What can your company gain from outsourcing your parcel audit? Find out why outsourcing is an excellent idea here.
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What Outsourcing Can Do for You

Keeping your audits in-house may seem like a great way to simplify the process and keep your expenses low. However, outsourcing to a trustworthy service provider may be the best decision your company makes. Let’s take a look at the benefits outsourcing can offer you:

1. Save time
2. Monetary returns: 1-8% of spend
3. Keep your current accounting process
4. Reporting

1) Save Time

Outsourcing the work of a parcel audit to a 3rd Party removes some of the responsibility for the workload from you. You won’t have to spend time tracking every shipment, filing claims, disputing declinations, monitoring whether a promised credit actually showed up on your invoice, and more. That’s the auditor’s job now! You can spend your time focusing on more immediately important work for your company.

Pro Tip: Make sure you have not waived your right to file claims for late deliveries. In some cases, the parcel carrier may have “slipped” this language into your last parcel contract!

2) Monetary Returns: 1-8% of Spendings

When you hire Freight Cowboy for your audit, our process will inspect more than 55 points on your parcel invoice where lost funds can be recovered, including:

• Manifested but never shipped
• Late deliveries
• Erroneous residential charges
• And plenty more!

3) Keep Your Current Accounting Process

We understand that your current accounting process works for you, and we have no intention of forcing you to change it. Our audit changes nothing about your accounting system. Your accounting process stays the same and we only get paid from secured refunds that are credited to your account. If no credits are issued from your provider, there are no charges. 

4) Reporting

When the audit is over, the final reporting you’ll receive will give you valuable insights into your parcel distribution, which can also help with your next shipping negotiation with providers like UPS or FedEx. Optimize your supply chain and shipping costs with this information as you continue to serve clients. These reports also provide a good standard for your shipping process going forward.

A Good Business Decision

Outsourcing your parcel audit gives you the chance to continue keeping an eye on the process, while also allowing unbiased experts to do most of the work for you. In the end, you’ll have a fully optimized report, reduced expenses, and little to no significant changes to your company plans. 

What other reasons are there to outsource your periodic audits? Connect with us to find out.

The post 4 Benefits of Outsourcing Your Parcel Audit appeared first on Freight Cowboy - Shipment Management.

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!

The post 4 Ways to Lower Your FTL Rates appeared first on Freight Cowboy - Shipment Management.

Negotiating with parcel carriers for the best deal can be a challenge, due to the complexity in the contracts. Watch out for these 4 underhanded tricks.
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Navigating the Contract Negotiation Process

As you discuss the details and pricing of a contract with your potential parcel carrier, watch out for a few common tricks that could end up costing you more money later on. Ask for more details and a better deal if you notice the parcel carrier appears to be using one of these common tricks:

1. Highest discounts in areas you don’t use
2. Earned discount tiers not favorable “enough” for the shipper
3. GSR waivers
4. Knowing your shipping data better than you

1) Highest Discounts in Areas You Don’t Use

Most shippers will immediately see the problem here. A parcel carrier that eagerly offers discounts, but mostly in areas you won’t be using, isn’t truly trying to save you money. Knowing what service levels, zones and package characteristics you use the most and focusing on these areas will have a huge impact on your total parcel budget. 

2) Earned Discount Tiers Not Structured Properly for the Shipper

Many shippers aren’t aware of this, but you can always negotiate a carrier contract at any time. While earned discount tiers (ED Tiers) can be beneficial in providing further incentives, you want to monitor your gross spend and understand the entirety of your contract including your discount tiers. These tiers and the discount associated with them are negotiable. Also, the means of calculation is negotiable. As an example, if your package count is very seasonable an ED Tier structure based on your 52-week rolling average could hurt the additional discounting. 

3) GSR Waivers

Some carrier agreements will include a guaranteed service refund waiver. That’s why it’s critical for you to read the details of your contract. Never sign a contract that prevents you from receiving refunds when you deserve them. In many cases, this will be a last-minute addition by the carrier in order to increase their margins. As you recall, we typically see anywhere from 1-8% return on total spend, in relation to filing claims for late deliveries, manifested never shipped, erroneous residential charges, etc. when performing a thorough audit your FedEx or UPS invoice. 

Pro Tip: Never skim through your carrier agreement contract. You could be missing important pieces to the puzzle that prevent you from receiving refunds you deserve!

4) Knowing Your Shipping Data Better Than You

It’s necessary to review your shipping history before negotiating your parcel contract. If you aren’t aware of your previous parcel expenses, shipping zones, package weights, effect of your package size and dim divisor and other factors, you will be at a disadvantage and lose leverage in your negotiations. Now, if your carrier knows your shipping data better than you (which they typically do), you will not be able to negotiate a better deal. In many cases, hiring a professional audit firm that has robust reporting can help provide the reporting needed for you to gain leverage with your carrier of choice. 

Keeping Your Shipping Costs and Process Manageable

As you negotiate shipping rates and other costs with your parcel carrier, keep in mind that the company likely has its profits in mind more than your savings. While this isn’t always the case, it does mean that you need to advocate for yourself, audit your parcels, study your shipping history, and ask plenty of questions to ensure you’re actually getting the best deal out of your parcel contract negotiation.

Connect with us to learn more about shipping cost reduction and balancing your bottom line.

The post 4 Common Tricks Used by Parcel Carriers in Contract Negotiations appeared first on Freight Cowboy - Shipment Management.

Use these 4 strategies to streamline your next LTL request for proposal (RFP).
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Planning Your Request for Proposal

Your request for proposal could be completed with the intention to control transportation spending or expand provider options. A RFP will help you organize your entire shipping process. Here are a few strategies you should consider for your next RFP process: 

1. Common rate base
2. Fuel surcharges
3. Be open to new carriers
4. Hire an expert

1) Common Rate Base

A common problem for many shippers is being able to compare discounts from carriers since all carriers rate bases are different, which makes it very difficult to do proper modeling of each proposal. Start the RFP process with a common base rate for your potential LTL partners to consider when responding to the RFP (you may even be a large enough LTL shipper to demand the use of it). The purchasing of CzarLite is a great place to start. This CzarLite LTL Base Rate has become the industry standard with 276 billion zip-to-zip rate possibilities. While this will cost you some money upfront, the return can far outweigh the cost, plus you no longer be part of the blanket General Rate Increases (GRI) from the carriers each year. 

2) Fuel Surcharges

An often overlooked item in any RFP is the fuel surcharges imposed by the LTL carriers. This is also an area that can be standardized in your RFP, since all the carriers have different tables by which they calculate fuel surcharges. By standardizing you could save as much as 5% off your net transportation rate.   

3) Be Open to New Carriers

You may already have carriers you’re familiar with and trust. However, change can be beneficial to any business if it’s handled well. A new carrier may be able to offer you lower costs, more efficient packing, faster shipping times, or more. Being open to all proposals will increase your leverage with your incumbent carriers. Explore your options through a Google search, read reviews, and ask around to find the best carriers for your specific needs.

Pro Tip: As part of your research for new carriers, use our LTL rateshopper to determine how much money they can (or can’t) save you by switching.

4) Hire an Expert

One sure-fire way to ensure you get the best deal possible on an RFP is to hire a professional to help you navigate the complicated field of LTL pricing. Firms like ours have people that come directly from the carriers, so they know intimately the strategies to deploy on your behalf and all the negotiable items in your contract that will garner the most favorable results. An often overlooked area is the amount of time it takes your company to publish the RFP, manage the carrier responses, negotiate the most favorable terms through multiple rounds and finally all of the modeling and analytics needed to accurately forecast the impact of your carrier selection.   A professional shipping management team will help you analyze your options and find the best possible value. To best enhance your supply chain, speak with one of our shipment management experts today!

Planning for a Successful RFP

The best strategy for your next LTL RFP is to balance expert input with your own research on the best options for saving money. With careful attention paid to every option and a detailed analysis of your supply chain’s status, you can easily reduce your shipping expenses.

Connect with us for more information on optimizing your supply chain.

The post 4 Strategies for Your Next LTL RFP appeared first on Freight Cowboy - Shipment Management.

Improve your company’s supply chain with these easily implemented tricks!
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Effective Management Procedures

For your supply chain to function properly, everything has to be integrated correctly to create a perfectly synchronized work environment. In order to keep operations streamlined, make sure you follow these essential shipping management procedures. 

1. Order fulfillment and processing management
2. Warehouse safety inspection
3. Vehicle inspection
4. ISO container inspection

1) Order Fulfillment and Processing Management Technology

A crucial component of customer service is that customers receive their packages on time and undamaged. A small company can handle this challenge much easier than a larger group. As your business grows, consider delegating some of the tasks to others and setting up checklists to ensure the proper standards are met. Provide a positive experience to exceed your customers’ expectations. Additionally, don’t forget about inventory management for your shipping center. A well-managed inventory system will prevent you from buying too much or not enough of supplies you need, ensuring you can always perfectly meet demand.

Pro Tip: Before you send out an LTL shipment, use our rateshopper to ensure you get the best deal possible. Saving money on shipments frees your budget to focus on other crucial expenses.

2) Warehouse Safety Inspection

Of course, this step is crucial for legal compliance and the safety of everyone at your facility. Periodically inspect your shipping warehouse for any potential hazards and take notes & corrective action if needed. Make sure your facility provides a safe and comfortable work environment. Hang safety signs in common areas to prevent incidents.

3) Vehicle Inspection

This is particularly important for your warehouse forklifts. Make sure the vehicles run properly, with no warning lights from the engine or tire damage that could make driving unsafe. Additionally, make sure your vehicles meet all required safety standards. Even if safety inspections aren’t required by law, it’s a good idea to perform checks anyway to prevent a deadly accident later.

4) ISO Container Inspection

Considering the sheer volume of purchased goods shipped in ISO containers, you’ll likely be handling shipping containers frequently. They require periodic inspection to make sure your customers’ items will arrive safely. Look for damage, potential defects, weak spots, and other concerns that could make the container unfit for use.

Improving Your Supply Chain

Improving your shipping service’s supply chain will help you satisfy customers and keep a leading role in the industry. Too many unorganized tasks can be overwhelming, but with specific plans, integrated technology, and work delegation, you can ensure that all standards are met and your customers enjoy a satisfactory experience with your services.

Connect with us for more information on planning your supply chain.

The post 4 Shipping Management Processes to Improve Your Supply Chain appeared first on Freight Cowboy - Shipment Management.

Don’t let high shipping prices catch you off guard! Learn what goes into price calculation and how you can get a good deal.
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What Variables Affect Shipping Rates?

Understanding the variables affecting different shipping rates can help you choose those parts of your parcel pricing contract that can save you money if negotiated effectively. As you prepare your next small parcel negotiation, keep these factors in mind:

1. Service levels
2. Shipment weight, shape, and size (dims)
3. Zonality
4. Fuel Surcharges
5. Accessorial Fees

1) Service Levels

Simply put, a service level refers to how quickly your package will ship and how much extra service or care you’re paying for. Depending on how important your shipment is, this charge could increase pretty quickly. Pay attention to how much priority shipping will cost you! It may not always be worth it, in many cases, the ground network can get to your inner zone almost as quickly. You should also be aware that the carriers can entice you with large discounts on service levels you don’t really use that often and sometimes your lowest discounts are in the service levels you use the most.

Pro Tip: If your business has an account with a parcel shipping service, you’re probably charged service fees for your package. Make sure to ask about this potential expense.

2) Shipment Weight, Shape, and Size

Weight is a standard consideration for shipping cost calculation. However, don’t forget that the size and shape of your package will influence your final cost as well! The bigger or more oddly shaped your shipment is, the fewer orders can be packed near it, and the less money the shipping service stands to make. Thus, you’ll often end up paying more. More importantly, you will be charged the greater of the two…actual weight vs. dim weight. The dim divisor that is utilized to calculate your dimensions is a negotiable item in your carrier contract and is often overlooked. Both FedEx and UPS also offer package optimization services in order to make sure you are maximizing the density of your shipments, there are also other independent 3rd Party package optimizations services providers in the market you can reach out to as well.  

3) Zoning Prices

Unfortunately, you’ll likely never come across a flat rate for shipping packages across the US. Though the exact borders may vary, most shipping services divide the country into zones. Your starting zone and the package’s destination will both factor into the ultimate price you’ll pay. Sending a package from the east to the west coast? Prepare for a relatively high shipping rate.

4) Fuel Surcharges

The most common surcharge you’ll encounter is a fuel surcharge. This one is pretty straightforward–it just covers the cost of the gas or jet fuel required to get your package to its destination. Just remember that as gas prices rise and fall this will affect your total shipping cost. FedEx and UPS both have their own fuel surcharges, for a larger shipper you may be able to negotiate a discount on your fuel surcharges as well. Also, your fuel is a percentage of the transportation rate and as you improve your discount here this will also lower the amount you pay in fuel surcharges.

5) Additional Shipping Fees

Depending on which service you use, you could have to pay between one to 80 different additional fees to ship your package. These costs may be negotiable and you should focus on the ones that have the greatest impact on overall carrier spend. Don’t let yourself get caught off guard with these additional costs, know those accessorial fees you are being charged for most frequently and work to negotiate some form of concession(s).

Saving Money on Parcel Shipping

When it comes to sending packages around the country, your options for saving money are somewhat limited. However, you can still take steps to reduce your costs. Keep the package weight low if you can help it, minimize your package size when you can, monitor price changes, and ask about potential discounts or unnecessary fees. If you monitor your package activity carefully, you can cut costs for your business.
Interested in learning more on parcel shipping rates? Join the conversation to see how other people save money on their shipping.

The post Price Factors that Determine Parcel Shipping Rates appeared first on Freight Cowboy - Shipment Management.

LTL shipping is a great solution for any business trying to transport only a small amount of freight. But make sure you know how to prepare for anything that might go wrong.
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Potential Drawbacks

On the whole, LTL shipping is a dependable, cost-effective way to transport a small amount of cargo, most carriers maintain 97% or better on-time delivery rate. But business owners should be aware of both good and bad potential outcomes. Be prepared to deal with one of these issues when using LTL:

1. Losing the whole shipment
2. Higher risk of damage
3. Monetary drawbacks

1) Losing the Whole Shipment

One of the downfalls of shipping via an LTL carrier is that there is a possibility of the whole shipment not arriving at its destination on time or being lost in transit. As where, if shipped via a parcel CWT program you have a higher probability that most of your order will arrive in the published transit time.

However, an entire LTL shipment is contained in a single truck and rarely is a shipment broken down into a smaller quantity when capacity runs out for the entire order. Anything that delays or damages that single truck will also delay or damage your entire pallet of merchandise.

Pro Tip: Make sure to use a shipment manager or tracker to keep an eye on your LTL freight. This can reduce the risk of your goods being delayed in transit.

2) Higher Risk of Damage

In spite of the fact that there is less handling of the shipment, the risk of damage is actually higher with LTL providers. LTL carriers use forklifts to handle and load the freight, often double-stacking pallets in a trailer as well, making your shipment more susceptible to damage. Proper packaging and the appropriate use of dunnage, as well as blocking and bracing practices, are essential to guarantee a damage-free delivery.

3) Monetary Drawbacks

Lastly, LTL quantities don’t automatically contribute to parcel revenue-based incentives, only if you have negotiated this language into your parcel agreement. Unless your FedEx Freight or UPS Freight contract specifically states so, the revenue tendered to the LTL carrier will not contribute to the incentive received from the parcel carriers.

As well, there are so many more competitors in the industry that you may not even be transporting your LTL freight through the parcel carriers LTL business units. Though LTL shipping will generally save you money, don’t take it as a guarantee in every case. Use a rateshopper to double-check the price.

A Mostly Advantageous Strategy

Depending on your circumstances, the positives of LTL shipping may outweigh the negatives. But don’t make a decision either way without considering the advantages as well as the potential disadvantages. Make the best choice for your shipment and your needs.

Not sure if LTL is right for you? Connect with us for helpful ideas on when to use or pass on LTL shipping plans.

The post The Cons of LTL Shipping appeared first on Freight Cowboy - Shipment Management.

Looking for a better way to send or receive small orders? LTL shipping may be the answer!
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Why Should You Choose LTL?

Less than truckload shipping can prove useful to any company that regularly ships or receives smaller orders. From keeping costs low to quicker transit times, LTL services can help improve your company’s business and success rates. More advantages of LTL include:

1. Reduced costs
2. Detailed tracking
3. Extra services available
4. Less environmental impact

1) Reduced Costs

Since you only need a portion of the truck space, LTL shipping rates are generally lower than paying for an entire vehicle. In many instances, LTL liability limits are much greater than FedEx and UPS CWT programs. Consider this a shipment weighing 350 pounds at freight class 50. One LTL carrier would limit liability to $700.00 ($2.00 per pound), whereas the parcel carriers would limit liability to $100.00 for the exact same shipment. Each LTL carrier has its own unique liability limits in regards to a loss or damage claim. Make sure to cross-examine your carrier’s rules tariff.

Additionally, remember that a company’s advertised prices may not be set in stone. Since the LTL marketplace offers a competitive landscape, with as many as 20-25 carriers for any given route, carriers are likely to be open to negotiating their costs. To find the best rates for your business, use an LTL rateshopper and save yourself some money.

2) Detailed Tracking

Even though your shipment shares space with other clients’ packages, LTL companies still make sure you can track your shipment and watch for a projected delivery date. Through the shipment reference number (pro#) and other information, you’ll be able to track your items at any time.

LTL shipping can also cut down on transit time, depending on the carrier. For instance, for a shipment from Houston, TX to Little Rock, AK, FedEx Ground has a published transit time of two days. Meanwhile, the LTL carrier Averitt Express offers a one-day transit. That extra day can make all the difference in a rush job!

Pro Tip: Business owners: Don’t overload your workload by handling all shipping functions in-house. A shipment manager can help you keep an eye on your orders!

3) Extra Services Available

LTL carriers pay close attention to your shipments and provide special services that shipping a full truckload wouldn’t allow. For instance, small orders can be delivered straight through your business’s front door as long as you’re present to receive them (inside delivery charge). There’s no way you could bring an entire truckload of goods inside! This just helps you get your supplies faster.

5) Less Environmental Impact

Taking advantage of an LTL shipping method lets the transport company use fewer trucks to transport their clients’ supplies, ultimately cutting down on the waste those trucks produce during a long drive. By shopping small and sharing the transport space, you can help contribute to a cleaner planet.

How Can LTL Carriers Help Your Business?

Of course, using LTL shipping doesn’t guarantee that all your business’s delivery woes will be resolved immediately. But if you need an effective method to keep your costs low and increase delivery speed, smaller shipments and specialized parcel carriers can certainly help.

Still want to learn more about LTL advantages? Join the conversation to see how this shipping method helps other business owners every day.

The post The Pros of LTL Programs appeared first on Freight Cowboy - Shipment Management.

Are you torn between freight shipping programs? Here’s what you need to know!
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What Are the Disadvantages of CWT Programs?

Whether you’re shipping small packages or a shipment weighing hundreds of pounds, you should be contemplating the shipping costs including fuel surcharges. You must also evaluate the technology for rating and routing, the loading or unloading dock (for large shipments), the staging area, and more.

1. Determining the Best Cost/Transit Time
2. Carrier Prices & Negotiation
3. Less Competition

1) Determining the Best Cost/Transit Route

One of the biggest hindrances of CWT programs is being able to decide the best cost/transit routing decision. It may require state-of-the-art software to compare CWT pricing and transit, not only in relation to CWT vs LTL but also CWT pricing in relation to your present parcel pricing program. In many cases, LTL transit time can not only compete with parcel CWT transit times, but they can also actually deliver your shipment quicker.

Pro Tip: Consider using modern programs to compare CWT pricing and transit.

2) Carrier Prices & Negotiation

If you’re not accustomed to CWT pricing and the various moving parts of how the rates are constructed, many shippers may feel at a disadvantage when shown pricing from the carrier. Like any transportation pricing, the majority of the elements are open to negotiation. Areas of negotiation would include the following: discounts, commodity tiers, minimum package charges, FSC differential, accessorials, etc. CWT pricing is just as negotiable as your regular parcel and LTL pricing.

3) Less Competition

Unless multi-sourcing your usual parcel business, it’s probable that the shipper only has one option for CWT pricing. Less competition is never great. While most shippers have multiple LTL carriers to choose from in relation to price and transit.

Conclusion

Shipping CWT has many pros, but like anything else, parcel hundredweight service also has a few cons. It’s necessary to weigh the pros and cons of both CWT and LTL shipments. We will be reviewing the pros and cons of LTL programs in the coming weeks. Check in for the latest article!

Interested in learning more about parcel hundredweight CWT programs? Join the conversation to speak with our logistics experts, today!

The post The Cons of Parcel Hundredweight (CWT) Programs appeared first on Freight Cowboy - Shipment Management.

What Are the Advantages of CWT Programs?

There are numerous factors to consider when selecting the best freight shipping program for your unique needs. Parcel Hundredweight programs may be the right choice for you if you’re looking for an inexpensive option with less complex requirements.

If you’re stuck between shipping options, consider the advantages of CWT programs!
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1. Less Operational Handling Requirements
2. Cost-Effective
3. Class Specification is not Mandatory

1) Less Operational Handling Requirements

When it comes to palletizing, shrink-wrapping, staging, or shipment segregation, there are far less operational handling requirements. In most instances, these shipments are handled along the same “line” as the shipper’s regular parcel shipping. Contrastly, transporting freight using LTL may be part of more cumbersome shipping “line.”

2) Cost-Effective

Furthermore, CWT is more cost-effective. This method offers an instantaneous decrease in price as there are no pallets to purchase, and consequently, the weight of the pallets would not influence the calculation of your transportation rate.

CWT fuel surcharges are also way less than LTL. For example, the February 6, 2017, UPS Freight (LTL) fuel surcharge is 21.4%, compared to only 5.5% for UPS Ground. Many of the typical accessorial charges that are applied when shipping via LTL — such as liftgate and inside delivery — are not applicable when shipping CWT.

3) Class Specification is not Mandatory

There is an advantage to not having to decide the class for each package or the entire shipment, considering many shippers have various commodities.

Pro Tip: It’s quite convenient that the class specification is not a prerequisite to ship CWT.

Particularly when taking into account outer zone shipments. Minimum charges for LTL carriers are more than those of parcel hundredweight programs, as the charges for the equivalent destination state for the LTL carrier may be much greater the further from the final destination.

Moreover, an important consideration to parcel incentive is the volume tendered under these CWT programs.

Conclusion

There are many benefits for shippers that choose to use CWT programs. From the minimum handling requirements to the lower costs, this may be the best option for you. However, we will be reviewing the disadvantages of hundredweight programs, along with the pros and cons of LTL programs in the coming weeks. Check in for the next article!

Would you like to learn more about the pros and cons of shipping programs? Chat with our team of freight shipping experts today!

The post The Pros of Parcel Hundredweight (CWT) Programs appeared first on Freight Cowboy - Shipment Management.