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- No guaranties. Do not assume that a trucking company has
any liability if delayed freight shuts down your customer's production line
or costs you a contract. Guaranties are offered by some carriers but at
much higher rates. You must ask for the service up-front, not
in transit. Published transit times are the norm, not generally guaranteed
in any way.
- Claims: If your freight is mis-classified and lost or damaged,
claims will be paid on the classification stated on the Bill
of Lading. This frequently happens when shippers use lower classifications
to get reduced rates. Often, the amount paid in this instance does not near
the replacement cost. It is your responsibility to fill out the paperwork
correctly since it is a legally binding document. You can only claim the
actual cost of a product if damaged/lost. If lost or un-repairable, you
cannot claim additional labor costs for it's replacement.
- W&I: There are staff on-hand at most trucking companies whose
job it is to catch mis-classified and poorly packaged freight (Weight
& Inspection). If your freight is found to be incorrectly classified,
weighed or measured, you may get an unexpected and unpleasant surprise on
your next bill. They will usually base their assessment off just the density
of the freight. You may have shipped a heavy/dense item that took a small
portion of the pallet, class 55. However, density is measured from the corners
of the pallet, to the top of the freight. The result may bring the density
of the product to a class 70 or even higher. Overall density outweighs the
straight classification of freight in terms of priority. Additionally, an
inspector who catches your freight once will often target it in the future
as it passes through the hub.
- Mis-Classified Freight: The practice of mis-classifying freight
to get lower rates is widely performed. Unfortunately the consequences are
often misunderstood and underestimated. I frequently heard shippers say
"I have always done it this way" or "I have to ship at class
70 to stay competitive." Unfortunately, that does not protect you from
re-classification (see above). If you knowingly mis-classify freight,
do it from a position of strength by reading the NMFC
guidelines and understanding the consequences. There is nothing worse
than being blind-sided by an inspection. They are infrequent enough to give
you a false sense of security.
- Union/non-union: If you prefer union trucking, establish a relationship
with non-union carriers to protect you in case of strike. The key differences
between union and non-union are: Union drivers have more strict guidelines
as to their duties. They will not usually provide loading or unloading assistance,
work between 12:00 and 1:00 p.m. (even if their trailer is blocking your
dock), or perform extraordinarily service. Non-union drivers are usually
more open to offer additional assistance or make special arrangements. These
are very loose, generalized statements and do not represent all drivers
whether union or not. More importantly, establish a positive relationship
with the driver/drivers who will be servicing your account. If your location
is deemed troublesome, inconvenient or difficult to deliver to/pick-up from
by a driver(s), you may see a higher instance in damage. It is not an accepted
practice to "run-off" a customer but it does happen and is impossible
to prove.
- Rail: Some LTL carriers use Rail
to inexpensively get freight across the country. Rail is almost always slower
than truck and depending on the commodity, may be more easily damaged. The
constant vibration of the rail-car is known to slowly rattle some products
apart internally without obvious damage to the packaging.
- Regional/local carriers: Use regional carriers for smaller markets.
If you ship to more rural or suburban areas nearby, use a local or regional
carrier to get your goods there. The larger companies will often not cover
the area themselves but hand it off to another carrier specializing in that
area (interline). The drawbacks are:
you lose some ability to track your freight, cannot establish a relationship
with the company handling your goods and possibly additional transit
time. Note: Most if not all carriers will show the rural areas as standard
serviced areas. You typically will not know unless you ask There will probably
be small print somewhere saying "outlying areas require an additional
time to deliver." Where those outlying areas are will not necessarily
be obvious.
- Add-on charges: Know what add-on charges are up-front. Carriers
will often add additional charges for: inside
delivery, metropolitan and difficult to pick-up/deliver areas, liftgate,
appointments, etc. Ask your customer
up-front if any special handling is required or if it in a difficult to
deliver area. It will help you get an accurate quote for freight charges.
- Low ball: Beware of low-ball or significantly less expensive carriers.
Often they are just selling price and are reluctant to pay claims or offer
good service. Frequently they are near bankruptcy and are simply looking
for additional cash flow on their books.
- Loyalty is generally rewarded. Trucking companies are more apt
to provide extraordinary assistance to their larger customers in emergencies.
Keep in mind, just because all of your freight goes to one carrier does
not necessarily make you a big customer. It is a good idea to establish
a relationship not only with your company representative but also the local
Terminal Manager. During their career,
he/she has seen every type of emergency possible and know how to work around
them.
- Freight Brokers generally have a bad reputation with trucking companies.
Often their credit is poor because they don't pay the trucking company until
you pay them. They are best suited for infrequent or inexperienced shippers.
Occasionally they will have over-seas logistics and freight forwarding services
which are very useful.
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