These 4 methods can help you bring FTL shipping expenses down.
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Lower Your Shipping Costs

Freight shipping costs generally don’t vary based on what exactly you’re transporting. Rather, FTL rates depend on a few other factors that, when taken advantage of, can help you pay a little less. Here’s how you can lower your FTL rates:

1. Limit delay times
2. Pay within carrier terms
3. Lead time from tender to loading time
4. Try using an app

1) Limit Delay Times (Detention)

One common factor in increased costs is repeated delays at both shippers and consignees. Carriers are making money when the wheels on the truck are moving fully loaded with freight. As well, almost all carriers charge some form of detention which will add additional charges to your invoice. The carrier may have their next pick-up already scheduled (after your pick-up and delivery) and any delays put them in jeopardy of being late for their next load, which could cost them a customer. As an example, we have seen some shippers require a pickup appointment to be scheduled and then don’t load the truck that arrived on time for many hours. Be a shipper that carriers want to pick-up from, it will dramatically reduce your rates over the long-term.

 2) Pay Within Carrier Terms

Another reason you might accrue higher transportation rates is the terms you pay in.  Carriers run on very tight budgets and expect timely payment (typically 30 days), if your terms are longer, this is affecting your rates negatively. Inversely, we see many smaller FTL firms that factor their invoices for a % of the load (invoice). Inquire with your carrier to see if they offer a “quick pay” rate reduction. In many cases this is an easy way to reduce your transportation invoice by 3-4%, which can add up quickly on the FTL side of transportation, due to the high overall cost of the shipment.  Pay on time or early and in full to ensure you are getting the best possible rate.

3) Lead Time (At Least 24 Hours)

A major factor in transportation cost when working in the spot market for FTL, is the amount of lead time the carrier has to make the pick-up. Understanding that many FTL shipments can happen the same day due to customer constraints, the more lead time you have the more competitive rate you will be able to negotiate. If able to give carriers at least 24 hours notice on FTL’s, you will see reductions in your rates.  

4) Try Using an App

A specialized app can help you drive down cost as well. The “right” app will create a competitive market for carriers to bid on your freight which will drive your cost down. Be sure to choose an app that also has the following capabilities: vetting of carriers that meet minimum safety requirements, able to award, tender and track shipments, GPS tracking, and the management of invoicing & payments. Any app should also give you accessibility to a much larger carrier pool of qualified transportation providers. With all this information at your fingertips, you can quickly find and resolve any issues that may arise. More importantly, however, this will help ensure you are receiving the most competitive rates in the market and still allow you to have a direct relationship with the carrier. 

Pro Tip: Freight Cowboy is launching an app for FTL in late 2019! Stay tuned for developments on progress and how this new app can help you with shipping management.

Save on FTL Freight Rates

Shipping costs add up quickly, and most businesses want to keep their expenses as low as possible. Fortunately, with a little strategic planning around full truckloads, it’s more than possible to lower your FTL rates by a significant enough margin that it will make a difference in your business’s overall budget.

Connect with us to learn more about our upcoming app and how you can save more on your shipping expenses!

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A guaranteed service refund is essentially a money back guarantee for parcel shipping. Say you’re planning an event and ordered 500 swag bags. The promised delivery date is scheduled for two days from the time of your order. Well, if you receive them in three days, they’ll be useless because you received them after your event. You’ll be scrambling to find replacements if it is even possible. In this situation, you would need to request a refund from the parcel carrier and if approved they will repay you for your shipping charges, which typically applied as a credit to your next invoice. A general rule of thumb, if the shipment was sent via an express service the guarantee is usually day/time specific. If sent through the ground service with the carrier, it is day specific.  

Here’s the process you must go through in order to receive your guaranteed service refund:

Audit Parcels

An essential business practice for every industry should be to audit your shipments. The audit should not only look for late deliveries but also include your contractual rates were applied properly, that all residential deliveries were valid, that you were not charged for any voided shipments, etc. This can mean outsourcing with a company that specializes in parcel auditing or doing it yourself. It can be tedious and time-consuming to audit each shipment individually. This does not even include the amount of time it takes to file the claim and then reconcile that refund was applied to your future invoice.

Pro Tip: When it comes to parcel auditing, it’s recommended to work with a professional auditing company. Freight Cowboy’s audit process for parcel shipping includes over 50+ points that are verified on all transactions.

Tracking Numbers

In order to get your GSR, you must know the tracking numbers of your deliveries. Once you locate your tracking numbers, you’ll want to organize them. If you have multiple refunds to apply for, you should organize them by the oldest date 1st. Most carrier policies only allow 15 days for you to file for a late delivery.

Delivery Date

Ensure that you know when your package was delivered compared to the actual promised delivery date/time. However, if inclement weather delayed your delivery or any “Acts of God” occurred, your claim will most likely be denied. Also, be aware of the contractual language in your carrier contract, in many instances, the carrier will implement a GSR waiver in the contract, that will hinder you from filing a claim for a late delivery… read the “fine print”. As a reminder, our firm typically secures refunds on behalf of our clients at 1-8% return (based on spend with the carrier), through our audit process.  

Your Parcels, Your Refund

Keep in mind, these refunds are part of the carrier’s policies. Furthermore, you must be aware of what’s mentioned above to receive your full refund.

Are you interested in learning more about guaranteed service refunds? Join us on Facebook to speak with our team about our expertise in shipping management.

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10 Shipping Terms Every Small Business Owner Should Know

As a small business owner, you’re probably always looking for ways to save your business money. If you haven’t considered your shipping processes as a means of doing so, you’re likely spending too much and not getting enough in return. Are you aware of shipping terms that can directly impact your imports?

Understand These 10 Shipping Terms

5 Crucial Truck Safety Tips for Drivers

The shipping industry relies greatly on highway transportation and makes it a priority to keep drivers safe. Truck safety should be crucial for drivers, too. Refined safety measures ensure that drivers are safe, shipments are secure and expensive delays are eliminated.

5 Essential Truck Safety Tips for Drivers

New Tech Trends That Are Changing the Shipping Industry

As technology advances, it benefits businesses and customers alike. It also enhances the ability of businesses to stay competitive. Efficiency and organization are critical to successful shipping practices. The industry has accepted new technology as a way to streamline in an increasingly tech-oriented world.

Modern Tech Trends That Are Changing the Shipping Industry

Thank You for a Great 2018

2018 has been a wonderful year for Freight Cowboy. We couldn’t ask for a better shipment management team, and we have thoroughly enjoyed providing shipment management services to our customers. We hope that 2019 is filled with blessings and happiness for you. Here’s to a genuinely Happy New Year!

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Does your business need a shipment management system? Find out what signs to watch for.
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Increased Demands

As your business grows, you have more customers placing more orders, which means more inventory that needs to be packaged and shipped. You will need to increase your production to meet the demand, spending more time ordering supplies, making sure they’re scanned into your management system, and stocking your warehouse. That doesn’t leave you with a lot of time to figure out how to cut costs, increase productivity or streamline your shipping. That’s where a Transportation Management System (TMS) comes in! They should do the following:

Save You Time

A TMS will help process and ship your orders more timely and in a more efficient manner. The ideal system will help you be more organized, in order to help simplify the processing of orders and lead to timely fulfillment.

Save You Money

Running a business is expensive. The right system will enable least cost routing of shipments based on the transit times needed to fulfill your business requirements. This, in turn, will help your business get the lowest possible price and give your company a competitive advantage.

Streamline Your Shipping

Freight Cowboy has advanced software that identifies late deliveries and other exceptions, allowing us to secure refunds on your behalf with parcel carriers. Furthermore, we have the technology to manage orders from one place, rather than multiple channels.

Pro Tip: Consider working with a professional shipment management system to reduce your workload.

What Are the Benefits of Working With a Transportation Management System?

A shipping manager’s primary objective is to ensure shipments get from point A to point B on time, intact and within budget. Achieving this objective involves several duties and responsibilities that require a wide range of skills, including resolving problems concerning logistics systems, imports and exports, transportation and customer issues. If you’re trying to juggle all of this in-house, it may be time to explore what a shipping system can do for you.

Contact Us to learn more about streamlining your business operations with an expert shipping manager.

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Freight Logistics Terms

Your company may not have its own shipping department. Nevertheless, you need to be aware of shipping terms and conditions before they conduct direct imports. The following is a list of some of the commonly used terms that will assist you when placing orders:

1. Bill of Lading (BOL)
2. Freight Broker
3. Freight Forwarder
4. Hazardous Materials
5. Intermodal
6. Less than Truckload
7. Parcel Service Failure
8. Shipper’s Agent
9. Tariff
10. Truckload

1) Bill of Lading (BoL)

There are a few different kinds of BoL, depending on payment, cargo and shipping method. Most every BoL will require the carrier name and signature, the date and an indication of what kind of goods are being shipped, terms and conditions, and a destination.

2) Freight Broker

Any person that sells transportation without actually providing the service. The term usually refers to an agent for truckload shipments, matching small shippers with carriers at a discounted rate. They’re able to do this due to having cultivated relationships with many different carriers.

Pro Tip: Working with a Freight Broker will help save small businesses money.

3) Freight Forwarder

A freight forwarder combines less-than-truckload (LTL) or less-than-carload (LCL) shipments into carload or truckload lots. Freight forwarders are designated as common carriers.

4) Hazardous Materials

This may seem like a no-brainer, but hazardous materials aren’t always so cut and dry.

5) Intermodal

Shipment moves by more than one mode of transportation (ground, air, rail or ocean).

6) Less than truckload (LTL)

Goods weighing less than 10,000 pounds from several shippers loaded onto one trailer.

7) Parcel Service Failure

When you order an item from a retailer, you’re effectively creating a contract between the two of you, even if it isn’t written down. While it’s the retailer you will need to deal with in order to get compensation (see how below), if your parcel is late then in the first instance you may be best off contacting the courier first. You may opt for a parcel failure refund service, which identifies late or lost deliveries and guarantees your shipment will arrive or be refunded to you no matter what happens.

8) Shipper’s Agent

A shipper’s agent is not a carrier, freight forwarder or broker. Shipper’s agents generally arrange for truckload or container load shipment transportation. Shipper’s agents commonly provide services related to warehousing or loading and unloading.

9) Tariff

A Tariff is a document setting forth applicable rules, rates and charges to move goods. A tariff sets forth a contract for the shipper, the consignee, and the carrier

10) Truckload

Large-volume shipment from a single customer that weighs more than 10,000 pounds or takes up all the trailer space so no other shipment can be loaded.

Working With a Freight Broker

Working with a freight broker can eliminate a lot of the anxiety surrounding freight shipping. But even then, it’s helpful to have a good handle on basic terminology. This will ensure clear communication and hopefully prevent misunderstandings.

Working with a freight broker can eliminate a lot of the anxiety surrounding freight shipping.
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Contact Us to learn more about procuring the best rate and carrier for your job.

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Big Changes to Freight Shipping

Improved and integrated technology, like that in the IoT, has increased productivity in the supply chain, minimizing costs and errors. These advances benefit all areas of the logistics industry: trucking transportation, international transportation, supply chain management, and shipment tracking. Here are some big changes the IoT has made to the shipping industry:

Transparency

Shipping transparency benefits the customer, shipping agents, and shipping management teams.  When customers have the tools they need to get clarification and updates (GPS tracking, email reports, dynamic dashboards, etc.) they will not have a reason to call their logistics manager. This allows employees to focus on their work while the customer gets the updates they need via the IoT.

Automation

Shipping is becoming increasingly automated, with sensors on products, pallets, SKUs, drivers, facilities, and vehicles providing regular feedback and updates. Conveyor systems move the right products to the right piece of trucking equipment at the right time. Loading software advises proper placement to maximize space and avoid load and lane imbalances and potential damage or wasted space.

Pro Tip: Automating loading processes decreases cost and eliminates human error.

Scalability

Most business needs will grow and evolve over time, requiring owners to continually assess their capital, warehousing, and distribution needs. When paired with an experienced third-party logistics provider, the IoT provides the flexibility and fast scalability to adapt to any demand.

Breakthroughs in Technology

To remain competitive and enhance efficiency, it’s critical to keep up with the latest technology. The shipping and logistics industry benefits immensely from the IoT and will continue to grow as more advances are made. The breakthroughs in technology, and the innovative shipment managers brave enough to embrace them, will only help your business succeed.

Contact Us to learn more about how we ensure your freight gets where it’s going on time.

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Finding the Right Freight Management Company

No matter what size your shipments are, you want them to reach their destinations without problems. Delays, damage, or loss can affect your business and diminish customer confidence. Here are 5 things you should look for in a shipment management company:

1) Choice

A freight management company should provide you with plenty of options, from carriers to transit times, mode and price.

2) Certainty

While some business owners might be hesitant to provide customers with a clear picture of business operations, it’s a must for shipping. Transparency has been shown to increase employee and customer satisfaction.

3) Communication

Communication between shipping managers, carriers and you (the customer) can only help maximize the process. While person-to-person interactions can lead to unfortunate misunderstandings, increased visibility results in clear, meaningful communication. In many cases, a good freight management company will provide additional tools via a cloud-based TMS that can create greater visibility through the life cycle (from order origination to delivery) of the order.

4) Reputation

Just like any service provider, a good way to weed out disreputable companies is to check their customer reviews and testimonials online. Even if negative feedback is present, take a moment to see how they responded to it. While it’s seemingly impossible to avoid the occasional disgruntled customer, a professional and empathetic response which sought to make the situation right can be just as powerful as a positive review.

5) Value

The bottom line is almost always price, but it should be value. The cheapest price will often get you what you paid for. Long transit time, costly delays, etc. Paying a fair price for good service provides you with value, and that’s really what you should seek out.

Pro Tip: When it comes to small business shipping, look for value, not necessarily the lowest price.

A Better Way to Ship

If you’ve found that your shipping or transportation costs have gotten out of hand, or if your current provider has not been dependable, you may need a new shipping partner. Perhaps you’ve experienced growth and simply need to increase your capacity. If you feel that you might benefit from consulting with an expert, it never hurts to call.

Contact Us to learn more about smart solutions to save you time and money in your shipping processes.

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Shipping Logistics in the US

With rising fuel prices, transportation costs are a major consideration when it comes to where a company locates a new manufacturing or distribution facility. Finding a cheaper way to ship is the main objective of executives everywhere. The following regions’ overall infrastructure make them the most logistics-friendly areas in the US.

1. New York
2. Houston
3. Minneapolis
4. Dallas
5. Kansas City
6. St. Louis
7. Chicago
8. Cleveland
9. Boston
10. San Francisco

1) New York

New York City is one of the most vibrant transportation hubs in the nation, consistently ranking first among U.S. cities in truck freight volume.

2) Houston

The Port of Houston is one of America’s busiest ocean gateways, and its George Bush Intercontinental Airport handles large amounts of foreign trade and cargo.

3) Minneapolis

Minneapolis is rapidly expanding its infrastructure in major metro areas and around the Port of Minneapolis, the northernmost port on the Mississippi River System.

4) Dallas

Dallas boasts access to many options for air, road and rail transportation. The infrastructure and heavy logistics presences make it a bustling shipping area.

5) Kansas City

In the geographic center of the country, Kansas City enjoys diverse and efficient transportation options, with prime access to an anchor of the intermodal network, America’s freight rail system.

6) St. Louis

St. Louis enjoys access to four modes of transportation (air, rail, road, and water) providing access to local, national, and international markets.  The central location and robust infrastructure affords some of the lowest shipping costs in the country.

7) Chicago

Its location on Lake Michigan and along the banks of the Chicago and Calumet rivers give Chicago easy access to a network of waterways, and access to world markets via Chicago’s O’Hare airport, a major cargo thoroughfare.

8) Cleveland

The Cleveland Hopkins Airport, Burke Lakefront Airport, and many harbors make for easy shipping.

9) Boston

The Port of Boston is just the largest of many ports in and around Boston, making it a hub for logistics.

10) San Francisco

The Port of Oakland recently announced that 2017 was the busiest year in its 90-year history.

Pro Tip: Cities with optimal infrastructure for shipping usually make ideal business locations, and can provide easy access to global markets.

Infrastructure That Anticipates Growth

All the cities mentioned here are terrific at using their resources and ingenuity to create an atmosphere that not only listens to but anticipates a business’ needs. When it comes to global shipping and logistics management, that’s a recipe for success.

Contact Us to learn more about our unparalleled shipment management services.

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Truck Safety

Truck safety isn’t just a priority to the drivers, but to carriers, truckload management companies and customers. Enhanced safety measures ensure that drivers are safe, shipments are secure and costly delays are eliminated.

1. Embrace Technology
2. Check Your Attitude
3. Be Alert
4. Inspect Your Rig
5. Take Breaks

1) Embrace Technology

Tech solutions for truck drivers can help improve safety, communication and analytics. These tools are all a means to improve driver retention, by hopefully making your job easier.  GPS designed for truckers will show vital information such as which exit to take, when to change lanes, traffic reports etc. This information will be transmitted to your carrier, eliminating the need to check in constantly or explain delays.

2) Check Your Attitude

95% of accidents are the result of driver actions and attitudes, rather than driving skill. Aggressive driving, road rage, and general carelessness can have very real consequences.

3) Be Alert

Keep an eye on everything going on around you. When rolling down the highway, especially in heavy traffic, always be aware of who’s in front of you, beside you and behind you. Keep plenty of space between your rig and those in front of you, and change lanes as little as possible.

4) Inspect Your Rig

Before you even hit the road, conduct a pre-trip inspection according to Federal and State regulations. It is a thorough check of the semi truck, trailer and load, to ensure that everything is operating correctly, prior to your departure. Check the tires, brakes, fluids, lights, interior and body. Any damage or issues needing attention should be addressed before departure.

5) Take Breaks

Stay cognizant of your fatigue level after many hours of nonstop driving. “Accidents can be best avoided by recognizing the fact that driving a commercial or personal vehicle is a full-time endeavor,” says Gomez. “Inattentiveness is the most dangerous, and sadly the most prevalent, cause of accidents.”

Unloading Shipments

Whenever possible, use mechanized equipment, (like forklifts and lift-gates) when loading or unloading trailers. Not only does it keep the items more secure, but it keeps you safe from injury.

Getting the Job Done Right

It’s not enough to get a shipment from A to B if your truck is damaged or you get into an accident along the way. Smart truck safety will ensure you always get the job done right, enhancing your professional reputation and improving your bottom line!

Contact Us to find out how we work with the best carriers to get your shipment to you, safely.

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Pros and Cons of the ELD Mandate

• PRO: Can save drivers time by reducing paperwork
• PRO: Keeps dispatchers and truckload managers informed of a driver’s status, making safety and compliance easy
• PRO: Smartphones and tablets can be used as the vehicle’s ELD as long as the system meets specific requirements, including a hardwired connection to the truck’s engine
• CON: Some drivers view the mandate as a form of micromanagement
• CON: The ELD will restrict the number of miles each driver is allowed to travel
• CON: Small carriers are at a disadvantage, as it may be difficult for them to afford the new devices on top of their other expenses

Who does the rule apply to?

The ELD rule applies to most motor carriers and drivers who are currently required to maintain records of duty status, as well as commercial buses and trucks.

What happens if a driver is stopped and doesn’t have the required ELD?

The inspector will likely cite the driver for failing to have the proper record of duty status. They may place the driver out of service for several hours, leading to costly delays. At the end of this period, the driver will be allowed to complete the trip to the final destination using paper logs.

What is the carrier’s responsibility?

Each carrier must ensure that they’re using a registered device. This includes periodically checking both the registration and revocation list.

Is anyone exempt from this rule?

• Drivers who only use paper status records for no more than 8 days out of every 30-day period.
• Drivers of vehicles made before 2000.
• Drivers who conduct tow operations.

Implementing Technology

The ELD rule is based on a series of previous rules, each building upon the one that came before. Many fleets were already using automatic onboard recording devices to reduce paperwork before the rule was put into effect, so the change is not as dramatic as some might expect. The ELD is projected to reduce accidents, fines, and enhance productivity, with pros seeming to outweigh cons.

Contact Us to learn more about the ELD mandate and how it affects you.

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