LTL Shipping Costs to Rise Further in 2009

Trends are showing there will be lower fuel prices next year, but LTL freight shipping will be more expensive. Freight quotes will spike 8% to 9% due to environment shifts from a buyer's market to a seller's market. Slow business demand during 2008 has kept rate hikes to lower than 2%, but it's also shrinking the LTL freight industry.

Close to 3000 trucking companies will shut down, and many will join forces to compete with the larger

National carriers. This will be a challenge when the economy starts to pick up in coming years. With so many fewer freight trucks hauling, there will be a strong rise in demand.

With diesel prices likely to remain over $4 a gallon, lofty fuel surcharges won't disappear. In fact many companies will be adding extra charges, and eliminating free shipping altogether. Here are some ideas for lowering freight costs for the upcoming year.

To get the best rates, small companies should try to use a freight logistics company to handle their freight shipping needs. Unless a company ships enough volume through a carrier, they will not receive any discounts. Freight Logistics companies pass their discount on to the shipper, which in many instances is between a 30% to 50% discount.

If a company ships enough they can try negotiating a multiyear shipping contract. Carriers will be willing to give a discount in turn for years worth of shipments. This might take some serious negotiating, but it can be done.

Don't Count On Free Shipping This Holiday Season

According to retail industry reports, many large retailers are considering eliminating free shipping for online purchases this holiday season.

Several trade magazines said many retail industry experts expect retailers to put more strings on free shipping. Raising minimum-purchase requirements, offering the shipping at no cost for local deliveries only, and offering customers to secure their own shipping.

Shop.org, a division of the National Retail Federation, says 37 percent of online retailers surveyed last year offered unconditional free shipping while 71 percent dropped the transportation charge under various conditions.

Retail sales have weakened in recent months, but industry officials say online stores are showing the quickest growth. The proof will be in the pudding when the National Retail Federation releases its forecast for holiday season sales on Tuesday.

Trade Show Transportation & Shipping Service

Freightcenter has launched an all-new trade show shipping & transportation service offering exhibitors door-to-dock shipping at guaranteed lowest prices. Exhibitors are afforded the lowest possible freight rate by controlling and managing every aspect of the shipping through volume pricing secured with freight carriers Roadway & Yellow Freight (YRC) under contract to Freightcenter Logistics.




With Freightcenter, trade show exhibitors can now benefit from:

- Complete trade show transportation services, including LTL; deferred air; Next Day; 2nd    
   Day; 3rd Day.
- Guaranteed discount pricing, with lowest trade show shipping/freight handling available 
  anywhere.
- Rate quotes seven days a week, 24 hours per day.
- Complete on-line transportation booking services through the secured Freightcenter Web 
   site.

Freightcenter customers can immediately take advantage of this opportunity and can access more information at freightcenter.com. On the site, customers can review a detailed overview of the services offered, request quotes, book shipments and receive superior customer service.

Hurricane Ike Shipping Updates

UPS Freight Houston Terminals Reopened
UPS has restored service in most ZIP Codes impacted by Hurricane Ike, and UPS Freight terminals serving Houston, Beaumont and Victoria, Texas, have been reopened.

Some deliveries may be limited or delayed due to business closings, damage to roads and other transportation infrastructure, or restrictions by local authorities. UPS anticipates that service and transit times will be back to normal in most areas by the beginning of next week.

Pickup, delivery, and On-Call Pickup services are currently suspended in the following ZIP Codes: 77550 - 77555, 77611, 77617, 77650.

Diverted Trains To Cause Increase In Local Railroad Traffic

Jones County will see up to 72 rail freight trains traveling through the area per day over the next few days.

The huge increase in traffic, from about 10 freight trains on average per day, is due to damaged tracks in Texas and Louisiana after Hurricane Ike Sheriff Alex Hodge said. “It’s probably seven times what we normally have,” 

Hodge said.Hodge said the increase in rail traffic won’t have much of an impact here other than an increase in danger to motorists.“We ask the public to be vigilant and obey the railroad signs,” Hodge said. “We have an increased threat there.”The sheriff said officials aren’t sure how long the increase in trains will last. He said it could be a few days or even weeks.“CSX alone lost 21 miles of tracks during the hurricane,” Hodge said.

Freight Index Falls 11.3 Percent

Once again Cass Freight Index fell 11.3 percent in August compared to the same month a year ago, a sharp dive in freight shipments that still provided a ray of improvement in the troubled U.S. shipping economy.

The double-digit decline was actually the smallest year-over-year drop in freight shipping since May and the index in August edged up 2.8 percent from July's shipping activity.

At the same time, the index by freight payment company, Cass Information Systems, declined 3 percent from July to August, suggesting shippers were seeing some relief in the soaring transportation costs driven up this year by rising oil prices.  The 11.3 percent year-over-year decline in August followed drops of 14.9 percent in July and 12.3 percent in June.

Although the month-to-month increase was the strongest for the shipment index in 2008, it did little to counter suggestions that carriers and shippers were girding for a weak fall peak shipping season. At 1.127, the shipment index actually was below the mark the index hit in January, traditionally the slowest shipping month of the year.

Help, I Have Been Rebilled For The Wrong Class

The other day I got a call form one of my larger clients. Shawn, she said, why did I get a bill for over nine hundred dollars on my last shipment? The answer was she changed the items she was shipping and the class changed dramatically. All previous shipments were under a class 70 for printed matter, this shipment consisted of totes and should have been at a class 125.

This is a common mistake made in the world of freight shipping.  When you set up a shipment through the shipping company or freight carrier, your class will be decided at the time of obtaining your freight quote. The shipping company has the authority to set the class wherever they would like. They own the trucks, they make the rules.

When going through a freight logistics company, the rules are a bit different. The freight agent needs to put the proper class on the freight shipment or there will be a rebill from the freight company.  If the shipper puts the wrong freight class to try and save money or has accidently misclassified their freight,  they will unfortuantely have to pay the difference after the shipment has been delivered.  To avoid such instances contact a freightcenter.com customer representative and they can walk you through classifying your freight

Finding The Correct Classification For A Freight Shipment

Have you ever attempted to get a freight quote for shipping something that was too large to go on a standard parcel truck? Were you asked for the class along with the weight, dimensions and even how it is packaged?

All this information will be asked when you get a shipping rate for standard freight. If you are missing any of the above information, it will be difficult to receive an accurate freight rate.

Freight class can also be dependant upon whether you ship through the shipping company directly or go through a freight logistics company.  If you don't know your freight class is always best to contact our representatives.  The basic law in freight class is, less dense, higher class, equals a  higher rate per pound.

Here are some good guidelines to follow when trying to find the correct classification before you contact any shipping companies.

1: When furniture shipping, the class will always be higher if the items are set up or assembled. If the items are disassembled or knocked down they will have a lower freight class. Most furniture ships has a high class, usually between a 125 and 250.

2: Items that take up a great deal of room, but don't weigh much would be set at a higher class. Canoes, kayaks, auto body parts are usually between 250 and 300.

3: Most items with delicate moving parts are set at a higher freight class. Scientific instruments and electronics are between 150 and 250.

4: Household Items and personal belongings are set at a standard 100.

5: Dense items which have no moving parts will usually have a lower freight class. Marble, bricks, and concrete are set between 50 and 80.

Is My Freight Insured? How Can I Purchase Freight Insurance?

When it comes to setting up a freight shipment, insurance is almost always an afterthought. Shippers often assume they have full coverage.  Unfortunately, once the freight is damaged it is too late to insure the shipment.

Here is some advice for all shippers before they set up their next shipment with a freight carrier or freight logistics company.

Do you have freight insurance? Check with your insurance provider to confirm if you have freight insurance coverage and determine the costs associated. If you do not have freight insurance coverage, then your freight shipping company or a freight logistics company can easily provide it for you on a shipment per shipment basis.

What is maximum liability in the case of damage or loss? Get blank copies of your freight carrier’s waybills and read them carefully to ensure that you are comfortable with their liability terms and conditions.

What do I do if I experience damage or loss with my shipment? Contact your freight carrier or shipping company immediately in writing. All damage must be noted on the delivery receipt..  Your freight carrier should advise the next steps to process your claim.

Am I responsible for payment of freight charges, even if my shipment incurs damage? Unfortunately, damage or loss incurred on a shipment does not absolve you of payment of freight charges.  Freight Carriers are more likely to settle your claim if you have paid your freight charges. The majority of freight carriers carry a maximum liability of $0.10/lb - $0.50/lb. That means for a shipment of 1,000 lbs you will be getting around $100.00 to $500.00. This is why we offer additional freight insurance for your items.  When booking your shipment simply talk to your service representative about the various insurance options FreightCenter.com can provide.

Why Should I Use A Freight Logistics Company

Freight logistics companies have agreements with the freight carriers and search for the right availability based on price and customer requirements. Companies like Freightcenter.com can manage everything from one shipment to your entire supply chain.

Roadway Express, AAA Cooper, and R&L Carriers are a few of the many National freight carriers available. Third party freight logistics companies do not touch the freight, they provide the service of helping shippers find the best price with the best carrier for truck load and less than truckload (LTL) shipments.

Many shippers ask me how better rates can be offered through freight logistics companies than through the freight carriers directly. This is due to the volume of shipments that the freight brokers bring the freight carriers. The more shipments booked for them, the better the discount offered to the freight logistics company. In turn the less frequent shipper can obtain lower rates going this route.

Other reasons to use a freight broker besides lower rates are customer service and ease of setting up shipments. Most of the larger freight logistics companies have agents assigned to accounts who will take care of shipment from start to finish. The shipper does not have to dispatch or track the shipment, this is all done by the logistics agent. Also, many freight logistics companies have booking software available to the shipper for booking online shipments. Booking a shipment online eliminates the time spent waiting on hold.

How Guaranteed Shipping Works

There are many misconceptions associated with the freight shipping industry.  People often don't fully understand how LTL freight works.  Freight carriers and the shipper hold the most control in ensuring your shipment is received on time and unharmed.  Here are some common misconceptions.

1) Your shipment is guaranteed to be there on time. This is a common misunderstanding in the freight industry. Freight shipping is much different than parcel shipping, and you may purchase Guaranteed Shipping at an additional cost.   Every LTL shipment has a Standard Transit Time, which means if everything goes as planned your shipment will be there in that scheduled amount of time. This time does not include pick up day, weekends, or holidays. More often than not the shipment will be there on time, but problems do arise that can't be avoided in the transportation industry.

If you pay for a Guaranteed Shipment, there is a limited amount of guarantee provided. Difficulties like weather, traffic accidents, or ill drivers may cause your shipment to take longer. By paying for a guarantee, you are in essence putting more priority on your shipment. If a truck breaks down or a driver is ill, a guaranteed shipment will be first priority. Unfortunately, this does not mean your shipment will be delivered on time. It just means your shipment will be moved before other shipments.

2) I will receive a full refund if my shipment does not arrive on the guaranteed delivery day. Unfortunately, this is not true either.  The only refund given is the charge for Guaranteed Shipment. The rate for shipment portion will not be refunded.

3) If I lose money due to my delivery being late, the freight carrier or logistics company will compensate me.   The logistics company is a 3rd party.  They find you the best carrier for the lowest price so you don't have to.  In the event that a shipment is late, the burden of responsibility goes to the carrier.  We operate much like Price Line or Orbitz.  If you didn't enjoy your hotel, the hotel would be responsible for making it right.

Changes In LTL Freight Shipping Over The Years

For shipments of between 100 and 15,000 pounds LTL shipping is the least expensive and fastest way to ship. LTL freight carriers pick up freight from multiple locations and consolidate the loads for a line haul transit to the closest terminal.

Here the freight can be further consolidated for additional line hauls and than finally out for delivery to multiple destinations. Here are some of the changes taking place and how the freight carriers and freight logistics companies are responding.




Time Of Transit
For many markets, second day and next day service are becoming the norm. Shippers are looking for more service and shorter transit times. The freight carriers have been adjusting routes and trying to slim down the amount of terminals stopped at. UPS and Fedex entered into the LTL arena recently bringing proven technology and global expertise.

Rise In Cost Of Diesel Fuel
Fuel surcharges continue to escalate in line with the rising cost of fuel. Many carriers have stabilized the rising fuel surcharges in an attempt to secure more business.

Growth In The Shipping Of General Commodities
General commodities, most of which are finished goods delivered over the last mile in the supply chain to destination by LTLs, have grown faster than truckload commodities over the past 20 years.

Demands By Shippers For Wider Coverage
Certain regional carriers have pursued other options such as partnering with regional carriers in other geographic areas or larger superregionals for expanded LTL coverage.

Increased Usage of Freight Logistics Companies
Until third party freight logistics companies hit the scene LTL service was provided by National LTL carriers and partial truckload carriers. These freight logistics companies are able to offer large discounts on behalf of their agreements with the carriers. Mix and match LTL carriers to meet certain shipping requirements and then apply their strong customer service.

What Happens If I State The Wrong Weight On My Shipment?

As freight logistics professionals, we frequently hear,  "I Don't Know What The Weight Is." When shipping freight knowing the weight is very important. More importantly the weight will greatly effect your cost to ship.

All freight quotes are determined by weight and class, while some use weight, class, and dimensions for the shipping rate. If you were to guess on the weight, you would be guessing on your rate. The problem with guessing is sometimes you win and sometimes you lose, money that is. Not all shipments are weighed due to time constraints, so only one or two out of ten shipments are weighed. Here are some questions I encounter every day.

What happens if my shipment weighs more than what is stated on the Bill Of Lading? The party who paid for the shipment gets to pay for the additional weight when the freight carrier or freight logistics company sends them the bill or a re-bill. Re-bills are not bad when the weight is off a small amount, but if the weight is grossly understated it is time to worry. I have seen re-bills in the thousands of dollars.

What happens if I am told the wrong weight by the person I purchased an item from? It is the responsibility of the person paying for the shipment to have the correct weight. I would make sure to do some research online or make some calls to get as close to the actual weight as possible.

Will I get a refund if my weight is under than what is stated on the Bill Of Lading? In most instances the answer is no. If you were the freight carrier and weighed a shipment that was under weight, would you give a refund or just let that one pass by?

How can I get proof of what my shipment weighed? After the freight carrier weighs a shipment, a document called a certified weight check is issued. This is proof that your shipment was weighed, when it was weighed, which scale was used, and how much it weighed.

How can I weigh all my boxes? Easy, get on a scale and weigh yourself, than pick up a box and stand on the scale again, calculate the difference and keep a running total.

Packaging A Shipment For Shipping Standard Freight

Have you ever called up a shipping company an asked for a freight shipping quote? Were you excited to get your shipment going until you were asked how the freight is packaged?  Alll freight on an LTL truck needs to be packaged in one of three ways.

When getting ready to make a puchase of something that needs to be shipped on a standard freight truck, make sure you have a packaging plan.  This guide will explain how items need to be prepared for shipping, along with the pros and cons of each method of packaging.

One of the most common forms of packaging is palletizing. A pallet is a platform that something can be strapped to and moved with a fork-lift or pallet jack. The most common size pallet is 48(L) x 40(W), but there are plenty of different size pallets to use. The idea is to make sure the item is not hanging over the sides of the pallet, and not higher than 8 feet. Also, the freight needs to be fastened to the pallet without blocking the area where the forklift enters the pallet. With more delicate items, it is a good idea to wrap the pallet with cardboard for added protection.

Another  method of preparing a freight shipment would be crating. A crate could be made of wood, metal, or plastic, and has sides and a top. Many crates are built by using a pallet as the base for the crate. This is probably the easiest way to make a crate. The most important thing to remember when making your own crate is to make sure the crate can be moved by fork-lift or pallet jack. Crates can also be purchased or made by a crating service. Shipping a crated item is the safest method by far.

The least protective method for shipping would be putting something in a cardboard box. Although this way of packaging is acceptable for shipping, it is not very safe. This would be considered the minimal amount of protection given. The entire item needs to be enclosed in heavy duty cardboard or the freight carriers will not even pick it up.

Remember, the purpose of packaging freight correctly is to help eliminate damage, not to make it harder for you to ship. Shipping freight on an LTL (less than a load) truck is not like putting something on a moving truck, it does not remain on one truck the whole way. From the time your freight is picked up it will be moved onto a minimum of two trailers, with a potential of being on as many as six or seven throughout transit. With all this loading and unloading, there are many opportunities for incurring damage. Good luck and happy shipping!

Shipping A Motorcycle With A Full Service Carrier Guide

This guide will explain the steps taken in quoting, preparing, and shipping a motorcycle through a full service motorcycle carrier on FreightCenter.  This is the safest and most practical way to ship an un-crated motorcycle.

Step 1: Select Origin State
Step 2: Select Destination State
Step 3: Get Quote

Bikes can be picked up and dropped off at a residential or  business addresses.  All residential pickup and handling charges are included in the price. Our driver will strap your bike or ATV onto a custom pallet, put a free protective cover on it, and load it into the truck. If you're in a rush, drive your bike to a local terminal for quicker delivery. Here is a list of terminals:

Albuquerque, NM - Atlanta, Ga - Boise, ID - Boston, MA - Chicago, IL - Columbus, OH - Dallas, TX - Denver, CO - Detroit, MI - Houston, TX - Jacksonville, FL - Las Vegas, NV - Los Angeles, CA - Jessup, MD - Minneapolis, MN - Nashville, TN - New Orleans, LA - New York City, NY - Orlando, FL - Phoenix, AZ - Pittsburgh, PA - Pompano Beach, FL - Portland, OR - Raleigh, NC - Sacramento, CA - Salt Lake CIty, UT - San Diego, CA - San Jose, CA - Seatle, WA - St. Louis, MO - Syracuse, NY - Tampa, FL - Toronto, Canada

Why shipping your motorcycle through a full service carrier is the way to go:

Free Custom Shipping Materials - The carrier will provide a specialized pallet, equipped with a securing system and protective cover which will ensure your bike is protected. Pallets will be configured in two sizes, standard(96” X 46”) and oversize(108” X 46”).

Fast Delivery - Pick up takes approximately 1-5 business days, delivery approximately 5-10 business days later except in some remote areas. In a Hurry? Call us!

Air-Ride Suspension Trucks - We ship all bikes securely in air-ride equipped trailers for a smooth and soft ride.

Up to 1200 lbs. Worth of Cycle! - Other sites tack on serious fees if you hit 500 lbs. Our price, which includes all taxes and services, is the same for bikes all the way up to 1200 lbs.

Fuel Surcharges Already Included - All taxes, fees, and even fuel surcharges are already included in the low prices you see on the price grid. What you see is what you get.

Multiple Bike Discount - Shipping more than one bike? We are now offering an additional discount on top of our already low prices for multiple bike shipments.

Discounted Insurance Available - For even more security you can insure your shipment for a low $10.00 per $1000. We Ship More Than Bike - FreightCenter can ship pretty much anything. We have great rates on all freight, not just bikes, and we can arrange it all at the same time.

Free Cover - Every bike we ship is protected under a brand new cover to ensure it stays clean and protected from anything else on the truck.(up to 108")

How Do I Include The Freightcenter Shipping Calculator In My eBay Listings?

It's easy! Just go to Freightcenter and set up a free account than click "make a widget" and enter the details.

Why use the Freightcenter Shipping Calculator?

Never lose a sale again because your customer doesn’t know how to get your item home, is afraid of how much it might cost to ship, or backs out at the last minute because of unanticipated shipping costs. Our widgethttp://freightcenter.com/business/Calculator.aspx gives them the information they need upfront, quickly and easily.

It Is Free: There is no expense for adding the Shipping Calculator to any auction.

Sell More Items: Auctions that include the Shipping Calculator are more likely to sell faster.

Recieve Pay Quicker: Origin shipping details are pre-filled all your customer needs to do is enter destination zip code and where shipment is being picked up from.

Combine Handling Fees and Shipping Costs: Show one total rate to your potential customers.

Cut Down On Shipping Questions: Your customers will have a real time quote in seconds.

What Options Will The Freightcenter Widget (Shipping Calculator) Offer?

When using the Freightcenter Shipping Widget there are several options which the seller can add to the shipping calculator The beginning options pertain to pick up location and the truck.

1) Pick up zip code.
2) Pick up location: Business, Residence, or Terminal.
3) Will the truck at pick up need to have a liftgate for loading on it.
The next step in setting up the Freightcenter Widget,Shipping Calculator is to add the commodity information.
4) How the shipment is packaged: Boxed, Crated, or Palletized.
5) Quantity of items to be shipped.
6) Total weight of shipment (calculator does not do math).
7) Dimensions of items: Length, Width, Height (taken from outer-most dimensions of box, crate or pallet).
8) Freight Class:

Determining Freight Class

Freight class is a method used by shipping carriers to create rates for shipments. Based primarily on the commodity's value and density, all commodities fall under a predetermined class assignment from the least expensive at Class 50 to the most expensive at Class 500. The National Motor Freight Transportation Authority (NMFTA) manages the recognized freight classes and to date there are 18 total possible classes for commodities. These Freight classifications, sometimes referred to as an item's National Motor Freight Classification (NMFC), are based on several factors of the commodity, such as:

• Density-weight in pounds per cubic foot
• Stowability-excessive weight, length, balance
• Handling-special procedures, instructions, equipment requirements
• Liability-susceptibility to theft, damage, or perishable

The final options to choose for the Widget, are: Guaranteed Delivery By 5pm, Hazmat, and Handling Fee (fee for seller to keep if paying for shipment directly with Freightcenter)
Now it is time to name your new Freight Calculator, and add to the HTML side of your description. Wow, that was easy.

Do You Need Your Freight There The Next-Day?

It looks like UPS Freight has added lanes improving delivery times in the Midwest, Northeast and Mid-Atlantic, and Freightcenter's commercial and residential customers are reaping the benefits.

UPS Freight has added two-day shipping lanes between Chicago and Dallas, Boston and St. Louis and Philadelphia and Miami. It also has expanded next-day service between Cincinnati and Memphis, Tenn., and Columbus, Ohio, and Charlotte, N.C.

Service enhancements also have led to reduced transit times for shippers in Cleveland, Indianapolis, Milwaukee, New York City and Newark, N.J., UPS Freight said in a news release.

Freightcenter's web site does for shippers what Expedia does for travelers: Gives instant freight quotes for shipping a specific item from one zip code to another. In other cases, FreightCenter acts like an auctioneer, putting a customer's shipment needs up for bid among carriers looking to fill up their trucks.

How Do I Ship My Furniture Without Using A Moving Company?

If you are looking to ship individual furniture items, FreightCenter.com is the place to go.  There are two options for moving furniture, standard freight, or white glove service.

When shipping furniture on a standard freight truck, all furniture must be either crated, boxed, or palletized. This is to protect the furniture from being damaged during transit. Standard freight is different than using a moving company because the shipment is moved from trailer to trailer along the way. Some shipments might be moved onto as many as 4 or 5 different trailers. In most instances, this is where the damage occurs. If you are going to send your furniture this way, make sure you protect it as much as possible. Shipping this way is curbside service, and it is the responsibility of the parties at both ends to load and unload the truck.

When shipping furniture through a white glove service, the furniture is not required to be packaged, but any extra protection will help. White glove service is different than standard freight because the furniture will stay on the same trailer for the majority of the transit. There may be 2 trailers used with this method compared to 4 or 5 going standard freight. If you will be using this service, relax and let the company do all the loading and unloading for you.