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Truckload

BlueGrace Logistics At SAPPHIRENOW 2018

As a leader in your company, are you getting the supply chain business intelligence and data you need? If not there is a way to get that much needed data and even cut costs in the process with a 3PL (Third Party Logistics) integration with SAP.

BlueGrace Logistics has exhibited at SAP SAPPHIRE for the last 3 years and spoken with executives from all types of industries. Many of the people told us it was either very difficult or incredibly time consuming to get the vital data they need from the supply chain and transportation departments within their organizations. As a 3PL, it is our responsibility to arm the executive suite with the data and business intelligence needed to make better business decisions regarding supply chain and freight.

With our proprietary freight data analysis, we set ourselves apart from other transportation management providers. Our systems take your current freight data and enable our team to get an inside look at what your team may be missing. Opportunities to simplify and save are not hidden anymore.

What Types Of Services Does BlueGrace Offer?

  • Specialized reporting, business intelligence, customer engineering, and analytics
  • Dedicated operations, project management, and customer service support
  • SAP/ERP integration
  • TMS solutions
  • Freight Bill Pay and Audit
  • Claims Management
  • Freight Cost Allocation, GL-Coding, and Customized Invoicing
  • Indirect Cost Avoidance Measures

Let’s Talk More At Booth #927

BlueGrace Logistics will be joining other leading technology providers in Orlando at the Orange County Convention Center June 5-7 for the SAPPHIRE NOW 2018 trade show. At this show, BlueGrace will be discussing how we integrate your freight with SAP to simplify your businesses transportation systems.


FREE BONUS FOR ALL SAPPHIRE NOW ATTENDEES!

Not only can we integrate your freight into SAP, we can use that data to optimize your entire supply chain. The first 25 registered attendees to Booth #927 are eligible for a Free Supply Chain Analysis and Optimization Study, using your current data. We will be able to review our results at the show with you and your team.

YOUR FREE ANALYSIS INCLUDES:

  • Daily/Weekly Consolidation Report
  • Cost per: lb/mile/
  • Cost per SKU, PO
  • Freight cost as a percentage of goods
  • Center of Gravity study
  • Carrier spend breakdown
  • Mode Spend Breakdown
  • Cross Distribution Analysis

Fill Out The Form Below To Let Us Know You Will Be Attending and Receive Your FREE Supply Chain Analysis and Optimization Study At The Show!

Artificial Intelligence and the Future of Trucking

Freight is one of the most essential industries in the United States, and according to the US Freight Transportation Forecast publication conducted by the American Trucking Association (ATA), it’s going to continue growing over the next decade. The ATA forecast estimates that US freight will grow to 20.73 billion tons by 2028, a 36.6 percent increase over tonnage moved in 2017.  

Given the considerable amount of freight being moved, the freight industry has some considerable challenges to overcome to get the job done. New regulations (such as the ELD mandate) are putting a strain on trucking companies. Fuel prices and spot rates are prone to changing which can make finding reliable capacity, booking freight, and making a profit frustrating, even at the best of times. Increasing demand means a shortage in capacity, and many shipments are being left behind and delayed. There’s also a massive driver shortage in the United States, a problem that will get worse before it gets better.  

In order to mitigate the obstacles, logistics is going to have to get a whole lot smarter.

In order to mitigate the obstacles, logistics is going to have to get a whole lot smarter. While human intelligence certainly goes a long way towards planning, artificial intelligence is beginning to take up a role in the industry.  

The Growing AI Market 

AI has a number of applications that will be crucial to the trucking industry and Original Equipment Manufacturer (OEM). Increasing operational efficiency can help to reduce costs for OEMs and fleet operators. Predictive modeling is also made possible by AI, allowing for preemptive maintenance by combining data collected via the Internet of Things, sensors, external sources, and maintenance logs.   

“The possible increase in asset productivity (20%) and the reduction in overall maintenance costs (10%) can be observed,” according to a recent article from Market Research.  “Also, according to a publication by the National Highway Traffic Safety Administration (NHTSA), advanced driver assistance systems (ADAS) with vehicle-to-vehicle (V2V) communication have the potential to prevent 40% of reported crashes.”  

In addition to increased road safety, AI can also offset the potential increase in trucking costs and higher driver wages. Artificial Intelligence will also help OEMs and fleet operators stay in compliance with new regulations regarding vehicle and driver safety. This is spurring the growth of ADAS technologies and other initiatives created by OEMs, especially when it comes to automated vehicles. It’s estimated that the AI market within the transportation industry will grow from $1.21 billion in 2017 to $10.30 billion by 2030.   

However, despite the growth and development in the AI market, installation and infrastructure costs will likely be prohibitive to smaller companies. Even a few ADAS features like blind spot detection, telematics, and lane assist can drastically increase the cost of a commercial vehicle. Adding AI systems to vehicles will also require a heavy infrastructure cost as well, further complicating implementation and adoption.  

Various AI Functions for Trucking 

Artificial Intelligence in the trucking industry presents a wide array of opportunities and potential, especially when combined with automated trucking.  

“AI constitutes various machine learning technologies such as deep learning, computer vision, natural language processing (NLP), and context awareness. Some of the recent applications of these technologies in the transportation industry are semi-autonomous and autonomous vehicles, truck platooning, and human-machine interface (HMI) applications,” Market Research says. 

Deep learning is one of the most promising AI developments.

Deep learning is one of the most promising AI developments. As an advanced form of AI, it analyzes a myriad of different data sources including images, sound, and text, and then compiles that data through a synthetic neural network. The result is the ability to identify and generalize patterns and strengthens the decision-making capabilities for safe operation of autonomous vehicles.  

Computer vision is another potential application for AI in trucking. Computer vision utilizes a high-resolution camera and increases the HMI (human machine interaction) capabilities of driver and vehicle. The camera interprets various data inputs such as lane departure, traffic signs, and signals, and is also able to detect driver drowsiness. Ideally, this version of AI will help to bridge the gap between semi-autonomous and fully autonomous vehicles.  

The Future of AI in the Trucking Industry 

AI will be instrumental in the future of trucking. Not only can it collect and monitor data, but as it observes patterns, it will be able to make predictions based on those patterns. These predictions will enhance onboard AI capabilities assisting in both driver and navigation functions as well as back-end functions like data monitoring and preemptive maintenance. Onboard AI will also increase connectivity and communication between other trucks on the road, improving platooning and other joint lane management systems.  

The strength of AI in the trucking industry will be dependent on the amount of data it has to work with.

The strength of AI in the trucking industry will be dependent on the amount of data it has to work with. The more data, the smarter the AI. Building up a database from scratch, however, can be a costly and time-consuming endeavor, one that might be impossible for some companies to achieve in a reasonable time frame.

Integrating AI systems with a transportation management system can help to reduce both costs and implementation time, however.

Integrating AI systems with a transportation management system can help to reduce both costs and implementation time, however. Working in tandem, the AI can help to increase driver safety while a TMS can optimize the overall efficiency of the supply chain, allowing for a smoother and more profitable operation.  

Using a 3PL to Prepare for the Future

While there is near limitless potential for artificial intelligence in the future of the trucking industry, it’s still a ways off from where it needs to be for rapid and easy implementation. The same is also true for automated trucking. However, there are readily available steps you can take to improve your operations without having to break the bank. We at BlueGrace specialize in true Transportation Management, without the need for a heavy investment in labor or technology. For more information on how we can help you harness the full potential of your logistics, fill out the form below:

A Bright Future for Intelligent Logistics

The transportation and logistics industries are perhaps one of the most vital industries in the United States, if not the entire world. On average, trucks haul approximately 70 percent of all consumer goods across the country, and that number is only expected to grow as the global economy continues to grow and change. However, while it is the most vital of all industries, it has also remained the most stagnant, with very little about the industry changing over the past several decades.

The potential for these digital changes is immense, allowing companies to work smarter by lowering operation costs while boosting efficiency.

Yet, we’re beginning to see what can be described as an age of enlightenment for the transportation industry, a digital renaissance. Something in which logistics planners and trucking fleet owners alike are beginning to dive into. These changes are covering everything from ridesharing, “smart” logistics, and even automated vehicles. The potential for these digital changes is immense, allowing companies to work smarter by lowering operation costs while boosting efficiency. Even going so far as increase environmental sustainability as truckers, planners, and shippers all learn to connect on a broader level.

The Growing Web of Interconnection 

In short, the digital age is built on the concept that just about anything is possible, including a sort of omniscience that is vital to running a highly efficient supply chain.  

One of the biggest advantages of this digital age is how interconnected everything is. The Internet of Things (IoT) is providing more data and more accessibility to that data than ever before. New software systems are able to track where freight is during every stage of its transportation and the condition of it during its trip. 3PLs and other intermediaries are developing digital platforms that can connect a shipper to a carrier with a few clicks, rather than an exhaustive list of phone calls, emails, and faxes. Customs documents can be uploaded and transmitted to mobile devices,  less demurrage and detention fees when a paper document gets lost in translation. In short, the digital age is built on the concept that just about anything is possible, including a sort of omniscience that is vital to running a highly efficient supply chain.  

Building On the Infrastructure 

Digitization within the transportation industry also has another, less obvious benefit. It gives developing countries easier access to the global market. As these countries haven’t built up their logistics capabilities to that of the U.S. or the E.U. attempting to break ground on this front is often both cost and time prohibitive. Having access to a digital platform allows them to “leapfrog” directly into digital and mobile solutions for logistics.  

“According to the All India Motor Transport Congress, there are close to 12 million trucks in India. The road freight volume in India is forecast to be 2,211.24 billion freight tonne-kilometer, growing at 4.7 percent,” according to a recent article from YourStory.com 

Market research from Novonous, ‘Logistics Market in India 2015-2020’ shows that India is a prime example of a country that can benefit from new, digitized logistics platforms. The report shows that the logistics sector for India approximately $300 billion, and expected to grow by 12.17 percent by 2020. Factor in that 90 percent of trucks in India are operated by single truck owners, and you can see the potential for connectivity and digital platforms.  

The Growth of E-commerce and Digitization 

E-commerce, of course, is at the heart of much of this digital growth as many consumers begin to veer towards a digital shopping cart, rather than brick and mortar stores. As E-commerce companies such as Amazon, Alibaba, and Flipkart begin to grow and attract more customers, the potential for higher logistics costs also increase. As it stands, India spends about 13 percent of its total GDP on logistics, versus China at 18 percent and the U.S at 8.5 percent. Even a drop of 4 percent in logistics spending could save India upwards of $50 billion.   

The visibility and scalability of a digital network will undoubtedly be vital for the growth of the global economy.

The visibility and scalability of a digital network will undoubtedly be vital for the growth of the global economy. Not only does it help to level the playing field for new players making the market more accessible, but it also helps veterans and legacy companies to operate more efficiently.  

Real-time visibility solutions can help tackle delays, productivity issues, accidents, diversion, theft, and damage.

“Mobile operators are uniquely poised to offer regional and global connectivity solutions for the logistics sector. These real-time visibility solutions can help tackle delays, productivity issues, accidents, diversion, theft, and damage,” says the Yourstory Team.   

“Governments can also improve the quality of logistics via measures like budgetary outlays, foreign direct investment regulations, clarity in classification of logistics players, tax structures, and requirements for open data sharing. This covers truck fleets and the warehousing sector,” they added.  

The logistics sector is heading towards a new digital era, that much is certain. Tech startups, along with forward-thinking incumbents, are bringing innovations and insights into the field and is shaking up the old ways of doing things. As this new era grows in years, it’s likely that we’ll be seeing the logistics and transportation industry in a wholly different light.  

Offering Intelligent Logistics To All Customers 

BlueGrace Logistics offers complete, customized transportation management solutions that provide clients with the bandwidth to create transparency, operate efficiently, and drive direct cost reductions. For more information on how we can help take your hard to understand and complicated data and turn it into easy to read and well calculated decisions data, feel free to contact us using the form below:

How To Label Your Freight Correctly, The First Time

While it sounds like a no-brainer, a lot of cargo damage happens due to incorrect labeling of the packages that are being transported. Labeling is an integral part of cargo packaging and is an essential aspect to ensure that your goods reach the correct destination at the required time. Correct and proper labeling including package handling instructions is critical to ensure that your goods are delivered safely and efficiently.

Labeling is also important to facilitate real-time tracking of your package as it moves through your trucker’s network and your country’s road network.

For example, if you are shipping liquid cargo or any other cargo that needs to be kept upright, it is important to label it correctly so the cargo handlers know which way to carry it. Similarly, if the cargo is hazardous, then it is important to label it appropriately. You should use the required hazardous labels so safety precautions can be taken. Not just for handling and safety, labeling is also important to facilitate real-time tracking of your package as it moves through your trucker’s network and your country’s road network.

Your cargo label should have a few mandatory components which are crucial to ensure prompt delivery.

  1. Clearly marked pick up or senders address. This is crucial because, in case of any returns or non-delivery, the cargo can be returned safely to the sender.
  2. Sender’s reference number. In order to identify the package, as the same sender could be sending various parcels to the same receiver but with different items.
  3. Clearly marked delivery address. This should have the full style address including the zip/postal code to ensure that it gets to the right area as there could be cities and streets with the same name in different parts of the country, but zip/postal codes are unique.
  4. Receiver’s reference number. The receiver may be receiving parcels from same, or various senders and they can identify the contents/order quickly with the reference number.
  5. If goods are hazardous, then the relevant hazardous labels must be affixed to the box.
  6. If the goods are Fragile, it must be labeled with Fragile stickers or tape.
  7. The label should have be clearly visible and have a big enough barcode for quick and reliable scanning.
  8. The label should be at least A5 size or larger to accommodate all the above information.

You have to ensure that only the relevant markings are present on the outside of the package

If there are markings on the label or box that are irrelevant to the shipment, that must be removed as it may cause confusion with regard to the delivery. The labels used must be hardy and be able to withstand the elements as in sun, rain, snow or any other conditions they may be exposed to during the journey although it is unlikely that the goods can get wet during road transport. If you have more than one item in a consignment to the same receiver, it would be good to affix the labels in the same place on each item as it makes it easier for the goods to be scanned and sorted.

There are standard labels for package handling instructions which clearly indicate the nature of the contents of the packages so that everyone in the transportation chain knows what handling methods to be used like whether the package is sensitive to heat or moisture or which side is up and where the loading hooks may be used etc.

The symbols on the labels are based on an international standard ISO R/780 (International Organization for Standardization).

Source: Transport Information Service

Do You Need Help With Understanding Your Freight?

Whether you are managing your own processes or you are using the logistics services of BlueGrace, proper preparation is one way to help prevent delays or additional charges. If you have questions about how you can better prevent freight issues, or just how to simplify your current transportation program, contact us via phone at 800.MY.SHIPPING or using the form below, we are here to help!

Why Is The Supply Chain Industry The Source of So Much Innovation? 

Trucking is arguably one of the most vital jobs in the United States. When you consider that 70 percent of the freight that moves through the country is transported by trucks, the trucking industry is the backbone that holds the U.S. upright. As important as trucking is, however, it would be nothing without a strong running supply chain. Manufacturers need a constant stream of materials and resources to produce goods and retailers and other companies need a constant stream of deliveries in order for their business to operate. 

“The U.S. supply chain economy is large and distinct. It represents the industries that sell to businesses and the government, as opposed to business-to-consumer (B2C) industries that sell for personal consumption,” the Harvard Business Review says. Much the same way that the trucking industry keeps many U.S. citizens employed, the U.S. supply chain industry accounts for 37 percent of all jobs in the country, employing approximately 44 million people. Interestingly enough, these jobs also pay significantly more than a number of professions and are largely responsible for bursts of innovation within the economy.   

“The intensity of Science, Technology, Engineering and Math (STEM) jobs, a proxy for innovation potential, is almost five times higher in the supply chain economy than in the B2C economy. Patenting is also highly concentrated in supply chain industries,” HBR adds. 

It’s the supply chain that links so many different industries and companies together.  

So what is it that makes the supply chain industry pay so well and be responsible for such innovation? It might just be the fact that it’s the supply chain that links so many different industries and companies together.  

The Importance of Supply Chain Services 

As we mentioned above, the trucking, manufacturing and retail industries rely heavily on supply chain services to function and survive in today’s economy. With a heavy focus on lean manufacturing, many companies simply can’t afford to have extra products or parts lying around – there needs to be a constant influx, giving these companies what they need precisely when they need it. But it doesn’t explain why it stands out from other sources of employment. To that, Mercedes Delgado, a research director and scientist of MIT and Karen Mills, senior fellow of Harvard Business School, have taken a look at the categorization of employment and made an interesting discovery when it comes to the supply chain. “Only 10% of employment in the economy is in manufacturing, and 90% is in services. It is commonly thought that most of those service jobs are low-wage occupations at restaurants or retail stores, while the manufacturing jobs have higher wages. But not all services are the same.” – Delgado and Mills stated in the recent HBR article. “With our new categorization, we can separate supply chain service jobs – which are higher-paying – from the Main Street service jobs that tend to be lower paying. These supply chain service jobs include many different labor occupations, from operation managers to computer programmers, to truck drivers. They comprise about 80% of supply chain employment, with an average annual wage of $63,000, and are growing rapidly,” they added.  

On average, these jobs pay about three times more and have 18x the STEM intensity over Main Street services, and the job market is growing fast.  

Through their work, they’ve also uncovered a subcategory of the supply chain industry which is traded services. These services are traded and sold across many different fields such as engineering, design, software publishing, logistics services and many others. This subcategory, in particular, showed some of the highest wages and STEM concentration of the entire economy. On average, these jobs pay about three times more and have 18x the STEM intensity over Main Street services, and the job market is growing fast.  

“Our supply chain economy framework leads to a more optimistic view of the economy. If we were to focus on supporting supply chain services, particularly those in traded industries, the result might be more innovation and more well-paying jobs in the United States.”  

How Does this New Category Affect Policy? 

While it might not seem like an important find, this new categorization is actually very important, especially when it relates to U.S. economic policies. For starters, there needs to be a heavier investment in skilled labor. While the supply chain industry has the majority of STEM workers already on the payroll, there is a shortage in America in general. This makes it hard for both sides to continue the level of growth and innovation. Many companies already have a hard time finding the necessary talent to keep them moving forward.

Supply chain industries are even more at risk since continuous innovation not only needs new talent but the ability to retain existing talent. 

Supply chain industries are even more at risk since continuous innovation not only needs new talent but the ability to retain existing talent. The second point from Delgado and Mills is that we need to support regional industry clusters. “Suppliers produce inputs for businesses, and therefore, they particularly benefit from being co-located with their buyers in industry clusters. Catalyzing and strengthening organizations that support regional clusters is one way to promote buyer-supplier collaboration.” 

Finally, it’s a matter of making sure that supply chain service providers have access to the necessary funds to continue their work. Many of the products and services that they create are things that can’t be patented which makes it difficult, if not impossible, to continue generating the necessary capital. Having government policies in place that would guarantee loans or credit support for suppliers would go a long way to ensuring stability and funding for these service providers to start and grow.  

 The supply chain is a very large industry within the United States and one with the potential for some dynamic growth. Supply chain service providers play a crucial role in not only ensuring that other industries are able to function but also provide the necessary access to these resources that will help this new category of the industry to grow and the American economy as a whole.

Are you part of the supply chain talent pool?

Are you eager to work with a company that helps simplify businesses across the USA? Do you feel a sense of accomplishment when you can cut costs for a customer? If so CLICK HERE to see all the positions available throughout the country at BlueGrace. We are constantly awarded a best place to work and love to see our employees succeed!

Choosing the Right 3PL to Align with Your Business Strategy

Most shippers don’t spend much time worrying about who is driving the trucks carrying their goods, but choosing a 3PL with the right carrier network makes all the difference when your business is expanding. B2B and B2C networks are increasingly determined by where the customer is, rather than a companies’ geographical location. With more business moving to online, you need to be prepared to meet your customers where they are. 

When your customers need change, you want to be able to say “yes.” But logistics is a complicated business and when you are examining your choices, there are some factors to consider.

The first step is to understand your internal requirements – consider what your specific needs are before looking for a 3PL. Questions to ask include, what modes of transportation and what services you will need? What volumes do you plan to ship and where? Do you have specific security or visibility requirements? Are your shipments time-sensitive? The list goes on… Despite their expertise, 3PLs are only as useful as their knowledge of your business and customer requirements. 

The right 3PL will also have a network density that connects you with the right carrier, at the right location and with the right capacity and expertise.

Start with Carrier Partnerships

Whether you are shipping intra-warehouse or last-mile, it’s important that your 3PL  has the capabilities to make it happen. Two considerations are technology and partnerships.  

Shippers should look for a partner that allows them to quote, track and control invoicing for their LTL and FTL shipments, across a nationwide carrier network. Because your shipping partner is responsible for integrating different shipments, they are responsible for implementing technology that provides visibility to your shipment across their network of trucks and more. 

The right 3PL will also have a network density that connects you with the right carrier, at the right location and with the right capacity and expertise. With capacity being tight these days, partnering with the right 3PL will increases the chances that your time-critical shipments will be delivered on time and at a competitive price. That means, if you have warehousing and delivery needs in Houston, your 3PL  should have vehicles available to accommodate those needs, and quickly. 

Door to Door deliveries

Not all trucking companies handle door-to-door deliveries and some don’t have to. What matters is that your 3PL is partnered with carriers that offer fleet capabilities that meet your needs. For your urban customers, the trucking company might need to deploy a fleet of smaller trucks or even vans. If your requirements are FTL B2B shipments, you need a trucking company with that sort of capacity. For many shippers, their requirements fall in-between, or into the ‘all-of-the-above category.’ In those cases, your 3PL needs to have a range of carriers available to facilitate your business. 

Experience matters

Shippers should ask themselves if their 3PL understands their business and customer base. For example, a company shipping high-value electronics, will want to check with their 3PL about security protocols. Are trucks secured? Is there a system in place to alert management when drivers divert course? Proactive 3PLs will have systems in place so that your customers can rely on you in turn.  

Shipping disruption is an unfortunate reality in the business, ranging from weather disruptions to dock strikes. The right 3PL will have a plan in place to make sure that you are taken care of. 

Do the services match the requirements?

Some 3PLs specialize in specific modes of transportation, commodities, dealing with regulations and origin/destinations. Others are generalists. Make sure that you ask potential 3PLs if they have experience handling the cargo that your business will be shipping. The right partner for your business will be able to walk you through the different steps required, allowing all parties to agree on the correct protocols and procedures.  Reviewing a 3PLs Case Study library can help you better understand their expertise.

How many modes?

There are four common modes – ocean road, air, and rail. Many 3PLs will offer “intermodal” services, but if they don’t have the size and experience to properly manage that freight in-transit, they are essentially handing off responsibility to another party. 

To avoid this uncertainty, make sure your 3PL works with established rail and intermodal carriers. That way, you get the most options. Offering a variety of modes that let shippers choose slower transit times when possible, which lowers costs. On the flip side, if you need something shipped fast, having a 3PL with a dedicated expedite team will help to ensures that your shipment gets where it’s going, in the time it needs to be there.

How’s their customer service? 

This might seem too obvious to print, but it’s important to distinguish between friendly phone conversations and 3PLs that can get you the information you need when you need it. If there’s a disruption or other events along the shipment chain, you need a 3PL that can reach out proactively to help you make the necessary adjustments on your end. There will always be disruptions, but that doesn’t mean they need to put you on your back heels. 

Customer service is also about finding a 3PL that’s willing to take the time to help you set up the right solution. If your business is experiencing sudden growth, you might not have all the answers.

Is your 3PL BlueGrace?

At BlueGrace, our freight specialists work with you every step of the way to understand your requirements and set up a solution that’s tailored to your needs. BlueGrace provides scalability for growing companies to achieve their goals without labor or technology investments. With a fully built-out national network and global partners, BlueGrace makes it easier than ever to reach your markets in an efficient and cost-effective manner. Our expertise and processes provide clients with the bandwidth to operate efficiently and drive direct cost reduction, backed by procurement and dedicated management. For more information on how we can help you analyze your current freight issues and simplify your supply chain, contact us using the form below: 

Freight Damage: 8 Practical Ways to Avoid It 

Whether you are a shipper, receiver or trucker, freight damage affects all equally. Freight damage not only increases your cost and affects your revenue, but recurring or heavy damages can cause friction between supplier and end users. 

As a Freight Operator, you can take several measures to avoid freight damage and shipping claims. 

1. Understand your cargo

Understanding the nature of the cargo is of utmost importance so that you can use the correct type of transport for your cargo and the correct type of packaging. For example, if you are shipping drummed cargo you don’t need the same level of protection as you would if you shipped fragile or bottled cargo such as sauces, jams, etc. If you are shipping cargo that is more volumetric in nature than weight (example Cotton Bales) you need a truck with a bigger space capacity than weight capacity. 

2. Choosing the right packaging

This is a critical aspect of trying to avoid freight damage. Once you have understood the nature of your cargo, which may be fragile, heavy, sensitive to water, sensitive to heat, etc., you need to carefully assess the type of packaging required for your product. For example, if you are packing fragile cargo such as bottles, it is important to ensure that these cargoes are packed using durable packaging like corrugated cardboard which is then palletized on wooden pallets for easy and safe handling. 

Use quality pallets that will last longer than cheaper pallets. Cheaper pallets may give in a short term, and better quality pallets will allow for double stacking as required. Don’t take shortcuts or skimp on the proper packaging material as this short-term saving could result in a much bigger expense at a later stage in case of any claims. 

3. Label your goods correctly

While it sounds like a no-brainer, a lot of freight damage can be avoided by labeling the cargo correctly. For example, if you are shipping liquid cargo or any other cargo that needs to be kept upright, it is important to label it correctly so the cargo handlers know which way to carry it. Similarly, if the cargo is hazardous, then it is important to label it appropriately. You should use the required hazardous labels so safety precautions can be taken. 

4. Protecting your packaging 

Cargo such as clothing, shoes and other high-value retail goods are special targets for thieves and protecting your cargo is of utmost importance. Protecting your packaging is also essential against weather and dirt, especially if you use cardboard cartons. 

You can protect your cargo by sealing it with good quality tape (usually with your company branding on it), strapping it and shrink wrapping it.

5. Stow the goods correctly

Stowing of goods on the pallet or the truck is absolutely essential to avoid freight damage. Due care must be taken to stack goods in a uniform and stable manner so that weight is equally distributed across the pallet(s) and the truck. Your products must stay within the dimensions of the pallet such that it cannot get damaged during handling. 

If your cargo has a mixture of heavy and light goods (say boxes of canned food and boxes of marshmallows), ensure that the boxes of canned food are stowed at the bottom and the boxes of marshmallows are stowed on top of the canned food. 

6. Stow the truck correctly

A lot of freight damage happens when cargo shifts inside the truck during transit. Cargo moves inside the truck due to improper stowage inside the trailer.  Whether it is palletized cargo or non-palletized cargo, the cargo should be stowed inside the truck as tightly as possible to avoid movement. 

If in spite of your best efforts there is some space between the cargo, you should use suitable dunnage material like airbags (inflatable dunnage) to absorb sudden impacts and to prevent the load from shifting. In the case of fragile cargo, you can use cargo nets to secure it, so it doesn’t move during transit. 

7. Ship in bulk

Try to consolidate your goods and move as FTL (Full Truck Load) to avoid using LTL (Less than Truck Load) as much as possible. LTL moves multiple handling before the cargo gets to its final destination. However careful one is, multiple cargo handling has a possibility of damaging your cargo. 

8.Choose reliability over price

Choose the right supplier. Using a reliable freight partner is of utmost importance in the whole supply chain process. You should choose your reliable carrier based on a few factors such as their FMCSA score, the trucks that they use, the age of their fleet, their insurance and liability cover, their cargo handling safety record and their staff training methodology. While these may not guarantee the safety of your goods, it can give you a pretty good idea of your supplier. 

To summarize, 

Freight Suppliers

  1. Ensure the cargo is properly packaged before you accept to ship it 
  2. Ensure that the cargo is properly labeled and marked
  3. Ensure that all documentation for the cargo is correct 
  4. Ensure cargo is stowed properly and can handle the various weather and transit conditions while en route to its destination 

Freight Customers

  1. Ensure that you know how to properly pack and stack your goods, or use a qualified company to do this job for you 
  2. Check and recheck your cargo, its packaging, its labeling, stacking/packing and documentation before it leaves your warehouse 
  3. Ensure you have the correct receipt from your supplier when you are handing over your cargo
  4. Ensure you choose the right supplier for the movement of your goods 

Whether you are managing your own processes or you are using the logistics services of BlueGrace, proper preparation is one way to help prevent damage. 

By working closely with all suppliers involved in the movement of your goods, you can ensure that your cargo will reach its destination in time, within your budget, and in the condition that it left the origin. 

Do You Need Help With Understanding Your freight?

Whether you are managing your own processes or you are using the logistics services of BlueGrace, proper preparation is one way to help prevent damage. If you have questions about how you can better prevent freight damage, or just how to simplify your current transportation program, contact us via phone at 800.MY.SHIPPING or using the form below, we are here to help!

Rising Costs and Lower Capacity in the Domestic Truckload Market

2018 is off to a strong start for the economy and manufacturing, but there is a shortage of available truckload capacity on the spot market. The Purchasing Managers Index has not dropped below 50 since August of 2016. This time frame almost exactly correlates with the last low point in the Dow Jones Industrial index. (October 2016, 18142.42) In August of 2016, the dry van spot market rate was roughly $1.65 per mile, today that number is $2.30 per mile. As already discussed, that number is coming along with a driver shortage and carriers not wanting to adhere to the ELD mandate.

More Freight, Less Capacity

Currently there are 5.5 available loads for every available truck in the United States. Carriers can pick and choose the freight they want, at the rate they want, going where they want.

On the heels of the new Tax Plan, businesses like Boeing, AT&T, AAON, AccuWeather, Southwest Airlines, American Airlines and many others have given out employee bonuses and increased charitable donations to show good faith in the plan. This leads many to believe economic growth is not slowing down in 2018 which then leads to more manufacturing and more freight shipments.

How Can BlueGrace Help?

Transportation Management providers like BlueGrace Logistics will consult with your business and provide a solution that can help insulate your company from the chaos in the spot market. Here’s how:

  • Current State Analysis, inefficacy identification
  • Future State Vision and growth plan
  • Benchmark Current Rates, identify lanes and current carrier mix
  • Load Planning and Consolidation Scope and Strategy
  • Network Optimization
  • Dedicated resources

BlueGrace can start this process with an initial consultation and discovery call. Do not let the constraint and capacity of 2018 ruin your budget before it even gets started. Fill out the form below to schedule your free assessment today!

An Optimistic Outlook for the LTL Market

The US less-than-truckload (LTL) market is undergoing a tremendous change. Improving economic conditions as well as manufacturing growth has helped increase demand for LTL shipments. As a result, Stifel analyst David Ross noted that the $35 billion LTL market combined for publicly traded carriers reported tonnage per day increased 4% year-over-year during the second quarter of this year.

Indeed, the overall US economy appears to have awakened after a sluggish start to the year. First quarter GDP rose only 1.4%, a disappointment for sure but second quarter growth certainly made up for it growing at a 3.1% clip thanks in part to strong consumer spending.

E-commerce

E-commerce is taking more of the consumer’s spend. According to the US Commerce Department, second quarter e-commerce as a percent of total retail sales increased to 8.9%, up from 7.4% in second quarter 2016. The rise in e-commerce has sparked new service solutions from LTL carriers particularly as “supply chains become shorter, turn times are quicker and there’s a drive for small, but more frequent shipments”, according to Mr. Ross.

Some truck carriers have introduced last mile delivery services for items such as exercise equipment, mattresses, and furniture.

E-commerce packages have been the primary domain of small parcel carriers FedEx, UPS, USPS and regional small parcel carriers. However, as more consumers become habitual to ordering larger, bulkier items, FedEx and UPS, in particular, have struggled because their small parcel facilities and networks are not designed for such items. As a result, some truck carriers such as JB Hunt, Estes and Werner have introduced last mile delivery services for items such as exercise equipment, mattresses, and furniture. XPO Logistics, the third largest LTL carrier per the Journal of Commerce’s 2017 ranking, has taken it a step further by also offering white glove services such as set up, install, recycle etc. and just recently announced plans to expand their last-mile hubs to 85 within a few years. In addition, it is introducing technology that will allow consumers manage retail home deliveries with advanced, online tools.

Technology

Many shippers are looking for more integrated services, faster delivery and fulfillment and increasingly detailed shipment tracking and information. Also, third-party technology start-ups and TMS providers, such as BlueGrace are offering real-time pricing, booking and tracking solution services targeting both the shipper as well as the LTL carrier who may have available capacity on a particular lane.

Pricing and Labor

Stifel’s quarterly overview of LTL trends indicates that fuel surcharges are returning back close to 2015 highs (but remain far below 2011-2014 levels). Carriers are aiming for 3%-5% rate increases, and while getting some push back, they’re not losing freight over any rate hikes. The pricing environment currently remains healthy but could prove a concern over capacity.

LTL carriers are finding it more difficult to hire the needed labor to meet the increasing demands.

Labor continues to be another concern. LTL carriers are finding it more difficult to hire the needed labor to meet the increasing demands. Those that are hired are demanding higher wages. As an example, YRC was able to get some concessions from the Teamsters to allow them to raise pay above the contract level in certain markets.

ELD

The federal-mandated regulatory requirement, ELD (Electronic Logging Device) is set to go into effect in December. ELD is an electronic hardware that is put on a commercial motor vehicle engine that records driving hours.

It is believed that ELD could benefit LTL carriers at the expense of TL carriers.

It is believed that ELD could benefit LTL carriers at the expense of TL carriers. As such, many industry analysts anticipate pricing to increase as well as tonnage while TL capacity is reduced. As the Vice Chairman and CEO of Old Dominion Freight Line stated earlier this year, “A 1% fallout in truckload could equate to a 10% increase in the LTL arena, with larger LTL shipments.”

Outlook

The Journal of Commerce’s annual LTL ranking showed that total revenue dipped 0.4% from $35.1 billion to $34.9 billion after falling 1% the previous year. However, with US industrial output, consumer confidence and an increase in fuel prices, the top LTL carriers will likely return to expansion and revenue growth for this year.

Guaranteed vs Expedited Shipping

Every day shipments are booked for pickup with LTL carriers, and on occasion those carriers get overloaded and miss the pickup. A serious problem arises when that freight was time critical, such as a manufacturer waiting on freight from their vendors to finish a product. In cases like this, we have seen plants shut down until the freight arrives.

One way to help prevent this situation from occurring is a guaranteed shipment. By placing a day guaranteed on your shipment, the LTL carrier will be responsible if the freight misses that guarantee. They are much more inclined to pick up freight with guarantees attached to avoid paying the freight charges.

In case a carrier does miss the pickup on a time sensitive shipment, an expedited shipment may be required.  A dedicated carrier is called in to move the freight. This carrier picks up the freight and drives straight through until it arrives at the specified delivery location. Shipping costs for Expedited Freight can become expensive, as you are paying for a dedicated truck. However, when you compare the costs of expedited shipping versus the cost of shutting down the manufacturing plant, it may be a bargain.

Freight traveling cross country may require an air rate. When the freight is sitting in Laredo, TX and needs to be in Boston, MA by 10 AM the next day, the freight must be sent by air. This can be very expensive as airline space is very limited.

BlueGrace Logistics are the experts in expedited situations and the phrase our LTL representatives typically hear is “you just saved my job!” The worst feeling in the world as a customer is knowing that your job may be on line if the freight does not arrive. When you have a hotel opening in New York on Saturday and the drapes are still in Alabama on Thursday morning, that sinking feeling in your stomach will not go away until the freight arrives. On Friday morning when the customer calls to say “Thank you! You saved my job!” there is a feeling of significant relief for them – which is the best feeling for our company.

Avoid the stress and don’t play with chance, setup your next time sensitive shipment with BlueGrace Guaranteed services.  In the event you need expedited help, BlueGrace can help you there too.

 

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BlueGrace has your Truckloads covered like a Champ

BlueGrace has your Truckloads covered like a Champ
Now is the perfect time to ship full truckloads with BlueGrace® Logistics. As of July 18th, receive a $10 gift card to Fighterwarehouse for ANY shipment!

As we’re all aware, the ebb and flow of capacity, fluctuating demand and speed-to-market often poses unique challenges to shippers. A powerful way to combat this is by shipping full truckloads (TL).

Building complete loads not only promotes efficiency but supports our economy whether it’s thriving or tumultuous. By consolidating freight, you help cut your own cost because TL utilization is improved and you convert less-than-truckload shipments into less-expensive full truckloads. Why have two trucks half-full when you can have one carry the entire load?

Why ship full truckloads?

1. Faster transit times because there are no terminal stops along the route. Consolidation into full truckloads allows for direct delivery to the customer.
2. Lower costs because the price per pound drops significantly. Some companies have reduced their freight transportation costs by up to 35%!
3. Less propensity for damage claims due to decreased handling of your freight.
4. Increase and dedicated capacity for you within your core carrier bases. Choose from a shared carrier network that fits your distinct transportation needs.
5. Increased visibility into forecasting demand helps you plan ahead for more efficiently matched supply and demand.

Why use a 3PL to ship your TL?

Because full truckload shipping is generally more intricate, a 3PL’s involvement smooths out your supply chain management by considering the details of your shipment so you don’t have to. We relieve you from headaches caused by grappling over questions like:
-What is the size and shape of my freight? How will the packaging of this impact my shipping?
-What are the routes looking like where it’s being transported? Is there construction?
-How will the time of year affect my transportation? How do I plan around holidays?

Truckload logistics management is a very detailed process and utilizing powerhouses like BlueGrace® Logistics can help prepare you to make the optimal decision for your transportation needs. What this all translates into is greater volume in the system. The more volume, the better the opportunities to build full truckloads and deliver shipments more frequently.

You know the mighty punch that consolidation packs and what a 3PL can bring into the arena. Now that you know, the question becomes: why haven’t you started yet?

Now is the perfect time to ship full truckloads with BlueGrace® Logistics. As of July 18th, receive a $10 gift card to Fighterwarehouse for ANY shipment! Contact one our reliable freight experts to receive a free quote or start booking today!

BlueGrace® Logistics is a proud sponsor of Carlos Condit and many other MMA fighters.