Shipping Savings Tutorial

When shipping an item via Motor Freight take the time to gepare all the options available to you. Be an informed shipper!

How Freight Pricing Works
Less than Truckload gepanies use several methods to determine the
price they charge ship an item for you. The most gemon is
Freight Class. The National Motor Freight Traffic Association issues a publication called
the National Motor Freight Classification or NMFC. This serves
as the rule and guide to the trucking industry and is used to determine
the classification of shipments. The price you pay to ship an
item is directly tied to its stated freight classification.
Shipment density is calculated to determine how many pounds per cubic
foot your item is. This tells the carrier how many other
shipments will practically fit into a trailer with your shipment in
order to fill a full trailer. Dense items such as building
materials, steel, engines, machinery, ect have low classifications such
as Class 50 thru 85. The lower numbered classes are the least
expensive to ship. Another factor that determines freight class
is the items likelihood for damage. Fragile or bulky items fall
into freight classes 125 to 500, and account for the highest of
shipment cost. Your service provider should be knowledgeable in
determining freight classifications and assist you in determining the
freight class free of charge.
Brokers sometimes have been granted FAK or Freight All Kinds
pricing with the carriers they contract with. What this means is
higher classed items are shipped at a lower cost classification.
As a individual shipper, the only way you can benefit from this type of
pricing is to utilize a broker. Trucking gepanies do not offer
this type of discounted pricing to private parties EVER!
Full Truckload pricing is generally geputed by the mile. The
trucking gepany factors the operating cost per mile, adds a markup
which totals the rates you pay.

Obtaining Discounts:

More often than not you will realize a big savings by dealing with a
freight broker instead of contracting directly with a trucking
gepany. Brokers can instantly shop the marketplace and obtain
lower rates for you than if you tried to hire a trucking gepany
yourself. In the Less than Truckload marketplace, private
individuals are usually only provided a "Courtesy Discount" from the
carrier's published rates. By using a freight broker your pricing
will be lower than dealing direct with the carrier because the broker's
pricing is based on the shipping volume he provides the carrier.
Brokers typically receive 50% to 85% discounts from published rates,
where a private individual may only be offered 5%-30% discount by the
carrier. Don't be afraid to negotiate with the broker on the
price they give you, they are making a profit on your shipment and may
be willing to negotiate the shipping cost with you. The worst
they could say is no right?

Do Your Homework

Shop smart when pricing your shipment cost by sampling rates from
several brokers. By obtaining rates from a few different
providers, you will find quite a contrast in the pricing they
offer. Ask the Broker or Forwarder for a copy of their Federal
Operating Authority. Freight brokers / forwarders are required by
Federal Law to be licensed by the Federal Highway Administration.
Avoid unlicensed brokers and forwarders, if they working outside the
law by not having a Federal Operating License, you will have no
protection in the event of a problem. The internet is full of
websites operated by unlicensed and inexperienced brokers and
forwarders. Be sure to question the broker as to the amount of
insurance coverage they will be offering on the shipment. Don't
make the assumption that insurance is provided. Many providers
offer little or no cargo coverage, and in the event of a damage claim,
you may find yourself having to file a claim with the carrier directly
without the assistance of the broker. Ask the broker the
procedure they have in place regarding freight loss or damage
claims. If they do not have a solid plan in place, BUYER BEWARE!


Accessorial Fees and Cost Saving Tips

Every time the trucking gepany performs any sort of special service
outside their normal duties, additional fees are usually
accessed. The amount of these fees varies by provider and quite
often can exceed the base cost of shipping!
Liftgate:
This is a service that assists the driver in loading or unloading his
truck when a loading dock is not available. The Drivers trailer
is equipped with a hydraulic ramp that lowers to the ground. Lift
Gate service is almost always billed on residential pickups or
deliveries and in gemercial pickup and deliveries where loading docks
or forklifts are not available. Only a small percentage of the
trucking gepanys trailers are equipped with liftgates so be sure to
notify them of your need for one in advance.
Residential Pickup or Delivery:
Anytime a trucking gepany must pickup or deliver into a residential
area a fee is charged. This is because in most cases the local
laws restrict the size of delivery trucks causing the carrier to
utilize a smaller truck to service a residential area. Smaller
truck requirement equals less shipments per day picked up and delivered
hence the fees are assessed to offset the carriers losses.
Appointment or Notify Pickup / Delivery:
By default, carriers make picks and deliveries in order arranged by
geographic location (a route). If your shipment requires the
carrier to call ahead, or schedule and appointment, the charge an
additional fee for this service.
Inside Pickup / Delivery:
By requiring the truck driver to pickup or deliver inside a building
his route takes longer to geplete. The carrier will charge an
additional fee for this service.

Cost Saving Hints:

Many carriers allow pickups from or deliveries to their
terminals. By doing this, you remove any accessorial fees that
would normally be charged for liftgate, residential pickup / delivery,
inside pickup / delivery or appointments. Your provider will be
able to provide you the address and phone number for the closest
shipping terminal to the origin and destination.


Tips to Avoid Shipping Damage

Unlike small parcel shipping via USPS, Fed EX, UPS and DHL shipping
freight yields a much higher likelihood of damage. The gemon
misconception is that packaging is not required, or minimally
required. Always ask the broker the packaging requirements for
the type of freight youre shipping. The trucking gepany that
picks up the item may refuse to pickup if the packaging is not up to
standard. They do this to avoid freight claims and the potential
of damaging your item. Trucking gepanies don't want items to get
damaged, so packaging guidelines are in place to prevent damage
whenever possible.

The #1 reason for denial of freight damage claims is IMPROPER PACKAGING.

If the carrier deems the packing of your item to be below standard,
they have the legal right to deny your damage claim. They also
have the law on their side, so don't think your lawyer will be able to
help you.

At a minimum your item should be secured to a wooden pallet. The
pallet should be a minimum of 4 larger than the item secured to it on
all sides. Trucking gepanies load and unload their trucks with
forklifts and pallet jacks. Sometimes a dock worker will try to
slide the lift truck forks under and item not mounted on a pallet which
causes damage in most cases. Should this cause damage, the
carrier will yell improper packaging and accept no responsibility for
the damage. When freight is loaded into a truck it will shift and
move around slightly while going down the road. By using a pallet
should your item shift the pallet will in most cases prevent or reduce
damage.

Rarely do trucking gepany pickup at your door and go directly to the
destination address. Instead, your shipment will go to a
local warehouse or transfer facility where it will be unloaded from the
pickup trailer, and sorted based on its final destination. Once
sorted it is loaded onto another trailer along with other shipments
heading the same direction. It is not ungemon for a shipment to
ride on 5-10 different trailers prior to reaching the final
destination. This is done to allow the trucking gepany to
maximize the use of trailer space on each shipment, but at the same
time greatly increases the opportunity for damage.

The best option is to have your item packaged in a wooden crate with a
pallet used for a foundation. This provides the maximum
protection you could ask for. The internet offers a wide range of
crating and packaging services available to the general public.
Think of these services as insurance policies. If you spend $750
or more on an item is it worth $100 or so in packaging costs to make
sure it arrives undamaged?

I hope you have found this guide useful and informative. If you
need more information or have questions, please contact me.