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LTL 101:National Motor Freight Classification

Posted 6 years ago

It is VERY important you understand freight class. If you incorrectly classify your item to be shipped it can be reclassified by the freight carrier. Disputing this is difficult, time consuming and you will be charged the difference (usually without a discount).

The National Motor Freight Classification® (NMFC®) is a standard that provides a comparison of commodities moving in interstate, intrastate and foreign commerce. Commodities are grouped into one of 18 classes—from a low of class 50 to a high of class 500—based on an evaluation of four transportation characteristics: density, stow-ability, handling, and liability. Together, these characteristics establish a commodity’s “transportability.”

By analyzing commodities on the basis of the four transportation characteristics and ONLY on the basis of those characteristics, the NMFC provides both carriers and shippers with a standard NMFC number or code by which to begin negotiations and greatly simplifies the comparative evaluation of the many thousands of products moving in today’s competitive marketplace.

If you don’t have an NMFC number/code listed on your BOL, there is a good possibility that your freight will be reclassified. Some carriers will assign an arbitrary class if there is no code listed on the BOL, often outlined in a carrier’s rules tariff. This, along with the proper code, will greatly reduce the possibility of additional reclass charges.

 

Here at SunteckTTS, we are participants of the National Motor Freight Traffic Association which means we have access to multiple ways of obtaining the correct NMFC number/code for your shipments. If you have any questions or doubts regarding your product’s freight class, please reach out to the LTL Team.

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Training Tuesday:Time Management Tips

Posted 6 years ago

Salespeople who don’t value their own time will end up wasting valuable selling minutes that can stretch into days or even weeks. Before they know it, they’re down on quota and up on stress. The time management tips below can help you make the most out of every selling minute.

Tend to Business, not busyness. Don’t waste working time with office gossip, reading newspapers unrelated to work, or daydreaming. When you’re at work or on the road, spend your time wisely engaged in sales and selling-related tasks only.

Accept responsibility for the use of your time. Don’t blame others for your pressure or your slacking off. Be in control of your schedule. Don’t let the needs of other cause you to stray from your course – stay focused on your goals and plans.

Delegate. Don’t let others dump their work on you. Give away work that someone else can do better. Keep your sales goals the primary focus in front of you.

Enjoy your work. Have fun with your customers. Be someone they welcome because of your bight and cheery personality. Create genuine connections with your customers that will allow you to provide better service in the long run.

View time as your friend. Imagine time as a clock in your pocket. You can spend the entire day carrying it around and it will always be working for you and with you. And remember, tomorrow is always a fresh start with another 24 hours to make work for you.

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Training Tuesday– Prospecting

Posted 6 years ago

No matter what you have scheduled for any particular day there is one part of your job you should do every day – prospecting. There are no sales without customers and there are no customers without frequent prospecting. To keep your trucks full of freight, you have to keep prospects in your pipeline. Set a daily or weekly minimum number of cold calls or prospecting contacts for yourself – your success depends on it.

There are many resources that cover the best ways to be successful in prospecting, and some of our top tips are below:

1. Talk to and develop relationships with everyone you meet in your industry. Make sure your competitors know you and what you do. Share information. Never give away company secrets, but sometimes you can help each other achieve goals and gain new business you might not have uncovered without the others help.

2. Join clubs and organizations. You never know where your next big shipper will come from.

3. Subscribe to industry publications. Read your local newspapers, business publications, and national publications. There are many online resources and articles that will provide excellent industry insight.

4. Attend trade shows and seminars. Those that are aimed at trucking and freight, as well as major tradeshows that are specific to certain industries, are a great place to start.

5. Give speeches every chance you get. Don’t sell from the podium, but positioning yourself as an industry expert will benefit you in the long run.

6. Develop and practice networking skills – the most powerful business tool. Mastering networking is the difference between a mediocre and magnificent career.

7. Surround yourself with successful people. It’s the best way to learn how to be successful.

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LTL 101:Restricted Commodities

Posted 6 years ago

Did you know that certain types of commodities cannot be shipped via LTL carriers due to governmental regulations and that LTL carriers can refuse to accept certain items as a matter of company policy? In many cases, the root issue is liability — certain items are too valuable and/or high target items for theft to make them worth the risk to handle and transport.

Items of Extraordinary Value:
Carriers have different policies regarding these items and they may be willing to accept certain items if they have the appropriate insurance coverage and specialize in the transport of valuable merchandise.

Restricted or Prohibited Items:
Another group of items that LTL carriers may refuse to transport are those excluded by government regulations or due to being extremely hazardous in nature. In addition, carriers that lack the proper storage and stowage equipment to maintain the proper temperature will refuse certain items, such as refrigerated items. Finally, certain items (such as canoes) may be prohibited by certain carriers because of their size, shape, difficulty to stow and difficulty to handle.

Do your homework and research LTL carriers carefully!

Restricted Commodities are listed in the Rules Tariffs of each LTL carrier. To give you an example of how complex some of these Restricted Commodities sections are, please visit FedEx’s “Prohibited and Restricted Articles” section of their rules tariff by clicking the link: http://www.fedex.com/us/freight/rulestariff/prohibited_articles.html

Make sure to address specific questions to the carrier you are considering. Within the world of LTL carriers there is a great deal of specialization. For instance, some carriers specialize in the transport of perishable items or hazardous materials. If you have items to transport that fall into both of these categories, you may be forced to hire two separate LTL carriers.

Whatever company you choose to move your hard-to-handle item(s), make sure to do your homework. Make sure you select a freight company with a strong track record, solid liability coverage, and robust maintenance and quality control processes to ensure top performance.

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Training Tuesday– Tips for a Great End of the Year

Posted 6 years ago

As we move steadily towards the end of the year, it is important to continue to work hard to gain new customers and keep existing customers satisfied. Below are some of our top tips to make the end of the year just as strong and successful as the beginning.

1.Call every existing customer you have.

Remind them why they already rely on you. Let them know that you and your staff will continue to provide excellent service through the remainder of the year, and beyond. Also ask them if there are any new projects or additional shipments coming in the next few months that you should prepare your staff for.

2.Call every “hot prospect” you have.

You never know when a prospective shipper may have encountered a problem with their current 3PL or carrier. You may luck into calling them on a day when they are receptive to hearing how your agency can provide better service than what they are currently receiving.

3.Train your team.

Ensure that your team has the knowledge and tools they need to finish the year strong. If they need additional sales or operations training, make sure they get it.

4.Set an “end-of-year” goal.

People find a way to achieve great things when they have a well-defined goal. Review your prior year’s results and compare them to current year-to-date run count and revenue results. Then, set an aggressive, but attainable, goal for you and your staff.

5.Make 10 customer calls per week for the remainder of the year.

By simply making 10 new prospect calls per week, you’ll contact almost 200 new prospective customers by year’s end.

 

Selling is the key to our success; as individual agents, and as a company. Our sales success has a direct impact on our ability to grow, to become more profitable, and to take market share – today and in the future.

 

“It is not your customer’s job to remember you. It is your obligation and responsibility to make sure they don’t have the chance to forget you.” – Patricia Fripp

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Training Tuesday:Maximize Joint Sales Calls

Posted 6 years ago

If you have sales people in your organization, and you’re not making joint sales calls with them, you’re missing out on one of the best tools to grow your business. Joint sales calls are beneficial in many ways, primarily for the less-experienced salesperson on the call, but they also provide an opportunity for the experienced salesperson to build greater relationships with their team members and customers. If you’re going to take the time to go on a joint sales call, there are a few things to keep in mind to ensure that your joint sales calls are most successful. Ask yourself the questions below before planning a joint sales call to maximize the benefits of the call for yourself, your team, and your customers.

1.What do you want to accomplish on this call?

Determine what you’d like to gain from conducting a joint sales call. Are you trying to improve the skills of a new team member? Improve a relationship with an existing customer? Or, make a sale to a new customer? After you’ve answered these questions, be sure to set concrete goals before the call and create a sales strategy that works towards that goal.

2.What action do you want from the customer at the end of this call?

This should be decided before every call to give you and your sales person a direction when making the sales call. If you want the customer to make a purchase at the end of the call your approach will be different than if the purpose of the call is fact finding. There are many different types of sales calls that will benefit the customer and help you grow the account; fact finding, service calls, bid review, sales presentation, etc. Know exactly what kind of sales call you’re making and prepare accordingly.

3.How will this call reinforce the value of your company?

What value does this joint call offer? Does it allow you to emphasize a strength of the company? How can you best take advantage of the time on the call to create value for your customer and the company? Make sure not to waste the customer’s time. Be mindful to accomplish your goals on the call, but more importantly, ensure that the time spent with the customer has value to them and to their company.

4.What am I teaching my salespeople today to help them achieve their potential?

How does this joint sales call allow you to be the best leader and help your salespeople to become stronger? Is this call part of a larger effort to create an encouraging environment for your team or is it intended mainly for sales purposes? Know what the value of joint sales calls is to your sales people. Sales representatives are uniquely different – make sure that the sales person you ride with will get the maximum benefit of your time, expertise, and coaching.

5.How am I creating a motivational climate for my salespeople?

Is a joint sales call the first step to motivating your employees? What else can you do to create a team that is motivated and empowered to be successful? There are few traits more valuable to a sales person than a positive attitude. Be sure when making joint sales calls that you demonstrate the power of a positive attitude to your sales person and to your customer. A little motivation can go a long way. When joining a member of your sales team on sales calls, make sure you demonstrate a dynamic, positive and upbeat attitude and approach to your sales efforts. Your example and sales coaching could be the key to your employees enjoying a successful sales career.

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LTL 101:Billing Accuracy

Posted 6 years ago

Many shippers have expressed concern about accuracy of billing by LTL carriers. Having pushed the LTL carriers to be more vigilant with making corrections for weight and other aspects of shipments for proper revenue capture, SJ Consulting researched the validity of such perception by conducting an extensive survey with several large LTL shippers, 3PLs, and freight audit and pay firms, with particular thanks to Williams & Associates. The freight charges on LTL shipments by these companies exceed $8 billion over a 12­ month period, representing 22 percent of the total industry revenue. For decades, the LTL industry has relied on an honor system for shippers to provide true characteristics of their shipments, required to accurately bill the customers for their shipments.

The survey found range of billing accuracy was 94 to 99 percent depending on the carrier, with the average being 97 percent. The most interesting revelation of the survey was that what shippers perceive as a billing error actually is due to shippers providing an estimated weight or freight class for dimensional attributes of their shipment that are corrected on more shipments as more LTL carriers deploy scales and dimensional machines. Given that about 50% of bills of lading have errors in weight or description of the shipment, it’s no surprise that a correct invoice from a LTL carrier can get perceived as a billing error.

Despite shippers’ perception, the LTL industry has an impressive record in billing accuracy, and it is finally converting rapidly from an honor system.

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LTL 101:Clean BOLs

Posted 6 years ago

When shipping LTL freight, you must make sure your BOLs are clean and precise prior to sending them to your shippers. Extra language in the special instructions section of BOLs only causes billing issues. Take a look at the below examples where the BOLs are very busy and not easily readable:

  • Let’s stop putting so much traffic in the special instructions!
  • PU# is fine, but not 3 times
  • PU instructions FCFS is not needed and does not protect you or the customer from charges
    • If the carrier is delayed due to the shipper you will be charged regardless
    • If they can’t get in timely or for another reason they will skip the pick-up
  • “No APT needed for LTL shipments” –  This is unnecessary information because if the consignee states appointment is needed it will be assessed
    • The carrier already assumes appointment is not needed.
    • This includes daily routines between consignee and carrier
      • If a consignee isn’t always open during regular business hours, some LTL carriers will have that particular address flagged for appointments no matter what we have on the BOL
  • Headings: “BOL SPECIAL INSTRUCTIONS:” “PICKUP DIRECTIONS” “PICKUP NOTES” “PICKUP INSTRUCTIONS” “DELIVERY INSTRUCTIONS”  should be consolidated or removed all together

  • Again, “FCFS DELIVERY” is not needed and does not protect you or the customer from charges
  • “1000-1600” – By putting hours on the BOL, some carriers may flag the shipment for an appointment because standard LTL operating hours will always be assumed
    • If the carrier’s cut time from the terminal is 8am and this consignee is close to the terminal then this should be flagged because they would have to wait 2 hours prior to attempting delivery
  • “MUST CALL” – This verbiage may be mistaken for notify or an appointment because some LTL billing clerks may not catch the remaining portion due to the busyness of the BOL

  • “No additional accessorial will be approved without prior authorization” – This wording is irrelevant because the carrier will always charge based on their rules tariff and/or contract with the paying party

Now that you have cleaned up your BOL, you can’t stress enough to your customer:
“Make sure this BOL is handed to the carrier so that no additional charges occur!”

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LTL 101:Pick-ups and Deliveries

Posted 7 years ago

This week we are covering some of our top tips for easy, efficient, and cost-effective pick-up and delivery tips.

Pick-Ups:

  • Any pick-up (P/U) entered after 2:30 PM local time should be called into the carrier to insure availability, otherwise the request will roll over to the next day
  • Lift Gate P/Us must be called into the carriers because Lift Gates are not readily available at every terminal
  • All Container Freight Stations and Airline P/Us require Delivery Order and Entry paperwork (3416 document), these need to be sent 24 hours in advance because drivers will need these documents in hand prior to P/U
  • P/Us are not Guaranteed
  • All carriers require a 2 hour window for P/Us
  • P/Us are done in the afternoon because drivers have to deliver freight before they can start pickups
    • If your shipper needs an AM P/U it is best practice to call the carrier to set something up which will most likely incur additional charges
  • The shipper must have our system generated BOL to provide to the driver at the time of P/U or our rates will not apply
    • This is not something the carrier will have via our P/U requests in BTMS
  • If a LTL driver needs to reference a P/U number, it is best practice to put that number on the first line of the shipper name. Please see the example below:

ABC Distribution Co > Ref # 123456

4567 Main Street

Anywhere, NY 10014

 

Deliveries: 

  • Transit times and delivery dates are estimations and can be delayed for many reasons
    • Add an additional day if a shipment is interlined
    • Add 2-3 days if a shipment is traveling by rail
  • If the shipment must be delivered by a certain date and time, spend the extra money and have the shipment guaranteed
    • If “Guaranteed” is not on the BOL at time of P/U no adjustments can be made to the invoice
  • Volume Shipments cannot be Expedited or Guaranteed
  •  Re-delivery rates are based on weight and can get very pricey

 

It is imperative to make sure the consignee is ready to accept the freight so that additional charges are not incurred.

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LTL 101:Delivery Expectations & PODs

Posted 7 years ago

Last Blog we discussed educating our shippers in order to ensure our BOL is set up correctly and to avoid a possible dispute with the carrier regarding our invoice. This week we want to discuss educating our consignees so they know what to expect at the time of delivery.

It is very important to educate your consignee BEFORE the freight is delivered about what the process will be like. Will they need a liftgate? Will the driver be helping unload the freight in any form or manner? By asking these questions in advance, and by making sure that the consignee and you are on the same page, you can minimize additional charges on your invoice.

On the delivery receipt/proof of delivery (POD), issues should be noted if you suspect that the value of the product has been compromised. Make sure to note any damage to the packaging, and/or missing product. Having these notes on the POD makes it easier to file a freight claim with the carrier. Claims can take quite a long time so anything that you can do upfront saves time down the road.

Another tactic you can take is to refuse the shipment upon delivery if damage is present. Refusing a shipment means that the consignee does not accept the freight in the condition presented – meaning you will eventually file a damage claim. This will alert the carrier that something is wrong with the shipment and that they should get in touch with the appropriate party. Make sure you use this tactic responsibly, because if a shipment is not damaged the carrier can actually tack on a redelivery fee. Yikes!

Five of the most common additional services on a POD include:

  1. Lift Gate – Hydraulic lift on the rear of a truck used to assist in the unloading of freight.
  2. Inside Delivery – The driver is only responsible for moving the freight off the truck. If the driver helps move the freight more than a few feet away from the truck, even if it’s not “inside,” then an Inside Delivery fee may apply. Be very careful with this one because the terminology can be misleading and it varies by carrier.
  3. Limited Access (Residential) – This is up to the carrier’s discretion, however, there are locations that will always be deemed limited access. If a business is run from a home, or is in a residential area, carriers may charge this fee.
  4. Sort/Segregate – Certain locations may require a carrier to sort and segregate a shipment. This is additional handling beyond the normal duties of a driver that will incur additional fee(s). This charge is especially prevalent in grocery stores or distribution centers.
  5. Detention – With most LTL carriers, the first 30 minutes from when the driver arrives are free. Any additional time is subject to an additional detention fee. Again, the length of this “free time,” and the charge it carries, varies by carrier.

So the next time you sign a POD when receiving your shipment, be sure to review it and see if any additional services listed are being used. If a service is pre-printed on the POD, then the need for this service was most likely known in advance. However, if the driver marks that an additional service was performed, then there will be an additional charge. In some cases, it may be good practice to have your consignee obtain a copy of the POD themselves.

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