need to be taken apart to ship and then reconstructed upon delivery? Can your equipment be crated or boxed? Is it more effective to break down your equipment into smaller components for shipping? If shipping in one piece, what are the things that need to be done before shipping, such as having any fluids discharged or batteries removed? These are all important questions you should know so all parties involved know what is to be expected throughout the entire shipping process.

What Equipment is Needed to Load and Unload Your Freight?

This is very important information that is needed for your shipment. Do you need a ramp, forklift, or crane to load and unload your equipment? Do you have the required equipment ready to unload and load your freight?  Or can the equipment be driven on and off of the trailer?

Know What is Covered by Your Provider’s Insurance

It’s important you know what is covered by your provider’s insurance, so you know whether you will need to buy any supplementary insurance to make sure your heavy equipment is fully protected in case of any issues.

How Much Does Heavy Equipment Shipping Cost?

While we’d love to give you exact numbers, there can be quite a few factors involved that make each quote unique, such as:

Size of Your Heavy Equipment

The larger or more oddly shaped your piece of equipment means it may need specialized trailers, permits, or routing requirements, likely raising your shipping price.

Time of Delivery

If you need your equipment delivered at a specific time, this will likely raise the shipping price as well.

Pick-up and Delivery Location

The further distance your equipment must travel, the higher it will cost you. Additionally, more congestion (think cities) in or around your pick-up or delivery location can increase your shipping costs.

Time of the Year

Adverse weather conditions, such as during the snowy and icy winter months or hurricane season, can affect your pricing if certain routes are shut off, making your equipment’s journey longer. There’s also flatbed peak shipping season, which ranges from April to October, which increases flatbed demand – and rates.

Current Fuel Rates

The more fuel costs motor carriers, the higher your shipping cost will be.

Permit or Licenses Required 

When transporting heavy equipment, oversize or overweight permits may be required. Costs can vary by state and province, and some states may take longer to issue permits due to each state’s unique regulations and infrastructure. 

Escorts Required

Escorts will increase your shipping costs as they need to be paid too! When freight is over 12ft wide or tall, it’s a good idea to check routing to see if escort cars are required. 

Preparing Heavy Equipment for Shipping 

You’ve got your quote and provider selected. What’s next? Here are the steps you should take to ensure your equipment remains safe and secure during shipping.

Have Documentation Ready

You’ll want to ensure all required documentation and permits are sorted and ready before pick up. Make sure to confirm with your shipping provider what permits are required and that they are in place to limit the chance of any shipping delays or fines.

Planning Transportation Routes, If Needed

Planning your route is necessary if your shipment is considered Oversized. Depending on the dimensions of your equipment, you may need to have your provider avoid bridges with low clearances, sharp turns, or even roads of a particular width.

Check the Condition of Your Heavy Equipment

Just as car rental services do before lending their vehicles, inspect your equipment, and take photos before shipping, so, should anything happen during the transportation process, you have it documented.

Make Sure Any Loose Parts or Tools are secured

You don’t want to lose anything important during the transportation of your equipment!

Cover Any Important Parts

Your equipment will likely be hauled through open air, facing the wind and other elements. Covering any vulnerable or important parts is a great way to ensure that your equipment stays safe and functional.

Check Your Equipment’s Manual

The manufacturer’s manual is a great resource for getting your equipment ready for shipping. It will help you determine exactly what steps you need to take before pick-up.

Ask Your Provider How You Can Help

If you’re unsure, ask your provider how you can help make your equipment’s transportation a smooth process. Based on their experience and expertise, they can give you tips and advice and will appreciate you taking this extra step to work together as a team so your equipment can be delivered safely.

Shipping Heavy Equipment Internationally

What if you need to ship your heavy equipment internationally? There can be many challenges to overcome, which you may find incredibly difficult to do alone. In this case, it makes the most sense to hire an expert to help you. While it can be costly, it’s the most stress-free way to safely transport your heavy equipment internationally.

Here are some tips to ensure your international heavy equipment shipping is successful.

1. Make sure the provider you select to help you with your international shipping is experienced, has relevant credentials, and has a good reputation.
2. Just like shipping inland, know the dimensions and weight of your heavy equipment to inform your provider.
3. Determine the best shipping method for you. Your expert provider can help you figure this out. Your options are
   • Roll on/Roll off (RoRo) is popular and involves driving the machinery onto a flatbed style truck at the pick-up location and rolling it off after it arrives at its destination. RoRo is speedy, efficient, and often less costly than your other shipping methods.
   • Flat rack containers have walls or support posts on the ends, allowing loading from the top or sides. Flat racks mean your equipment is exposed to open air and so this method can be less costly, but then your equipment is exposed to the elements throughout its transport.
   • Lift on/lift off (LoLo) is a method of loading and unloading containerized cargo over the top of a shipping vessel using cranes or derricks. LoLo ships usually have onboard cranes and can often carry a larger container capacity.
4. Be prepared for the costs. With international shipping, you have extra costs such as taxes, tariffs, and customs checks.

Choosing the Right Heavy Equipment Shipping Provider is Important

You have many options for selecting a provider to help you with your heavy equipment shipping needs. Though too many options can feel overwhelming. How do you know you’re making the best choice for your company and freight?

Here are some qualities you should consider when looking for a provider.

Extensive Experience in Heavy Equipment Shipping

You’ll want to look for a company that has been in business for a long time, has the experience transporting the heavy equipment you’re shipping, and has a good reputation. This is a great opportunity to ask for references and contact them for their feedback.

Offers Flexible Shipping Solutions for Your Unique Needs

Do you need help with prepping your equipment for shipping, obtaining any necessary permits, or any other specialized services? Make sure the provider you’re considering has all the solutions you may need.

Carries the Proper Insurance

You want to make sure your heavy equipment is protected should anything happen during the shipping process. Verify that the provider you’re considering has the appropriate insurance to cover your equipment and enough liability insurance should anything else occur. 

Trinity can help with Your Heavy Equipment Shipping 

It’s easy to see that heavy equipment shipping has the potential to be a complicated process. If you’re looking for a provider that can help simplify your shipping, saving you time and stress,  please consider working with Trinity Logistics.

Trinity Logistics is an industry-leading third-party logistics company with expert knowledge, ready to help you with your oversized, heavy haul, or any other flatbed shipments. We do this by providing our best-in-class People-Centric service and building strong relationships with skilled and experienced motor carriers.

We have the experience you’re looking for and the reliable carrier relationships you need to move your heavy equipment safely, securely, and on time.

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

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2023 Crystal Ball

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

The gap between spot and contract rates will stabilize.  

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

Few sectors will see bright spots in 2023.  

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

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

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

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

Import activity will continue to slow. 

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

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

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

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

CHEMICAL INDUSTRY CHALLENGES

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

MANAGING RAW MATERIALS

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

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

TRANSPORTATION DISRUPTIONS

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

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

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

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

REGULATIONS

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

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

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

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

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

LARGE AMOUNTS OF DATA

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

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

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

COMPLEX SUPPLY CHAINS

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

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

LACK OF VISIBILITY

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

CLIMATE CHANGE

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

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

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

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

OVERCOMING CHEMICAL INDUSTRY CHALLENGES

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

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

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

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

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

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

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

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

SLOWING FREIGHT VOLUMES

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

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

FALLING RATES

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

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

FINDING MARITIME BALANCE

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

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

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

KEY TAKEAWAYS

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

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

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

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Flatbed shipping is an essential part of the logistics industry.

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

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

WHAT IS A FLATBED TRAILER? FLATBED SHIPPING?

Flatbed Shipping

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

Flatbed Trailer

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

Flatbed Freight

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

WHAT CAN BE HAULED ON A FLATBED TRAILER?

The most common freight shipping uses for flatbed trailers are:

o Formed concrete items

o Lumber

o Construction materials

o Steel beams

o Scaffolding

o Trusses

o Electrical transformers

o Oil, gas, and petrochemical equipment

o Solar panels or wind turbines

o Commercial heating and air conditioning units

o Landscaping materials

o Large quantities of wrapped and stackable products

WHAT INDUSTRIES USE FLATBED TRAILERS?

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

o Housing

o Construction

o Renewable energy

o Agricultural

o Warehousing

o Manufacturing

o Mining and drilling

o Military

o Automotive

o Landscaping

WHAT ARE THE BENEFITS OF A FLATBED TRAILER?

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

WHAT ARE THE DISADVANTAGES OF USING A FLATBED TRAILER?

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

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

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

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

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

FLATBED SHIPPING TIPS

Know your cargo

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

Understand what trailer you’ll need

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

Be aware of accessorial charges

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

Choose to work with an expert

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

FLATBED RATES AND SEASONALITY

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

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

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

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

FLATBED SHIPPING WITH TRINITY LOGISTICS

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

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

Shipping freight is often a large and crucial part of a company. To make a profit, you need to get your customers the right product at the right time, and for the best cost. If not managed properly, your transportation can cost you substantial money. With costs rising recently, it’s easy to see why the challenge for many companies has been to reduce their transportation costs. Are you taking the proper steps to do so?

WHY COSTS ARE RISING

Before we jump into how to reduce your transportation costs, it’s essential to understand what factors are causing them to rise. 

CUSTOMER EXPECTATIONS CONTINUE TO INCREASE

Consumers’ demand for faster delivery times is affecting everything from food and more. It’s forcing shippers to try to keep up to retain their customers. The so-called “Amazon effect” is alive and well as the world of e-commerce and faster shipping times grows. 

HIGHER DEMAND

As noted, e-commerce was growing steadily before, but the pandemic only accelerated it. Consumers are ordering and demanding more, delivered right to their doors. Demand is far exceeding supply, and this trend is expected to continue through the rest of 2021. 

TIGHTER CAPACITY

With such overwhelming demand, there are not enough drivers or labor to keep up. These shortages are impacting every mode of transportation, causing delays, and raising rates higher. 

RISING COSTS FOR DRIVERS

Drivers are also experiencing rising costs. Fuel prices have been increasing, and tolls have risen; truck costs and insurance prices have gone up. All these costs roll over to their trucking rates. 

STEPS TO REDUCE TRANSPORTATION COSTS

There are several ways to reduce transportation costs while also improving your logistics.

CUT YOUR MANUAL PROCESSES

Chances are, you’ve been doing things the same way for so long, you don’t even recognize there’s a better way to do them. We’ve all been there, and while change can be challenging, noticing you have room for improvement is the first step towards growth.

Automating your manual processes will help reduce your transportation costs. With automation, you’ll streamline your operations, allowing for better management while creating and improving your efficiencies. As a result, you’ll end up saving time and becoming available for your more important tasks.

USE ANALYTICS TO IMPROVE OPERATIONS

Reviewing historical records and analyzing trends can help uncover any slow processes and extra costs. For example, you may discover that one carrier consistently adds accessorial charges while another compatible carrier does not.

TRY DIFFERENT MODES OF TRANSPORTATION

Trying different modes of transportation could help you offset your costs. Shipping freight by sea could be less expensive than by air. Intermodal transportation is another option that you may not have considered. Shipping intermodal is usually less expensive than trucking. Even using a combination of the two could reduce your cost. Keep an eye on the transportation costs for different modes and don’t be afraid to make the switch. Being more flexible with your freight shipping could give you some financial benefits. 

SEE IF YOU CAN CONSOLIDATE

Are you making the most of every truck moving your freight? Your shipment planning team should analyze current and future orders to build your shipments in the most cost-effective manner possible. Less-than-truckload (LTL) shipments are cost-effective for smaller weights. Yet, consolidating your shipments into one full truckload could have you seeing savings. With consolidation, there will be fewer trips, meaning you’ll see lower rates on one bulk shipment versus many small ones. 

BID MORE OFTEN 

To offset tight capacity and rising shipping costs, shippers should go out to bid for new transportation contracts more than annually. This allows you to find the best rates and avoid potential disruptions from transportation shortages.

GAIN CONTROL OF YOUR VENDOR-ROUTED OR CUSTOMER-ROUTED SHIPMENTS 

Depending on your customer, sometimes you have your hands tied when it comes to logistics. For example, you may be required to use their specific providers as a condition of doing business with them. However, there are instances where you may be able to gain control of these opportunities for savings. Don’t you wonder about the potential for savings if you controlled this section of your business? 

By leveraging ALL of your volume, you could qualify for some decent savings with LTL and truckload providers. Additionally, you’ll gain control of your shipments, which equals control of the quality of the provider, saving you money by retaining happy returning customers. You can better measure service performance and rates to ensure your best interests are being cared for when the ball is in your court.

INCREASE VISIBILITY 

Without visibility, costs can begin to sneak in like stealth monsters that eat away at your bottom line. True visibility is using a best-in-class TMS that enables you to see all your transportation network. You can track and manage control over your products, see service disruptions or shipment delays in real-time, find optimized routes, and work with the best carriers. You’ll not only reduce your costs but increase your service levels and improve your relationships with all stakeholders. 

PREPARE AHEAD

The more time you have before your shipment gives you more options in carrier selections and the chance to find a decent rate. Or look into another mode, as mentioned earlier. It also gives your provider more time to prepare themselves and let you know of any upcoming circumstances that may increase your logistics costs, giving you more time to consider making any changes. It also helps you alleviate delays and missed deadlines. 

CONSIDER WAREHOUSING SERVICES

If you do a lot of shipping to and from the same lane, especially if it’s over a long distance, it may be a good idea to warehouse your goods closer to your customers so you can reduce those long-haul transportation costs. 

BECOME A SHIPPER OF CHOICE

It’s never a bad thing to be a shipper of choice. Carriers are in the position of choosing which shippers they want to work with. Those shippers who provide better experiences for them can not only reap the benefits of better rates but higher service levels and fewer claims. To become a shipper that carriers will want to work with, it’s important that you run efficient and friendly dock operations, reduce driver wait times, provide comfortable breakroom and restroom accommodations, and pay your carriers quickly. 

GET DATA-DRIVEN INSIGHTS

Data has quickly become one of the world’s most valuable resources. With a best-in-class TMS and proper reporting that you can analyze, you’ll be able to better manage disruptions, reduce downtimes, and effectively plan and budget your logistics spend. By using data analytics, you’ll be able to recognize which carriers are the most likely to have the capacity and ensure proper rates for shipments. 

CONSIDER OUTSOURCING

In business, any activity that isn’t directly tied to securing more business deflects attention away from your goal of making a profit. That means the hours you can spend sourcing transportation providers and managing your logistics are not considered a profitable way to spend your time. By outsourcing your logistics and partnering with a third-party logistics company (3PL), like Trinity Logistics, you gain back all those hours to focus on what you do best – make a profit! 

According to the 2020 Annual Third-party Logistics Study, 67 percent of shippers stated that using a 3PL contributed to reducing their overall logistics cost, while 83 percent said using a 3PL has improved their service. By utilizing Trinity Logistics, you won’t have to worry about any of the steps above because we’ll take care of them for you.

We’re listed as a Top 100 3PL by Inbound Logistics, and through our People-Centric service, we can help you find one or more customized solutions to meet your business needs. The first step to finding out exactly how we can help you reduce your transportation costs and improve your service is by having that initial conversation. 

Will you choose to take that step today? 

Updated September 16, 2021 by Christine Morris.

All industries are currently facing challenges with their logistics and the supply chain. Challenges that include overwhelming demand, tight capacity, rising freight rates, and shortages in materials, products, labor, and drivers. However, industries facing high flatbed demand, like construction and manufacturing, are seeing more difficulty than others. 

These industries have been dealing with capacity challenges throughout the pandemic as they have remained in high-demand. As it continues to rise, the needs for their supplies have increased, creating a surge of flatbed demand that’s weighing on the supply chain. Let’s take a deeper look into these challenges and present some considerations for how those in the industry can overcome them. 

FLATBED DEMAND VS. VAN AND REEFER

Finding truck capacity of any type is proving to be difficult. Flatbed capacity seems even more challenging because of the continued demand in construction and manufacturing. As a result, flatbed spot rates are reaching new highs and convincing more shippers to look for solutions. 

According to DAT, the flatbed load-to-truck ratio is up 169.3 percent year-over-year (YOY) from June 2020 to June 2021. In comparison, reefer’s load-to-truck ratio is up 111.7 percent YOY. Van load-to-truck ratio is up 57.8 percent YOY. 

The monthly national average flatbed spot rates have risen for eight consecutive months, reaching $3.15 per mile in June. There’s not looking to be any fall soon, as the industries pushing the flatbed demand are cranking it into the next gear. 

FACING DISRUPTION AFTER DISRUPTION

The return to normal may be farther away than you think. With demand, there are still projects waiting in the wings until materials can be properly sourced and shipped. And demand already has construction projects beyond their pre-pandemic heights. Just look at the Associated Builders and Contractors’ Confidence Index, which is now positive for sales, profit, and staffing level expectations for the next six months. 

Covid-19 Hit First..

When the pandemic hit, people had found they had nothing to do while staying home. And so, we saw a rapid uptick in those wanting to buy a new house or remodel. Demand quickly exceeded supply. Supply shortages and delays have put pressure on contractors as the demand rose despite a lack of supply.

..Then There was the Texas Freeze..

In February and March 2021, Texas saw their lowest temperatures in years and were not prepared for the intense weather conditions that they experienced. Many manufacturing plants in the area had to shut down, which created more disruption in the supply chain. 

..Then the Suez Canal Blockage..

The ship that blocked the Suez Canal for several days caused severe delays in the imports of many products needed. This created many shipping bottlenecks that we’re still experiencing the aftermath of today. 

..Now the Wildfires.

Currently, the raging wildfires on the west coast are causing further disruption and delays to an already stressed supply chain.

Issues such as these are causing supply chain disruption after disruption, resulting in increased costs and delays. Many companies rely on materials that come from delayed or now-unavailable, global manufacturers. This has shifted companies to search for regionally based suppliers, creating higher demand on smaller supply chains. After over a year of continuous supply chain disruptions, there’s been an industry-wide realization that building resilience into supply chains is vital. 

RISING FUEL PRICES

One of the areas affecting logistics cost are the continuing rise in the costs of fuel. The latest Energy Information Administration data shows the national average diesel price is at $3.34 per gallon, a $.05 increase from one month ago. Regional diesel prices range from $3.08 in the gulf coast states to $3.48 in the central Atlantic region. California diesel prices are averaging $4.19 per gallon.

SHORTAGES AND DELAYS

Lumber shortages continue to be a significant problem nationwide. Both steel and electrical supplies have faced steep price increases in the past year. According to the U.S. Census Bureau’s Small Business Pulse Survey, 59.7 percent of respondents reported domestic supplier delays which is a huge jump over the national average of 36.3 percent. These aren’t domestic only issues as 19.1 percent of respondents are also dealing with foreign supplier delays. 

MATERIALS THAT HAVE BEEN EXPERIENCING SHORTAGES

• Timber
• Steel
• Roof tiles
• Cement
• Electrical components
• Paints and sealants
• Plaster and plasterboard
• Concrete
• PIR insulation
• Bricks and blocks
• Aggregates
• PE and PP plastics
• Screws
• Plumbing items

THE RAW MATERIAL SHORTAGE

There is currently a global shortage of raw materials. This comes from factory slowdowns and, in some instances, factory closures due to many reasons. The shortage of raw materials continues to put a strain on the production of products, like insulation, paints and adhesives, and packaging.

THE LABOR & DRIVER SHORTAGE

Another cause of rising costs and delays is the shortage of labor and drivers. Labor rates have skyrocketed in recent months. This is due to the high labor demand and trades raising their rates because of the overwhelming amount of work. The big challenge these industries face is finding qualified labor to perform work, whether that be driving a truck to deliver materials and products, painting a house, or installing plumbing. In logistics, driving a flatbed truck, especially one hauling an oversized load, requires a different skill set than your typical van trailer trucking.

HIGH PRICES KEEP HEADING HIGHER

The Associated General Contractors of America (AGC) released a survey recently showing 93 percent of more than 1,400 respondents reported higher costs for materials, parts, and supplies. Construction material prices have increased so much in 2021 that the AGC issued a rare Construction Inflation Alert. This hasn’t taken since place 2008, citing a 12.8 percent jump of input costs for projects since the pandemic began. While that number is notable, some materials have risen even more. Lumber and plywood jumped 62 percent and steel recorded a 20 percent rise since April 2020. Diesel fuel, the lifeblood of the heavy equipment and transportation haulers needed to build major projects, has surged 114 percent. Even when materials are ready to be shipped, the transportation market is trying to play catch up. As mentioned earlier, there is currently more demand than there are trucks available. 

Rising costs and supply chain disruptions have pushed more hardships on the construction and manufacturing industries, slowing down their projects and business progress. Data found that more than three-fourths of construction firms have indicated projects are being postponed or canceled due to unavailable materials or cost overruns. 

POSSIBLE SOLUTIONS

Experts are estimating that the high demand in these industries and flatbed demand may continue through 2022. Not to mention, who knows what other possible disruptions we may see soon. Hurricane season is upon us and could cause some more delays. 

It’s never too late to find ways to improve your supply chain and keep costs budgeted. Here are some suggested solutions to facing this difficult time we’re in.

LOOK FOR ALTERNATIVE ITEMS

It might be worth checking into other materials to offer your customers. Many other companies are doing what they can to keep their projects moving forward and communicating this with their customers. For example, with rising lumber costs, you may find redwood or cedar to be more affordable alternatives. They may also be much easier to get your hands on. 

INTEGRATE TECHNOLOGY

Integrating technology has become a necessity for all stakeholders to maintain real-time communication and visibility. Gain total visibility and trust from your stakeholders with logistics technology like a transportation management system (TMS). A TMS can help you with routing decisions by matching your freight with the best carriers, lanes, rates, and transit service. 

Having a best-in-class TMS also provides you with data-driven insight to better manage disruptions and budget your logistics spend. By using data analytics, you’ll be able to recognize which carriers are most likely to have capacity and have a full view of your transportation management and what’s happening across all markets. 

CONSIDER NEW OPTIONS

When possible, see if you can use van options for your transportation, considering the load-to-truck ratio shows less demand and lower freight rates. You may also be able to consider other modes, if possible, but any oversized freight must be hauledwith a flatbed trailer. 

PLAN IN ADVANCE

Many other companies are stocking up on available supplies or finding other ways to look far ahead. Consider doing the same. Stock up on what materials you use most often for your projects. Do keep in mind that the more you stock up on, reduces the overall supply, increases demand, and thus pushes prices higher. Don’t go overboard and hoard ALL of it but do try to keep some stock in supply. Try planning your projects far enough out, correlating with the longer lead times we’re experiencing. If the material you need says it will take nine to ten months, then plan your project around that time frame.

BUILD A STRONG NETWORK OF CARRIER RELATIONSHIPS

Due to the over-demand of freight, load boards don’t move shipments the way they once did. Strong relationships will get you the coverage you need, better pricing options, and often better service. If building a large enough network for you seems daunting, you can always partner with a third-party logistics company (3PL), whose main role is their relationships among shippers and carriers. Here at Trinity Logistics, we have over 70,000 qualified carrier relationships to help haul your freight. 

BUILD A RESILIENT SUPPLY CHAIN

At a time when your costs are a critical issue, reimagining your supply chain could be a way to build resilience and reduce costly disruptions before they happen. Now is the perfect time for companies to build resilience into their operations to be better prepared for future disruption we may see.

Opportunities to do so range from reevaluating your business models and building efficient industrial supply chains, to building new and more regional manufacturing and distribution facilities to help with the vulnerabilities the pandemic brought to light. You could put in place more flexible sourcing and distribution strategies, including shifting your suppliers closer to home.

WORK WITH A QUALITY 3PL, LIKE TRINITY

We do more than arrange your freight. Consider us your logistics consultants. As logistics experts, we keep a close eye on the market, keeping you educated so we can help you plan and forecast. 

No matter the market, you can use your Trinity relationship and discuss your current and upcoming projects, even if they are in the planning stages. This helps us give you things to look out for to keep your transportation aspect of business more stable and reliable. When markets fluctuate, having a solid relationship with experts such as Trinity will prove to be your largest asset. 

Should issues arise, we at Trinity, work until they are resolved through and communicated. In the logistics industry, things will happen, and bad news doesn’t get better with time. We stay upfront with any challenges, and we bring solutions. When given the chance to prove our communication and service, we make sure to set the bar high. 

If you’re ready for a reliable provider to help you with your shipping needs and logistics management through People-Centric Freight Solutions®, then request your first quote to get started.

Author: Paul Nelson

Onshoring, nearshoring, reshoring – these are terms that we keep hearing in growing popularity lately. Even before Covid-19, many companies have considered onshoring their operations due to concerns about quality and supply chain disruptions. Political tensions and rising tariffs also triggered the growing considerations. 

When Covid-19 hit, it led to sky-high air and ocean freight rates. Any companies with operations in China saw their productions come to a halt. Offshoring your operations has never been riskier. You never know what could happen in another region and how that could affect your operations if offshored. So, the question is, should you be onshoring your operations?

A BRIEF LOOK BACK

Before the 1980’s manufacturing had a large presence in the United States. Technology improved communication and global transportation, so companies saw the opportunity to save on costs by offshoring their operations outside the United States. Offshoring grew and became the norm, until recently. Onshoring has become popular again due to politics, rising labor costs, and increased demand for higher quality products.

WHAT DOES IT ALL MEAN?

Onshoring, nearshoring, or reshoring; it all refers to the overall practice of moving manufacturing operations from foreign soil back to the United States. It may also refer to the practice of outsourcing to domestic contract manufacturers rather than overseas. Nearshoring can also refer to the moving manufacturing to outside the United States, but not across ocean waters. An example of nearshoring would be having operations moved to Mexico.

Offshoring involves outsourcing manufacturing assets far outside of the primary country of operations. American companies have traditionally offshored manufacturing to Asian or Southeast Asian regions. Offshoring has been used in situations where production, materials, and labor costs outweigh travel complexities and shipping costs. 

ONSHORING VS OFFSHORING WHEN IT COMES TO..

..YOUR CUSTOMERS

Poor customer service can have a huge impact to your company’s success. More than 50% of consumers said they would never do business with a company after just one negative experience. When choosing to onshore your processes, it gives you the benefit of serving and supporting your customers from “home”, which reduces your risk of your customers receiving poor service elsewhere. 

Customers nowadays like to support products made in their own country. They feel that it further benefits the local economy and they feel more confident in a products quality when its been made in the same country. Depending on your customer base, this could give you a huge advantage over your competitors. 

Due to the recent Amazon Effect, customers now expect their products delivered to them in days. Shorter travel times can make that expectation easier to meet. If suppliers are farther away, delivery times can sometimes be uncertain and take longer. Customers also want full transparency on their freight’s travel, and onshoring can make that more successful on your end. 

..YOUR SUPPLY CHAIN

Onshoring can offer you better supply chain management. It allows shorter lead times because companies can operate all within the same time zone (or at least closer to each other than if offshoring). Not to mention other processes that can take time, such as design and approval. All parties in the supply chain can have closer relationships because they won’t have to deal with the challenges of long distances and varying time zones. Nor do you have to worry about the risk of facing language or cultural barriers among locations. Onshoring is becoming very popular for those organizations that need a lot of communication to be successful.

..YOUR COSTS

With rising labor and shipping costs, many find savings are no longer there when it comes to offshoring. Time is money and offshoring can add weeks to delivery times. Shorter distances with onshoring mean reduced (and less complicated) transportation costs. This also means less fuel used, giving you the benefit of being greener (and customers like that). 

As time goes on, overseas economies are further developing, taxing is changing, labor, wages, and shipping costs are all on the rise; all making it less profitable to handle business offshore. Tariffs have risen in recent years, with some commodities up to a 25 percent charge. By choosing to even nearshore your operations rather than offshore, you can avoid those increased costs. 

There’s also the possibility of defected goods arriving to consider when offshoring. Recalled products have been a rising concern. The defect rates of shipments from other countries can be so high at times that entire batches must be inspected upon arrival. The time and expense to do this and rework or scrap products, can wipe out the savings offshoring promised and even exceed your original budget.

THINGS TO ASK WHEN CONSIDERING ONSHORING

Tariffs, customs, duties

• How many fees will you incur in transporting your finished goods to distributors? Could these fees be avoided if goods are produced elsewhere?

Transportation costs

• Transportation can sometimes be your largest expense. You can reduce costs by shortening travel distances or choosing to work with a logistics company, like Trinity Logistics.

Lead times

• How long will it take to get the finished product in hand? Lead times vary depending on how far away production takes place. Make sure to consider design and approval time. This is one part of the process where differences can slow down your production.

Political environments

• What is the political climate like in the region where your goods are produced? No country is immune to civil unrest. What is the political climate like between your primary company’s country and where the products are made? Consider any chance of future supply chain disruption, and those tariffs. 

BEFORE YOU DECIDE..

Before you make your decision on whether to onshore or offshore, make sure to consider all factors. Onshoring may seem like the answer right now, but will it still in the future? If transportation costs and delivery disruptions are your main concern in business, consider looking into outsourcing your logistics with third party-logistics (3PL), like Trinity. Choosing to work with a 3PL can offer you some of the same benefits as onshoring, but with less work on your part.