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FBAP

A Brief Explanation Of Freight Classing For Engines

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A part of BPO, business process outsourcing is the transportation of product. A manufacturer can make the best, fastest engines in the world, but then a reliable transportation partner will be needed to help get this shipment from point A to point B. There are many issues with FBAP or Freight Bill Pay and Audit when it comes to the classification of products. Here is a short explanation on getting the proper NMFC code and freight class for engines and transmissions.

There are over 10 different NMFC codes for various engine types that can cause confusion during the initial stages of the shipping process.

Internal combustion engines are a highly complicated and valuable piece of machinery to ship; with over 10 different NMFC codes for various engine types that can cause confusion during the initial stages of the shipping process. These engines fall under a specific NMFC code though (NMFC 120800) and require you ship them in certain conditions. You need to ask yourself quite a few questions and discuss them with your shipping representative before you ship your engines. This could determine the shipping cost and freight class of your shipment.

Questions you should ask include:

  • Is the engine new or used?
    A used engine must not work and can only be used for salvaging or reconditioning. If the engine is repaired or refurbished, it qualifies as new. Used engines fall under a different NMFC code and freight class.
  • Is the engine drained of all liquids?
    The engine is not allowed to be shipped until it is drained of all liquids, except those necessary to prevent rust, corrosion or other damage.
  • How is it being packaged?
    The way the engine is packaged is another factor in determining the freight class. The simple difference between mounting on a wheeled shipping carrier and shipping on racks or cradles can create a large difference in freight rates.
  • What is the released value of the shipment?
    The released valuation is another large factor in determining the freight class of engines and must be given at the time of quoting, as well as notated on the bill of lading.

These guidelines only apply when shipping internal combustion engines, NOI, so it is important to make sure you have all the correct information before you book your shipment.

If you have specific questions about your engine shipment, please contact a qualified shipping representative today at 800-697-4477. We also have freight class experts available to answer your NMFC and freight class questions. Looking to book your engine shipment? Request an engine shipping quote today!

How We Saved $150,000 In Audit Costs For A Customer In One Year

BlueGrace-Audit

Freight Bill Audit & Payment (FBAP) is a Standard, Value Added Service for all BlueGrace Logistics customers.

The same cannot be said of other 3PLs which typically offer the service for a fee. Why is FBAP important for our customers? According to members of the BlueGrace audit team only 8 of every ten carriers freight bills are accurate. At BlueGrace there is a quality control and assurance team that is called the A-Team. Their job is to authenticate every single bill that comes into BlueGrace. The bill is carefully looked at to make sure that the quoted cost matches the invoice cost. If the billed cost does not match the A-team looks for the reasoning. It could be additional weight, wrong classification, incorrect bill of lading, added service not quoted such as lift gate, or even missing quote ID. All of these are all pretty standard reasons for additional costs being added to a shipment.

For a current customer, we saved their business over $150,000 a year in audit costs alone.

Our A-Team finds that 3% of invoices that come in each day have a carrier error that they have to dispute. The dollar amount of these errors per day is up to $9,000 a day, and up to $45,000 a week. There have been error’s from the carrier invoices as big as $20000 on a single shipment! For a current customer, we saved their business over $150,000 a year in audit costs alone.

“On a typical day 3% of all shipments that come into BlueGrace there is a carrier error. We dispute the error with our carrier partners per standard protocol. On each day our team is saving our customers countless amounts of time and money. We audit $45000.00 a day in carrier errors. This is a full time job for a number of us in the A-Team. I am glad we are able to take the audit process off of our customer’s plate so they are able to do what they do best.”

Danny Mitchell, Manager of the BlueGrace A-Team.

BlueGrace is your Transportation Management Partner.

BlueGrace takes the time to learn about your freight business and then creates ideas to make it work better for you. Freight Bill Pay and Audit (FBAP) is a standard value added service for every customer BlueGrace serves. There is no need to outsource sectors of your transportation to carriers, audit firms, technology providers, etc. Let BlueGrace do it all as a single source provider for you.

Please contact a BlueGrace representative for more information on how we can streamline your freight.