Tag: less than truckload

Reconsignment – Here’s a shipping term that you might be familiar with if you’ve ever had a change of plans with your freight. A reconsignment happens when freight that is already in transit is re-directed from one delivery location to another. This charge can vary based on how far apart the delivery locations are. For instance, if the new location is just down the street, the charge will probably be minimal. However, if freight was heading to California and is being reconsigned to Florida, you will be in for a hefty reconsignment fee.

We get a lot of groans when we have to quote people for the cost of a reconsignment so we wanted to highlight the process so you can educate your customers as well:

1. We have to send written authorization to make the change to the carrier. A Bill of Lading is a legal contract, so any changes made must be in writing. Authorization must be made by the shipper or paying party always.
2. The carrier will enter the information into their online system and image your authorization.
3. A rating analyst reviews the request, verifies that we have authorization to make the change, and completes the request.
4. Notification is sent to the terminal who currently has, or if it is in transit, who will have the freight.
5. New labels have to be generated and put on the freight.

Typically, your charges end up being broken down into the cost from origin to reconsignment point, and reconsignment point to new destination, and fees for marking and tagging of the freight. If your freight has to backtrack, you will pay for every mile it has traveled.

GREAT EXAMPLE: If it was originally to go from NY to CA, but then once it reached Chicago you turned it back around to PA, you are paying NY to Chicago and Chicago to PA, not just NY to PA.

Important points to note as well:

• If you are not the shipper or paying party, you cannot use your authorization to make changes to the BOL.
• If your name doesn’t appear anywhere on the BOL, see #1 above.
• If the driver arrives and you say that it needs to go to a different address across town, this constitutes both reconsignment AND redelivery. And it can’t be done without authorization, as above.

This process actually represents a significant amount of labor time and fuel. Even a local reconsignment (change in address within a local terminal service area) requires these steps.

All carriers want to make money on this deal. Nothing is done at cost. But time is money, and the cheapest option is to always do it right the first time.

We have great rate engines in place to obtain quotes on standard LTL moves, but do you know when not to use a rate engine?  LTL carriers will impose limits within their tariffs (that vary with every carrier) to limit moving shipments that are too large for their network. Some carriers structure their operations to carry volume LTL shipments while others do not. Volume quotes, also known as Spot quotes, should be obtained based on the below in order for you to get the most economical rate.  

Single shipments with standard size pallets (48x40x48) that are stackable:

• 1 – 8 pallets is best for standard LTL quotes (unless the weight exceeds 8,000 lbs., then pursue a volume LTL quote)
• 9 – 10 pallets pursue a volume LTL quote or a partial TL quote
• 11+ pallets pursue a volume LTL, partial TL, or even a TL quote 

LTL carriers will rate any single shipment up to 19,999 lbs. as LTL but it will be costly:

• 8,000 – 10,000 lbs. shipments could be considered as partial TL’s and quoted accordingly
• Excess of 10,000 lbs. shipments should always be quoted with volume LTL, partial TL, and TL to obtain the most economical rate

Odd size or non-stackable pallets:

• 1 – 4 pallets is best for LTL (unless the weight exceeds 8,000 lbs., then pursue a volume LTL quote)
• 5 – 10 pallets, pursue a volume LTL or a partial TL quote
• 11+ pallets should always be quoted with volume LTL, partial TL, and TL to obtain the most economical rate

Limited access charges were created to compensate LTL carriers for additional time spent at your shipment’s pick up or delivery locations and constraints that can result from these specific locations. Limited access is defined as meeting any of the following conditions:

• Not open to the walk-in public during normal business hours
• Not having personnel readily available to assist with the delivery or pickup function
• Not having access to loading dock or platform
• Sites where carriers are delayed with security related inspections and processes prior to freight tender

Did you know: Some of these high security locations will ask for a driver’s license and drivers have the right to refuse to do so? This causes the carrier to find a driver who is willing to do so, which in turn causes a domino effect or constraint on the daily operations of that particular terminal.   

In order to avoid unexpected charges it is best practice to ask the consignee if they have a dock or way to unload the freight and ask them if they need a liftgate for delivery. Liftgates are commonly associated with limited access and if the consignee advises they don’t need a liftgate let them know that if the driver offers a liftgate and it is used or it is signed for even though it was not used there will be an additional fee that will be charged to them.

Limited access fees can be assessed on both commercial and non-commercial delivery sites. Charges and what constitutes as a limited access will vary based on carrier, but here are some of the most common examples:

• Camps, Carnivals, Fairs, Amusement Parks
• Churches, Mosques, Synagogues, Temples, Convents
  
• Schools (not including colleges and universities), Day-cares
• Colleges and Universities without a dock
• Medical/Urgent care sites without a dock
• Prisons, Courthouses
• Individual/ Mini Storage Units
• Mines, Quarries, Natural Gas or Oil Fields
• Golf Courses, Country Clubs
• Nuclear Power Plants
• Military Bases/Installations
• Parks, Farms and Rural locations
• Hotels, Motels, Retirement/Nursing Homes
• Restaurants
• Cemeteries
• Construction Sites
• Outdoor Flea Markets

Google Maps is a great tool that can be used to help explain whether or not a location has limited access. However, please keep in mind that even though the location is easy to get in and out of and they may have the necessary equipment to unload they may still be considered limited access. Some great examples of this are as follows:

• Farms: While they are easy to get to and have equipment, they usually take the driver off his/her usual route which causes delays for the other shipments on the trailer
• Mini Storage Units: The driver will have to use a smaller trailer with or without a liftgate and thus make fewer deliveries that day because of the space available on the trailer, so the charges are there to compensate for this
  • Carriers normally have fewer trailers with liftgates which makes this even more difficult when the volume of limited access or liftgate shipments goes up

Keep in mind: Commercial buildings with docks are normally clustered in the same area, a carrier can easily make multiple pickups or deliveries in a business park in the same time it may take to make one limited access delivery.

Density is very important in selecting freight class. One carrier that rates solely on density of an item is Central Transport. Some carriers will rate based on density if the commodities’ National Motor Freight Classification (NMFC) is a density based item. Three carriers that do this are Midwest Motor Express, UPS, and Saia.

With these NMFC density based rating carriers the general rule is anything under 48 inches high will be calculated as 48 inches and anything over 48 inches but under 96 inches will be calculated as 96 inches for density purposes. 

Please see the actual wording from one of the carrier’s rules tariff below:

So how could this affect your shipment?
Say you were shipping 1 pallet of sheet steel, or NMFC 175120, which is a density based item.

• The dimensions are 144” L x 45” W x 18” H
• The total weight is 550lbs.
• This equates to 8.1 PCF & Class 100
• In turn, sub 6 would be selected for this NMFC (175120-6)

However, if you changes the dimensions based on the carrier’s rules tariff above, you now have the following:

• The dimensions are 144” L x 45” W x 48” H
• The total weight is 550lbs.
• This equates to 3.1 PCF & Class 250
• In turn, sub 3 would be selected for this NMFC (175120-3)

Due to the higher class of freight, the price will go up substantially!