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third party logistics

Truckload Freight Contracts: Understanding Contract & Spot Rates

Throughout 2020, truckload carriers felt the burn of the China-U.S. trade war, declining capacity, and low spot rates. In general, markets with lower spot rates are more beneficial to shippers, keeping carrier profitability in check. The opposite applies when contract rates are lower, allowing carriers to retake control and reap greater profits. In addition, the risk for a resurgence of higher spot rates and renewing interest in truckload freight contracts is an area, shippers should understand and keep their eye on in 2020. According to William B. Cassidy of JOC.com, he describes this chance:

“After six consecutive quarters of deflation, the market is rebounding, heading back towards an inflationary environment, the spot market will reach an inflationary environment by Q1 2020.”

To combat that prediction and also consider the influence of the coronavirus, shippers need to understand the driving forces of change in the truckload market, what is already happening with the coronavirus, and a few tips to better underscore and improve use of both truckload freight contracts and spot rate shipping. 

Driving Forces of Change in Contract and Spot Rate Markets

The biggest driving force of change in the market involves available capacity and its influence on capacity. As explained by Cassidy:

“DAT noted that freight demand, in terms of total spot and contract volumes, has been increasing, with spot volumes rising 7 percent in 2019 year over year and contract volumes 4 percent. The American Trucking Associations (ATA) predicts a 1 percent increase in contract truckload volumes for 2019, down from annualized growth of 3.2 percent in 2018 and 3 percent in 2017.”

How much capacity must exit the market before supply and demand move back to a closer alignment? Some experts believe truckload capacity and freight demand already are closer to equilibrium than they’ve been since 2017 and that a surge in demand could tip the balance. Others think trucking’s supply-demand gap will take more time to close.”

Unfortunately, that prediction and driving force now hangs in the balance with a likely swing away from the prediction. That’s right. Capacity is rapidly increasing overseas, and it will likely lead to changes in the U.S. truckload freight contracts’ market.

The State of Truckload Freight Contracts Will Retract Due to the Coronavirus

Capacity is dependent on the demand in the volume of imported raw materials, finished products, and other supplies from around the world. Many electronics, automotive, and medications and medical equipment arrive in the U.S. from China. In addition, the flow of exports from the U.S. to the APAC region, including the iPhone and agricultural products, are at risk. There is a near-stop to the flow of freight in the region due to the coronavirus. So, what happens in other areas abroad and in the U.S.?

The freight that would have filled trailers and help carriers push spot rates upward vanishes. Now, carriers have too much capacity, too many drivers, and too few lanes to travel that make a profit. As a result, the spot rate market is on the verge of bottoming out, and shippers will benefit to an extent. The real problems for shippers will not become evident until their favored carriers start to close lanes and begin to exhibit signs carriers are looking to gain profitability when more reweighs and reclasses occur or accessorial fees tick up. At this point, shippers will face the uncertainty of limited carrier availability, if any, and an inability to move freight to their customers as cost-effectively.

The only way to maintain operations lies in creating a balance between the use of contract and spot rates to get the best deal to benefit everyone.

The only way to maintain operations lies in creating a balance between the use of contract and spot rates to get the best deal to benefit everyone. As carrier operations begin to suffer the effects of continued drops in the spot rate market, it will be time for shippers to start looking for more carriers and fulfillment options to fill the void.  

How to Better Understand Contract and Spot Rates

Shippers that wish to create a successful balance between the use of spot rate and truckload freight contracts need to follow these steps:

  1. Connect your supply chain assets to a centralized supply chain control tower. 
  2. Leverage the full scale and scope of the BlueGrace TMS. 
  3. Take advantage of managed services, including invoice auditing and accounting services.
  4. Rate shipments across all modes and potential trade lanes to determine the best-case, not the cheapest, shipping option. 
  5. Always consider the “other” factors in tendering freight, including claims’ insurance and management needs.
  6. Diversify your carrier network to include the small and local carriers that have expertise in both truckload and last-mile delivery.
  7. Extend your TMS and order fulfillment systems across your whole supply chain, including brick-and-mortar stores.
  8. Remember to integrate new systems with existing platforms to enable omnichannel capabilities and take advantage of all available inventory. 

Gain Better OTR Rating With an Advanced, Customizable TMS at BlueGrace

The freight rate market is continuously changing to reflect the risks and opportunities in the market. As the year rolls on, shippers need to take the steps necessary to shore up their operations against the industry’s top risks, including market volatility and the coronavirus. Moreover, applying the functions and wide-ranging benefits of a dedicated TMS and 3PL’s lineup of managed services will provide a protective barrier against risk and help your organization succeed. Find out how more information and visibility can improve your use of spot rates and truckload freight contracts by calling BlueGrace at 1.800.MY.SHIPPING or filling out the contact form below. 

Outside-In: The Future of Supply Chain Planning

Supply chains are evolving fast. To keep up with the fast pace of supply chain evolution it is important for supply chain planners to upgrade their skills and step up their business planning and forecasting techniques. If the planners lag behind, it will have an adverse impact on not only the supply chain but also on the organization as a whole. 

The Gartner Supply Chain Planning Summit held in Denver, USA, in November 2019, emphasized this very aspect. According to Marko Pukkila, Vice President and Team Manager, Gartner, who shared his views during the summit:

“The job description of SCP leaders today looks totally different than 10 years ago. It’s no longer enough to provide copious amounts of data — planners must use the data to draw conclusions about future risks and opportunities. It’s all about supporting business objectives. Gartner calls this an outside-in mindset.”

What is the Outside-in Mindset? 

As Gartner defines it, the outside-in mindset is about being

aware of what is happening around you — be it a business objective or an upcoming recession — and use the capabilities of the planning function proactively to set up internal processes that are optimized for whatever will happen in the future.”

In simple terms, the outside-in mindset is about understanding external factors and the impact they will have on the business objectives. It is about creating a system that can not only take into consideration the impact of these outside forces but can also respond quickly to the ever-changing global economic-social-political environment. It is about creating a planning process that is agile and flexible enough to integrate future events. 

What are some situations where the outside-in approach would help? 

Let’s take the US-China trade war situation. This scenario has been in existence since 2018. It has impacted the trade relations between the two nations. Needless to say, it has had an impact on the supply chains of the organizations of the two countries. For example, Chinese organizations that were exporting to the US may have seen a decline in the orders due to tariffs or the US organizations would have had to reduce quantities of goods imported from their Chinese counterparts. In this situation, the US companies would have to find another source (country) to fulfill their requirements and the Chinese would have to find alternative buyers for their finished goods. 

While the trade war is an anomaly, as a concept is not unheard of. In this situation, organizations that may have researched and identified alternative buyers or sellers ready to do business with them in case of a change in the trade relationship between their countries would have suffered less of a set back as compared to those who may have neglected to take this factor into consideration.

A current situation that is creating havoc on supply chains is the Coronavirus virus outbreak. An article published on February 14, 2020, in The Wall Street Journal which quotes Lars Jensen, head of Denmark-based maritime research group Sea-Intelligence, saying:

“Substantially less cargo is being moved between China and the rest of the world.  Last week we had an additional 30 sailings canceled, with 23 across the Pacific and the rest to Europe.” The article further states that “Mr. Jensen said the canceled trips, which have topped 50 since late January, will delay or reduce shipments into the U.S., where retailers may see a slowdown in their traditional restocking of inventories for the spring.”

Another article titled The new coronavirus could have a lasting impact on global supply chains published in The Economist shares the example of Apple supply chain which manufactures a bulk of its iPhones in China, being impacted by the virus outbreak.

According to the article, “Analysts reckon that the virus could lead to Apple shipping 5-10% fewer iPhones this quarter and could scupper its plans to ramp up production of its popular AirPods.”

These are just two instances that are coincidently related to one of the major economies of Asia and will have an impact on US businesses. But there are many other situations that may not have a far-reaching, global effect but can disrupt the supply chain at a local level. For example, labor strikes can impact day-to-day operations and create a backlog in the supply chain. Supply chain planners need to factor in local incidents as well while making supply chain plans. 

The Gartner outside-in approach suggests that it is important for supply chain planners to be able to read the data and information available to them and identify possible outliers – roadblocks, challenges, and opportunities, in the future. They should then incorporate solutions or plans to be able to navigate their supply chain should those outliers become a reality in the future. 

How to incorporate the outside-in approach in supply chain planning? 

To incorporate the outside-in approach in supply chain planning, Gartner advises a 3-step process: 

1. Realize that the time to transform is now: Citing the 2008 – 2010 economic recession, Gartner says that organizations that were ready with planning processes in place that provided forward-looking insights fared better during and post the recession than those who tried to streamline their supply chain after the recession hit. To put it simply, there’s no time like the present to streamline the supply chain with the evolving global business, economic, political and social scenario. While the change may seem to be in the distant future, it is wiser to prepare the supply chain for it today. 

2. Refocus the planning team to business outcomes: Organizations need to understand that supply chain planning and business planning are not independent of each other. Explaining this point, Gartner says: “It’s no longer enough to just provide a forecast — planners must use the forecast to find pathways that guide the business to where it wants to go. Think of an advanced navigation system that doesn’t only plot the best route, but also foresees roadblocks and traffic jams and navigates around them.” Further adding, that the planners need to be able to convince the other stakeholders why this plan is good for the business and how it will help them succeed. 

3. Become the orchestrator of success: The supply chain planners need to take the lead on creating cohesion between the different departments of the organization and their business plans. Explaining the point, Marko Pukkila, Vice President and Team Manager, Gartner, says: “The whole is more than the sum of its parts when all parts of the business go into the same direction. This is what planning should accomplish”

Today supply chain planners have data available to them from every touchpoint of their business. This data, if used effectively can form a strong foundation for supply chain plans. But data is just the starting point. As the Gartner three-step process suggests, supply chain planners should use this data in a constructive manner to create actionable insights, solutions, and bring all the stakeholders on board to follow through the plan. 

We know implementing an outside-in approach in supply chain planning is easier said than done. That is why our team of experts not only helps you analyze your supply chain with the help of advanced technology but also guides you in finding effective and efficient solutions to address the issues in your supply chain. Get in touch with our team to know more! 

The Key to Managing Disruption? Outsourcing.

Crises such as the COVID-19 outbreak and the subsequent disruption to our economy and supply chains have truly brought to light the importance of effective risk management. In a world where normally reliable trade partners are shutdown for weeks or ports are closed or workers are furloughed, companies that were one minute functional are now scrambling for solutions to move goods from manufacturing to warehouse to distribution center to retail outlets. What once seemed like a well-oiled machine is now full of chaos or emptiness. 

Hiring a 3PL can help companies work their way through tough times.

Hiring a 3PL can help companies work their way through tough times. A lack of resources to maintain and improve growth, lack of experience coping with crises, a deficient organizational structure or insufficiently trained or available staff are all hurdles that can be overcome by outsourcing logistics operations. 

86% of Fortune 500 companies are outsourcing to 3PLs, and with good reason. 

A 3PL Allows You to Focus on What You Do Best 

Handing off some or all logistics operations to a Third Party Logistics (3PL) provider allows companies to focus on the product or service(s) they provide without dealing with the, well, logistics of it all. Whether a company is looking for help managing their entire logistics operations or simply needs help putting together a tech stack that serves their needs and goals, 3PLs can tackle the operations that are out of their wheelhouse. 

It Can Cut Costs 

Because of their industry knowledge, access to top tech, highly developed networks, and the potential for bulk discounts, 3PLs may be able to help companies cut logistics costs and manage their budgets more effectively. Outsourcing can lead to the development of smarter, more efficient processes tailored to a specific business’ needs. 

Reducing logistics spend through better deals with carriers and/or improved operational efficiency opens up opportunities for growth.

Reducing logistics spend through better deals with carriers and/or improved operational efficiency opens up opportunities for growth. It leaves room in the budget for improvement, whether that be through expansion, R&D, or hiring on top talent. 

3PLs Provide Scalability 

When you hire a 3PL to handle logistics, you’re gaining a modicum of scalability that you simply can’t get with an internal department or positions dedicated to logistics. A 3PL can provide the staffing you need during every season. A 3PL may also allow for scalability in a new location without the upfront expense associated with opening a physical location, providing expertise and connections in new shipping lanes without a dedicated staff.  

Outsourcing Isn’t Without Risk 

As with just about any business endeavor, outsourcing to a 3PL isn’t risk free. When a company is spending money, it’s inevitable that things could go sideways and they won’t receive the return on investment they’d hoped for. Risks involved in outsourcing to a 3PL include unexpected costs, trouble during the transition of operations from your company to the 3PL, and reduced customer service. 

Mitigating the Risks 

Discussions on expectations, service requirements, budget, and other pertinent details should occur before hiring a 3PL.

There are certainly ways to reduce the risks listed above. Choosing a 3PL with extensive knowledge and experience in your industry and in the type of operation you’re hiring them to carry out is critical. Look at references and reviews of the company and speak with companies who have used the provider if possible. Discussions on expectations, service requirements, budget, and other pertinent details should occur before hiring a 3PL, plus continued effective communication is important to ensuring key players are on the same page. 

In Conclusion 

When times are tough, whether due to extraordinary market conditions like the ones today, or just about any other circumstances, a 3PL can help companies work through problems without the large capital outlay often required with internal operational improvements. Wondering how a 3PL could help your company through a crisis? Contact BlueGrace today to get a free supply chain analysis from one of our experts! 

What you can do to help “Weather-proof” Your Supply Chain?

Weather events can put a drastic slow down on your operations and unfortunately, it’s practically impossible to predict exactly when these events will happen. Sure, there are seasonal weather events like snow and hurricanes, which gives us a reasonable timeframe in which to expect these types of events. But even then, it still becomes a matter of “wait and see” as to whether or not the event will come to pass. And what about the events that we don’t expect such as nor’easters, polar vortex, or wildfires? There are certain catalysts that can create a potential for these events, such as an extended drought, but there’s no way of knowing for sure until the event is actually happening.  

In the event of something truly catastrophic, such as a hurricane, there’s even more pressure for the trucking industry to keep rolling on schedule.  

For most businesses, bad weather simply means staying home for the day and waiting for the weather to pass. Trucking companies, on the other hand, don’t have that luxury. Drivers are still expected to maintain their routes and delivery schedules, in spite of bad weather conditions. In the event of something truly catastrophic, such as a hurricane, there’s even more pressure for the trucking industry to keep rolling on schedule.  

Severe weather events can disrupt the supply chain causing lag and bottlenecks, especially during a true black swan event in which trucks are rerouted for emergency relief.  

For shippers and manufacturers, weather events can wreak havoc on delivery schedules, even when the weather event is thousands of miles away from you. Severe weather events can disrupt the supply chain causing lag and bottlenecks, especially during a true black swan event in which trucks are rerouted for emergency relief.  

So what can you do to prepare your supply chain against such events? 

A Reason for the Season 

Winter or summer, springtime floods or tropical storms in the fall, Mother Nature has predictably unpredictable conditions to throw at us. Plan in advance for alternate routes and parking locations if the regular road is closed and the usual truck parking is filled. Know in advance where road construction is planned. Always carry emergency gear appropriate to the season. Have a reliable response ready when faced with unreliable weather conditions. 

Part of preparing that reliable response is having good resources to turn to for accurate information. Every truck driver and every motor carrier dispatcher should have a list of phone numbers and websites for up-to-date reports on local weather, road closures, road construction and emergency notifications, such as during floods and storms. There are, of course, excellent commercial websites, products and services available. 

Here is a guide to begin building your own list of resources:

Always pull off the road and park in a safe location before checking websites or placing a phone call. Predictable responses and resources will help you meet the unpredictability of Mother Nature. 

Dealing with Sudden Spot Rate Hikes

One of the major aspects to keep in mind when you’re planning for weather events is how truckload rates can be affected by the weather. Since supply chains have become a global engine, a disruption in one location can cause problems in another. For shippers, that disruption can mean unexpectedly higher rates for shipping.

Here are a few best practices to dealing with a sudden surge in spot rates.  

  • Consider working with a third-party logistics (3PL) provider to augment your available capacity and carrier options: Outsourcing eliminates the burden of completing work in-house, but it still relies on efficiency in operation. 3PLs holistic approach, buying, and negotiating power can help augment your operations year-round.  
  • Explore intermodal and multimodal shipping options when the first chances of a storm’s arrival become apparent: Intermodal and multimodal shipping are usually used interchangeably, but both offer unique advantages to getting around after a major weather event.  
  • Increase the shipping budget through proactive, cost-saving measures through year-round operations: Cost-saving measures, such as improved dock management and load planning will naturally lead to savings in the budget. Such savings must not be 100% logged into the company profile. Instead, a percentage should be allocated for use in handling stretches in the freight budget after a disaster. More importantly, gains in efficiency will build resiliency and agility, allowing the supply chain to flex to meet the demands after a disaster.  

Batten Down the Hatches at HQ 

Spot rates are one way to deal with weather events abroad, but what happens when the storm is on your doorstep? Trucks being diverted can slow down your supply chain but when your base of operations is out of commission, everything comes to a grinding halt. Having a robust plan in place is necessary, especially if you operate in a location where inclement weather events is a yearly risk.  

Having the right infrastructure in place should be your first step.

Having the right infrastructure in place should be your first step. Does your main office have a contingency for backup power? How about internet access? Can your employees remotely access your company’s phone and operating systems? Something so simple as backup generators and remote desktops can keep operations moving despite external factors.  

Consider your personnel as well. Flexibility and cross-training of your staff mean that everyone on your roster is capable of handling a wider array of responsibilities. This is especially crucial during situations of crisis management when your A-team for customer service might be occupied with other necessary tasks.  

The better prepared it is, the more efficient it will be when it really counts.  

Having the right infrastructure in place is only the beginning, it’s important to have a plan in place for when the weather turns awry. More importantly, your team should know and understand the procedures for when such events take place. The better prepared it is, the more efficient it will be when it really counts.  To speak to one of our freight experts, contact us at 800.MY.SHIPPING or fill out the form below

Be Sure, Be Insured. Why Carrier Liability Is Not Insurance

Insurance is an important part of risk management. It helps businesses mitigate financial loss arising from unforeseen events that may disrupt their supply chain. Transporting goods from one location to another is a crucial part of the supply chain. It is what keeps the business running. Hence, transport or cargo insurance should be an essential part of a shipper’s supply chain risk management strategy. 

While most shippers understand the importance and the need for cargo insurance, there’s a debate on whether to rely on carrier liability or to get a separate insurance policy.

In the webinar titled  Be Sure, Be Insured, Brian Blalock, Senior Manager Sourcing Strategy, BlueGrace, and Tyffany Gunn Kelley, Senior Manager Strategic Partnership and Channel Partner Program, UPS Capital, discuss: the difference between carrier liability and real insurance importance of insurance insuring solutions how organizations can manage risks to their supply chain

  • the difference between carrier liability and real insurance
  • importance of insurance 
  • insuring solutions 
  • how organizations can manage risks to their supply chain

Here are a few important pointers from the webinar:

UPS Capital appointed Harris Poll to survey U.S professionals who supervise shipments or are key decision makers for their company to understand their views on cargo insurance and how they manage risks in their supply chain. For the study, Harris Poll surveyed more than 600 professionals.

Why do shippers need insurance?

Setting the direction for the webinar, Tyffany shared some of the findings from the survey which highlights the risks to shipments during transit and explain why shippers need insurance: 

  • 1 in 10 shipments face a glitch 
  • 92% of the respondents said they experience some delay, loss, or damage in transit each year
  • 15% of shipments can be affected due to in-transit incidents 
  • Approximately a loss of USD 56 Billion is reported annually due to cargo and freight movement (National Cargo Security Council)
  • No mode of transport is free of incidents like lost shipments, damages, or delays
  • Full truckload shipments report a loss of 12.8% annually 
  • LTL shipments show an annual loss of 10.8%  
  • Loss from ocean freight stands at 9.9% annually
  • Air freight reports a loss of 9.5% annually 

What is the impact of lost, damaged or delayed shipments?

To provide some perspective on the kind of damage such incidents can cause, UPS Capital asked the respondents to list down the areas that they thought were adversely affected due to lost, damaged, or delayed shipments:

  • 52% respondents said it hurt customer relationships 
  • 51% respondents said it resulted in financial loss
  • 46% respondents said it cost them in terms of employee time and cost
  • 36% respondents said it had a negative impact on company reputation

What is shippers’ view on carrier liability?

Do shippers, logistics professionals, decision makers understand what carrier liability is and what kind of coverage it provides to their valuable shipments? The survey provides some alarming results.

  • According to the results from the survey, almost 90% of the shippers rely on carrier liability to manage risks to cargo while in transit. 
  • Approximately 39% of the respondents thought that carrier liability is the same as real insurance. 
  • While 61% of the respondents believed that carrier liability and insurance were not the same, only a few of them were able to pinpoint the difference between carrier liability and insurance and the extent of cover each provides. 
  • Almost 25 – 50% of the participants thought that their carrier liability provided cover for incidents or events that it actually did not.

Why is carrier liability not enough?

Since a majority of shippers rely on carrier liability, it is necessary to understand what carrier liability is and how much coverage it actually provides. 

The Business Dictionary defines carrier liability as “Air and ocean carriers are normally liable for all damage, delay, and loss of cargo except those arising from the act of God, act of the shipper, and the inherent nature of the goods from acceptance of cargo through its delivery or release. Air carriers are usually liable under Warsaw convention, and ocean carriers under Hague convention.” 

The definition of carrier liability, also explained by Tyffany, itself provides a list of instances where a carrier cannot be held liable for loss to shipment during transit. Apart from the given instances, as Tyffany shares, the law allows carriers to limit their exposure and exempt a variety of situations thus further limiting their liability. To cite a few examples from the webinar that carrier liability does not cover:

  • Cross-border shipments getting damaged by a customs agent or other government agency during inspection
  • Pirates, hijackers or other “assailing thieves” stealing ocean containers  
  • A fire breaking out on a cargo ship that destroys cargo on board

What are the benefits of real insurance?

Along with providing a variety of policies which may be customized to suit the shipper’s requirements, real insurance also offers a host of benefits that can mitigate financial loss, help maintain the market reputation and customer relationships. Some of the benefits highlighted in the webinar include:

  • Claims are settled based on the real valuation of the shipment
  • It provides insurance coverage for all modes of transportation 
  • It covers door-to-door, so no separate policy is needed in case of multi-modal transportation 

However, getting a cargo insurance policy is not a complete solution. It is also necessary to record the information about your supply chain so that you can understand the consequences in relation to claims. One of the best ways to do it is in a transportation management system, says Brian. 

To know more about why you need real insurance coverage, insurance solutions and how a transportation management system can help keep track of and manage insurance claims, make informed business decisions for your supply chain, and mitigate risks to your supply chain watch the complete webinar HERE.  

Want to know more about UPS Capital’s insurance plans offered to BlueGrace customers or our transportation management system? Connect with our team today by filling out the form below, or call us at 800.MY.SHIPPING.

3PL’s Might Bridge the Gap in a Revenge Market 

We’ve all heard that turnabout is fair play but in the trucking market, that mentality could make for a vicious marketplace. Of course, no one likes to pay any more for a service than they have-to, but given the fluctuations that happen within the freight market it’s all part of the game, right?

The problem is, when you focus solely on the bottom line, working relationships, the level of the provided services, and customer care can often be shoved to the wayside.  

A Fairweather Friendship 

While not all shippers will use and abandon their third-party (3PL) logistics providers during an economic shift, enough have done so in the past that left a bad taste in the mouths of 3PLs.

Shippers tend to shy away from their “partners” when times are good, capacity is plenty, truckers are looking for freight. When spot rates climb, however, shippers tend to look for shelter in the contract market which makes for a volatile spot market that makes matters much worse than they need to be. 

If shippers weren’t as fickle during market shifts there would be more market stability. For shippers though, the bottom line is often considered as the most important factor.  

During 2017 we saw both Hurricane Harvey hit the coast as well as the introduction of the Electronic Logging Mandate. As a result, shippers skipped the middleman and dropped their 3PLs, opting to work directly with large asset-based carriers instead.

A year later, spot rates have dropped as much 12 percent, according to data from DAT solutions, which are resembling those seen back in 2017 across several markets. Conversely, contract rates have risen, on average, about 14 percent in 2018 and have increased a further 6 percent this year.  

With spot rates on the rise, shippers once again turn to third-party logistics providers with relatively no hard feelings. With negotiations underway, both parties more or less walk away happy.  

Creating a Vicious Cycle 

The same cannot be said for that type of mentality when it’s applied to the trucking companies, however. Here the negotiations tend to carry the memory of what happened the last time rates shifted in the favor of one side or the other. To be fair, that adversarial behavior does swing both ways. When capacity gets tight, trucking companies raise their rates to support the demand. When demand is low, however, and trucking companies are scrambling for a full load, shippers will push for lower rates, a behavior that seems to be hardwired into the business.  

Here is where 3PLs can bridge that gap and help to even out the “revenge” style of marketing.  

It’s hard for many companies to part with that “grudge” mentality, especially when both sides are angling to take advantage of one another when the market permits it. You’d be hard pressed to find a business that is willing to say “Sure, we’ll reduce our rates in favor of a good compromise,” and instead sounds more like “You raised your prices on us. Now it’s our turn.” Here is where 3PLs can bridge that gap and help to even out the “revenge” style of marketing.  

The True Value of a 3PL 

One of the biggest benefits of a 3PL is that they can help a shipper to access different parts of the very fragmented trucking industry. If a shipper has access to large trucking companies, a 3PL can give them access to smaller carriers, both of which have a place in a shippers supply chain. 

“It’s hard to handle relationships with tens of thousands of carriers, so if you let the broker handle that portion, and you have a relationship with your top 10­-15 asset ­based carriers, everyone can have a piece of the pie and work more collaboratively,” said Mark Ford, Chief Operating Officer at BlueGrace Logistics.  

 The main objective of any business is to conquer new frontiers and markets. And, to do this, it requires a wide logistics network and a robust, flawlessly executed logistics strategy.

As we explained it in more detail in one of our previous articles, 7 BENEFITS OF OUTSOURCING LOGISTICS TO A 3PL — The main objective of any business is to conquer new frontiers and markets. And, to do this, it requires a wide logistics network and a robust, flawlessly executed logistics strategy. Your 3PL partner is expected to and can help you achieve your business goals. They may either have their own network across regions or they may have business collaborations with transporters storage facility providers in different regions or a mix of these two, their own network in some cities and collaboration in another. They are thus better placed to help you expand and grow your business. To do this, all you need to do is work with them in a collaborative manner to din the most optimum solution to reach your customers.”

However, shippers who are too focused on their bottom line have a harder time seeing that value in a 3PL partner and might even remain hard pressed to change their ways. 

It’s less a matter of saving a few cents on the mile, however, and more about creating a sustainable and, more importantly, profitable supply chain.

It’s less a matter of saving a few cents on the mile, however, and more about creating a sustainable and, more importantly, profitable supply chain. For shippers who are willing to keep an open mind and maintain a good working relationship with carriers and 3PLs alike have a great opportunity to build longstanding and mutually beneficial relationships. Utilizing a 3PL as a broker can help to save money when the markets fluctuate, but using them as a supply chain consultant is where they can truly save in the long run.  

There are a number of other benefits that can come from working with and outsourcing your logistics to a 3PL. Not the least of all, a better and stronger bottom line.  If you would like to speak to one of our experts, call us at 800.MYSHIPPING or fill out the form below.

Chris Kupillas Named to the 2019 Food Logistics Champions: Rockstars of the Supply Chain

BlueGrace Logistics, a nationwide third-party logistics provider, is pleased to announce that Food Logistics has named Chris Kupillas, Regional Vice President, to its 2019 Food Logistics Champions: Rock Stars of the Supply Chain award.

Kupillas is Regional Vice-President for BlueGrace Logistics and the managing director of the Los Angeles office. He has a special focus on the complexity of the food distribution vertical, and works closely with his team developing tools, strategies, and planning processes to optimize supply chains of rapidly growing food and beverage distributors.

“There is no better title than “Rock Star” to encapsulate Chris’ efforts on behalf of BlueGrace,” said Bobby Harris, CEO, BlueGrace Logistics. “Chris has deep industry knowledge that makes him our customers’ ideal partner. He inspires the team and follows one of our top core values, which is to set outrageous goals. As a result, he is someone that everyone at BlueGrace looks up to. I am proud to have Chris as a member of the BlueGrace team.”

The work Kupillas does for BlueGrace isn’t just about getting products delivered on time, but how proper planning can help lean out inventory levels, plan production schedules, and drastically improve fill rates. Kupillas works with several large CPG clients and his creation of the foundation for the BlueGrace Big Box / Retail Compliance program earned him a spot on this impressive list, and helps BlueGrace’s food and beverage customers to stay a step ahead of food safety, tracking and compliance requirements. Through the development of these processes and tools, BlueGrace has been able to help customers increase Must Arrive By Dates (MABD) compliance from as low as 26% to over 95% within 90 days of implementation.

The Food Logistics Champions: Rock Stars of the Supply Chain recognizes influential individuals in our industry whose achievements, hard work, and vision have shaped and attained milestones in safety, efficiency, productivity and innovation through the global food supply chain. From early pioneers and entrepreneurs to non-conformist thinkers and executive standouts, this award aims to honor these leaders and their contributions to our industry.

“Our 2019 Food Logistics Champions: Rock Stars of the Supply Chain reflects the expanding diversity that is emerging in our industry, both in terms of demographics and talent,” remarks Lara L. Sowinski, Editorial Director for Food Logistics. “The combination of experience and wisdom complemented with a new generation of professionals is resulting in a food and beverage supply chain that is in sync with consumers’ demands while simultaneously adept and staying ahead of the logistical requirements.”

Recipients of this year’s 2019 Food Logistics Champions: Rock Stars of the Supply Chain award will be profiled in the March 2019 issue of Food Logistics, as well as online at www.foodlogistics.com.

About Food Logistics

Food Logistics is published by AC Business Media, a business-to-business media company that provides targeted content and comprehensive, integrated advertising and promotion opportunities for some of the world’s most recognized B2B brands. Its diverse portfolio serves the construction, logistics, supply chain and other industries with print, digital and custom products, events and social media.


Food Logistics is published by AC Business Media, a business-to-business media company that provides targeted content and comprehensive, integrated advertising and promotion opportunities for some of the world’s most recognized B2B brands. Its diverse portfolio serves the construction, logistics, supply chain and other industries with print, digital and custom products, events and social media.

About BlueGrace Logistics

Founded in 2009, BlueGrace Logistics is one of the largest third-party logistics (3PL) providers in the United States. With over 500 employees and working with over 10,000 customers to provide successful shipping solutions, the company has achieved explosive growth in its 10-year operating history. Backed by a $255 million investment by private equity firm Warburg Pincus, the company operates 12 locations nationwide, and its headquarters are in the sunny Tampa Bay area of Florida. Please visit www.mybluegrace.com for more information, or check out BlueGrace Logistics on Facebook, Twitter, Instagram and LinkedIn.

GRI Season: The Importance and Benefits of Digitalization 

The arrival of fall marks the beginning of the biggest annual influx in demand for the transportation of freight. This is caused by the flurry of demand from shoppers that crop up in anticipation of the holiday season. While increased demand means increased business opportunity, it can also mean a headache for players in the logistics industry — shippers, forwarders, carriers and retailers alike — as they gear up to deal with the season’s intensity. Retailers hire on seasonal employees, while carriers brace for capacity to be pushed to the limits.

Carriers raise their rates to compensate for increased costs in fuel, equipment, technological investment, and the cost of paying their drivers.

Peak season manifests in the costs shippers pay to carriers in the form of General Rate Increases (GRIs). Carriers raise their rates to compensate for increased costs in fuel, equipment, technological investment, and the cost of paying their drivers. Depending on the current economic climate that year, GRIs can be higher or lower, but average at around 5 percent.

Which factors will be especially affected during this year’s peak season, considering the current economic climate?

Higher demand for e-commerce

Consumers’ love affair with online shopping is not going anywhere anytime soon. E-tailer juggernaut Amazon.com had their most successful Amazon Prime Day in history. International shoppers purchased over 100 million products on the website and the company saw more sign-ups for its Prime service on July 16, the Monday before the event than any day in company history.

With the boom showing no signs of slowing down, the rising costs to secure capacity are sure to remain a theme during peak season this year.

E-commerce directly affects the demand for logistics services, as it raises the demand for more routes and last-mile services. With the boom showing no signs of slowing down, the rising costs to secure capacity are sure to remain a theme during peak season this year.

The driver shortage

With the simultaneous driver shortage caused by a retiring generation of truck drivers and the somewhat unpopular ELD mandate, carriers are paying higher than average wages in order to attract good drivers. The domino effect through the supply chain means that this is another cost reflected in the GRIs that shippers pay, and ends up detracting from your company’s bottom line.

Continuously rising fuel costs

During the spring of 2018, diesel prices increased in every region of the country with prices above $3 per gallon in many key logistics regions of the United States, and in August, diesel fuel costs 23 percent more compared to the previous year. However, there is light at the end of the tunnel. According to the Journal of Commerce, U.S. contract truckload rates will likely cool down to a more modest 5 percent on average in 2019, but will still be higher than in years past; the overall increases are another major factor that will continue to play into rising GRIs.

In the Case Study, “Manual Cost Removal and Freight Cost Reduction for Hardware,” BlueGrace explores a scenario in which a big box client grapples to deal with increases in GRIs. The client was operating with a single national carrier model, which at a time, was working sufficiently enough for the supplier. However, as demand increased and their business had grown, the old-fashioned operational system began to prevent the company from reaching its full potential. Operations were becoming time-consuming, employees were becoming overwhelmed, and profits were suffering.

Negotiating GRI costs with carriers during times of unexpected rate increases was a major emerging problem for the company.

Negotiating GRI costs with carriers during times of unexpected rate increases was a major emerging problem for the company. Its lack of digital booking meant that there was no way for them to verify if the invoiced amount of the shipment was the same as the quoted amount of the shipment. In addition, the overwhelming amount of volume being moved was creating a bottleneck in the process, due to the time required to record data manually.

The supplier contacted BlueGrace to address these issues, agreeing to integrate its in-house Enterprise Resource Planning (ERP) system with BlueShip®, BlueGrace’s Transportation Management System (TMS). In doing so, they were able to negate the time-consuming process of manually booking shipments by digitalizing the process. Digitalization also enabled the client to access its own data with better transparency, allowing it to make better-informed business decisions.

Once processes are made electronic, companies like BlueGrace are also able to help businesses save by using their pre-negotiated contracts with all of the carriers whose GRIs don’t adhere to the standard set by larger companies and working with online service providers directly to handle complex negotiations so that the client doesn’t have to.

Once processes are made electronic, companies like BlueGrace are also able to help businesses save by using their pre-negotiated contracts with all of the carriers whose GRIs don’t adhere to the standard set by larger companies and working with online service providers directly to handle complex negotiations so that the client doesn’t have to. The result is a lower cost paid by the client, and a healthier bottom line; the supplier detailed in the case study ended up saving 13 percent of their yearly freight spend, which added up to $260,000 annually.

To find out how implementing can enable your business to achieve its optimal cost reduction surrounding issues like GRIs to reach its full profit potential during the peak season rush, contact us at 800.MYSHIPPING or fill out the form below to speak to one of our freight experts today.

Unlocking The Benefits of Digital Supply Networks

“Digital” has become one of the biggest buzzwords in the transportation and logistics industry. Everything, it seems, is going through a digital revolution. Procurement services and digital platforms are being created, revised, and improved at a pace that the industry is completely unaccustomed to. Other parts of the industry are turning to automation to expedite the process of manufacturing, selection, fulfillment, and shipping.  

While we’re completely onboard with this new digital era, it might be worth it to take a moment and consider whether or not it will live up to the hype.   

“New research which was conducted by Deloitte and the Manufacturers Alliance for Productivity and Innovation (MAPI) indicates that while U.S. shippers are increasingly aware of the benefits of digital supply networks (DSNs), many “remain in the early phases” of adoption,” according to Patrick Burnson, Executive Editor for Supply Chain Management Review. 

The Industry’s Caution 

The study, “Embracing a digital future: How manufacturers can unlock the transformative benefits of digital supply networks,” shows that there is a wide difference between the practice and the opinion when it comes to digital supply networks.  

In spite of the nuance and the hype that surround DSNs and other platforms, there are those in the industry that aren’t surprised by the findings.  

Transportation economist, Noël Perry, told Supply Chain Management Review that he was not surprised by the findings. 

“Supply chain managers are taking a cautious approach to digitization,” he says. “And for the time being, that may be a good idea. They should not be spending too much on new technology at this point, but should be poised to adapt when the time is right…which should come soon,” says Noël Perry, a transportation economist,  in an interview for Supply Chain Management Review. 

Perry advises managers to keep themselves informed of the changes in the industry as well as in emerging technology by attending trade events and transportation conferences where many new projects and start-ups get their grand unveiling.  

The Survey By the Numbers  

The survey was conducted of over 200 manufacturing organizations, of which over half, 51 percent, said they believe their DSN maturity level to be “above average” when compared to their competitors. However, of those respondents, there is only 28 percent that has started to implement DSN solutions within their organization.   

 

As for the uses of a DSN solution, one of the biggest goals among the respondents is transparency as it is one of the most critical keys to boosting overall efficiency. In order for end-to-end transparency to occur within a supply chain, there needs to be a total connection of the data, from start to finish. According to the survey, only 6 percent of the respondents have such accessibility to data in place.  

“While enthusiasm is high and manufacturers realize the benefits of Digital Supply Networks, many companies struggle to identify the right technology landscape which will provide the most value when they are approaching a digital shift, said Stephen Laaper, principal, Deloitte Consulting LLP and co-author of the study. “As a result, many hold off with key aspects of their transformation, which in turn puts their transformation at too slow a place to avoid disruption.” 

Choose Wisely but Make a Choice 

With that being said, the transportation and logistics industries are ripe for change. Some would even say they are long overdue.

As with any new technology, especially such that has such a radical ability to initiate change, it makes industry executives nervous. This is understandable when we consider just how many different services, platforms, and software suits are out there, and more are being released in short order. With that being said, the transportation and logistics industries are ripe for change. Some would even say they are long overdue. Now that change is here, it will be up to individual companies to decide the best course of action to embrace these new changes and apply them in the most beneficial way to their own operations.  

It seems the general consensus on the matter is this. Yes, being cautious is a good thing, but there is such a thing as being too cautious. Dragging heels on matters of DSN and other digital solutions might end up costing even more time and money in the future, especially if the competition already has their system figured out.  

How BlueGrace Can Help 

One of the benefits to operating in today’s marketplace is that you don’t have to do it alone. Trying to navigate the nuances of technology as well as working with data is one thing, trying to do it well the first time around is something completely different. This is where we can help.

Our team takes the management of your account and turns it into the opportunity to truly wow you.

Our team takes the management of your account and turns it into the opportunity to truly wow you. From your dedicated support team to the ongoing development of KPI goals, your account is managed at every turn. Driven by data, we continue to grow with you and increase the value of our partnership  

Contact us to learn more about us and how we can help drive your business forward in this digital age.  

Passion AND Logistics: BlueGrace Collects Over 60,000 Pounds of Food for Homeless Animals

Each year, BlueGrace female (Team Cats) and male (Team Dogs) employees compete against each other to see who can collect the most amount of pet food in total pounds. The food is then donated to a no-kill shelter to feed homeless animals in the community and used for pet owner assistance programs that benefit homebound and elderly residents on a fixed income. This year, the employees of BlueGrace collected over 60,000 pounds of food between Tampa & Chicago – reaching a new record for the contest on a location-wide scale.

BlueGrace’s “Cats Vs. Dogs” Pet Food Drive Sets Company’s Location-Wide Record in 2018

Click Below To Watch The Official BlueGrace “Cats Vs Dogs 2018” Video!

Humane Society of Tampa Bay

Employees at BlueGrace Headquarters in Tampa were able to collect over 31,000 pounds of pet food to donate to Humane Society of Tampa Bay. Lon Savini, Shelter Operations Manager, gives us a breakdown of how impactful the donation is to supporting all of the services the shelter provides to the community:


Animeals Delivery Program:

  • Current monthly average spend on cat & dog food: $4,000
  • Delivered to over 170 recipients one Saturday each month

Donation Impact:

  • Will not need to buy large bags of dog food for at least 2 months
  • Will not need to buy large bags of cat food for a at least 1 month
  • Cost Savings: roughly $6,000

Food Assistance Program:

  • Current monthly average spend on cat & dog food: $2,100
  • Food is broken down into smaller bags and handed out to the public in need of assistance to feed their pets

Donation Impact:

  • Will not need to buy food for the remainder of the year
  • Cost Savings: roughly $16,800

Shelter Operations:

  • Current monthly average spend on cat & dog food: $2,350
  • Used to feed animals living at the shelter throughout the year

Donation Impact:

  • Will not need to buy large bags of dog food for at least 4 months
  • Will not need to buy large bags of cat food for a at least 1 month
  • Cost Savings: roughly $6,500

Since inception of the ‘Cats vs Dogs’ pet food drive in 2010, BlueGrace has now donated over 206,000 pounds of pet food to Humane Society of Tampa Bay.

Since inception of the ‘Cats vs Dogs’ pet food drive in 2010, BlueGrace has now donated over 206,000 pounds of pet food to Humane Society of Tampa Bay. The drive culminates each year with an adoption event at BlueGrace headquarters in Tampa, where 8-10 dogs and cats are brought in by the shelter and employees have the opportunity to take a new family member home. Almost all of the animals were adopted and welcomed home to their new BlueGrace families this year!

Team Cats Reclaim Their Title as Reigning Champions!

The competition is fierce each year – from catchy team names (“Check Meowt” & “Woof Pack”) to secret meetings in the restrooms, it’s a good old fashioned battle of the sexes for the entire duration of the drive. BlueGrace employees are not shy about their love for competition, some would argue that drive’s success has a large part to do with the fun of competing against each other. Team Cats had been the reigning champions EVERY year… until just last year. Team Dogs finally defeated the ladies in 2017 and claimed their crown – and they didn’t think twice about rubbing it in.

But not for long. Team Cats took the W this year and regained their title as THE champions…. and to Team Dogs they say – “Who’s cryin’ meow?”

While the competition aspect of the drive is fun for employees, the ultimate goal is to provide as much food as possible for homeless animals in the community. It’s an effort we are completely dedicated to and every year try to find ways to improve the drive.

“It’s amazing to see my coworkers come together in such a big way. It’s a lot of hard work for everyone involved, we donate our own money, use our own contacts, and organize our own fundraisers.” explains Courtney Smith –  Manager, Culture & Engagement for BlueGrace. “it’s truly a genuine representation of who we are as a company and a culture.

Be Caring of ALL Others Includes Animals

With the amount of growth BlueGrace has experienced over the last few years, the contest extended to other regional locations. This resulted in a major win by our Chicago team for animals at the Animal Rescue Foundation of Illinois this year, where BlueGrace employees collected over 32,000 pounds of food. One employee even secured the largest part of the donation, 30,000 lbs., by himself.

“What one office collected as an entity, one employee collected by himself – this is just beyond epic. We just think it’s really awesome that Scott [Collack] reached out and made this opportunity happen – these animals are truly cared about, we’ve got some really great people with some really big hearts in this company” Bobby Harris – CEO of BlueGrace, on Chicago employee Scott Collack securing the 30k donation.

Putting the Passion in Logistics

Core Value #1 is Be Caring of ALL Others at BlueGrace and is probably our most called upon value. It’s essential to our hiring process, the success of our business and the energy of our culture that our employees have some sort of empathetic trait. We work best with those who have compassion for others and truly show it.

“I started in 2011 and I’ve been able to see how much heart and teamwork goes into this every year. We truly live and breathe our core values here, and I think it’s because they were strategically created to align with the environment our team thrives in” says Whitney McKay – Manager of Marketing & Brand for BlueGrace. “There’s a special place in our hearts for animals, so we choose to do something about it by making it part of our culture. At the end of the day, we believe in their mission to end animal homelessness and really try to educate our team to help spread awareness.”

It’s YAPPY Hour, Not Happy Hour

One of the biggest contributing factors to the success of the drive in Tampa was the involvement of the community.

There are two things we can always count on for a big turnout when planning a fundraising event; One: people love animals. Two: people love happy hour.

This year our goal was to get as many people and organizations as possible involved in the Tampa community, and we knew exactly how to bring everyone together. There are two things we can always count on for a big turnout when planning a fundraising event; One: people love animals. Two: people love happy hour.

Hosted by Fuzzy’s Taco Shop, BlueGrace, Humane Society of Tampa Bay and Tampa Tails, the 2018 “Yappy Hour” fundraising event was wildly successful – raising over $4,000. Silent auction prizes were donated by top local companies like the Tampa Bay Lightning, Tampa Bay Buccaneers, Florida Aquarium, Tampa Bay Rays and many more. Several businesses and organizations donated resources such as pet food, money, transportation services, raffle prizes and much more to make the final drive donation totals possible:

Fuzzy’s Taco Shop, Stepp’s Towing, Amity Benefits, XPO, Ward Trucking, Dayton Freight, Sunlife, Atlantic Screening, Spaddy’s Coffee, Chewy, Central Pet Distribution, Warburg Pincus, Cigna Health, World of Beer, MOSIClearwater Aquarium, Florida Aquarium, Outback Steakhouse, PDQ, Miller’s Ale House, Crossfit BNI, Orange Theory Fitness, Metropolitan Ministries, Chipotle, Columbia Restaurant, Southern Muscle, Crunch Fitness, Fitness for $10, Top GolfCamp Gladiator, Tampa Bay Buccaneers, Tampa Bay Lightning, Tampa Bay Rays, AMC Theaters, Kraftologee, Mission BBQ, New Belgium, Canine Cabana, Tito’s Handmade Vodka, Tampa Tails.

About BlueGrace

Founded in 2009, BlueGrace Logistics is one of the largest third-party logistics (3PL) providers in the United States.  With over 500 employees and working with over 10,000 customers to provide successful shipping solutions, the company has achieved explosive growth in its nearly 10-year operating history. Backed by a $255 million investment by private equity firm Warburg Pincus, the company operates 11 locations nationwide, and its headquarters are in the sunny Tampa Bay area of Florida.

 

Walmart’s OTIF Policy Gets Harder 

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On Time In Full is a policy that Walmart created back in 2016 and implemented in August of 2017. In an attempt to drive their proficiency up and costs down, the mega retail chain started targeting their supply chain. Under this policy, suppliers that failed to deliver the total amount of promised goods, to designated stores at the prescribed time are penalized; fined up to three percent of the total shipment value.  

The shipment has to arrive exactly when it’s expected. Not before, and certainly not after.  

It’s not just trying to curb late deliveries, either. The OTIF policy also cracks down on trucks arriving too early, as it can create excess traffic and delays for loading and unloading. For suppliers and trucking companies, this means there’s no leaving early to create a buffer zone. The shipment has to arrive exactly when it’s expected. Not before, and certainly not after.   

In addition to making things more challenging for suppliers to make sure their goods arrive on time, it will bring even more stress on carriers – we discussed this in more detail in our earlier post. With the Electronic Logging Device more closely monitoring hours of service, truckers will be in a tight spot when it comes to making sure that deliveries arrive exactly when they’re supposed to, all while making sure to stay compliant with their working hours.  

A Tough Policy Gets Tougher 

As of April 1st of this year, the company made the policy even harder. Prior to this month, the OTIF policy stated that full truckload shipments needed to meet a 75 percent OTIF rating and less-than-truckload shipments needed to meet 33 percent OTIF to avoid fines. Now, FTL’s are required to meet an 85 percent standard (down from the lofty 95 percent they had originally planned) while LTL requirements have increased to 36 percent.

Keeping products on the shelf is the name of the game for Walmart.

Keeping products on the shelf is the name of the game for Walmart. With increased competition from the likes of Target, Dollar General, and Amazon, the more items Walmart can keep in stock, the less likely they are to lose out to the competition.  

A Necessary Change 

While it’s easy to paint Walmart in a bad light through this policy, they aren’t the only company to enforce such a policy. Competition stores like Target, Kroger, and Walgreens also have similar OTIF policies. If retailers don’t hold the supplier accountable and they don’t make them try to comply, then suppliers can cause backlogs.

With the 90 percent failure rate for full and timely deliveries, Walmart has found a rather convenient way to turn a problem into profit.

According to a Bloomberg report, Walmart had a OTIF success rate hovering around a dismal 10 percent. With the 90 percent failure rate for full and timely deliveries, Walmart has found a rather convenient way to turn a problem into profit. This new policy doesn’t cost the company a dime. In addition to generating money from the fines, increased product availability will also mean increased in-store sales.  

Given that Walmart is such a heavy hitter for suppliers, suppliers will have little choice but to either comply or lose out on some considerable business. With the extra revenue generation, Walmart can take that money and reinvest in its e-commerce business.  

A Hard Place for Small Suppliers 

While larger companies have no problem meeting delivery quotas, it’s the LTL deliveries that are going to take the brunt of the OTIF policy. Considering the strained nature of supply chain as it is, especially in the trucking sector. ELD and HoS mandates are pitting truckers against the clock as it stands. Couple that with the driver shortage and rising demand for LTL, and capacity becomes even more limited.   

Couple that with the driver shortage and rising demand for LTL, and capacity becomes even more limited.   

At least in that regard, the company has cut smaller suppliers a little slack, which is the reason that LTL shipments have less than half the requirements of their FTL counterparts. An LTL doesn’t schedule a delivery to a Walmart [distribution center] until the freight arrives at the terminal.

In order to avoid hefty fines being levied by Walmart and other retailers such as Kroger and Walgreens, suppliers are going to have to tighten and fine tune their logistics and supply chain considerably, especially given the current tight capacity environment.  

Do You Need Help With OTIF Issues?

A 3PL, such as BlueGrace, can help your business overcome the challenges of OTIF and other supply chain issues. If you have questions about OTIF or just how to simplify your current transportation program, feel free to contact us via phone at 800.MY.SHIPPING or using the form below and we will be happy to assist.

 

The Long Bumpy Road to Blockchain in Trucking

With rapid advancements in interconnectivity, such as the Internet of Things and the added advantage of instant data streaming, the freight industry has been devouring data technology as a whole and is getting a much-needed overhaul. Yet, the picture is incomplete. There are still some serious gaps, tracking being a great example of this. While shippers may have a general idea of where the freight is during its transit, often it is difficult or impossible to pinpoint the exact location and the estimated time of delivery.

Let’s face it, trucking is the life force of this country.

Communication within the industry also leaves a lot to be desired. Throughout the industry, many companies are using different systems for recording freight which allows some data to be lost in translation. That might be the reason why there is some considerable hype being built around blockchain technology. In fact, this hype is gaining some serious momentum when you consider there is a new faction, the Blockchain in Transportation Alliance (BiTA) that is working to find blockchain solutions for some of the most common trucking problems. Let’s face it, trucking is the life force of this country. Trucks are moving approximately 70 percent of the nation’s freight. As a whole, it represents over 80 percent of the nation’s freight bill. That being said, they could use all the help they can get to make the process more efficient.

Privatized Blockchain for the Industry

There is a considerable amount of potential within blockchain technology. As a data service, it can track and categorize every transaction through a products life-cycle.

For a logistics decision maker, the ability to pinpoint the location of various assets, both tangible and intangible, is invaluable.

For a logistics decision maker, the ability to pinpoint the location of various assets, both tangible and intangible, is invaluable. Within every step of the shipping process, blockchain can track the data and provide analyzable and actionable information which allows for more accurate and efficient decision making. As it’s a shared platform, the necessity for a privatized blockchain for the U.S. becomes apparent. Of course, that privatization isn’t necessarily exclusive, but rather separate from other blockchains used just for the industry. This would give shippers, carriers, freight brokers, 3PLs and anyone else in the BiTA consortium who needs to be in the know, access to a transaction ledger. BiTA’s goal, as a standards organization, is to develop a common framework to encourage the development of blockchain applications for asset tracking, transaction process and overall logistics management. All of which is geared at turning the trucking industry into something more intelligent and efficient.

…and The Seemingly Never-Ending Capacity Issue

Think about some of the most common issues within the industry. Manufacturers and shippers have a hard time finding available capacity. Putting aside the driver shortage for a moment, it makes no sense that it’s so difficult to find capacity when there’s an average of 29 billion empty or partially loaded miles per year. It also helps to understand that the trucking industry itself is incredibly fragmented in the United States. There are over 1.5 million trucking companies fielding close to 3.5 million drivers. While that might seem like a lot, 90 percent of those companies have access to six trucks or less. That makes it even more difficult for shippers to match up with carriers, both of whom need each other.

Matching a shipper’s demand to a carrier’s supply is just one of the many ailments within the industry that can be alleviated by blockchain technology.

Matching a shipper’s demand to a carrier’s supply is just one of the many ailments within the industry that can be alleviated by blockchain technology. There are many in the industry, both startups and legacy companies alike that believe that blockchain technology can make routing more efficient, cutting down on fuel costs and increasing productivity.

 

Source: Next Autonomous

In reality, blockchain has a near limitless amount of potential, if it can get off the ground that is.

Considering how varied the industry is with so many different players in the game, it can help to unify the trucking industry to help it become more efficient as a whole. Logistics planners can see the “whole picture” rather than just pieces of it at a time. With real-time data, they can make better decisions to make the industry leaner and smoother overall. In reality, blockchain has a near limitless amount of potential, if it can get off the ground that is.

The Blockchain Obstacles  

As with any new technology, there will be some hurdles and obstacles that need to be cleared in order for it to become successful. The first issue is that everyone needs to trust in the technology and believe it to be the sole source of truth for the industry. While most people will believe in the system they are working with, it’s a little more complicated with blockchain. As a crypto-technology, it is incredibly secure and the data is locked. That being said, nothing can be changed, altered, or corrupted. It becomes carved in a digital stone, for lack of a better term. Because the technology is distributed, there isn’t a sole governing authority for the data either. In short, it’s a double-edged sword. Data can’t be lost or tampered with, but it also can’t be altered. This means that there needs to be absolute faith that the data within is a genuine accounting of transactions.

If there is any hope of uniting the industry and reducing the inefficiencies of fragmentation, everyone will have to play the game.

Secondly, blockchain will need total participation from smaller companies, both shippers and carriers. If there is any hope of uniting the industry and reducing the inefficiencies of fragmentation, everyone will have to play the game. Much the same as trust. The problem here is that smaller companies often have a hard time drumming up the necessary capital to invest in new technology. The electronic logging device (ELD) mandate is a perfect example of this. Larger companies had no problem, and many were prepared well before the deadline. Smaller companies, on the other hand, watched the deadline come and go with only 37 percent of 1,600 fleets in compliance with the ruling prior to the deadline. Trying to get that many smaller companies on board with the same, or at least compatible software will definitely be an uphill battle. However, once that’s done, you’ll have an entire industry, shippers, carriers and brokers alike completely connected and collaborating on a frictionless network.

Simply put, there is some tremendous potential for blockchain and it could very well revolutionize the industry.

Lastly, the industry as a whole needs to accept data standardization. Everyone does things a little differently, which might work in the fragmented mess that it is now, but in order for blockchain to not become a convoluted jungle of indecipherable data strings, it all needs to be standardized. This is something that BiTA is trying to spearhead by working on standardization from the outset. If the history of the trucking industry has taught us anything, it’s that incorporating blockchain technology universally across the sector is another obstacle that won’t be so easy to get around. A difference in programs could mean a time-intensive process for integration to simply make the program work with the blockchain, nevermind the data entry in itself. Simply put, there is some tremendous potential for blockchain and it could very well revolutionize the industry. However, it’s going to be a long and bumpy road before we get to the smooth workings and benefit from what blockchain could provide.

Working With a 3PL Like BlueGrace

BlueGrace makes it easier than ever to reduce the amount of physical paperwork with our FREE proprietary software, BlueShip®. BlueShip is user-friendly, completely customizable and has real-time updates, giving you a single source tool for tracking, addressing, and product listing. Fill out the form below to request a free demo today:

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: 

Education vs. Experience – by Dusty King, Franchise Owner of BlueGrace Atlanta Northeast

I believe I suffer from a wonderful condition called ADHD… like most entrepreneurs do. Either that or I’m as stubborn as my wife says I am.

I decided from a very early age that school and the classroom were not for me and I couldn’t be convinced otherwise. Not that my parents, teachers, and counselors didn’t try I just was’t hearing it! At the time I couldn’t find any reason why I needed to be sitting in a classroom learning (X-Y+Z = 3) or memorizing the elements on the periodic table.

I felt these formulas and theories did not apply to my quest of owning a business. Whether this was a correct way of thinking is another topic in itself.

I never envisioned myself climbing the corporate ladder. I always planned on building my own ladder and didn’t need to climb someone else’s to get to where I wanted or needed to be. When I get an idea and know the direction I want to go there is no force on this planet that will sway or derail me. It’s just how I’m wired. Not everyone’s path is the same. There is no “right” or “wrong” path to take in my opinion.

In bypassing the college route, I had a much earlier start in the s0-called “real world” than if I had gone to college and partied for 4 years. This is how I envisioned college.

I had done enough partying in high school for a life time and it was time to start working, making money and gaining real world working/business knowledge that would benefit me when the opportunity came to start my own business.

I knew I would benefit more from “real world” experiences over sitting in a classroom for four years being lectured about them. I am a hands-on learner, and the only way for it to stick was to learn from my mistakes.

To me, each job I worked was like earning credits toward earning my “major” in business. The opportunities were about learning the business and thinking of ways to do the job better as if it were my own.

I didn’t work for paycheck, I worked to live the dream… I worked to learn how to become an entrepreneur. The older I get, my thirst for knowledge grows tremendously. There is a part of me that wishes I would have pursued an education at an earlier age and one of my goals is to do so in the future. I am not one who shuns education alltogether. In fact, I have placed education on a very high pedestal and will do everything in my power to put my children on the path to a higher education when their time comes. I guess I was just a unique case.

The biggest thing I lacked from not going to college was building strong organization, time management & processing skills that I ended up having had to learn the hard way. This is an aspect of business that I lacked for some time.

If you’re trying to decide what path you should take to live your dream (whatever that may be), I would say think long and hard about it. Entrepreneurship is hard enough as it is, so don’t set yourself back to the beginning if you don’t need to.

There are VERY valuable skills that one develops at college outside of the classrooms and books. Life has a funny way of showing these things and they become clearer as you get older. To be an entrepreneur, you must realize that you’re going to have to be more driven and self-reliant than ever. Skipping college doesn’t mean that your education is over, it’s really just the beginning. So take every opportunity to learn from your peers and take it upon yourself to self-educate and stay ahead of the curve. Be creative and listen to those around you.

You CAN do it, it’s just gonna take a little more fine tuning on your own. But again everyone is different and no one knows YOU like YOU do. At the end of the day you are accountable for your decisions and no one else.

Dusty King, franchise owner of BlueGrace Atlanta Northeast
Dusty King, franchise owner of BlueGrace Atlanta Northeast

BlueGrace Scheduled to Host Talent Acquisition Blitz (TAB) in Chicago, February 24-25

BlueGrace Logistics, one of the fastest-growing logistics services firms in the country, is enhancing our presence in the Chicago area.

To support our hyper-growth, we are opening an office in Oak Brook, IL, a suburb of Chicago. The BlueGrace Talent Acquisition Blitz (TAB) in Chicago will take place February 24-25, in an effort to scout new recruits to join our team.

BlueGrace President and CEO, Bobby Harris, is expected to be in attendance to meet with prospects and hand select the top candidates to help grow the Chicago office. TAB will be held at our Chicago headquarters: 700 Commerce Drive in Oak Brook.

We will be looking to fill 20 positions, including sales, truckload operations, customer service and management positions. All new hires to join our Chicago team will receive a $1,000 signing bonus!

Candidates can submit their resume via email to [email protected], as well as request information about the company by visiting www.mybluegrace.com/bluegrace_careers.

BlueGrace Logistics on Fox & Friends

BlueGrace Logistics was featured on Fox & Friends segment “On the Job Hunt” on Fox News Channel on Tuesday, February 4! This segment discusses companies that are currently hiring. They mentioned how we have open positions in both our Tampa and Chicago office, including sales, customer service and operations.

Check out the clip by clicking here: Fox & Friends – On the Job Hunt 2/4/14

However, there were some errors in the segment that need to be addressed. In the first mention of BlueGrace, the reporter mispronounces our name, saying “BlueGrass Logistics…” Yea, like the music. Just so you know, we’re not hiring banjo players!

They then go onto to describe us a company who does “bubble-wrapping” and say that we’ll “take care of the tape for you.” Well, that is not remotely close to what we do.

We are true consultants. To simplify it, think of BlueGrace Logistics as the Expedia of freight (no pun intended). We have a full staff of freight experts and have built a proprietary and cutting-edge transportation management system called BlueShip. We are the middleman between customers and transportation carriers to provide more options to businesses and bring in more revenue to carriers. Overall, our business model drives productivity into our industry.

Are you interested in learning more about job opportunities with BlueGrace Logistics? Please click here.

BlueGrace CFO, Mike Dolski, Named Finalist in Tampa Bay Business Journal’s 2014 CFO of the Year!

 

Dolski pic
Mike Dolski, CFO of BlueGrace Logistics

BlueGrace Logistics is honored to have our CFO, Mike Dolski, named as one of the finalists in the Tampa Bay Business Journal’s 2014 CFO of the Year. Mike has implemented a number of successful strategies that have led to success and growth for BlueGrace. He implemented “Rules of Engagement,” which has compelled both our organization and our partners to build strong, mutually beneficial relationships. This strategic move has helped BlueGrace grow more than 7,000 percent from 2009-2013.

Mike has also played a crucial role in positioning BlueGrace to prepare for the growth of our franchise channel. He mentors new franchisees, helping them understand the importance of protecting their initial cash flow versus maximizing their initial gross profit.

“It was unexpected but I’m honored to be considered for this,” Mike said. “We have all worked very hard to create a fun and strong company and I’m appreciative that my efforts, and the efforts of our wonderful employees, have resulted in my inclusion on this list.”

An awards ceremony will be held on February 26 at A La Carte Event Pavilion to honor finalists. Congratulations Mike!

Fitting the Bill – The Benefits of Intermodal Shipping

With Trucking providing competitive rates and shipments more manageable than ever, why would anyone look to an option with limitations such as intermodal shipping? Naturally one would think there is a more efficient option nowadays than using the old Transcontinental Railroad for transporting goods.

The answer may surprise you. Intermodal shipping has actually been on the rise and offers a unique set of benefits that can actually suit some shipments better than the most popular option of trucking.


Pros of Intermodal

  • Typically cheaper than over the road full truck loads
  • Great for long distance Shipments – Coast to Coast or Over 800 miles
  • Multiple rail providers have increased availability and competitive pricing
  • Not estimated rates – Pricing is locked in

With the pros, come the cons of Intermodal

  • Freight cannot be time sensitive
  • Only full loads- cannot move “LTL” – moves as a 53 ft container
  • Must book with 24 hours’ notice
  • MAX weight – 43,500 lbs

How about an example of how Intermodal is great for long distance project moves?

BlueGrace Intermodal freight

A customer of ours was in the midst of plans to relocate their warehouse from Chicago, Illinois to Houston, Texas and needed to ship over 40 full load shipments to their new location.

Seems easy enough, right? For a truckload representative, they think they just got the sale of month! Unfortunately for them, Intermodal priced each load $300 cheaper for than over the road. Instantly, shipping by rail presented a $12,000 difference in savings over the freight spend for 40 full truckloads. If pricing alone wasn’t enough, there were additional benefits that ended up making Intermodal the crucial choice.

During the move they loaded 3 containers per night, staggered the deliveries to by letting them go to the rail yard and sit when needed (rail yards give 1-2 days of free time, in comparison having to pay a driver to sit overnight or get detention on a delivery). In addition, one carrier was scheduling all the appointments which eliminated the confusion with multiple truckload drivers

For this customer, shipping Intermodal made the whole difference. Rail provided them with the flexibility to manage a successful move by saving over $10,000 in freight costs alone, by allowing them the capability to stage the delivery as needed so that the receiving warehouse would not be overloaded, and avoided a potential logistics nightmare with 40 different trucks from different carriers.

Next time you are looking to make a sizable, long distance shipment, make sure to check out any intermodal shipping options.   Contact a rail shipping representative today. You can also request a rail freight shipping quote to see cost savings.

 

BlueGrace Logistics

Got Freight? Get a Quick and Easy Freight Quote
1-800-MY-SHIPPING

Proof of the Power of Twitter and Employee Ideas

BlueGrace Logistics is always seeking out new ways to keep employees excited about upcoming events and holidays. As a company that supports a strong corporate culture above all else, finding ideas to mix up the BlueGrace experience can be challenging.  With a long history full of successful dress theme and costume days, BBQs, sporting events, chili cook-offs, prize giveaway challenges, charitable competitions, as well as holiday games like Secret Santa and in-office Easter egg hunts, it can be difficult to think of the next great thing.

Recently a BlueGrace employee, Brandice Tossas, took it upon herself to serve up something really cool for BlueGrace Logistics in Riverview, Florida. Before going into what event took the office by storm from this Brandice’s idea and individual effort, it’s important to mention another key part of the BlueGrace culture that made this event possible – Twitter.

BlueGrace Logistics Employee - Brandice Tossas

All employees of BlueGrace Logistics have their own Twitter handle and are encouraged to Tweet regularly, even during business hours when time allows. BlueGrace is heavily involved in all social platforms, and puts an emphasis on employee involvement as part of the general corporate culture. Yet, for this employee’s idea, the company’s social engagement on Twitter brought forth a special opportunity that benefited everyone.

Follow BlueGrace Logistics on Twitter!

Brandice had become aware of a special traveling tour that had been going cross country providing samples of their new products and had the idea of trying to get them to come to BlueGrace Logistics. This was no ordinary product launch tour, this was Ben & Jerry’s Truck Tour offering new flavors of their new Greek Frozen Yogurt flavors! She started tagging Ben & Jerry’s in tweets asking for them to stop by BlueGrace during their Florida tour, and after multiple tweets, she got a response!

With a BlueGrace stop possible for the Ben & Jerry’s Truck Tour, Employees took to Twitter to reinforce Brandice’s request and to express how awesome it would be if the tour stopped by the office. The result?  The Ben & Jerry’s Truck Tour made its official BlueGrace Logistics stop at 11am on Tuesday, May 22nd!

When announced that Ben & Jerry’s had arrived, it was like seeing kids go after an ice cream truck. BlueGrace employees lined up in full force and stood around gloating in the glory of free frozen yogurt. The Florida heat spared us with a slight overcast afternoon so that we could enjoy eating without having the cold treat melt down in seconds.

 

The event ended up being a huge success by creating a special experience that the employees never had in a corporate setting, got free ice cream to interrupt their work day, and even better got to bond with other co-workers when they normally would not have the chance. In addition, this was only possible through the suggestion of a BlueGrace employee and proof of the power of Twitter in the BlueGrace corporate culture.

See more pictures from the Ben & Jerry’s Truck Tour on BlueGrace Logistics’ Facebook page

 

BlueGrace Logistics

Got Freight? Get a Quick and Easy Freight Quote
1-800-MY-SHIPPING

Port of Possibilites: The Expansion of the Port of Tampa

The expansion of a port city can have a strong effect on the host city and its economy. Expansion on the shipping industry in a particular region drives everything from employment to home prices. On September 3, 2007 , the Panama Canal began expansion with a scheduled completion in late 2014. The expansion of the port will allow for larger cargo ships to pass through the canal; which will make shipping out of Asia into the Eastern United States much more cost effective. In order to align with the projected growth in the shipping industry as a result of this expansion, The Port of Tampa has launched an aggressive Port Expansion project as well.

The current global shipping situation mandates that large sea carriers from Asia  must navigate around  South America in order to access the eastern United States, and vice versa. The expansion of the Panama Canal will allow for large sea carriers to pass through, and hence permit a more economical way to ship from Asia to the Midwest and Eastern United States. On July 26, 2012 the Port of Tampa purchased 110 acres from South Bay Corp and Industrial park to facilitate the expansion of the port facility near Gibsonton, FL. This land purchase is setting stage for the Port of Tampa to expand and gain a slice of the anticipated growth in the freight shipping industry as a result of the expansion of the Port of Panama.  The expansion of the Port of Tampa will directly affect our local economy through the addition of jobs and driving local industries.

Blue Grace Logistics has made a reputation for being a progressive freight transportation company focused on providing the very best in cost effective and time efficient services to their customers. The expansion of the Port of Tampa, more specifically the terminal in Gibsonton will put Blue Grace in an even better position to possibly add value to the local economy. Inc. 500 recently recognized Blue Grace Logistics with a Hire Power 2012 award for being a hero in Job Creation. The expansion of the Port of Tampa further positions Blue Grace to possibly offer employment opportunities resulting from increased freight traffic, a few years the changes take place.  We may have the opportunity to help our customers capitalize on more cost effective shipping, which will assist them in growing a more successful business.

Responsibility to the community in which you operate is crucial to business success. Blue Grace Logistics has continually contributed to the success of our local economy. As the expansion of the Port of Panama concludes in 2014, and US ports begin to see increased traffic; the City of Tampa will experience exponential growth. As a national leader in the Logistics and Transportation Industry, Blue Grace Logistics is poised to improve on the services offered to our current and prospective customers. The expansion of the Port of Tampa is an exciting and encouraging sign that our city is and will continue to thrive and be a shining beacon in our nation’s economy.

What impacts do you think this Port Expansion will have on our local economy? Nationally?

Currently, BlueGrace offers a variety of international shipping services, domestic freight forwarding services, LTL, TL and more. Check out our services and technology for more information on our company and if you have any questions on how we can help you. You can also call us at 1.800.MY.SHIPPING for more information.

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