Trucking Conditions Index Reflects Slower Growth for 2016

You may have seen our recent article on the current issues facing the trucking industry in 2016. It’s now becoming more and more apparent that these issues are affecting this particular mode of freight transportation more than any other.

FTR, a freight transportation intelligence company, tracks truckload and LTL trucking regularly and it just released its most recent Trucking Condition Index (TCI) report. At 8.27 the TCI reflects a forecasted slowdown in truck loadings.

What does that mean for you, the freight shipper?

According to Jonathan Starks, Chief Operating Officer at FTR, a decrease in the number of freight loads means there will be less pressure on capacity. With less pressure on capacity the rate environment is less likely to improve.  

Stark says that even though the rate environment has deteriorated, both contract rates and spot rates are expected to improve before the year is over. That is unless the market sinks further which ultimately depends on the manufacturing sector and fuel prices.

Keeping up with all the changing regulations and trends of the trucking industry can be a hassle. It takes extensive knowledge to understand the industry well enough to get the best rates. Proactively monitoring the trends of every sector of the freight transportation industry – not just trucking – rather than reacting to them is necessary.

Who has time for all that though?

While it depends on the size and type of your business, outsourcing your freight transportation needs to a 3^rd party logistics (3PL) provider, such as FreightCenter, can be the most time and cost efficient way to streamline your logistics operations.

3PLs are experts in freight transportation. They watch the ebb and flow of the industry very closely in order to contract the best rates with the best trucking companies so they can pass on the savings to their customers.

Request a quote today to learn more about how working with a 3PL can save you time and money.

Freight Shipping Season Begins

January to March is notoriously slow for the transportation industry. But, as soon as the snow starts melting things start to kick back into gear.

While FreightCenter is headquartered in sunny Florida where we don’t have to worry about such things as snow…or winter, we do provide freight shipping services to customers nationwide. 

That means we welcome the arrival of spring with open arms as it marks the beginning of the freight shipping season!

Spring is the time of year where construction companies start building again after a long winter; produce harvest is at its peak; demand for outdoor sporting goods rises, and so on.

Manufacturers, farmers and retailers need to get their goods where they need to go and fast. Trucking companies, common carriers and transportation brokerages are busy making that happen. They are taking on as many loads and shipments as possible to make up for the slow winter. Their flexibility and availability decrease as the season progresses and the market tightens up. Finding trucks becomes increasingly more difficult.

Working with a 3^rd party logistics providers will help you beat the spring rush, ensure that there’s always a truck when you need it and prepare you for an even busier freight shipping season – late summer to early fall.

Ship up to 1,200 Pounds in this New Freight Box

Did you know that you can order shipping and packaging supplies online through FedEx and they’ll deliver them to your door? I’m sure you do. But, what you probably don’t know is that FedExFreight now offers the Freight Box for larger shipments. Since FedEx Freight is one of our trusted carriers, we wanted to fill you in on their new service.

The Freight Box comes in two types: the integrated pallet box and non-integrated pallet box. It also comes in three industry standard sizes determined by height: short (20”), medium (28”) and tall (38”). And it can support freight up to 1,200 pounds! Which is a big deal considering that before the Freight Box, FedEx’s largest shipping container was the Extra Large Box which has a max weight of 50 pounds.

The FedEx Express Freight Box can be used with all FedEx Express Freight Services, both in the U.S. and internationally. They’re delivered to your door fast (within 3-5 days) and are easy to assemble. We even had some delivered here to FreightCenter just to see for ourselves! Our Freight Experts have been trained on the proper assembly and use of the Freight Box as well as the services provided with it. Have any questions about requesting a FedEx freight quote or using a FedEx Freight Box? Give us a call today!

Does your shipment weigh more than 1,200 pounds? Check out our website for more information on crating services. 

FreightCenter Carrier Now Offers One Day Shipping to Canada

FreightCenter introduced extended freight shipping services to and from Canada back in 2015. Now we’re adding to our list of services for shipping within Canada. Thanks to one of our trusted trucking companies (carriers), Ward Transport, we can now offer one-day shipping services to the greater Toronto area!

FreightCenter keeps the customer in mind when it chooses which trucking companies it works with in order to give you a wide range of service options and price points. Our freight experts are trained to consider the type of shipping required, rates, types of guarantees that are included, timeliness of delivery and more to make sure the carrier chosen will meet the specific needs for your shipment. Give us a call today to discuss our Canada freight shipping service options.

4 Reasons for the Tight Truckload Capacity in 2014

If you've booked a dedicated truck any time this year, you're likely to have experienced the the biggest trucking load board.

crunch that is occurring throughout our nation's trucking industry. Driver shortages were always to blame, but new insights into the true reasons for the high demand and low supply of trucks are being looked at in a new whitepaper by the DAT,

The 11-page whitepaper by Don Thornton, Senior VP of DAT Solutions, titled Truckload Capacity in 2014: What’s Causing the Capacity Crunch and What Can Shippers Do About It? gives us that late-in-the-year hindsight view into the trucking capacity issue.

In the beginning of the executive summary, Thornton writes, "Freight transportation capacity has been subjected to enormous pressure from a number of sources in the twelve months beginning July 1, 2013. Factors that constrained capacity and drove rates higher include new and more stringent regulations, extreme weather, increased operating costs, and a chronic shortage of experienced drivers."

Let's break down the four reasons for the tight capacity:

1. Extreme Weather

Remember last winter? Are you hearing reports that this upcoming winter's forecast won't be any better (and may be even worse)? Seasonal, inclement weather seems to be the gift that keeps on giving, and we never really caught up from late 2013 when a Domino effect of delayed pickups, warehouse storage costs, and missed deliveries disappointed shippers. Expect this year to be no different and plan ahead. If you enter this season with some flexibility in your pickup and delivery dates, you'll have less of a headache.

2. New Regulations

We saw US DOT regulations galore starting in July 2013. These regulations aimed to improve safety, but some may have missed the mark. Like the Hours of Service (HOS) rule for instance. It aims to keep drivers safe with adequate rest breaks, but when you look at the time drivers are forced to remain off the road (1 a.m. to 5 a.m.) it puts them square in metro cities during rush hour. Then you have the strict environmental regulations in California - a high freight volume state - and you've got trucking companies in California leaving due to high fleet operating costs. So we're left with fewer trucking hours and reduced service in a major GDP-producing state. But that's not all, we're now facing the deadline for MAP-21 otherwise known as Moving Ahead for Progress in the 21st Century, which forces all brokers and forwarders of freight to protect shippers with a $75,000 minimum surety bond. This regulation not only stopped carriers from easily brokering their freight to independent drivers, but it also put a few small and medium sized brokers out of business.

3. Increased Operating Costs

Fuel, labor and equipment costs are on the rise without an end in sight. It's the nature of the business for any fleet owner, but when these costs aren't being offset by revenue than it makes it harder for carriers to turn a profit. Thornton breaks it down best by saying, "On a per-mile basis, carriers today might require an average of $1.75 to $1.80 or more per mile for all miles, loaded and empty alike, in order to break even. For that reason, for-hire carriers cannot afford to run an empty truck, and a low rate can be acceptable in one direction only if a high-paying return trip boosts the round-trip average comfortably above a break-even rate."

4. Driver Shortage

Last but not least, we have driver shortage. This is a problem that is certain not to go away. According to the American Trucking Associations, the driver shortage could climb from a deficit of 30,000 drivers in 2014 to approximately 239,000 drivers in less than 10 years¹. With the rigors of the road, it has become increasingly difficult for owner-operators to fill a seat in their empty trucks with trained, experience drivers.

At FreightCenter, we've noticed the capacity issue is bleeding over into the LTL shipping market as well. As carriers experience trouble getting their trucks on the road, brokers and shippers are finding it harder to rely on transit times and steady rates. As a service-based organization, FreightCenter strives to maintain shipper expectations by quickly acting on missed pickups, finding alternative resources, and notifying shippers when delivery dates fall through.


References:

1. American Trucking Associations (ATA): Truck Driver Shortage Update, November 2012. (available: http://portal.trucking.org/StateIndustry/Documents/Driver%20Shortage%20Update%20November%202012.pdf)

How to Select a Refrigerated and Time Critical Trucking Carrier

Shippers utilize temperature controlled freight and specialized shipping options for a large variety of reasons. From transporting plant life and frozen goods, to pharmaceutical products and Hazmat materials.  Each cargo shipment has it's own temperature and time requirements.  

The most important step in selecting a carrier is ensuring they are both reputable and have years of experience in this type of shipping.  Not all refrigerated trucks are made the same and not all drivers are equipped with the proper skills and knowledge to ensure your cargo gets to it's destination on time and unharmed.  Refrigerated trucks all house different levels of insulation.  For example, transporting dairy products will require different temperature specifications than fresh seafood.  In these instances we recommend going with a top national carrier as opposed to a smaller one.  You can compare rates for all the top national carriers in one location by visiting www.FreightCenter.com.  Also FreightCenter provides extensive insurance options and one-on-one support from specialized agents.  

Before searching for rates make sure you know the temperature and time limitations of your product. With freight shipping a guaranteed shipment simply means it is put in priority above all other shipments.   Freight carriers are at nature's will and unforeseen natural disasters and weather restrictions can cause delayed shipments.  While a carrier will do their best to get your freight to its destination, if a hurricane hits for instance, there is little a carrier can do.  This is why it's extremely important if your cargo is time sensitive to select the carrier that will be able to deliver it as quickly and efficiently as possible.  Many factors can effect transit times, speaking with a freight agent before booking your shipment is the always the best route to go to gather additional information.

Common refrigerated cargo shipments include:

Agricultural Freight

Frozen/chilled food products and dry goods

Flowers, plant life and vegetation

Special produce handling and delivery

Meat, dairy and seafood products

Medical and Specialty Materials

Medical equipment

Pharmaceutical products

Chemical and Hazmat materials

Computers and technology equipment

Fine art

For expert care of your temperature-controlled and time sensitive freight visit FreightCenter.com or call Raymond Leonardi 800-716-7608 Ext. 1138.

Safe Driving Tips for Truck Drivers

Truck driving may not be on the top of your list of dangerous jobs, but with the high number of fatal car crashes, it certainly should be.  Follow these driving tips to make sure you and your cargo get to your destination as safely as possible.

1.  Get enough sleep.  Eat well during the day and don't rely on quick fixes like caffeine or sugar to get you through the drive.  These can easily wear off and contribute to loss of attention and reaction time while driving.  

2. Take care of your vehicle.  Schedule regular maintenance check ups with your mechanic.  Double check your vehicle before you embark on any trip.  Breaks are frequently sited during inspections and should be checked on a regular basis. 3.  Watch out for work zones.  Large trucks were directly related to nearly 1/4 of all work zone fatalities in 2006.  Not only do speeding fines double, but slowing down and paying attention during work zones is a small preventative measure to take to save lives.  Move over to the right lane when entering the work zone.   4. STOP SPEEDING!  According to the U.S. Department of Transportation 23% of commercial truck collisions were caused by drivers exceeding the speed limit.  Slow down or take a break during severe weather conditions.  Always keep your distance from the vehicle in front of you  and reduce your speed by 2/3 while driving on damp roads and 1/2 while driving on snow-filled roads.   5.  Don't forget to fasten your seat belt!

Trucking Companies - Which One's Right For You?

How to Find a Quality Trucking Company

There are approximately 360,000 trucking companies in the U.S.  Now how are you as a consumer supposed to find the right one for you?  Which ones have a good reputation for being on time?  How do you know if they are licensed and bonded? That’s where we come in.  Many of our customers shipping by truck are first time freight shippers and don’t know where to start when seeking out a reputable medium to deliver their goods. 

FreightCenter.com is a provider of trucking and freight services for both residential and commercial shippers. We’re focused on giving you the shipper all the tools necessary to ensure your freight gets to its destination safely and on time. To ensure this, all of our freight is transported by licensed United States freight companies. With over 100,000 carriers, we use the top LTL freight companies and thousands of specialty truckload carriers to ship all types and sizes of freight.

A freight broker like Freightcenter.com is designed to find the best trucking company for you or your business.  All of FreightCenter.com’s trucking companies are licensed, bonded and insured and have a damage claim rate under 1%.  You may be asking why a trucking company would work with us instead of filling their trucks themselves.  Many times customers will have items that are considered LTL or Less than truckload shipping.  This means they have items that don’t take up a full truckload. In order to make the most profits trucking companies want to fill up their trucks as full as possible to make their travel worthwhile.  That’s where we often come in.  We coordinate your items with the truck drivers so you can “buy space on their truck.” We then build relationships with the truck companies, doing the work on both ends for trucker and freight shipper.

Visit FreightCenter.com to learn more about freight shipping or to get an instant freight quote.