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Intermodal 101:Rates

Posted 7 years ago

Intermodal 101: Rates

Use of rail controlled, door to door offerings have some positive and negative components to consider. It is important to contemplate them when trying to determine if this option for intermodal shipping fits your needs.  This product offering has been beneficial to the railroads and doesn’t show signs of changing, but to understand why it is good for the railroad, it is important to understand the dynamics that lead to this service.  This post will discuss one of the major contributing factors – rates.

Historically, the rails went to market through a controlled network of 3rd Party Logistics (3PL) companies who held contracts with the rails to sell their service in a ramp to ramp environment.  The 3PLs who held these contracts are known as Intermodal Marketing Companies (IMCs).

It was the job of the IMC to coordinate the origin drayage, rail linehaul and the destination drayage, to put together a complete move from origin to destination.  This allowed the IMC to consider different rails and different drayage firms to arrive at the solution the customer was looking for – whether that was speed, ride quality, lower rates, etc.

This method relied on contracted rates between the rail providers and the IMC’s.  It may be Freight All Kinds (FAK) rates that are basically the same across all IMCs or Special Pricing Quotes (SPQs) that are put in place for a specific Beneficial Cargo Owner (BCO).

As railroad consolidation began to pick up steam, the rails decided to limit the number of IMCs they would allow.  Each IMC that had a contract in place could continue moving freight with the rail on a ramp to ramp basis.   This was an advantage for the IMC community, but was a restrictor to the railroads and their efforts to grow.

Going hand in hand with rates is equipment supply, which we will discuss in our next post.

 

Check in on the 1st and 3rd Wednesday of every month for more information on intermodal and how it can benefit you!

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Training Tuesday:Confirming the Sale

Posted 7 years ago

Training Tuesday: How to Confirm the Sale

There’s no magic to confirming the sale.  Right from the initial approach to the very end of your presentation, bit by bit, you should be confirming the sale. Relatively early in the presentation I let the prospect know that I expect him or her to make a decision at the close of my presentation. I go with my instincts.  I close the sale when my customer lets me know it’s time.  Closing or confirming the sale is the most natural thing about selling.

You have to have complete confidence in your ability to close the sale, if not, the prospect becomes consumed with doubt.  The prospect can sense when it’s time for you to confirm the sale, and it’s up to you to ask for the order.  They knew you were a salesperson when they agreed to see you, and if you lack confidence to ask for their business, they’re going to lack confidence in making a decision.  Hesitation is as contagious as confidence.

Your sales presentation should be smooth.  The close should have a rhythmic flow that naturally blends in with your proposal so that the prospect is unaware of a precise moment when he can think, ‘Ah, now he’s putting pressure on me to buy.’ Pressure selling is outdated and counterproductive.

The longer a customer has to think it over, the lower the odds become that you’ll make the sale.  I go with the odds and always make a strong attempt to close the sale while eye to eye with the prospect.

Do not oversell!  Some salespeople enjoy a successful close so much that they want to hear it again – even if it re-opens the door to a “NO.”  When the customer says yes – you should SHUT UP!  The sales pitch is now over.  You and the customer are now business partners.  Learn to take YES for an answer.

Be a closer (confirmer).  Your main objective is to get new business.  At the end of the presentation, a real sales professional will confirm with their prospect that they’ve done a good job.  That confirmation will come in the form of a sale.

 

Check back next Tuesday for more tips on Selling SunteckTTS. The full playlist of videos can be found on our YouTube channel.

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Safety Tips:Inspecting Your Equipment Q&A

Posted 10 years ago

How many kinds of inspections are there?

  • There are 3 types of vehicle inspections
  • Pre-trips … done every working day before you start driving
  • On the road inspection or in route
  • After the first 50 miles
  • Whenever a change in duty status is made
  • And every 150 miles or 3 hours
  • Post trip inspection (this is the one you must document on you Driver Vehicle Inspection Report or the DVIR)

What is the point of all these inspections?

  • The driver must be satisfied that the vehicle is in a safe operating condition & meets all safety requirements
  • If the vehicle doesn’t meet DOT safety requirement, don’t drive it. Get It Fixed First.

Tips for doing a good inspection as quickly as possible

  • First start at the same place every time you do an inspection. The driver’s door for instance.
  • Work your way around the truck in the same direction every time
  • Always check under the hood …

What should be checked under the hood?

  • Fluids like coolant, and washer fluid
  • Belt and hoses for signs of wear
  • Nuts and bolts for rust leaking out

How do you keep from missing something?

  • Always check everything … it’s the thing you skip that will cause breakdowns and delays.
  • If you check everything, every time, you will be alert to little problems before they cost you time, money and violations. Your eyes will begin to catch things that have changed.

What about tires, what are you looking for?

  • Check tire tread depth at the lowest spot … that’s where the DOT will check it
  • Tires with cuts or exposed cord material are an out of service violation and must be replaced on the side of the road at a very high price
  • You only need a penny to check the tread depth on your tires the distance between the edge of a penny and the top of Abraham Lincoln’s head is 2/32” the minimum tread depth for drive tires. Steer tires are 4/32”.
  • Don’t forget the wheels… if they have dirt and oil in them, there is a seal leaking and it needs to be fixed. If you feel heat coming from the hub (careful not to touch, they can be very hot) you may have a bad bearing or it may be low on hub oil.

There are a lot of lights on a truck … if one or two are out is that ok?

  • Be sure all lights work… If it’s on the truck it must work, even if it is a light you added that is not required.
  • A single light out on the truck give the DOT a reason to pull you over and look at everything.
  • Check your low beam and high beam headlights
  • Check your lights every time you stop… they can burn out during the trip

Are drivers responsible for the lights on a chassis?

  • Yes… you are responsible for the lights on the trailer or chassis, be sure they are working before you leave and check them whenever you stop. If they don’t work fix them.

What else should we look for on a trailer or chassis?

  • Check the sliders on both trailer and chassis and the locking pins on chassis
  • If you don’t bend over and look you don’t know if the slider’s pins are locked in the holes.

Is it possible wheels could come out from under the trailer?

  • Yes the wheels can come all the way out from under the trailer or chassis…
  • If you use zip ties to secure the locking pins on the 4 corners of the container you can be sure they stay locked and an added benefit is the DOT will see the zip tie and leave you alone.

What else should we check on the truck and trailer?

  • The DOT is looking at brakes very closely…it is important that drivers check them on every trip.

Any tips on checking breaks?

  • Check your brakes using your eyes, ears and nose.
  • Using your eyes … are the brake pads at least 1/4” in thickness? Are the brake drums cracked or grease? Do the push rods travel more than 2 ½ inches? If the answer is yes to any of these questions you could be placed out of service and in for an expensive roadside repair.
  • Use your ears… air up the brakes and listen for air leaks if you can hear it the DOT inspector will be able to hear it too.
  • Use your nose… if you smell a burning smell it could be oil or grease dripping on your hot brake shoes; this could be a warning of a leaking wheel seal.

ABS Malfunction Indicator

  • There are two Antilock Braking System malfunction indicator lights, one on the dash for the truck and one on the lower left rear corner of the trailer.

Should the lights be on or off?

  • These lights should come on when you start your truck and go off when the truck starts moving. If they don’t go off you have a problem with the ABS system on your truck which needs to be fixed before you continue your trip. If the ABS light on the lower left rear corner of the trailer is on … it is like having a sign on the truck that says,”Pull me over I have violations”
  • Remember the ABS lights should come on when you start your truck and go off when you start moving.
  • Fire extinguisher
  • Windshield wiper
  • Horn
  • Emergency triangles … you should have 3
  • Is the floor neat and clean, so nothing that can get under your feet
  • Is the dash clear of item that could slide off and distract you
  • Is your truck clean… a clean truck is a happy truck and it is not inspected as often by the DOT
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